Nobody wants to be in debt. Yet most Americans today live under the strain of debt and do not know how to be free - a situation only made worse by the global financial crisis. There are plenty of ways to be financially free - that is if you endeavor to follow them religiously and don't procrastinate or be lazy about getting out of debt.

The most common and obvious ways to deal with debt are: spending less than your income, saving your money, paying your bills on time, avoiding mindless spending binges, setting a budget, have a concrete goal and even having an "emergency" fund.

Invest in your education as your career is one of your most valuable assets. Give top priority to this investment because without this particular asset you might find it hard to survive. Remember, your college education will pay for itself. You should always try to put away enough cash to enable you to cover one third of your children's total educational costs in college. Here too, a public school/state school can be as prestigious as a private one. One way to do it at a lesser cost would be to try a community or online college for the first two years. You could then transfer the credits to a better school to finish your final years. Furthermore, a 529 college savings account is absolutely tax free.

Regarding loans and credits, it would do you well to remember that if you need a credit card it is better to get a no-fee "rewards card" that you can pay for fully each month. Take care that you don't borrow more than 30% of your credit that is available so that your "credit score" looks good. Never let your credit card debt accumulate. These are the debts with most interest (most of them are outrageous.) and can burden you so pay these off first. Needless to say, the home equity loan payments have to be paid off religiously - you could lose your home if you don't make payments.

You don't have to be told that it does not hurt to be frugal at times. This is the time you need all the cash you can get your hands on to PAY OFF DEBTS. Buying "used" can save you loads of cash. Buying a used car is not such a bad idea - someone else drove those first 10,000 expensive miles for you... Be patient and don't rush in to buy that super duper gadget you feel you must have. If you wait a month or maybe two, prices are going to fall. "Extended warranty" is usually good for the company business and not actually for you so don't buy it - most new products do come with a 1 year warranty anyway.

The best way to have a reality check is to keep a diligent track of all your spending. You will be horrified to see the way you pour your hard earned money down the drain. Make proper adjustments and have better priorities. Sooner or later you will see the difference and manage to be totally free of debts.