Debt is a financial disease that is affecting a vast majority of middle class Americans today. Many are living pay a salary every month, and wondering where did all the money, while its debt level is getting more and more. Those who succeed with money have one thing in common: control of where your money goes and how it is spent and make a budget that is using every dollar they earn and spend. If you're one of those people who is in financial difficulties then you need to start a program of debt elimination that is built around a personal budget. The reason for this is simple, if you know how much income you have and how much are your expenses every month you can make adjustments in your spending habits to make their spending at a level commensurate with the amount you make. A budget is the first step in taking responsibility for your financial future and for most people it means the elimination of debt. While creating a budget can be a scary proposition, because of what could prove it is a necessary part of any good plan for debt reduction. The truth of your spending habits staring back at you from a sheet of paper is not fun, but is faster and easier starting. By entering your income in one column and your expenses in another column their financial situation will soon be in the spotlight. Be sure not to leave anything out because he wants a full picture of what your money is doing. Add columns to see if your income is keeping up with expenses. If you're like most people who are suffering from overwhelming debt you will find that your expenses are probably much greater than their income and the greater bulk of this may well be the monthly payment on the credit lines you may have which may include, mortgage car loan, student loans, and credit card debt. Therefore, you may want to make a spreadsheet with a list of all its outstanding debts to several creditors. Make a column for each of the following categories, name of creditor, balance owed, interest rate, and interest payments each month. Add the numbers in the balance due and interest payments by columns and record it at the bottom. This will show not only the amount of debt you have in total, but also to each individual creditor. This allows you to develop a game plan to start paying these debts and work your way out of financial difficulties they have caused. Because the money can be an emotional issue of the best ways to stay motivated is to start with the smallest debt and get paid off first. This will give you a good feeling and keep moving to the next highest debt until it is paid. Keep working up until the biggest Knock Out Debt. By starting with a budget outlining all income and expenses of its program of eliminating debt will soon be back on its financial feet. You will have far greater financial freedom once the debt burden of all that is no longer on his back.