In October 2008, the U.S. economy went into freefall. Despite talk of a “recovery,” many of us are wondering when that recovery will come. Joblessness is on the rise, home foreclosures are mounting, and American households are coping with mountains of debt.

That’s the big news on the street, but what’s going on at your house? Are you coping with the crisis? If you have a large debt load, the most important decision you can make right now is to face it, and develop a strategy for coping. Debt can be a kind of slavery, and, if not dealt with, it holds the danger of bankruptcy and personal ruin. So let’s look at some real strategies for getting your finances in better shape.

First, get honest with yourself and your family about the realities you are facing. If it seems impossible, talk to a counselor and develop a strategy for getting back on track. If you need counseling for stress, many therapists are available to help for reduced, affordable rates.

Budgeting is critical. Go over all household expenses and take a hard look at where you can cut back. Make a shopping list before going to the grocery story. Compare prices and use coupons and store discount cards.

Using credit cards sparingly, if at all. Pay off cards with the highest interest rates first. Transfer balances from to cards with the lowest interest rates. Work with your creditors. If your accounts are current, many banks will be willing to reduce payments.

Get a Wall Street Journal subscription to stay up on the latest economic trends. Knowledge is power—it really is.

Finally, realize that it all takes time. It may be years before you are debt-free, but if you start coping with it now, you will be well on your way to recovery, and economic freedom, in the near future.