In order to reduce debt you first have to look at your spending habits. Find out what your fixed bills are. Get a good estimate on how much you spend on gas, food, clothes, etc. Then you can begin your journey to reduce debt. There are many ways to reduce debt. You can first start out by being more disciplined in your spending. You can also reduce debt by looking into bill consolidation or debt elimination programs. You can get free debt consolidation help from a credit counselor who can better help you understand how to reduce debt.

Bill consolidation and debt elimination programs will work with you to reduce debt. The counselors are trained professionals who can help you lower your interest rates. Many times counselors from a bill consolidation or debt elimination program contact your creditors directly to lower your interest rates and in effect help you reduce debt.

There are also many other simple things you can do to reduce debt. For example you can use different gift ideas. Instead of buying a gift you can make one. Instead of using a high interest credit card find a low interest credit card. Simple things can stretch your budget and help you reduce debt.

More Tips On How To Reduce Debt

Rule of 72 - A math formula to determine how long it will take to double your money for or against you. For example, if interest is 6%, money will be doubled every 12 years because 72 (Rule of 72) divided by 6 (interest rate) = 12. Einstein had a tip when he said compound interest was the most powerful force he had ever witnesses. Now you know why.

• General Tips:

1. Cut down on convenience. Change your own oil. Wash your own car. Bar-B-Que instead of hamburgers out for little league. Shampoo your own carpet. Look at all areas of your life. If you want to save, start here.
   
   
2. Share a newspaper or get Sunday only. If you take a Sunday paper, do you need TV Guide? How many cable premium stations, movies, and "pay events" do you have. How many do you need?
   
   
3. Bring/bag your lunch instead of buying.
   
   
4. Go to your last 6 months check register and find out where and how much you spent. What can you change?
   
   
5. The average person spends 112% more on a credit card than they would if paying cash. Never go to a Mall (or anywhere else) with a credit card without knowing EXACTLY what you are after--- use a list.
   
   
6. Compulsive buying items are gold mines for a retailer and are right at the checkout stand. Get in the habit of putting your hands in your pocket or at least off everything else when approaching the checkout.
   
   
7. Late fees cost money. Pay bills on time.
   
   
8. Do not carry cash in your pocket. Cash spends itself. If you have to go through the trouble of cashing a check or withdrawing from the bank (not a charged versateller), you might think twice about the purchase.

• Apparel

1. Apparel mega-companies have a label and a high price. The exact same thing is available without the label and a lot less expensive.
   
   
2. Shop at factory outlets and discount clothing and cut out the mall store middle-man.
   
   
3. Look for irregular or "imperfect" because it certainly is not going to be "strange" or "ugly" but maybe they are 1/2 off and only have a stich out of place.
   
   
4. The $89 sunglasses do not protect your eyes any better. Ask your optometrist what specific needs you may have to protect your eyes. Paying for his
   
   
5. advice will more than offset those sunglasses which you will have to replace when you sit on them.
   
   
6. rmy-Navy surplus store have great buys and good quality especially for bad weather ware.
   
   
7. Don't use good clothes for messy operations.

• The Animal World:

1. When considering a pet, don't forget to budget for food, vet and health, pet sitting, and licensing amoung other things.
   
   
2. When buying a pet, you are better off avoiding pet stores which commonly must markup a breeder's cost by 200%. Additionally, you as the consumer have no idea if a "breeding mill" was the source of your pet. You can usually acquire a similar pet at half the cost from a breeder and know the condition of its environment.
   
   
3. Show quality is expensive and only of value if you plan to breed, sell, or show. Why, then, pay "show quality" or "registered" prices.
   
   
4. Mixed breeds are not only inexpensive but often make a better pet.
   
   
5. Buy from a "rescue mission". A purebred owner sometimes becomes ill or for some reason wants to surrender their animal. Rescue missions will try to locate a home for these pets and charge nothing more than shipping. Contact American Kennel Clup (212) 696-8200 for dog rescues.
   
   
6. Local animal shelters are constantly looking for good homes for animals some of which are purebreds. Charges exist but are much smaller than a breeder or pet store (average $45-$65).

A credit counselor can give you free expert advice on how to get debt relief and get out of debt with a free debt consolidation analysis.

Free Debt Consolidation Help. Click Here.