A Suze Orman exclusive

Financial traits: Deals with financial problems by sticking head in the sand. Doesn't open bills because can't bear to see the big balance. Has family, but no living revocable trust or life insurance. Worries, but doesn't take action.

Advice: Face up to your financial reality.

Denial is not a sound financial strategy, my dear Ostrich. The way to get yourself out of a hole starts with lifting your head up and taking a look around. You have to confront your fears and problems instead of trying to ignore them.

So it's time to sit down with that stack of bills and your checkbook, and figure out exactly where you are. My guess is that you have some whopping credit card balances. Your resolution for the coming year is to commit to a sensible and disciplined payment plan. Here's what you are to do. Begin by paying the minimum amount due on every card, on time. Your ostrich behavior has no doubt totally screwed up your FICO score; did you know that 35 percent of your credit score—which determines the interest rates you get on cards and loans—is itself determined merely by whether you pay bills like your credit cards on time? Not whether you pay the card balances off in full, mind you, but just that you make at least the minimum payment each month on time. That's not asking a lot, Ostrich. Next, in addition to making your minimum payments, I want you to find at least $50 a month that you can add to the card bill that carries the highest interest rate. So if your minimum is $75 on that card, you are to pay a total of $125 each month on it. You will be amazed how quickly you can start making a serious dent in the balance. Keep this up until that balance is down to zero. Then take all of that payment—$125 in my example—and now add it to the minimum payment you are making on the card balance with the next highest interest rate. Check out this Credit Card Repayment Calculator to see what it will take to pay off your balance.

And by the way, as you get your balances down, and build a record of paying on time, your FICO score should improve. When that happens, I want you to push your card issuers to lower your interest rate. If they refuse, look into doing a balance transfer to a lower rate card.

You see, with a simple plan you can dig your way out of your hole.

Same goes for all the "I know I should" moves that you haven't yet made. For instance, given that your partner and children are the most important things in your life, how is it that you don't have a living revocable trust, a durable power of attorney, and the right life and disability insurance to protect them? Please make it your goal to tackle one of these important items each month. It isn't hard, and it isn't nearly as expensive as you might think. By the middle of the coming year you could have all these worrisome To Dos checked off your list.