You also had good credit. But that’s all gone now. Now you’re divorced and reduced to wearing a blue vest and advising Wal-Mart customers to have a nice day. Your only constant companion is debt. And lots of it. Want to get rid of it? Maybe you can.

If you’ve gone into debt, don’t take it as a personal failing. Today, given cycles of unemployment and chronic under-employment, it is more and more common for people to fall into debt. It hasn’t helped that the past few generations have determined it’s necessary to own a new car, a wealth of entertainment gadgets, the latest fashions, and generally live pretty high on the hog – even though they can only periodically afford it, if ever.

Debt: It’s the American Way!

Our leadership has provided no bright, shining beacon in this regard, either. The nation has run up such colossal debt that, in seven more generations at the rate we’re spending, all of the national budget will be going to pay off interest on the debt.

Even though it is likely that your plight is, at best, only partly due to your financial habits, the first thing to do is create a budget. How much do you presently have coming in? How much is going out? What are the sources of your debt? Where can expenses be cut? Can the debt eventually be paid down out of your income?

While you’re studying your budget, it would probably be a good idea to cut up those credit cards. If you need something for making necessary purchases over the Internet, get a debit card which immediately deducts spending from your bank account.

Can you reduce your monthly credit payments? Call your creditors and see whether you can work out some deals. For the most part, they would rather get a little something from you than get nothing. This is equally true for secured debts as unsecured debts. Call you mortgage holder to avoid foreclosure. If the lender is unwilling to work with you and the loan in insured (e.g., by FHA or a private carrier), call the insurer.

Bicycles Are Cheap and Provide Good Exercise

Should you sell your car? It’s a big expense, but if you commute to work, haul kids around, or use it to get groceries, you’ve got to keep a car. Not necessarily that car, of course. You could sell the car and buy a cheaper used car. Your monthly cost might go down, but you will certainly lose a lot of money on the sale because of new-car depreciation. You’ll have to think that one over along with the idea of maybe selling your house for something cheaper.

If you have difficulty in working with figures and coming up with a budget, consider using a credit counseling agency. Be sure, however, to ask ahead about their fees. Some are quite expensive, and you don’t want to take on any more debt. The agency may recommend a debt management plan through which creditors may lower interest rates or eliminate fees in return for the guarantee of a monthly payment. Repayment terms may be stretched out to four years or more.

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