The concept of debt free living is an easy one. Earn more than you spend and don't allow yourself to live beyond your means. This is much easier to understand than it is to apply however.

As a nation, we've seen our national deficit grow into the trillions of dollars. In towns and cities across America, people find themselves heavily indebted for homes, automobiles, education, credit card debt, and many other things.

It's safe to say that anyone burdened with cumbersome debt would like to find a way to live debt free. The only way to live debt free is to embark on a path that will lead to paying off your obligations. Everyone with this desire will find themselves at a different starting point, although the finish line is the same for everyone: a life where we spend less than we earn.

The first step to debt free living is analysis. A borrower must understand the depth of their debt problem before they can hope to eliminate it. A simple cash flow analysis is the best way to start; making a list of your monthly obligations and comparing it to your monthly income.

For many people, there is a shortfall that is creating the debt problem - if you need to get out of a hole you're in, the first step is to stop digging. Finding a second job or changing your career to increase your income might be necessary. Trimming the excesses from your budget is important as well. Are there things you're paying for that you can do without?

The second step is to implement your plan. Determine how much income is available to pay down debts after your monthly expenses are met. Get rid of your credit cards so you aren't tempted to use them and throw your debt reduction plan off-track. If you need to consolidate your debts or negotiate with creditors, find a trustworthy credit counselor who can help. Be vigilant in tracking your budget and set goals for yourself to hit certain milestones in paying off your debt. The feeling of paying off that one credit card with the highest interest rate will motivate you to keep going in the right direction.

The final step is to monitor your plan and stay on target. If you establish realistic goals and get organized, you'll know exactly how long it will take you to get out from under your debt. Work every month to reach your goals and find a way to reward yourself when you achieve positive outcomes. Look for opportunities to increase your income or reduce your expenses along the way. Track your progress on a monthly basis to ensure success.

Debt free living is a challenge for everyone, but it's the only place where true financial freedom is found. It's a process that usually can't happen overnight, but the habits you develop in achieving your goals and living debt free will allow you not only freedom today, but the capacity to save for tomorrow.

One of the most frustrating financial situations for a consumer is carrying unnecessary debt. The amount of debt being carried by Americans is rising every year, and the deeper into debt they fall, the harder it can be to recover. We live in a society where people want to live like they're rich today and are willing to go into debt to have nice cars and material possessions. Getting out of debt is very difficult, but the financial freedom that results is worth the sacrifice. There are several ways that a consumer can overcome debt problems.

In order to have the necessary motivation to get out of debt, it's important to first realize the negative consequences of being in debt. First, debt is a promise to pay, in most cases every month, until the amount you borrowed has been returned to the lender. As a consumer's debt level increases, the monthly payments require an increasingly large portion of that consumer's income. This leaves less discretionary income, reducing financial freedom.

High interest rates mean you'll be paying significantly more for the items you purchased than their actual sticker price. Second, debt can hurt a consumer's credit score, especially if there is a history of missed payments. A low credit score can make it impossible to get a loan when you really need one. Finally, debt is stressful. Families carrying large debt balances, especially credit card debt, experience emotional stress that can make it difficult to enjoy other areas in their life.

The most important element in getting out of debt is commitment. The borrower must commit to stop adding to the debt balance. Paying down debt is meaningless if you're just making room in your credit line to reload with more debt. Realize that it will require sacrifice and discipline, and you will probably have to hold off on purchases you've been thinking about making. Resolve to do whatever it takes to eliminate debt from your life. Commit to keeping a budget and controlling your spending. Have a plan on how you will tackle your various debts.

Professional help is also an option for those trying to get out of debt. Credit Counselors are available to discuss financial situations with consumers and help them weigh their options. Some of the solutions they may discuss with a borrower include debt consolidation loans, debt negotiation, or even declaring bankruptcy. All of these alternatives have serious consequences that need to be considered and understood before making a final decision. It's also important to make sure that the professional help you seek is credible, reputable, and reliable - we live in a day and age where scams are everywhere and people are lined up to profit from other people's debt problems.

Getting out of debt will probably be one of the most difficult things you ever attempt to do, but can also be one of the most rewarding. Regardless of your level of debt, finding a way to get out from under it is a worthy goal.

As more Americans struggle with the burden of heavy debt, many consumers are looking for ways to relieve the financial stresses they're feeling. There are some who will tell you that there are cures that can essentially make your debt problems disappear. While it's true that it is possible to get out of debt, there's no magic button that can wipe the slate clean without consequences. Curing debt requires sacrifice, discipline, and very often a lifestyle change, but it can be done. Here are a few options that people use successfully:

- Pay it off Step By Step: This is probably the natural first step that any consumer would take when trying to resolve debt problems. The borrower in this case simply needs to get their financial life in order. The process starts with organizing debts by type and interest rate and then determining a battle plan to get them paid off systematically. Focus on the highest interest rates first, ensuring to avoid any late fees or adding to your debt balance. One by one, that amounts you owe are reduced and finally paid off.

- Piggybacking: This is a lesser known strategy that was more common in the past than it is today, due to new rules from credit rating agencies. The idea is to become an authorized user on a liability with someone that has good credit and good habits. The indebted person benefits as timely payments are made, increasing the credit score of the troubled borrower.

- Consolidation: This is another proven way to pay off debt, but it's not a magic pill. The borrower still needs to have the discipline to make the payments and stop racking up more debt. However, consolidating liabilities does have its advantages and if done right, the debt can be paid off faster and with less interest paid than issuing each debt individually.

There are excellent resources, both online and in your public library, that will teach people how to get out of debt. Be warned, however, as there are also many scams that will claim to cure your debt problems and then ask you to pay high fees both upfront and on an ongoing basis.

For example, a recent infomercial guaranteed that they can help people cure debt. The infomercial took the blame away from borrowers and placed it firmly on the shoulders of banks and other creditors extending credit to borrowers who lack discipline. By the time you purchase the books, tapes, newsletters, and counseling services, most borrowers would be further in debt that when they started, and without useful information.

They're right that there are problems in America with how easy it is to obtain a line of credit. However, the true culprit in this country when it comes to debt is spending, and the real cure is discipline.

Congratulations! You've succeeded in paying down your debt, and are ready to begin a new life with financial freedom, and fiscal responsibility. Unfortunately, your journey has just begun. For some, debt can be a revolving door, and it is tough to stick to your new spending habits, once you've managed to put out the fire. Financial expert Jean Chatzky gives us some tips to guarantee financial success for life.

Keep on keepin' on. Don't let up on the great habits you've formed while paying down your debt. Continue to track spending, taking note of any dangerous patterns that you see creeping back in. Be accountable for every purchase.

Automate your savings by having money directly deposited into savings accounts, and 401Ks. By saving automatically, you'll find that you don't even miss the money.

Avoid temptation. If shopping is your weakness, limit the time you spend at the mall. If you are tempted to stop at the drive-through window rather than cooking dinner, keep your purse in the trunk. Forcing yourself to get out of the car to access your money, gives you time to rethink the purchase.

Simplify! Use computer based budgeting programs rather than spending hours balancing your check book. Keep it simple and do what works for you.

Build a safety net. Be prepared for emergencies, and the occasional overspending. This way, one car repair or trip to the doctor's office doesn't completely undo all your hard work. Additionally, when you do give in to temptation, (and you WILL give in to temptation), if you have “planned to fail,” you won't succumb to guilt, and can quickly correct and get back on track.

Unfortunately, eliminating debt is not a one-time quick fix. It is a life long process requiring real dedication and discipline. For those who can change their habits, peace, and financial prosperity are the reward.

One of the most serious financial problems facing Americans today is the issue of credit card debt. The concept of credit is nothing new, merchants in the late 1800's in America were exchanging goods and services for currency known as credit coins or charge plates - essentially a promise to pay for the goods or service in the future.

The first plastic credit card was created by American Express in 1957 and over the last 50 years, the use of credit cards has become increasingly common. Today, the average American has 9 credit cards showing on their credit report, and the average consumer has four credit cards in their wallet. Even if the credit accounts aren't all open at once, most Americans are all too familiar with swiping the card to pay for life's expenses.

Consider these alarming statistics:

• Total consumer debt in the US not including mortgage loans is $2.46 Trillion. Of this total, over $900 billion is credit card debt.
• One in six credit card holders pays only the minimum payment every month.
• Since 2002, the rate at which cardholders pay down balances has decreased annually.
• For the first time in US history, the American savings rate is negative.

There are several factors contributing to the growing problem of credit card debt. Since the early 1980's, banks and other issuers of credit have bombarded mailboxes with tantalizing offers for credit. Citing low interest rates, pre-approved credit, and a promise to have a card in your mailbox within just 2-3 business days, it's easier for Americans to get their hands on credit cards than ever before.

College students walk past booths on campuses offering free t-shirts, gym bags, or beach towels in exchange for signing up for a new credit card. Department stores offer discounts to shoppers who use company specific credit cards. And with the growth of technology, consumers can shop from home with a credit card, having items delivered to their doorsteps without ever setting foot in a store.

We all know people burdened with excessive credit card debt and have heard the stories of how the problem grew little by little until it was too much to overcome.

What are the risks of high levels of credit card debt?

First, revolving credit is notorious for charging high interest rates, and card companies are known to increase rates without warning. Many cards often charge annual fees, not to mention unreasonable late fees if payments aren't made in a timely manner. The minimum monthly payments associated with most credit balances are so low that cardholders paying only the minimum are just digging deeper into debt.

Credit scores suffer with credit card debt, leading to difficulty in qualifying for loans. Often, excessive credit card debt spirals into bankruptcy.

The key to stopping credit card debt is to stop adding to your balance. Consider options like reducing your interest rate by consolidating your debt. Most importantly, control your use of credit so that your credit card debt can't control you.