If you're in your 20s and deep in debt, consider yourself average.

Numerous studies have shown that more and more young adults are starting out with huge debts. Undergraduate student loan debt has shot up 74 percent in the past four years, according to student loan provider Nellie Mae. In the Bay Area, that burden is even heavier.

``Young adults in this area are getting hit twice,'' said Jerry Nightingale, president of Palo Alto-based Nightingale Financial Advisory. ``They've got more debt because it's getting so expensive to get an education, and then they're living in a place with a high cost of living.''

So the odds are against you. But experts say there are two kinds of debt: bad debt and better debt. The key is tackling the bad debt first and having the discipline to avoid more.

These are the better debts: student loans, a mortgage, and, in some cases, a car loan.

A college degree will allow you to make far more money, so a student loan is a good investment. The loans typically have low rates, and the interest can be a tax deduction.

Tax deductible

Mortgage interest is also tax deductible, and it's almost always cheaper in the long run to own than to rent. But, experts say, this may not be true in high-cost areas like Silicon Valley, especially if you might move in less than five years.

Most experts say paying cash for a car is better than taking out a loan, but in Silicon Valley that might be unrealistic. Instead, consider buying a high-quality but reasonably priced used car, even if you could afford the monthly payment on a Porsche. Cars depreciate so quickly that buying a new one is not a good investment.

Now, the bad debts. All the experts agree: Credit card debt is the worst.

``The best short-term investment young people can make is to pay off their credit cards,'' said Robert Manning, author of ``Credit Card Nation.'' ``Paying off a credit card with an interest rate of 18 percent is like getting an 18 percent return on your investment.''

Strategies for paying off debt

If you don't have savings to put toward credit card debt, many experts suggest this strategy: Consolidate debts onto the card with the lowest rate. Then pay as much as you can, but more than the minimum each month.

If you can't consolidate, try calling your credit card companies to ask for lower interest rates; if you have a good payment history, and if you say you plan to take your business elsewhere, they'll probably agree. Then concentrate on paying off the card with the highest rate first, while continuing to make minimum payments on the other debts.

When the highest-rate card is paid off, turn to the card with the second-highest rate. Send the money that you were using to pay that first debt along with the minimum payment you were making on the second, and so on, until you're in the clear.

Avoid more debt

Once you're done, put the money you were using for debt reduction toward an emergency fund.

``Build up your emergency cushion so that you don't reach for a credit card the next time there's an unexpected expense,'' said Deborah McNaughton, creator of The Get Out Of Debt Kit. ``If you've already got those savings, put that money away for some of your larger goals.''

Then, once you are debt-free, stop charging.

``Cut up your credit cards if you have to,'' McNaughton said.