1. DROWNING IN DEBT

PROBLEM: Most people have several kinds of debt but not enough money to pay it all off.

SOLUTION: Prioritize your debt and tackle it one step at a time. First, try to reduce the rate on your high-interest credit cards. Ask your card company for a lower rate, or take advantage of a low-interest balance-transfer offer. Don’t make new charges on that new card, and pay off the balance before the rate jumps. Then pay off the highest-interest credit cards. Make at least the minimum payment by the deadline on your other cards, so you don’t hurt your credit score.

Focus on your car loan next, then your student loans -- paying the highest-rate student loans first and deducting up to $2,500 in student-loan interest from your taxes if eligible.

By Kimberly Lankford