by Cyd Madsen

Created on: January 14, 2009   Last Updated: April 27, 2009

Current estimates state that the average American carries between $7,000 and $9,000 worth of unsecured credit card debt. These figures do not include debt secured by vehicles, homes, or student loans. All of this adds up to big trouble, and the need for a lot of help getting ourselves back on sound financial footing. At times debt can seem overwhelming, especially if your tendency is to look at things as one large mountain, rather than a series of hills. You can get out of debt, but it takes planning, a change in one's thinking, and a clear vision of long term gain while enduring short term discomfort.

In planning to get out of debt, one of your top priorities should be to pay yourself first out of each paycheck. This may sound counterintuitive if you owe more than you make, but it will help you stick to your plan. Emergencies and unexpected expenses, such as a broken tooth or a traffic ticket, will always pop up. By paying yourself first, even if it's just a small amount in the beginning, you'll help build a cushion so you won't be forced to increase your debt in the midst of trying so hard to lower it. It's best to think of this savings as your first bill of the month and set up your bank account to automatically withdraw that money and place it in your savings. Just as it doesn't take much to find yourself deep in debt, it doesn't take much to find yourself with a handy reserve of cash.

When overwhelmed by debt, it's very common to shut down and not even look at your overall financial situation. It's too scary. Take control of the fear, sit down with all your bills and paycheck stubs, then do the math. You can't break free unless first knowing where you are and where the exit routes might be. If the figures are especially troubling, this is the point where you'll want to seek the help of a non-profit credit counseling service. If you feel this is your best option, first check out www.consumerlaw.org to help you avoid scams and know what to look for in seeking help.

If you feel confident you can stretch your income to meet your goal of getting out of debt, this is the point where you need to start your debt reduction planning from the head down. Start first with your thinking. Understand that credit card debt is essentially "renting" money, and that you haven't paid attention to the rent on your financial house. You will have to make sacrifices. You will have to step out of your comfort zones. You'll need to educate yourself. And you will have to take full responsibility

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