[header] How to negotiate with creditors [title] Create a budget before you determine what you are able to pay your creditors. [step] You need to be able to pay your current bills to avoid acquiring more debt. Start by recording and adding up all of your expenditures for a month. 
This includes necessities like rent, food, other debt payments and utilities, as well as discretionary spending like entertainment and clothing purchases. Subtract this amount from your after-tax monthly income.