For countless Americans, being in debt seems to be the current way of life, particularly with today's ongoing recession and economic decline. It's important to know, however, that being in debt isn't a permanent financial crisis. The faster consumers eliminate bad habits, and unnecessary spending, the faster they'll be on the road to debt recovery. The process won't be easy nor will it happen overnight. But turning things around and becoming debt-free is more than possible if you create a plan and stick to it.

Here are 10 tips to help you get started:

1) BUDGET.

The first step in debt reduction is to set up a budget. Only then can you see precisely where your money is going.

Start by totaling your monthly net income then subtract your fixed and variable expenses. Be honest with yourself - list all debts and all expenses. Create a realistic budget that you can live with.

Drowning in debt is a grave matter. Ideally, your budget will guide you on making affordable monthly payments. Be conservative in finding ways to supplement your income. Use bonuses, investments, commissions, lottery windfalls, etc., in order to whittle away your debt.

Work toward putting aside 5% to 10% of your take-home pay.
* It prepares your for unforeseen expenses later.
* Prevents the need for using credit cards (avoids credit card interests).
* Stops you from slipping further into debt.
* Savings, plus interests earned, accumulates over time.

Update your budget regularly and record all significant changes.

Next, set up a plan to start repaying your debt.

2) STOP AVOIDING YOUR CREDITORS

If you've fallen behind on your payments, take action. Don't avoid the situation by hiding bills in the drawer or by avoiding the creditors' phone calls and letters. Failure to comply only adds to you problems, specifically, receiving threats and harassment from collectors.

Take a proactive approach. Contacting your creditors as soon as you fail to meet payment deadlines is crucial.

Working with creditors is mutually beneficial for both parties. Creditors will recoup some of their money; you will keep your pride, reduce your debt, and maintain a good credit standing.

Here are some specifics you can discuss with creditors to reach some agreement:

* Arranging delayed payment deadlines.
* Negotiating repayment of lower balances.
* Asking them to lower (or freeze) interest charges.
* Discuss your commitment to repay your debts.

Be sure to get all agreements in writing.

3) INCREASE YOUR

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