OK, you got yourself here, now what? You’re surrounded by your 44 inch flat screen TV, there’s a new car in the driveway, and you could start a company called Video Game Central. But you’re bottom of the barrel broke. You’re paying the minimum on three of those fancy “Platinum” Credit Cards, and there’s no end in sight.

Even if you can’t afford to seek out professional help, there are steps you can take to climb out of the mire.

1) Make a Plan. Begin with the end in mind. The goal: no debt, and a $1000 emergency fund. (you can insert your own goal here.)

• A) List out all of your debts. Make 3 columns: Total Owed, Minimum Payment/month, Rate of Interest. Add them up.
• B) List out all of your monthly bills. Rent, phone, heat, cable, spending money, etc. Add them up.
• C) Now List your monthly take home income.
• D) Subtract A and B from C.

2) Take Action. If the result of (D) is a negative number, first you cry. Then, consider:

• -a part time job.
• -reducing (B). Can you decrease your cable bill? Move to a lower rent apartment, or get a roommate? Cancel your land line and just use your cell phone? Go out to dinner less?

If the result of (D) is a positive number, Congratulations! That’s a good thing. Enjoy the moment. Then:

• Apply 90% of the money towards paying down the highest interest credit card.
• Put the other 10% into a savings account. You need an emergency fund. Even if it’s $10 lousy dollars, put it in there!
• Play the “Save Game”. Think about ways you can save little bits of money. Buy the Miller Light instead of the Guinness Stout. Whatever you save, put in a container of your choice. I, personally, have a “lucky can.” Add 75% of this to your savings account every month, and blow the rest! You have to have some fun!

3) Over the Top Debt Reduction. If you’re really ambitious about this, you can calculate how many months it will take you to get back on level ground. If it’s longer than you like, try to be creative about ways to reduce that debt:

• Instead of getting a big tax return for that vacation every year, could you change your withholdings and add the extra money each month to paying down your debt?
• Deliver newspapers on the weekends?
• Cutting coupons can add up. Don’t be proud.
• Help me out here. Anyone out there like to share creative ways they’ve reduced their debt more quickly? For another take on debt, check out The Dope on Credit Card Debt and The Dope on National Debt.

4) Finally Remember: It’s for a finite time only! You can do anything for six months, while you’re paying those credit cards off. And once you’re out of debt, for goodness, sake, stay out of debt!

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