Financial writer Jonathan Clements recently wrote an interesting piece comparing people to junk bonds. Such a comparison is apt for about 20% of Americans. First, a little background: Junk bonds are typically issued by companies in financial trouble. They carry a high rate of interest because everybody's worried the company won't be able to pay up. So when you're talking about an individual, someone carrying too much debt can be called a walking junk bond.

About 1 in 5 of us carry such high levels of debt that there's a real question if we're good for the money. Have you created a perfect storm by having credit card debt, HELOCs, mortgages, car loans and more? If that sounds like you, recognition is the first step to erasing your junk bond status. Going forward, you have to be sure to buy things cash only and work your debt down, bill by bill. Your goal should be to create financial breathing space in the event of an emergency.