Consumers, unlike politicians, are shedding debt. Revolving balances like the kind owed on credit cards fell 20% in the year to November, according to the Federal Reserve. That should save households plenty on interest payments; the average card rate is about 16%.

The three companies below are getting leaner, too. Each carries a debt-to-capital ratio that's lower than its five-year average. Companies are often more strategic than consumers when it comes to debt, carefully comparing interest rates with the returns available on projects and investments and borrowing only when it pays. However, the benefits of leverage can disappear quickly during an economic slowdown. If 2010 doesn't bring the raging economic recovery investors have hoped for, companies that have reduced debt might find themselves with the financial flexibility to take share from struggling competitors.

Cummins

Cummins makes engines for heavy duty trucks and generators. The company is expected to finish 2010 with debt equal to 14% of its total capital, down slightly from 2009 and down from more than 40% five years ago. Last year was a weak one for sales of industrial equipment, but Cummins quickly reduced staff and manufacturing capacity to match demand. As a result, the firm is now poised to produce sharply higher profits when orders increase, as evidenced by its fourth-quarter performance. Sales for the period came in 21% ahead of Wall Street's expectations as customers restocked inventories, and earnings per share shot 74% past estimates.

J.M. Smucker

J.M. Smucker makes packaged foods like Pillsbury baking products, Hungry Jack pancake mix and, of course, its namesake peanut butter and jams. Smucker bought Folgers coffee from Procter & Gamble (PG) in 2008. Shortly after that deal, Smucker had a debt-to-Ebitda ratio of 2.4; now it's 1.1. (Ebitda stands for earnings before interest, taxes, depreciation and amortization.) Sales of cupboard items, especially coffee, have gotten a boost from consumers looking to cut back on trips to restaurants and coffee shops. That has helped with debt reduction, which in turn has left the company with rising cash flow. Some analysts say management will boost the dividend in April. The stock's yield stands now at 2.4%.

CA

CA makes software that companies use to manage their computer networks. Known as Computer Associates until it changed its name four years ago, CA has a stock market value of less than one-third of what is was in December 1999, near the height of the Internet stock bubble. Shares have mostly disappointed over the past decade, but they seem modestly priced at 13 times earnings, and the company's sales and earnings are creeping higher. CA is projected to end 2010 with debt of about $1.5 billion, down more than $1 billion from 2008. It's a good thing; the company currently generates yearly free cash flow equal to more than 10% of its stock market value, but it pays a chintzy dividend that makes for a 0.7% yield.