Many Americans are over their heads in debt. In fact, an alarming number of Americans declared bankruptcy in 2006.

If you did, our friends at www.bankrate.com passed along a few tips to get you back on track in '07.

Reaffirm your car debt. If you own a car, and you're still making payments, make sure you reaffirm your loan with your lender. A reaffirmation means you intend to keep the vehicle and continue making payments.

Establish new credit lines. You need to reestablish credit as soon as possible. Most traditional banks and credit card companies will probably not approve you. However, some banks will allow you to deposit money into a savings account and issue a credit card attached to that account. This is called a secured credit card.

And clean up your credit report. Make sure all three credit bureaus show that your debts have been discharged in bankruptcy.

It's very important. Make the best of this year credit-wise.

If you want to get smarter about everything-money, here’s what we want you to do: Sign up for our FREE email tip-letter, Smart Money Moves with the Dolans. It’s loaded with advice to make your life simpler and more rewarding—and it’s FREE. Click here.