Im not nearly as clever as many folks in this thread, but I am proud to say ive had 0 credit card debt for a very long time, and a stupidly inexpensive mortgage (compared to most of the country). So from a debt standpoint I am in fine shape. That said I waste tons of money on silly stuff, but could easily stop if push comes to shove.
I truly do feel for those who live in houses they can't afford and live off of credit cards. That sounds like an unbelievable burden to carry right now, especially those who purchased houses in the past year or so. I am far from an expert, but it seems like they are going to be terribly underwater for the next couple years.