According to the Federal Reserve, Americans are drowning in debt with a record revolving credit balance of $975.2 million as of the end of 2007.  This works out to around $11,000 to $12,000 in credit card debt for the average household in the United States, a pretty staggering total.  Are you one of the millions of Americans struggling with debt on a monthly basis? Are you hiding it from a loved one or spouse scared of what he or she may say or just plain embarrassed?  You’re not alone.

As many as one in five American households are either behind on credit card payments or possess at least one account in which they are over their limit.  Living in this “penalty rate zone” of credit cards isn’t easy.  But there are options available to the average consumer that can alleviate the stress of continued monthly credit delinquency.  Consider the following five tips and start your journey on the road to financial security today:

Tip #1 - Consider a Budget:  Do you know how much you spend each month?  What is your average current credit card obligation?  How many ‘essential expenses’ do you have? A car, rent or a mortgage payment, food, and loans, are considered essentials. Eating out, the new Disney movie and your local gym membership, are not essential.  Track your spending and eliminate the fat, you may be shocked at your monthly savings.

Tip #2 - Cut up your Credit Cards:  If you have a credit card with a balance that is more then your regular monthly salary, that’s a problem.  Consider cutting up the card completely or putting it completely out of reach for the time being.  Are you making the minimum payment?  If so, that goes completely to interest and won’t move your outstanding balance much at all.  Make sure you check out our free credit card calculator and see what increasing your monthly payment will mean to your future financial security.

Tip #3 - Debt Management Plans:  It’s not easy to ask for help from any debt management or credit counseling company.  But it may be the smartest decision you ever make.  If you are over $3000 in credit card debt and need that debt paid off faster and cheaper then you ever thought possible, this may be the option for you. Read our detailed information on what is debt management and see if it may be right for you.

Tip #4 - Set a 3-Year Plan:  Surprisingly, you can eliminate as much as $12,000 in consumer debt in as little as three years if you start now by doubling your average credit card payment each month or cutting back on household expenses to the tune of an extra $200-$300 a month.  That may seem like a lot but if you are eating out 2-3 times a week, seeing 3-5 movies a month and/or golfing more then once a week, you may have found your savings right there.  Start your plan today and celebrate 2011 debt-free!

Tip #5 - Stay out of Debt:  The best advice for combating debt, don’t get into debt in the first place.  The most common trap for debt, making a buying decision based on where we are now or where we will be financially in the future, then finding out you can’t follow-through.  Make sure you evaluate your spending habits for the last six months BEFORE considering a new larger purchase.  Make sure the additional monthly expense can be absorbed by your currently monthly household budget. If it can’t, consider holding off for another 90-days to reassess.  You won’t be sorry.

Debt is stressful and can cause personal isolation for even the most upbeat consumer.  Don’t fall into the deep-end of the debt pool and most importantly, if you are in debt, don’t be afraid to seek out help from a professional debt management company.  Follow the above five tips and keep yourself close to the shore of financial security.