1. Living beyond your means? Like most Americans, if you too are buying excessively on credit, it is time to analyze your spending habits.
   2. Inflow v/s Outflow: Even though this may sound technical, it simply means that you need to check how much you earn against how much you spend.
   3. Make a realistic budget: Prioritize in this order – first your groceries, utilities and health insurance; then your secured loans such as car and mortgage payments and lastly, your unsecured loans and credit cards.
   4. Write down your expenses: While budgeting, it is important to list your expenses by category. Use a computer or maintain a diary.
   5. Begin small: Start by paying off the smallest debt. This will give you the much needed motivation to keep on going.
   6. Don’t lose focus: You should be aware what your single largest commitment/priority is. For instance, it could be your home mortgage. Focus on keeping your house, and work towards paying off other debts accordingly.
   7. Medical insurance: If you are in debt because of a recent large medical expense, try to buy appropriate medical insurance to prevent future recurrences.
   8. Talk to creditors: They may waive fees or late payment charges. Any money you can save will help you manage your debt.
   9. Check your wardrobe: If you think you have enough clothes to wear, stop shopping now!
  10. Fewer trips to the beauty salon: This could be a boon especially for women. Try to cut down on beauty products and services; these are very expensive. You can consider balancing the pricey salon visits with in between maintenance visits to a discount salon. This is a good idea for your managing your debts and saving money.

CESI (Consumer Education Services Inc.), a non profit credit counseling agency can help you with your debt consolidation and debt management needs. So if you feel that financial matters are best left to professionals, get in touch with a trained counselor today.