Debt is a another way of life for many fellow American citizens. We owe money on our homes, our cars, our possessions, and our education,yeah even education Many Americans are so mired in debt they aren't even sure just how much they owe and to whom,even worse they sometimes don't even remember just what caused their debt.

1. Debt Reduction
Debt is a another way of life for many fellow American citizens. We owe money on our
homes, our cars, our possessions, and our education,yeah even education Many
Americans are so mired in debt they aren't even sure just how much they owe and to
whom,even worse they sometimes don't even remember just what caused their debt.
Some debt is good for you. For example, what you owe on your home can provide a nice
way to balance out your income tax. A little debt is not a bad thing either as making
regular payments to various creditors helps build your credit rating which makes it easier
for you to obtain loans at good rates. However the truth is that most Americans have
more than a little debt -- and many owe far too much money and are already, or soon will
be, in financial trouble as a result.
Finding yourself owing a lot of money is not the end of the road and you can stop your
cycle of debt by taking four positive steps to break the cycle.
First, attack your high-cost debts. This likely includes credit cards where you may be
paying high minimum payments and high interest rates. Pay off the balances on credit
cards carrying the highest interest rates first. Continue making your minimum payments
for lower-interest cards but concentrate on paying off the highest interest. When the high-
cost cards are paid off then work to eliminate the balances on your other cards.
Second, reach out to your creditors. If you are going to be late or have difficulty paying
your minimum payments then contact the credit card company. Even if you can make all
your payments in a timely fashion there are two benefits you can reap from contacting the
card issuer. First, you may be able to negotiate lower rates or more favorable terms.
Second, they might be able to recommend alternatives that can minimize damage to your
credit rating.
Third, consolidate your debts as much as possible. You can accomplish this a number of
ways. One possibility is simply transferring balances from one credit card to another with
a lower rate, but be aware of transfer fees before choosing this option. Another
possibility, if you own your own home, is to take out a home-equity loan or line of credit
which should have a lower interest rate than most credit cards can offer as well as
offering tax deductions. Finally, you can also consider a secured loan offering the value
in another form of property, your vehicle for example.
Fourth, don't sacrifice your retirement savings. Obviously paying off your debt should be
a high financial priority but cutting what you save for retirement to do so may not be the
wisest course -- especially if that becomes a long term habit or if you are losing out on
your employer's matching funds as a result. Perhaps you may be able to borrow against
(or from) your retirement funds at a lower interest rate which will allow you to continue
to save for retirement while also getting out from under your debt.

2. While owing money may well be the American way it can also be a tremendous burden
to bear. You can shed the weight of your load or at least trim it down to a more
manageable level by taking these four steps.
Getting out of debt can be a long, drawn out process. If you spent years wrestling with
financial problems, the solution will not come to you overnight. It can take months, even
years to unravel debt difficulties but it can be done. You have some options to help you
get started; let's take a look at four of them:
Credit counseling companies are vying for your business. This can be a good option as
you shop around to find the best plan out there, but bad as you learn that many companies
will charge exorbitant fees or do work for you that you can do yourself. Some
government agencies and nonprofit firms provide credit counseling too. For little or no
money you may be able to find a professional who can help you navigate through your
debt dilemma.
Replace your high interest credit cards with one, low interest rate credit card. You
could also see if a lending institution will give you a debt consolidation loan. However,
you may have to pay for an application fee, whereas with a credit card you would not.
Even with rising interest rates, refinancing your mortgage may make sense and allow
for you to save hundreds of dollars per month on mortgage payments. With the monies
saved with a new, lower mortgage payment you could use your savings to pay off your
other debt.
Alternately to home refinancing, you may have enough equity in your home to cash out
and pay off your debt. Importantly, although credit card debt is not tax deductible, a
home equity loan is. Ultimately, you can reduce your debt as well as reduce your tax
obligation by cashing out.
You have some viable solutions to help you reduce your debt. Learn all you can about
each option and select the plan that is right for you.
REDUCE YOUR DEBT AND START MAKING MONEY !