Almost everyone these days has debt, but the way you manage it can make a big difference because there are so many different rates being charged, from 0% teaser rates to 21% revolving store or credit card debt. Given the choice, the conventional wisdom is that in these difficult economic times, consumers would only borrow at the very lowest rate available.

However we are all busy, lazy, and usually take the path of least resistance. $5,000 at 1% totals $50.00, but at 21% the annual total is $1,050, so why are you letting that lender so deep into your pocket?

I’ll send you a postage paid envelope if you want to send me the $1,000 instead, because it is not that difficult to get your financial house in order.  Take a blank sheet of paper, and for the next two months record the amount of money owed on each bill that you do not–or cannot–pay in full. Record the amount and the interest rate on each bill.

Once you have the data, list the outstanding amounts in order of interest cost.

Please ignore the minimum payment required amount, and pay the full amount due on every bill with an interest cost greater than 5%.  Use the 0% to 4.99% offers still coming in the mail, albeit at a much reduced frequency, or call the credit card company at the 1-800 number, and find out what they are offering.

Yes, you may have to pay a 3% up-front access charge, but with a little effort you can keep that extra $1,000 in your pocket and get back on the road to being a wiser and wealthier consumer.

Arne Themmen is a Senior Vice President of Northern Trust Bank of Florida