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Stop adding to your debt. If you have more than one active credit card, cancel them. You will use your one credit card only to buy 'essentials' until you can get your spending fully under control. Also make yourself a promise to stop taking any new loans.

Track your spending- This is your key to getting out of debt, though it seems annoying. You're in debt because you spent money you didn't have. Your debt is not from one single huge purchase, it was random purchases collected over time. Write down every Rupee you spend, each day for one month no matter how small.

Organize your spending. Classify your monthly expenses into groups of 'Essentials', 'Necessities ', and 'luxury'. 'Essentials' are things which you can not do without, such as food, rent, medicine etc. 'Necessities ' are things that you need, but can do without for a little while, e.g., new clothes for work, cable TV, basic appliances etc. 'Luxuries' are things that you don't need, but enhance your life, e.g., personal electronic gadgets, weekly dinner in Hotels, vacations etc. By doing this, you'll have a picture of how you spend your money and be able to pinpoint where you need to cut back on spending. You don't want to eliminate all of the 'Necessities ' and 'Luxuries', but take a look at those first. One of your expenses will be paying off your debt. You will want to always pay more than the minimum required; otherwise it will take a really long time to eliminate your debt.

Make a budget :- Write down the amount you spent in each category of spending last month, as your budget for spending for the next month. Don't panic if you feel that the amount is too much. For now, just write it down.

Figure out how to skimp to pay debts- Looking at your new budget, you're able to see areas where you might be able to cut back. In doing this step, you need not come up with budget amounts that are unlivable. The key here is to be realistic. Chances are your budget has some fat that can be trimmed. At the end of this exercise, you should have come up with an amount of money that can be put toward debt paydown.Make a note of this figure. Day-to-day, just write down what you spend in the categories you are trying to cut back. This will give you a very clear idea of how well you are doing, and it may help you decide to hold back on a purchase, if you know you're going to go over your budgeted amount.

Estimate how much you owe, to whom, and on what terms - Gather your bills, and make a simple list or spreadsheet of all the debts you have. Write down all the pertinent facts, including name of the creditor, your total balance, your minimum monthly payment, and your interest rate.

Start paying it off. Take the debt pay down figure of money you trimmed from your budget, and apply it to debt repayment. It's a good idea to prioritize the debts to which you are going to apply this extra money. Do you have debts with exceedingly high interest rates? Most Credit Card companies in India have very high interest rates that compound on a monthly basis. Consider these top priorities once it is paid off, then you will have increased your debt pay down figure.

Consider a low interest loan – Getting a low interest personal loan from a bank might help you consolidate your various loans and lower your interest rates/payments. Do consider what the bank charges for fees though.

Sell Expensive or Liquidate Assets – Consider selling the luxury car or watch that your bought. If you have any assets that are not appreciating much over time then liquidate them so that you can pay less on interest.

Repeat. This process gets easier. Once you've figured out your spending and what debts you owe, keeping it up gets easier and easier. You'll refine your budget over time; increase the amount of money you can pay yourself and the amount you can put toward debt. Continue to pay off each debt in your priority list.

Don’t give up. Chances are you didn't get into debt in a day, and you won't get out of debt in a day. Quick fixes don't last, but learning how to manage your money can bring great peace into your life, and you can spend your mental energies on more fun things.