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The airwaves are filled with advertising that targets people struggling with debt. Finding the right method, however, can be challenging. The Federal Trade Commission has prosecuted credit counselors who do nothing more than put money in their own pockets, and put innocent victims in deeper financial trouble. With a little discipline, the following five steps can help you create a "Debt Management Plan."

• Be realistic and analyze the situation. The first step is to analyze why you're in debt. How did it happen? Was it due to an unforeseen financial emergency, or did you spend more than you earned? If it's the former, a disciplined plan to pay off your debt should suffice. If it's the latter, do some additional soul searching to correct the bad habits that led you into debt in the first place.
• Track your expenses for a month. It's the only way to see what comes in and goes out. The answers may surprise you. Those four-dollar lattes can really add up, and you're probably stretching your paycheck more than you thought.
• Create a budget. Itemize your fixed expenses, and draw up spending limits for variable items like food, clothing, and entertainment. Can you find a way to fit your expenses into your salary without changing your spending habits or increasing your income?
• Reduce your spending. Small expenses add up quickly. Stick to the budget you develop, even if it's uncomfortable at first. Remember, if your habits were working, there wouldn't be a financial crisis to deal with in the first place.
• Create a plan. Perhaps you can consolidate debts by tapping into home equity. There are bad credit mortgage loans that offer you a mortgage refinance which enables you to convert some of your equity into cash. Or, you could take out a second mortgage-a home equity loan or a home equity line of credit (HELOC), if your existing mortgage rate is too good to touch. Debt consolidation simplifies your finances, will most likely lower your monthly payments. Plus, it's a great way to rebuild a damaged credit history.
  

Start working on your plan today-there's no time like now to become a new you. And that's something you'll be happy to advertise.