For most American adults and even some teens, carrying debt is a simple fact of life. It seems, for any number of reasons, that our desire to consume often outstrips our ability to pay. Madison Avenue undoubtedly plays a role in appealing to our basest needs and wants; by creating ads that target our dissatisfaction with our bodies, our cars, our homes, and our jobs, ad execs convince us that spending is the answer to our perceived inadequacies. In the end, however, blame for our need to stockpile things falls not on marketing gurus, graphic designers, and copywriters, but on ourselves.

Step one in managing debt, regardless of its size, is realizing that each individual is responsible for his or her own problems. While there are rare exceptions such as serious illnesses and accidents, most financial burdens are brought on by mere recklessness. What begins with a one-time minimum payment on a credit card bill, just to name a common example, can turn into a recurring phenomenon. Or, the occasional "must have" shirt, shoes, or pants becomes a monthly fashion jones. Before long, the temptation of paying by "installments" grows irresistible to many consumers, despite its financially disastrous consequences. Thus, the best way to avoid this pitfall is to adopt a philosophy of total accountability - that is, resolve never to buy anything you can't pay for in the next 30 days.

One obvious question is this: why do youngsters today, both teens and twenty-somethings, have such a fundamental difficulty in taking control of their finances? It's no secret that the '80s marked the heyday of huge deficit spending, especially in government. No, Ronald Regan certainly isn't to blame for your monthly Visa balance, but the example set by the legislature (which drafts spending bills) as well as the Commander in Chief (who helps pass them) is one that appears to sanction deficits and forgive fiscal irresponsibility. The message thus comes across that if public officials can overspend, so too can private citizens. This belief is then internalized by heads of households and inevitably (by way of example) passed down to children, who have no grasp of the real consequences debt can create.

It's one thing to understand the problem and another to find ways of combating it. Today, the debt-management industry is a multibillion-dollar one; there are literally thousands of companies that claim to clear up credit problems for "bad luck" cases. This is a highly effective marketing tack since most good folks are likely to see their problems not as the direct outcome of poor decision-making, but of external factors beyond their control. The fact remains, however, that these companies wouldn't be in business if there was no money to be made in resolving other people's nightmares. There is -- and they do. That doesn't mean that all debt management solutions are scams, though. Those that consolidate debt or transfer high balances to lower APRs can be useful, provided you read the fine print. Before moving your debt from one place to the next, be sure that you're not simply receiving an "introductory" APR. More importantly, never forget that in the game of debt resolution, your own negotiating skills can be your finest asset. If you're already drowning in debt and have little else to lose, some creditors may grow jittery and start wheeling and dealing. They'd much rather have one percent of everything than 100 percent of nothing.

Interested in a career in Debt and Credit?
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