Define your needs

The first step is not to make a plan to pay off your credit cards and loans. Instead, you should try to define what things are necessary to your life. This way, you can create a budget that makes certain that these things are always going to covered with your current income.  
A home, food and transportation are all necessary, as are things such as toiletries and clothing. Obviously, these items must all be a part of your budget. While defining your needs, you may find that other things that you thought were necessary (cable TV, coffee shop trips, etc.) are not vital. These things may still be a part of your budget in the future, but they are not part of your core “necessity” budget.

Balance debts and spending

If you want to pay off your debts, you have to give them a high priority in your budget. This means that you should plan to pay debts every month after you have allocated money to cover your necessities, but before you have spent any money on non-necessities. This does not mean that you have to give up trips to the coffee shop, restaurant or movie theatre, but it might mean you have to cut back on these extras while you get your debts under control.

Cut spending

If you can cut spending, you may find that you still have plenty of money for those fun extras after you have paid for your debts and your necessities. See if you can lower your bills or lower the amount that you spend on necessities. This could mean taking significant steps such as moving to a smaller home or selling your car and riding public transportation. Or it could mean cutting back on food spending by buying generic brands or getting coffee in a can instead of whole bean coffee. You may be surprised how much you can save just by making small spending cuts in different areas.

Plan for the worst

Unexpected expenses can ruin your best-laid financial plans. Ideally, you will have a “rainy day fund” to cover the emergency expenses. This might not always be feasible. However, it does not have to ruin your budget plans. An online personal loan could help you cover the unexpected costs. The online application process takes only a day or so, so these loans are ideal for emergency expenses. Then, since you are using a “necessity budget,” you should have money to pay off the online personal loan and eventually get back to your necessities/debt-reduction budget.