Excessive consumer debt can be a prison, holding you captive to past financial decisions and overspending. You need to pay off your debts to free up money for your current lifestyle and future plans and dreams. In addition to living an all-around frugal lifestyle, the following steps help you get debt free.The most important step is acknowledging the problem and realizing you need to actively do something about it. Make paying off your debt a high priority or you may face a major debt-related problem such as utility shut-off notices or even a personal bankruptcy. If any of the following statements are true, you have a consumer debt problem:

You have little or no savings and are at your limit on most credit cards. You juggle bills each month, deciding which ones to pay and which need to wait until the next payday, even if it means paying after the bill’s due date and incurring subsequent late fees.

You’ve taken at least one cash advance from a credit card account or other line of credit to make payments on other debts. Your debt load (including car payments but not including mortgage) exceeds 20 percent of your income. Most budgets can reasonably handle a 10-15 percent debt load, but more than that is excessive.

If you use credit cards to finance your lifestyle, you’re living beyond means. It’s time to remedy the situation.

Cutting the cards

Identifying the problem is the first step to digging out of debt. The second step is often difficult for hard-core credit card junkies: Cut up your credit cards. Yep, pull out the scissors and start snipping.

Some credit providers can’t officially close the account until you’ve paid in full, but consider it closed to your usage. Do not, under any circumstances, use a credit card until your debts are paid in full. If you’re deeply in debt, be aware that this can take several years. But after you’re out from under the burden of excessive debt, the relief you experience more than makes up for the inconvenience of going without credit for a long stretch of time.

Sometimes you need a credit card of some sort for making airline reservations, buying items online, or renting a car. If so, get a check card from your bank. You are essentially paying cash because the money immediately comes out of your checking account. But this way you can take have a “credit card” without deepening your credit debt.

Set a good budget and live within it

When planning your budget, be realistic about what you need to spend in each category, but don’t be overly generous with yourself either. You need to cinch in your money belt if you’re serious about repaying your debts so that you have the money to budget for your debt-repayment plan.

Contacting your creditors

Communicate directly with your creditors and explain to them that you’re having problems meeting your payments. Tell them about your frugal budget and ask whether they’d be willing to accept slightly lower payments for a period of time. Many creditors are more than happy to lower monthly payments if that prevents a customer from filing bankruptcy after all, from their point of view, a smaller payment is better than no payment at all.

Some creditors, though, would rather play hardball and force you into bankruptcy before accepting a lower payment each month. If you have difficult creditors, contact a credit counseling agency. These agencies have experience communicating directly with creditors and working out solutions to debt-repayment problems.