American consumers should be reviewing their debt to work out what is "good, bad and essential" borrowing.

Credit counseling service Take Charge America suggests that by doing this US citizens can plan what they should be spending and where.

The organization states that people should use this time of year to start planning how they are going to eliminate debt.

"Spring is a perfect time for consumers to review their financial situation and rethink their spending habits to help them to better manage money," said Mike Sullivan, director of education at Take Charge America.

Making a budget is also said to be way of better managing one's money and can help bring people out of debt.

America's total debt in 2007 was said to be $53 trillion - a figure that increased year-on-year and one that has already risen in the opening months of 2008.

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