In you are in debt, you are not alone. Consumer debt is at a record high. There are many ways to get out from under and live debt free. Follow these simple steps to get on track to financial freedom.

First write a list of you monthly income and expenses. Take you expenses and divide them into two categories, needs and wants. Needs would include you cost of living, transportation and medical expenses. Wants include things that you do not need in order to survive. Such as clothing, going out to eat and entertainment. What from your want list can you trim down on? Could you eat out once a month instead of once a week? Do you need designer clothes or could you purchase a few nice pieces and more reasonable things? Any money you can save can go toward paying down your bills.

Next, look at your monthly income. If you are making less than you need to survive, you have to change your situation. If you do not you will continue to fall further behind. Could you take on a second job? Perhaps move to a less expensive home? If you need are car, could you sell your existing and buy a less expensive one? Can you use coupons for your groceries. Remember, when you are in debt, every penny counts.

Regardless of your situation, consumer credit counseling or debt consolidation could help you. Both of these companys will work with you to find a payment plan that fits your needs. They work with your credit card companies to negotiate lower interest rates and an affordable payment. Many of these are non-profit agencies and charge a very reasonable fee. Often you save more monthly then they charge.

The most drastic steps to reducing your debt would be to consier bankruptcy. However, this should be a last resort. While this may seem like your only option, it is one that will stay with you, on your credit, for the next ten years.

Often when you write things down, it is easier to see the full picture. Write a budget and stick to it. Consider ways to increase your income and decrease your spending and things should begin to get easier. It may take sometime, but you will be debt free if you work at it.