How to get out of debt.

Perhaps you are among the 70% of Americans who carry some credit card debt, or the many whose debt load consumes 15-20% or more of their disposable income (not counting the mortgage). A reckless use of credit cards or a piling up of installment payments such as car loans may be the cause of your difficulties, or you simply may have been hit by unexpectedly high legal fees, medical bills, or home repairs. Whatever the cause, what can you do to get out of the financial hole? The Institute of Certified Financial Planners recommends taking the following steps:

* First, get under control the things that got you into debt in the first place. Pay any new charges off each month, limit use, or quit utilizing them entirely. Don't buy anything on the installment plan. Pay cash.

* Make a spending plan. See where your money is coming from and going to. Target areas to cut expenses. Sell off that expensive car or quit buying a new one every two years. Brown bag your lunch. Buy less expensive and fewer clothes. Get outlays below income so you can being putting extra money toward your debts.

* Get a second job or work extra hours to generate more income.

* Fold down your debts. First, pay off an initial debt as quickly as possible, perhaps using a tax refund, bonus, or extra monthly cash flow generated by cutting expenses. Continue making all other monthly payments as you were doing before. Once the initial debt is paid off, add that payment to the one on the next debt until it is paid off as well, etc.

You can fold down debts in different sequences. Paying off the debt with the highest interest rate first saves the most money in the long run. It may be psychologically easier, though, to start with the one with the smallest balance or the fewest payments. That way, progress can be seen...