Debt - a word we all know well, but for some being in debt may be due to an unforeseen event such as being laid off from a job or an illness. Debt has long been associated with reckless spending habits, poor money management, or a combination of both.

The fact is that we all have debt. The difference is some have it under control and others do not. Whatever your reason for being overwhelmed with debt, you can break the cycle.

Here are a few tips to help you get out of debt or keep your debt at a minimum.

Create a realistic budget

List all of your monthly bills and necessities and make sure they are covered by your monthly income. Pay your monthly bills first. Stay within your budget guidelines.

Pay off your most expensive debt first

First, pay all balances to below 50% of the card limit. Balances above this level will affect your credit score the most. Next, pay off the balance on the credit card with the highest interest rate. If the account was opened within the past year and you have other older accounts, close it after it is paid off. Continue this process until you reach the credit card with the lowest interest rate. Use this as your main credit card.

Learn to use cash instead of credit cards

Have one primary credit card and use it only for emergencies or major necessities. Do not carry your credit card with you. This avoids impulse spending.

Avoid accepting credit offers to improve your credit

Many secondary credit card companies offer you credit cards "to improve your credit." The card you receive will have an abundance of fees tacked on leaving you with a minimum balance "sometimes as low as $20.00." Your balance increases as you make the monthly payments. If you must have a credit card, consider a prepaid card, such as ATMCASH.com.

You load the card with the desired amount of cash and you can use it for shopping, making purchases online, and even to withdraw funds from an ATM. There are no high interest rates to worry about and since it has the MasterCard logo, it can be used just as a credit card. One advantage is that you have access to what looks like a "credit card," without it actually being a credit card. You could also use this card to limit your personal spending since once the money is gone; you have to reload it in order to use it again.

Utilize direct deposit

Direct deposit will avoid you having a large amount of cash in your hands. Set a limit on how much you will withdraw each week and set a specific amount aside to go directly to your savings account. Even $10 each pay period will allow you to start saving.

Cut down on your unnecessary expenses

Exceeding your cell phone minutes, dining out, renting videos…

Assess your living situation

Your housing costs should be no more than 33 percent of your household income. This includes mortgage payments, property tax, and both property and homeowner's insurance. You can shop around for lower insurance rates, refinance your home mortgage, and look for more economical utility plans.

Avoid borrowing money,

especially consolidation or payday loans. Many people think this is a way of helping them get out of debt. However, these loans throw you into a cycle of high interest rates and sometimes recurring deductions from your bank account; often costing you double or triple what you initially borrowed. If borrowing is a necessity, ask a family member or a friend.

Talk to your creditors

Most creditors are willing to work with you because the want to be paid. Avoiding them will not make the situation go away; it will only make the situation worse. Once a creditor realizes that you have no intentions of paying (which is what they gather by avoiding their calls), they will refer your account to a collection agency and sometimes an attorney.

Shop Smart

Bargain shopping can pay off. If you take the time to look for deals, you will usually find them.

Earn some extra money

Part-time work, yard sales, even selling items on EBay. Any additional income will help.

Debt reduction specialists

If you find that you cannot come up with a plan to help you get out of debt, consider seeking help from the debt reduction specialist or counselor. They can help you develop a plan. They will also work with your creditors. Evaluate the company’s policies very carefully and avoid companies charging high service fees.

Get in control

No one wants to have creditors calling their home or workplace. No one wants to be afraid to open their mail for fear of yet another overdue bill. With proper planning a sticking to a realistic plan, you can get out of debt and stay out of debt.