You may be asking: How much is too much? How can I get out from underneath this heavy burden? Here's a beginners guide for those who are drowning in debt.

Check Your Debt Ratio

A general guideline is 28 to 36 percent debt-to-income ratio. This figure is calculated by dividing your total monthly housing expense (mortgage, taxes, insurance) by your total monthly pretax income.

Before you borrow in excess of these numbers ask yourself: Am I getting in over my head? You may prefer to buy a house that is more affordable and use the extra money to furnish it. Then at least you can live in an unfurnished house if things go bad and you ended up overbuying.

Telltale Signs You Are Drowning in Debt:

• You only pay the minimum balance due every month
• You occasionally miss or are late with payments
• You receive late fees, over-the-limit fees and finance charges on your accounts.
• You use the grace period on a regular basis
• You use a credit advance on one card for making minimum payments on other cards.
• You're denied credit
• You can't sleep due to worry about your debt

What Should You Do?

While bankruptcy forgives many debts, certain debts, such as child support, federal income taxes and some student loans, cannot be erased.

Chapter 7 bankruptcies allow you to keep certain minimal exempt assets as determined by the state in which you live, and it eliminates many debts. Nonexempt assets are liquidated, and creditors share the proceeds.

In Chapter 13 bankruptcy, creditors agree to take a lower amount than the balance due, and your assets are not liquidated as long as you keep making all required payments. This option is usually available only to those with steady incomes.

Either form of bankruptcy remains on your credit report up to ten years, and may affect your ability to obtain rental housing as well as future credit.

Credit Negotiation and Debt Consolidation

Many creditors will negotiate directly with you for a lower total payment or reduced interest rates to help you avoid filing for bankruptcy. To the extent that actual debt is forgiven, the debt forgiveness is considered to be taxable income. Certain organizations, like Consumer Credit Counseling Services, www.ccsintl.org, will contact creditors on your behalf to negotiate for lower balances and generally lower interest rates. You pay a nominal fee to use their services. Credit consolidation may be considered a negative on your credit report and reduce your overall credit score.

Debt Repayment

Repaying debt impacts your credit score positively. While this method isn't easy, people who choose this path indicate a tremendous sense of accomplishment and satisfaction when they are finally debt free. To accomplish debt repayment, you need to create a budget and stick to it.

Target Debt

In the long run, you will be better off financially if you pay off the debt with the highest interest rate first. However, for some immediate gratification, you may wish to knock out the debts with the lower balances when you can.

Paying off bad debt is critical to your financial freedom. It is as rewarding as it is difficult, though, and once you're finished, you will find yourself on a new path of strength, ready to accumulate your wealth. So get organized and start today!

Cyndi Popper is a writer and producer for 'Rob Black and Your Money', a financial TV program aired in the San Francisco Bay Area. She also serves the program on-air, in a weekly segment entitled 'Women and Investing', where smart money strategies and female-friendly resources come together. A U.C. Berkeley graduate, Cyndi writes for numerous independent media groups, and has most recently collaborated on a financial book for PBS. In her leisure time, she enjoys cooking and travel.