Getting out of Debt

Reducing your debt load

There are two great ways to change your debt load and debt/income ratio: Cut spending and bring in more money.

Cutting spending can be the fastest way to reduce the debt load, unless additional work and income is readily available. Some have equated cutting spending with surgery for your money management. But as you heal with better financial health, you'll probably also notice that your attitude, relations with others, emotions, and sense of humor start getting better, too.

Recognize that you don't have to continue to add to your debt load with additional purchases. Remember, you may have found a terrific bargain on a stereo, but if you don't pay it off for three years, the money you "saved" won't matter.

Avoid "impulse purchases." You'll be surprised at what a difference this can make.

Learn to cook or take your lunch to work. The cost of lunch out for a week compared to a week of lunches bought at the grocery store should quickly show you how fast you can reduce your debt load by taking small steps now. A little bit every day is a great start on your financial fitness program.

Think about ways to bring in additional money - either an extra part-time job or a better paying primary job. There is more than one way to change your debt load!