NEW YORK (CNN/Money) - Loss of a job. Divorce. Credit card abuse. There can be many reasons families face escalating debt problems. And if you're in this situation, you'll need to stop worrying and start making some changes.

Today's 5 Tips are a roadmap for those facing debt.

Before you take any dramatic steps, you'll want to know whether the debt you've accumulated is only a temporary problem that can be fixed by applying a little financial discipline or a potential credit crusher that could impact you negatively for years to come.

To figure out which camp you fall into, start by asking yourself some questions, like these: Are you using credit cards to pay living expenses? Have you cashed in retirement savings to pay monthly bills? Are you unsure of just how much you owe?

CNNfn's Gerri Willis looks at how a family got into crippling debt and possible solutions. Play video (Real or Windows Media)

If you answer these questions yes, you're living at the edge and should consider serious steps for clearing up your debt problem. Start by going to the debt calculator at www.bankrate.com, called the debt-o-meter, to get a better sense of how serious your problem is. As a rule of thumb, though, you'll want to make sure that the portion of your disposable income that you spend on installment debt (meaning credit cards, but not, in this case, your mortgage) should be less than 15 percent.

Not all debt is bad. Consider this: without a doubt, if you own a home, it's likely that your biggest single outstanding debt is your mortgage. But owning a home has many positives -- it gives you a tax shelter and it typically increases in value over time.

On the other hand, using your credit card to buy clothes and other consumables is bad debt. You're better off making those purchases from cash flow rather than paying the 12.9 percent in interest that most credit card operators charge.

Call it a financial plan or a budget, but if you have too much debt, you'll want to take special care in managing your monthly household expenses.

Start by lining up your monthly income against your monthly debts, including food, health care, housing, transportation, credit cards, utilities and any other costs you pay monthly. If you have four or more credit cards, consolidate to just two or three and put the most money each month against the ones with the highest rates of interest.

If you are having difficulty meeting any of these bills, contact your creditors to work out a payment plan.

Okay, it's easier said than done, but there are a handful of ways to curb your spending.

First, make sure you are getting the best rates for services like telecommunications. Many of the nation's biggest telephone companies have been boosting prices because their sales have been hit by competition and price wars. One cheap option? A new technology called voice over IP (or the Internet). The average American household spends $966 on telecommunications, using VOIP can save you $30 to $50 a month.

Another place to save: Insurance. Boost your deductibles on home and auto insurance to reduce your premiums. Many auto insurers offer a range of discounts -- including price breaks for safe drivers. Home insurance policy shoppers can get discounts for having security systems installed in their homes. For more ideas, go to www.billsaver.com.

One source of wealth many Americans have used over the last few years to cut high debt levels is their home equity. And there are several options, including a cash-out refinance, home equity line of credit or a home equity loan.

By and large, the cheapest source of money is the HELOC. These open-ended loans are structured similarly to a credit card, but carry far lower, although variable interest rates (the average rate on HELOCs is around 4.7 percent). Home equity loans carry a fixed payment and a fixed term usually 5 to 15 years.

Finally, a cash-out refinance simply means refinancing your current mortgage at a lower rate of interest, while also borrowing more than your current loan (hence the phrase "cash out"). Interest paid on home equity debt usually is tax deductible, so the effective interest rate is even lower.

While tapping your equity can help you reduce the burden of debt, it's no panacea. In fact, over-leveraging your home can create more problems. Consider: If you fail to pay your home equity loan, you could face loan default, and ultimately lose your house.

Also, leveraging your house to the max could work against you if real estate prices fall. No one wants to be left owing more on their home than it is worth. You'll also want to take particular care in tapping your home equity during periods of rising rates.

Gerri Willis is the personal finance editor for CNN Business News. Willis also is co-host of CNNfn's The FlipSide, weekdays from 11 a.m. to 12:30 p.m. (ET). E-mail comments to 5tips@cnnfn.com.