I wake up and find I'm incredibly in debt!

There are different degrees of debt management. Your situation may be in the "crisis" stage. If this is the case, I suggest the following:

1) Analyze your debt: know what you have, what rate it's at and what the monthly payments are. Get a free credit report (annually) and make sure it's accurate (www.freecreditreport.org).

2) Minimize debt growth: more than likely you've gotten used to spending on a credit card or some other unsecured method of debt. Break the habit by putting the cards away. In the freezer if you have to (this eliminates impulse spending since you literally have to wait for the card to thaw out!). Move to debit cards wherever you can. For existing credit cards, can you move to lower interest rates (without getting ripped off after the intro period)? Stop automatic bill payments that go directly to the cards. Can you trade for a less expensive vehicle?

3) Itemize your life: this is the part where planners (present company included) tell you to budget. In my experience, if you had a budget you wouldn't be asking this question. More than likely you are not going to just pick up a full blown budget tomorrow. So start with a snapshot. Get your card statements, checkbook, receipts, etc. Everything that indicates an expenditures for the last 30 days. Write it all down. Next, scratch EVERYTHING. Then rebuild your expense list beginning with the most critical things. This will help you prioritize your expenses. Begin eliminating the lowest priority items and try to continue moving up the list.

4) Crown cash king: For a period, start carrying cash again. Not big bills waiting to get robbed but begin paying for small purchases with cash again. This way, if you don't have it you don't spend it. Debit cards are great but we can still get lost in the idea of having a mystery amount of money out there.

5) Increase cash-flow: You've already removed those unnecessary expenditures. Now let's increase your take home. Reevaluate your job. Are you earning the appropriate amount? Is it possible to pick up some part-time or contract work during evenings or weekends? "Garage Sale" over EBay?

6) Reconsider strategies: This is controversial but it is my experience so here you go. People will liquidate and get penalized by taking out their long-term retirement money (401/IRA) in order to cover short-term cash flow needs. Until you get debt under control, suspend contributions to retirement and savings plans. Remember, short-term cash crisis needs must be satisfied in order for long-term savings plans to be realized. Also, if you own a home consider whether or not it is in your best financial interest. I've had clients sell their home and move to a smaller, more manageable place and get a hold of their debt. Make sure you have "emergency money" which may even include available balances on credit cards (911 only).

Just a few expense reduction ideas: * If you have roadside coverage via AAA or your dealership, see how it balances out to the one offered by your cell phone plan. Choose the best option.

Reduce your cell phone plan and use land lines more. Most people can save $20-$30 per month with this.

Change life insurance from cash value policies to much cheaper term policies (consult planner first).

Check web bulletin boards for advice before making major purchases. Compare prices and get consumer advice.

Get healthy: trade Starbucks for water... tap water. Eliminate fast food ($6-$8 and clogged arteries per visit).

Shop at discount stores like Big Lots and $ stores for basic household items- even cheaper than Walmart.

Check company websites for coupons before utilizing their services (ie- getting your car fixed by a national chain).

Hope this helps!
Charles