Get rid of your debt

An anemic economy and poor job prospects means one thing for consumers – that getting rid of your debt is key. But how to start? Here's your guide:

1) Get a grip

Determine whether your debt problem is run of the mill or out of control. One signal that you have too much debt is that you borrow from one credit card to pay off another credit card. Others are: You can only make minimum payments on your credit card. You don’t know how much total debt you have.

2) Stop the hemoraghing of money

Get out of paying “courtesy overdraft fees” of as much as $20 to $35 by linking your savings account to your checking account. Better yet, don’t write a check for more than your balance. Out of network ATM fees are brutal these days, with some banks charging three bucks for the privilege of getting access to your own money. Use a bank with a large network.

3) Handle debt collectors the right way

If you are being asked to pay a debt you don’t think you owe, write a letter stating the facts. That will force the collector to investigate and clarify the debt. Remember, there is a statute of limitations on debt of seven to 10 years. (Check with your state attorney general’s office to see what the rules are in your state). If you pay even a dime on debt that you aren’t sure is yours, the remainder of the bill will be due and owing.

A new year…a new you. Get control of your financial life. From fixing your 401(k) to saving for college — Gerri Willis has your guide to financial resolutions all this week on American Morning.