"Good debt is investment debt that creates value; for example, student loans, real estate loans, home mortgages and business loans," says Eric Gelb, CEO of Gateway Financial Advisors and author of "Getting Started in Asset Allocation."

The concept of bad debt comes in when discussing the purchase of disposable items or durable goods using high-interest credit cards and not paying the balance in full.

. Reduced income/same expenses. Too often we delay bringing expenses in line with a reduction in income for a host of good reasons and let debt fill the gap. The sooner you adjust to your new reality, whether it be temporary or permanent, the better off you'll be.

The major downsides to this strategy are that it leaves you with refreshed credit limits on the plastic that you carry in your wallet and puts your home at risk if you don't pay. If you're not careful, you will wind up facing the same problem down the road.

If you're a typical American consumer, you have too much high-interest debt, and it's costing a bundle to service it. When a lender offers a chance to lower those monthly payments with a low-interest, home equity loan or a cash-out refinancing, it can feel like manna from heaven. But don't kid yourself: no one is passing out free lunches. When you tap home equity to pay off bills, you kiss off those high monthly credit card payments, but you don't kiss off the debt.

It may sound like a comedy routine opener, but for lots of people, it's definitely not a laughing matter. Many who are weighed down with debt opt first for self-help, trimming back on spending and keeping a close eye on accounts. But much like losing weight, some people have the willpower to shed a few pounds on their own while others require the help of a personal trainer.

"Just like everything else, shop around," says Travis Plunkett, legislative director at Consumer Federation of America. "You should be able to get decent, affordable credit counseling without paying several hundred dollars a month." Get the low down on fees from the get-go. Avoid companies that charge a large fee and promise to return it upon completion of a debt-management program.

Today, a majority of the home equity lines he approves as owner of Priority Plus Lending will be used to pay off Americans' credit card debts. Nor is his route the only one to spring up in a capitalistic society: Where there's a need, there's a buck to be made, even among the broke.

Protect the credit score When you enroll in a debt-management program, you write a monthly check to a credit-counseling agency and the agency pays your creditors. A debt-management plan usually lasts three or four years. A comment stating that you're paying an account through a credit-counseling agency appears on your credit report and remains until the account is paid in full. Such a comment won't hurt your credit score in the least.

When do I know I need debt counseling? There is no specific amount of debt -- whether it's $5,000 or $50,000 -- that denotes you need a debt counselor. You need to consider how much income you have each month, what your expenses are and what your financial plans are. If you can plan a way to get out of debt yourself, that may be your best bet. If you feel helpless, overwhelmed or can't figure out a plan, you may need debt counseling.