When you don't have enough money to pay your bill every month, this is definitely not a good thing. When you get into this situation this is when you start falling behind and eventually you begin to miss payments or may even stop paying on certain bills all together. However this is a horrible thing to do and could end up in bankruptcy. If you don't want to end up in bankruptcy and you are motivated enough, you may be able to repair your bad credit on your own.
One of the most important things you need to remember when you want to repair your credit is that you must learn to spend less. Spending too much after all is what got you into this situation to begin with. So, this could be difficult to do especially since some overspending has nothing to do with your own choice to over spend. Sometimes the over spending comes from emergencies like medical bills. Lucky thought that emergency spending doesn't happen all the time. It's the over spending that you personally do by choice that needs to be addressed.
Take a good look at what you owe and then take a look at what you make. If it turns out that you owe far more than what you make then you are going to need to take steps to fix this as soon as possible. You can't just sit there and think about it. This is going to require immediate action.
General rule of thumb is that you probably need to make about 10 to 20 percent in income over what you owe in bills to be able to get your debt caught up. So this means your target should be to get some extra income that will cover that percentage needed to help yourself to rise above the debt. This means you might have to take on a 2nd or 3rd job then so be it. It's a far better way than filing for bankruptcy. By doing this you might be able to get rid of some of the smaller debts quickly. Remember you don't want to be damaging your health while you are trying to fix your debt issues. So, you are not going to be wanting to work all of these extra hours for too long of a period of time.
If taking on more work is not going to help the problem then this means you can't sit around and mope about it, you need to take action. So what you should do now is start calling all of the people that you owe money to and see if you can't get them to at least reduce the interest on your loans. You should even try to get them to come up with a different payment plan in order for you to be able to get them paid. This type of thing can give you some temporary relief and give you a chance to get caught up on some of your debts. If you own a home you might also want to see if you have enough equity in it to take out an equity loan and use that to pay off all of your debts and then you will just have the one loan to pay back.
If your creditors are not willing to work with you and you can't get an equity loan then you may have to break down and contact a debt management company. They will be able to figure out if they can work with the creditors or not, or if you will have to file for bankruptcy. They are trained to be able to help you learn how to repair your own credit.