List bills

Take out all of your bills and list your debts from smallest to largest. Classify them in order from highest interest rate to the lowest interest rate.  You have to pay off the debt with highest interest rate first. Please make sure when you are taking into account interest rate, you factor in tax benefits that you get. For example, interest paid on housing loan is tax exempted upto Rs 2.5 lakhs.

Emergency savings fund

You may be familiar with emergency funds. Before starting to pay off your debts, build up a small emergency savings fund. This fund is for the unexpected expenses or bills that could pop up. This can be used when something unexpected happens. Some individuals suggest that such emergency funds should be equivalent to six times your monthly salary.

Monthly payments

You may don't have enough money to pay off the bills. But make sure that you always pay your minimum payments on time for every debt. Doing like this will eliminate the excess interest and late penalties. This is particularly true for credit cards where the interest rate can be as high as 2.5 per cent every month or 30 per cent annually. In some cases, it can be as high as 36 per cent interest rates on outstanding of credit cards. How To Use Your Credit Card Wisely? Tips For The First Time Users

Create a budget

Budgeting will help you to make up all the debts. Budgeting will tell you where your money should be spent. Take a look at your last month's expenses using bank statements and credit statements. You can use many budgeting apps. Create categories for each expense and set a limit for that category. You can keep your spending under control by budgeting.

Sell unnecessary items

Sell anything around your house that is taking up space and you don't want. They may include items like unnecessary furniture and electronic devices that could be sold off to pay off your debts. Now, you can sell items online using many sites.

Don't borrow money

Stop using debt to fund your day to day expenses. Don't apply for a new credit card and try to cut down your unnecessary shopping. You have to focus on the debt. Some individuals take a new debt to pay off an older one. This is nothing but a debt trap. You need to be careful of it.

Transfer  balances

If you're paying high-interest rates, transfer your balances to pay down the debt. This shall be done after paying your minimum payments. This is true in the case of many loans like home loans, where you can transfer from a bank that charges higher interest to a bank that charges a lower interest rate.

Increase income

To pay off your bills, you have to increase your income. If you are ready for a new job, then search for a better paying job. If you are ok with your current job, then find some part time works or ask for a pay hike. There are many ways to earn part time income with your regular job. How To Make Extra Money Within Few Hours