In debt over your head

Facing debt is the first step to getting a handle on it.

Sometimes the first sign of debt trouble is that you ignore the signs: You don’t know what your credit card balances are, for example, or you just don’t open statements.

Your subconscious usually tells you when you’re in a danger zone, says Beverly Harzog, author of “The Debt Escape Plan.” It may whisper at first, with headaches or sleepless nights. Other times it hollers. You can’t stretch your paycheck to cover all your bills, or you avoid money discussions with your partner.

But facing your debt is the first step toward mastering it. Signs of trouble Your credit card balances keep rising. If your balances are growing, your financial worries are, too.

At least one credit card is maxed out.

You can’t pay more than the minimums on your credit cards.

You can’t afford to save for an emergency fund. If a car repair would mean you couldn’t cover your regular bills, something needs to change.

If any of these apply, it’s time to take an honest inventory of your debt.

“I remember having a lot of headaches, even nausea when I sat down and faced the music,” Harzog says. But she went on to wipe out more than $20,000 in debt in two years.

How to get out of debt Take inventory: First, make a list of every debt you have, along with the interest rate and minimum payment. Then, list your income and expenses for each month to assess your financial obligations.

Cut ruthlessly. Any extra money you can put toward debt payments will get you debt-free that much faster.

Do the math: If it’s more than 50 percent of your income, bankruptcy may be a more reasonable path to re-establish at least modest financial health. Schedule a free consultation with a bankruptcy attorney and a nonprofit credit counselor for assistance.

You can combine any payoff strategy with debt consolidation, which rolls several credit card balances into one debt at a lower interest rate.

Track your progress and celebrate milestones: Rewarding yourself can help you stay motivated to pay down the debt, but don’t go overboard. Think picnic in the park rather than five-star restaurant meal.