If you have more debt than you can handle, you need to decide which debts to pay and how to pay them. Line 2 of the Credit Payment Chart tells you the most you can safely afford to spend on credit payments. But you may find that you can't afford even this much. It all depends on your income and expenses. Any money beyond the bare necessities (food, shelter, heat, and transportation to work) can be used to pay off debts.

Talk to your creditors, don't hide from them, because that will only make the situation worse. Always call rather than write. Unemotionally, explain your problem and how you intend to solve it. As an extra precaution, follow up your conversation with a letter summarizing your discussion. Be sure to send it certified mail, return receipt requested.

You can also use the following methods to give you some ideas of how you might ask creditors to work with you.

• Most important method. Pay the debts that are most important to your credit rating or to keep your family safe. For example, you need to pay for rent, groceries, and utilities. You may need to make a payment on the car to keep it from being repossessed. You may need to pay on a loan to prevent your wages from being garnisheed. The consequences of not paying other bills may not be as bad, and they can wait a while. If you owe on store and bank charge cards, you should try to make some payment on them each month because these businesses report monthly to a credit bureau, and nonpayment will affect your credit rating.

• Interest rate. Compare interest rates on your debt. Pay off those with the highest interest rate first.

• New plan method. You could work with your creditors to set up a new payment plan for your debts. This idea works well with utility companies when you have high winter bills and lower summer bills.

• Consumer Credit Counseling. You may need help in negotiating with your creditors or figuring out how much you can really pay on your debts each month. You might wish to seek help from Consumer Credit Counseling Services, a nationwide, nonprofit organization that provides free help to those who run into budgeting and debt problems. They can work with creditors to set up a payment plan for you. Call 1-800-373-2227 for the CCS nearest you.

• Debt consolidation. You could get a loan from your bank or credit union to pay off all your debts. The payments on the consolidation loan could be less than your current monthly payments because they are spread out over a longer period of time. In the end this method will cost more, however, because you will pay additional interest at a higher rate. If you do this, you should stop using your credit cards and not take out any other loans. Often you will have to use your house or car as collateral for the consolidation loan. Be very aware of the consequences of missing even one payment on this type of loan. Because they are considered lenders of last resort, a loan from a finance company is usually considered a negative reference on a credit report.

• Prorate method. Prorate your credit payments. For example, if your income is $800 per month, you can safely afford to use $800 divided by 5 (20 percent), or $160 for paying debts. If your credit payments are $210 a month, you could divide the $160 (what you can afford) by $210 (what you owe) and pay about 75 percent on all your bills ($160 divided by $210 is 76 percent). If your car payment is $100, you would pay $75 (75 percent of $100 is $75). If your store charge payment is $75, you would pay $56 (75 percent of $75 is $56).

  Try to make your payments as large as you can. If you can afford to pay only $80 per month, you can still prorate your bills. Divide $80 by $210 (it equals 38 percent) and pay 38 percent on all your bills. You would pay $38 on your $100 car payment and $28 on your $75 store charge.

Use the Credit Payment Chart to evaluate the amount of your debts and determine which to pay off first. Do not include mortgage payments in this payment chart.

Debtors Anonymous is a nationwide 12-step support group you might find helpful. If you can't find one in your area, send a self-addressed, stamped envelope to Debtors Anonymous, P.O. Box 400, Grand Central Station, NY 10163-0400. You may also leave a message on their answering machine at (212) 642-8220.