Not that long ago, debt was only used for major outlays, such as a home, college education, or new car. Now it is used to pay for everything from vacations to furniture to entertainment to weekly groceries. This trend has emerged due to the easy availability of credit.

But it is now easy to use so much credit that it exceeds our ability to repay. If you want to get your debt under control, first calculate your debt ratio, which is your monthly consumer debt payments divided by your monthly net income. Consumer debt includes all debt except your mortgage, such as credit cards, auto loans, student loans, and home-equity loans. Most people can handle a debt ratio of 10 percent, with 20 percent generally considered the upper limit.

Instead of just paying the minimum amount due on your debts, consider these debt management strategies:

• Watch your credit card debt closely. Credit card balances typically carry higher interest rates that are not tax deductible. The best strategy is to only use credit cards if you can pay the balance in full, thus eliminating interest payments. If you can't manage that, at least make sure to pay more than the minimum payment. If you carry a balance on your credit card, call the company today and ask for a lower interest rate. Those having difficulty controlling credit card purchases should consider more drastic measures, such as refraining from using credit cards until debt is under control. Instead, only use cash or a debit card, which automatically deducts charges from your bank account.
• Don't prepay your mortgage unless all other debts are paid in full. In general, interest paid on mortgages with balances of up to $1,000,000 and on home-equity loans up to $100,000 is deductible on your federal tax return, provided you itemize deductions. Also, interest rates on mortgages and home-equity loans are typically lower than rates on other consumer debts. Thus, you should pay off your consumer loans before paying down your mortgage. If you are trying to systematically reduce your debt, start by paying off the debt with the highest after-tax interest rate. Once that is paid in full, move to the debt with the next highest interest rate.
• Be cautious when using a home-equity loan to pay off consumer debts. While in theory it is a good strategy to replace higher interest consumer debt with a lower interest home-equity loan with tax-deductible interest, the danger is that you will just run your consumer debts up again. Only use this strategy if you take action to make sure you don't overuse your credit cards.
• Compare interest rates at several lenders. Interest rates can vary significantly among lenders, so periodically review all your debt to see if less expensive options are available.
• Don't purchase items on credit that don't appreciate in value. Use cash for items like clothing, vacations, entertainment, and dining out. Most people find it harder to spend cash than to charge a purchase on a credit card. Hopefully, that will cut down on your spending, but if not, at least you won't be paying interest on top of it.
• Consider using savings to pay off consumer debts. Since you don't get a tax deduction for interest payments on consumer debts, paying off a credit card balance with an 18 percent interest rate equates to a 24.7 percent pre-tax return for those in the 27 percent tax bracket. If you aren't earning at least that amount on your savings, pay down your debt.

Managing your debt wisely can have a significant impact on your financial situation.