Financial freedom isn't a pipe dream. According to the experts at Atlanta's Consumer Credit Counseling Service, following these five key steps can reduce financial stress with a bit of commitment and discipline.

"Taking control of your finances is critical to having a sound financial future," said Suzanne Boas, president of CCCS, a nonprofit community-service agency that provides free, confidential budget counseling and other services. "Many people really don't have a complete financial picture for themselves, and this leads to stress and money mismanagement."

Boas recommended these steps to create financial freedom:

> Know how much you owe. Dig out those bills and add them up. Some people have no real picture of their debt - not just amounts owed on credit cards or revolving accounts but also the regular monthly bills, such as utilities, automobile expenses, insurance and groceries.

Keeping up with payments isn't enough, because if your income circumstances change or an unexpected expense comes up, you may not be able to meet all your expenses.

> Create a spending plan. While it's not glamorous, it puts you in control of your money and where it goes. The plan should be flexible and include monthly expenses, such as mortgage or rent, utilities, food, transportation, entertainment and clothing. Make sure your expenses are not higher than your income. If they are, adjust the plan.

> Pay off credit card debt. American credit card holders carry an average of about $8,000 in revolving balance, and
the interest can be as high as $1,680 a year.

Stop charging additional purchases, and vow to pay off credit card debt as quickly as possible, starting with the credit cards that carry the highest interest.

"You'll be surprised how good it feels to know you don't have to use today's earnings to pay for yesterday's, last month's or last year's purchases," Boas said.

> Build a savings cushion. Once you've paid off credit card balances, begin to build a savings nest egg for emergency or unexpected expenses. Three to six months' living expenses is ideal.

> Develop a strategy for your financial future. The earlier you plan for retirement, the more assets you'll have. Think about when you want to retire, how much money you'll need and what you need to do to reach these goals.

Don't fret if you haven't begun to save for retirement. Tax laws allow people older than 50 to accelerate their retirement savings programs. Talk with a qualified specialist about retirement planning, establish a retirement fund and contribute to it regularly.

If your employer provides a retirement plan, find out how you can supplement it and build your nest egg more quickly. If you need help or advice, contact Consumer Credit Counseling Service at 1-800-251-2227 or visit www.cccsinc.org.