If youve already fallen behind on all your debts, jump ahead to Section C, below. One important step in repairing and maintaining your credit is to stay currentor to not get too far behindon your existing debts. If it looks like you cant pay, your best bet is to contact your creditors before you miss a payment....

8. Figure out the difference. If your expenses exceed your income, you will have to cut expenses or increase your income. One way to do this is to make more moneybut lets assume that you are not likely to get a substantial raise, find a new (higher-paying) job, take on a second job, or make significant money by selling assets. This means you need to find ways to decrease your expenses without depriving yourself of items or services you truly need. Review your expenses with any eye toward reducing. Rather than looking to cut out...

To make (and use) a monthly budget, follow these steps: On a blank piece of paper, write down categories into which your expenses fall. (See list, below, for suggested categories.) Also, total up your two months (or estimated seasonal, annual, semi-annual or quarterly) expenses for the categories you create. ...

In Part C, enter the amount of each payment for each source of income. Column 3: Period covered by each payment. For each source of income, enter the period covered by each paymentsuch as weekly, twice monthly (24 times a year), every other week (26 times a year), monthly, quarterly (common for royalties), or annually (common for farm income)....

Your expenditures account for only half of the picture. You also need to add up your monthly income. Use Form F-3: Monthly Income From All Sources (copies are below, in Appendix 3 and on the CD-ROM). If you are married or live with someone with whom you share expenses, include income information for both partners....