Get a handle on your debt

The stats are scary. And debt is nothing new to most of us. In fact, the losses in the stock market and falling home values combined was more than most people’s salary last year according to Standard & Poor’s.

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. Another bad sign, if you can only make minimum payments on your credit card. Or if you don’t know how much total debt you have. If the above describes you—get help.

2) Prioritize

Paying it down requires making it a priority. If you have credit card debt, pay off the one with the highest interest rate first. Always pay more than the minimum payment. You have to cancel any spending that isn’t essential and put it towards paying down your credit card debt or debt. Practice some tough love: You have special channels beyond basic cable – get rid of it. Re-evaluate your memberships. If you only hit the gym once a year, get out of that contract now.

3) Don’t pay when you don’t have to

Stop the hemorrhaging 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. These days you can even check your balance from your cell phone. 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.

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