There are millions of Americans that have struggled with financial hardships at one time or another. There are still many households that are enduring even longer instances of money problems. Unfortunately in many of these cases the debt problems were there long before people were willing to admit to it. Early prevention could have saved many from a long debt struggle but few were able to realize they had a problem until it was way out of control.

Here are 5 considerations you need to make about the state of your finances to help you decide if you need to focus on debt help:

Making Barely the Minimum

If you find you have trouble coming up with even the minimum amount due on your various months’ bills, you may need to rethink your money management strategies. Financial experts recommend your total debt each month be no more than 20% of the income you bring home. If your debt totals more than you make, your financial situation is not likely to get any better. It is time to increase your income to get a better handle on your debts. If you can’t make even the minimum payments, you will need to start cutting costs in other areas of your budget to focus on debt payoffs.

Reckless Credit Spending

Too often people consider their credit card limits as an extension of their income. They spend on credit without having the cash back up which will enable them to pay off credit card balances in full each month. Spending on plastic can easily get out of control and if you are using credit cards just to get by, you are heading down a path of debt problems, potentially for many years to come.

Ignore Budgeting Limitations

If you give up on your budget or fail to start one in the first place, it may be due to the fact you can face your money issues. A budget it supposed to be enacted to ensure you stay within your spending limits. If money is too tight, it can be easy to dispose of the budget with excuses that it doesn’t work. The reality is that in order to get a handle on your money affairs you need to construct a budget and stick with it, even if it cuts out all of your spending money for a few months.

Acquiring New Lines of Credit

If you find you have maxed out your lines of credit and start applying for new accounts, you are certainly in over your head. if your credit score has not yet suffered due to your financial problems, you may be able to get additional new accounts. However, too many applications for credit will start to sink your credit score. Your new accounts may come with lower credit limits and higher fees, meaning you’ll pay more than you can afford for the new accounts and start ruining your credit at the same time.

You Tell Fibs

If you find you have been telling white lies about your financial situation to people in your inner circle that express concern, you may need to sit down and confront yourself. Debt is not a problem that will go away if ignored. It will actually grow bigger and more problematic. Do not let pride or embarrassment get in the way of getting help when you need it. Admitting you have debt problems will be the hardest part but once you ask for help you can turn the situation around within a few months’ time if you put forth the effort and get a handle on your finances once and for the long-term.

Do I Have a Debt Problem? 5 Tips for Evaluating Your Situation was created by and is property of American Consumer News.

Ford is the only Detroit automaker that has avoided bankruptcy and this action indicates the company is gaining in financial strength. According to a press release from Ford via the PR Newswire, the company is paying $860 million on Notes A and B held by the United Auto Workers Retiree Medical Benefits Trust, with an addition $2.9 billion to retire the remaining obligation on Note A. In a separate payment, $255 million will be used toward previously deferred quarterly distributions of preferred securities.

By reducing debt by $4 billion, Ford continues a series of actions that began early last year to improve their balance sheet. In the spring of 2009 the automaker reduced debt by $10.1 billion while raising over $5.7 billion through several equity and equity linked offers.

Ford President and CEO Alan Mulally stated, “Our One Ford plan to profitably grow our business is working, and we are increasingly confident about the future. We expect to continue to improve our balance sheet as we deliver on our plan. Importantly, our business results make it possible to take these actions while still accelerating the investments we are making in our business to serve our customers with the very best cars and trucks.”

Samuel W. Halpern, president of Independent Fiduciary Services, Inc. stated, “We are pleased with this transaction, which continues the process of diversifying the Trust’s assets at very attractive values and assists the thousands of Ford retired employees, their families and survivors and others who look to the Trust to fund their retiree health benefits”.

Mulally also stated, “We are pleased to make these payments ahead of schedule for the benefit of Ford and our UAW-Ford retirees who count on the Trust for their health care benefits”.

Ford has recently reported sales gains as well as four straight quarterly profits. While other automakers are plagued by recalls and declining sales, Ford vehicles are seeing higher quality ratings from third-party groups which may be resulting in the higher transaction prices they are seeing for their cars and trucks.

Ford Announces Plans To Reduce Debt by $4 Billion (NYSE: F) was created by and is property of American Consumer News.

If you are feeling the weight of overspending, it’s time for a debt overhaul. Follow these three simple strategies, and your financial engine will be purring like a kitten:

1.    Conduct an expenses vs. income analysis.

Gather up all of your bills and receipts. Categorize what you spend in each area: Rent/Mortgage, car payments, insurance, credit cards, electricity, cable, Internet, eating out, groceries, gas, lattes, etc. Total it all up.

Next, work out what your monthly take-home pay is. Be sure to include any extra income, no matter how small. Just as you did with your expenses, total it all up.

How does it look? Is there more going out than there is coming in? Are you breaking even? Maybe your income is just barely higher than your debt. If it’s the latter, congratulations!

2.    Okay, now that you know where things sit, it’s time for the next step.

This part can actually be fun if you turn it into a game of, “Let’s see how little we can spend each week!” Go over your expenses. Take an honest look at any expense you can cut. For instance, make coffee at home, and take it to work in a travel mug, instead of buying a latte. That saves you up to $60 a month right there!

3.    Now comes the third and final task: The debt snowball.

Look over all of your credit card bills. There is some debate over whether to begin paying the one with the highest interest rate first or the one with the lowest balance. You can use the Snowball Calculator to figure out which method makes the most sense to you.

For ease of description, we’ll use the lowest balance method here.

Let’s say you have three credit cards: “A,” “B,” and “C.” “A” has a balance of $800 with a minimum payment of $45; “B” has a balance of $1800 with a minimum payment of $80; and “C” has a balance of $3200 with a minimum payment of $130.

Let’s say you’ve also figured out how to squeeze an extra $250 out of your monthly expenses. So, you can now pay $295 per month to credit card “A” while making the minimum payments to “B” and “C.” That means credit card “A” will be paid off in three months!

Jump up and down, cut the card, and consider closing the account (just beware that if you close numerous credit card accounts in a short period of time, you will decrease your available credit, increase the amount of credit you’re utilizing and therefore, decrease your credit score!) Then, immediately take that $295 per month you were paying toward “A” and tack it on to the $80 you pay “B.” You can do the math. In just eight short months from now, you will have wiped out two credit cards! Use the same method for “C,” and you are debt free before you know it.

There are many strategies to paying off debt. The important thing is finding a plan that works for you and sticking to it.

Pay Off Your Debts in 2009: 3 Strategies To Being Debt-Free was created by and is property of American Consumer News.