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So many people are in way to deep when it comes to debt — they just don’t know it yet. I am constantly surprised at how many people tell me that they have everything under control. Yet, they don’t have enough money to pay the bills without juggling things around. Or they can’t buy groceries. Or they say they will start saving for retirement tomorrow, not realizing that tomorrows add up to too late.

I’ve been in debt. I know what it is like to see your monthly paycheck go out the day it comes in. I’ve seen the ugly side of credit cards. And after that, I can tell you that the only way to live is debt free. While I recognize that this isn’t always possible, it is a great way to live.

There are plenty of people out there that have a mortgage and an auto loan and are managing their debt wisely. They have no credit cards. And in return, they have less stress when it comes to finances. Some people are even strong enough to have a credit card and pay it off in full each month.

But many are not that strong.

How do you know if your debt is out of control?

You only make the minimum payments on your credit cards. You let bills slide for a few days or even a week. You don’t have any savings. No emergency fund. You take loans and withdrawals from your retirement (if you have it) to make ends meet. You buy everyday items and pay bills with your credit cards. You have more than two credit cards. You have no money at the end of the month. You have maxed out a credit card. You don’t know how much you owe. You don’t know how much is in your checking account. You are charging more than you are paying each month. You have been declined for credit. You bounce checks. A collector(s) has been calling your home. You hide your spending and the credit card statements from your spouse.If any of the above statements are true about your finances, you need to realize that you are in debt trouble. Right now. You are in over your head.

You need to stop and change your ways today. Believe me, it isn’t worth the stress. Just start taking actions to pay off your debt and take control of your situation. Money shouldn’t control you, you control it.

Start with listing all of your debts. Be honest and list everything. Include interest rates, monthly payments and balance due. This will let you see exactly where you stand.

Next, form a budget. This may take a month or two to get right. Look at it closely to find ways you can trim your spending and pay down your debt. You may find that you have to sell something or get a second job to get started. Do it. Do whatever it takes.

Oh, and cut up those cards right now. No more charging. No more debt. Set goals and reach them. You will never want to charge again when you see what it is really costing you. Simply use an online calculator to see how long it will take you to pay off your debt by paying the minimum monthly paymnent. You will probably be shocked. But that’s a good thing. It makes you take action against your debt problem.

Martin Lukac represents www.RateEmpire.com, an Internet consumer banking marketplace. RateEmpire.com is a destination site of personal finance, investing, taxes and mortgage rates. RateEmpire.com provides mortgage guides and financial rates and information. RateEmpire.com also operates a financial portal #1 American Financial, found at www.1AmericanFinancial.com and San Diego loan portal www.LendingSanDiego.com

Written By : Martin Lukac