Before you call your creditors to negotiate lower payments, you're going to want to have all your ducks in a row, so that you know which creditor you should call first.

Part of the process in preparing to speak with creditors is being organized. The first place to start is with a spreadsheet listing all of your debts. If you don't have Excel, you can use GoogleDocs or download Open Office free of charge.

Your spreadsheet should have the following:

List all of your creditors in the left hand column

At the top of the spreadsheet, list the following:

Column B - The amount you are supposed pay each month

Column C - The interest rate on the debt

Column D - The outstanding balance

Column E - Are you behind on payments? Yes or No

Column F - If you are behind, how many months?

Column G - What is the total that is past due?

Column H - Is the debt secured or unsecured?

Column I - If it's secured, what's it secured by?

Column J - Enter the amount you'd like the creditor to agree to in terms of a new monthly payment

Column K - Enter in any other changes you'd like the creditor to agree to, such as a lower interest rate, or having the ability to make interest only payments for a period of time

I'd start with the high priority debts at the top of your spreadsheet. Examples may include your mortgage payment or car payment. After you list all of your creditors, sort the spreadsheet so that the highest interest rates are just below your high priority debts.

Items in columns 10 and 11 will be filled in once you have reviewed your budget and determined what steps need to be taken.

Once you have this information in hand, you'll be in a much better position to speak with your creditors.