In debt and need some relief? You have lots of company in this situation. Here are some tips on how to help yourself.

1 - Stop Using Credit Cards

If you haven't done this one, then this is where to start. Put the credit cards and line-of-credit checks under lock and key, and operate as if you don't have them at all. Figure out ways to increase your income and pay only with cash. This is the single most effective action you can take.

2 - Never Commit to Spending More Than Your Company's Income

Using credit to purchase something commits your company's future income to the credit card company. Then you experience economic slavery. Evaluate whether or not the item will increase the company's production of income. If the item will increase the business' production of income, work out how to set aside the cash to pay for it over a short time period instead of whipping out the credit card. Figure out ways to increase the income your company is making and use the cash to pay off the debt while also paying operating expenses.

3 - Always Pay More than the Minimum Payment Required

Your debt reduction program will be most effective if you carve out a minimum of 10% to 15% of your income, and use this money to reduce the debt. Set a target of paying 3 to 5 times the minimum monthly payment on every credit card. Put aside a portion of the payment money each week until the statements show up in the mail. It's much easier to set aside a smaller amount over 4 weeks than to find enough to pay a big bill all at once.

Use the tactic of paying more on the highest interest rate card in your debt reduction program. Another effective tactic is to pay off the lowest balance cards as quickly as you can. The money you were paying on those low balance cards becomes available to pay off the highest interest rate cards.

4 - Do Not Spend Over The Card Limit Or Make A Payment Late

Never sabotage your debt reduction program by getting hit with $25 to $39 over-the-limit or late fees plus the interest on those fees. In addition, if you pay over 30 days late, that black mark stays on your credit record for 7 years - a harsh penalty to pay.

In a news report, a Vice President of a U.S. bank recently said that more than 24 Billion dollars was paid by consumers in the past year on credit cards for over-limit fees, late payment charges and interest. I hope you don't think the credit company minds too much if you go over your spending limit or mail your payment late. They collected billions because of it.

5 - Cut Back on Expenses

Reducing debt requires as much cash as possible, as fast as possible. Evaluate how your company's income is being used and cut back on any expenses that do not contribute to the production of more income. Before you spend, evaluate how much money that particular purchase is going to return to your company.

TIP: Always keep promoting your products and services to everyone - don't cut back on that activity. Just make sure you are getting more money back in sales from your promotional activities than what it costs to promote.

Correctly managing the money in a business to ensure its survivalguarantee it will survive takes more than a strategic money management plan to get out of debt, but this is a great place to start. There are other steps that can be taken to increase the company's income, pay bills when they are due, have cash reserves for emergencies, increase profits and pay yourself a higher salary. You want that, right?