WHETHER IT'S student loans, credit cards or jumbo mortgages, Americans are notorious for their ability to spend more than they earn. But now -- as the credit crunch continues to cripple the economy -- that notoriety has reached epidemic proportions.

According to the Federal Reserve, total consumer revolving credit, including credit-card debt, grew by some $70 billion between July 2007 and July 2008. Meanwhile, an October 2008 Standard & Poor's survey found that one in five credit-card users have difficulty paying their monthly credit card bills. And, consumer bankruptcy filings topped 100,000 in October, a 40% increase from October 2007, according to the American Bankruptcy Institute and the National Bankruptcy Research Center.

"We're in a different time than we've been in any of our living memories," says Gerri Detweiler, credit advisor for Credit.com. "The level of debt that consumers owe is much higher than it's been in the past, and there's this big gap in [debt] solutions."

Fortunately, the first steps toward a debt-free life are some of the easiest. As a general rule of thumb, consumers should eliminate discretionary expenses such as dining out or shopping, and allocate any extra cash toward paying down debt. Another helpful move: asking lenders -- whether it's for a credit card or a mortgage -- if they can offer better terms on rates or minimum payments. And when possible, use cash to pay for expenses.