If you are afraid of what's inside your mailbox because you know that a pile of bills are waiting, then it is time to seriously give a thought to debt management. Debt is often likened to a termite infestation; if you don't nip it at the bud before you know it things will get way out of hands. So if you find yourself in a hole where expenses are more than your income, here are some tips to help you dig out of it and eventually relieve you of debt.

You pay the highest amount of interest to the credit card companies, so lets start with them. If you have numerous and past due credit cards, begin by paying off the ones with high interests. Rummaging through your credit card statements or speaking to the customer service guys, may be required to find out which card is eating through your funds the most. The low interest cards can wait, so pay off these cards first. Using the spare cash after making the monthly payment to pay the principal on the high interest cards, is also a good idea. Continue with this routine till you get the second card paid off.

The next in line are car loans, if you have a lot of late and missed payments on a car, you should sell it immediately; this is one of the worst investments and it will be glaringly visible in your credit report.

Now evaluate your utility bills, especially the ones for basic needs like electricity, water, food etc. If you have funds, start by paying off these debts in the order of most important to the least important utility.

If a lot of payments still need to be made, you might want to consider liquidating. A good way to secure a debt consolidation loan with a low interest rate is to consider a second mortgage on your home. Debts should start disappearing, if you do this.

If a second mortgage has already been placed on your home, try refinancing both loans into one low interest mortgage. Even though, you can find really low interest rates today; the scenario is expected to change soon; so, you need to act fast.

Finally, stick to the weekly or monthly budget you've drawn up and be sure to remove all that is unnecessary. Limit your shopping sprees and avoid credit cards if you don't feel you can make those monthly payments. This will be very damaging to your credit score and you will lose hopes of securing a debt consolidation loan.

These are basic debt management tips; there are several books and even professional who can help you to devise a strategy that will suit your requirements.