When money troubles start piling up, you could find that you get a big case of money-based insomnia.

It isn't fun. You can be so worried that your money problems follow you through your entire day. You are constantly trying to figure something out. And it is wearing you out.

Believe me on this -- worry never ever solved a money issue. It can actually make you desperate. When you are desperate, you become a target for many schemes and you make bad decisions.

I've heard plenty of people say that they don't want to go to jail because they can't pay their bills. This won't happen. It can't happen. It will never happen. Not being able to pay your bills is a bad situation, not a crime.

So you aren't going to starve, go to jail or find yourself out on the streets. So stop worrying about it.

And start taking action. You need to set up a certain time every day to specifically work on your situation. This is the time in which you focus on your finances. Grab your calculator, notepad and bills. Sit and start planning.

To start with, an hour is long enough. If you are on a roll, go ahead and work until you reach a stopping point. The key is to not wear yourself out or get frustrated.

Start with assessing where your finances are right now. We'll assume that your goal is to pay off debt and free up more monthly spending money.

Make a list of all of your bills. Include your housing, autos, utilities, debts and other expenses. This is how much you have to spend each month. Subtract this from your income and the remainder is what you have to live on -- groceries, gas and other things.

Chances are, there is no extra to live on. So start eliminating things from your list of bills. Cancel your satellite television, water softener rental and everything but your utilities, phone, housing and auto.

Now look at your debts. List them in order of highest interest to lowest interest. Write down the interest rate, monthly payment and outstanding balance. Don't skimp on anything -- list it down to the penny. This list will let you see how you are progressing. Every month, you can update it with your balances. You can see them decrease and be eliminated.

Start making a list of actions that you can do to help your situation. The list could look like this:

-Cancel satellite television.
-Put the extra money to paying off credit card #1.
-Sell motorcycle.
-Pay off loan on car.

At the end of each "money session," you should tell yourself okay, that's enough for today. I'll think about it tomorrow. And leave it there. Everyday you can take several steps to completing your list and eliminating your problem. Tell yourself that you have done all you can right now.

Remember, constant worry won't do you any good. Take action and you will find that you can find a way out. And sleep at night.

Martin Lukac(http://www.MartinLukac.com), represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!