The American way of life these days is being overwhelmed under a mountain of debt. Just about anything and everything you can buy can be financed in one way or another. There is almost nothing we don't owe money on; homes, cars, furniture, educations, and even vacations are purchased on credit. In fact most of us don't even remember most of what we owe money on because debt is just a de-facto part of life.

There does come a point when all this money owed overwhelms every part of your life and the only way out is a dedicated debt management plan. There are many views on debt, some good but most of them bad depending on how you look at it, but the fact is that debt ties up money that could be otherwise used for other things. And your money is your most powerful wealth building tool, whether you are using it in your own wealth building activities or you are sending it to your creditors who are getting rich. By making the choice to get out of debt you are choosing to better your life and your family's future.

When you find yourself in debt and owing a lot of money it is important to break the cycle and start taking positive steps towards rectifying the situation. Here are four keys to implementing a good debt management plan.

The first thing to do is to determine how you are going to go about attacking your debts. Start by listing out all your debts; who you owe, how much you owe, minimum payments, interest rates, and anything else that you may think is important. By listing them out you get an idea of not only how much you owe but it makes it easier to determine a plan of attack.

The second key to successfully managing your debt is to determine in which order to pay it down. There are several thoughts on the best way to accomplish this but it will come down to what you think will work best for you. The three most recommended plans of attack include.

1. Start with the highest debt first. While paying minimums on all your other debts attack that highest debt with any extra money you can find. Once that one is paid roll that payment into the next highest debt and work your way down. The drawback to this method is the amount of time it may take to vanquish that first debt, leaving you feeling like you aren't getting anywhere.

2. Start with the highest interest rate. The idea behind this method is to get those high interest rates paid off and gone; saving you money on interest payments over the time you are paying off the debts. Again, like the first method you work your way from highest to lowest, rolling payments into the next on your list.

3. Start with your smallest debt. This is the exact opposite of the first suggestion. If you start with your smallest debt there is a good chance that you will pay it off rather quickly. This gives you the motivation to start working your way up your list because you see progress being made at a faster rate.

The third key to implementing your debt management plan is contacting your creditors. If you are up front with them about your desire to pay off your debt many of them will work with you to lower interest rates and set up more favorable payment plans. This can help free up more money in your budget to attack your debts and get them paid off.

Fourth and lastly consider stopping any money you have going into your retirement or savings accounts. This can be hard to do because of the psychological aspect of giving up that money but if it's for only a year or two that extra cash can expedite your debt payoff. And once your debt is gone you can resume your retirement savings with even more cash.

Owing money is not a good financial plan, even if it seems like the American thing to do. Getting rid of that debt with a good debt management plan is the best way to find that financial freedom that is what the American dream is all about.