If you’re looking to reduce your debts without getting into a debt consolidation program, there are things you need to consider.

1. Stop using credit cards. Hide them, freeze them, or perform a plasticomy. Use either a physical envelope budgeting method and take out money you need to eat, tolls, etc. If you run out of money, then make a peanut butter and jelly sandwich or bring leftovers for lunch.  If you want a more electronic method, keep track with your spending using a program like Mint.
2. Discover the exact amount of debt you’re in. You can’t come up with a plan until you know what you owe. List all your creditors, the interest rates, and the total amount you owe.
3. Work to see if you can lower your interest rates. If you can’t negotiate a lower interest rate, you may consider choosing a 0% card to transfer your balance. Please remember, balance transfers are a temporary fix and do not address the root problem.
4. Control your spending and write a simple budget. Track what you spend in 2 to 4 weeks. It’s hard to cut back if you don’t what your weak points are, so grab a little notepad and write everything you spend.
5. Automate your bills and put aside some money for savings. Protect yourself from yourself and automate your debt payments. Try to pay the minimum on all but one of your debts.  Put the rest of your debt reduction money into either your debt with the highest interest rate or the lowest balance. Highest interest rate method is the financially sound decision and lowest debt is the psychologically empowering decision. If you’re looking for money to reduce debt, try cutting unnecessary expenses or get a part time job exclusively for your debt repayment.
6. YOU have to be committed to a plan and stick to it. Have your spouse, friends, family, etc. support you as you reduce your debt.

Your Take

What tips do you have on keeping your finances in check?

Photo Credit: quaziefoto

• 195th Carnival of Debt Reduction: Building Edition Welcome to the 195th edition of the Carnival of Debt Reduction! The theme of this carnival is building something solid. As I mentioned yesterday, finances, like construction involves putting time and energy together to make a success. Setting Yourself Up for Success 5 Great Reasons to Have Less Debt is......
• How Debt Affects Your Credit Score This guest post is from Miranda Marquit who writes DestroyDebt.com. If you enjoy what you read. you can subscribe to her blog. Your credit score is one of the most important pieces of information in your financial history. It is a number that is used to "rate" you and......

• Debt reduction, saving, and investing: Which when? Figuring out what to do with your income is fundamentally what budgeting is all about. If you don't have consumer debt, the choice, once you've accounted for expenses and charitable giving (including tithes), the money is either saved or invested. Just put the money to good use working for you.......
• Debt Reduction is more Important than Your Credit Score If you are a baby boomer with a pile of consumer debt, you are not alone.  Many economists and members of the younger generations are blaming us for the dramatic rise in the use of consumer credit.  We baby boomers are also accused of inflating then collapsing the housing bubble.......