It usually starts innocently enough with maybe by racking up credit card debt or student loans and quickly turns into a downward spiral of bills piling up, jacked up interest rates, late payments and pretty soon you've hit bottom. It's time to change your mindset and take control of your financial situation!

1. Change Your Habits
This can be the hardest step but you need to stop getting further into debt and take a 180. Open your wallet and take out all of your credit cards and only spend what you have.

2. Track Your Spending
Find out where your money is going! Track where every penny goes for one week from gas to your morning latte.

3. Make a Budget and a Plan
Now that you have an idea of where your money goes, start evaluating where you can cut costs and how much of your income you can put towards paying off your debt. Set goals that are achievable like "Pay down half of Visa card in 8 weeks".

4. Start a Savings Account
If you lost your job today or your car needed major repairs, would you be able to make ends meet? If not, then start putting aside a set amount each month. The general rule of thumb is that you should have a nest egg of 3 months salary in savings. If you can only do $50 a month, you are still putting yourself in a better situation than you were.

5. Pull Your Credit Reports
Request a free copy of your credit report and analyze who you owe and how much. This may not be pleasant but is a must!