What Counts as Debt?
A lot of people think mortgages and car payments are necessary evils, so they don't count as debt in the same way that loans do. Unfortunately, they're wrong. Anything that you can't pay off in full at the end of every month is debt. So, unless you can afford to pay cash for your entire home, you're in debt.
Debt-reduction expert Dave Ramsey advocates the "Debt Snowball Plan." Simply choose one particular debt to tackle at a time, starting with the smallest and working your way up. Every time you pay off a specific bill you'll feel more energized to continue working your way out of the red. Of course, you'll need to make minimum payments on all of your other bills to avoid interest and late fees. This and all other approaches will take time, but getting out of debt is critical to long-term financial viability, so stay the course!