Steve Smith, CEO and president of Finicity.com, which offers an online household budgeting program and advice on managing income and expenses, answers questions dealing with family finances.

What types of actions or behaviors lead families into financial problems?

The primary behavior is spending more than they make. A primary cause is not developing a proactive spending plan, which defines what will be done with money that is received each month. Another related cause is not setting aside money from today's cash flow to meet periodic spending requirements, including family vacations, holiday gift purchasing, property tax payments and home or auto repairs.

What steps can consumers take to get their finances back on track?

They need to allocate incoming cash to defined areas of spending. They can then use a system to track all transactions and make spending decisions based on how much is left to spend in each of these areas as the month and year progress. Most families spend 10 to 20 percent annually on periodic expenditures. Unless they are setting aside money on a monthly basis, they will continue spending beyond their means.

Does living within your means seem like a reduction in living standards for many people?

Initially this can be the case. Sometimes to right the ship requires some short-term sacrifices. However, with a focus on eliminating debt and making wise spending decisions by planning where you will spend your money, you can maintain and often exceed your standard of living.

Inversely, can getting your finances in order provide other benefits?

Yes, it is significant. The average consumer debt per household is more than $20,000. If the total annual household income is $50,000, the elimination of this debt load would be the equivalent of receiving a 20 percent raise. If you then focus on the elimination of mortgage debt and saving and investing prudently, you will continue to create wealth over time. In addition, we hear time and time again that having one's finances in order leads to improved marriages, less stress in life and feelings of peace even amidst economic changes.

- Tom Harvey