Almost everyone feels the credit crunch at some point in their life but with a little planning, it can almost always be overcome.

Debt management isn't a very popular family topic but talking about it with your kids and loved ones can pro-actively help them avoid a lifetime of financial woes.  Here are a few of the basics:

1. Open Book - Examine all debt at once so the focus can be directed towards paying off high interest, non-deductible debt first.
   
   
2. Budget Crunch - List all income and fixed expenses such as house and car payments.  Next, list variable expenses to see what can be cut back on.
   
   
3. Consolidate - Monthly payments can likely be lowered by consolidating debt through a home equity loan as the interest rate will be much lower.
   
   
4. Reach Out - Creditors will often reduce monthly payments if a debt repayment plan is entered into with a reputable organization.

Managing debt may seem like a daunting task but it can help avoid a financial crisis that could devastate a person's credit rating and ability to borrow money at attractive rates.  Deciding which options work best depends on the individual's level of debt, level of discipline and their future prospects.