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Debt Reduction is the first Step to Get Out of Debt

Debt reduction has become a priority for many Americans. In today's recessed economy, people are beginning to realize debt is not their friend. Instead, it is a chain and ball holding them back from achieving their financial goals.

While debt reduction may seem like a daunting task, there are numerous ways to relieve the heavy burden. First and foremost, it is important to realize it took time to acquire overwhelming debt and it will take time to eliminate it. There is no quick-fix for debt elimination unless you inherit enough money to pay-off outstanding debts.

There are numerous debt programs which claim to help people reduce or eliminate debt. These include consumer credit counseling, debt consolidation, debt settlement, debt management and bankruptcy. Although hiring a financial consultant or debt management firm to handle your finances may sound like a good idea, careful consideration should be taken before traveling down this path.

First of all, there is no reason to spend more money when attempting to reduce debt. While credit counseling can provide insight into frivolous spending habits, you can achieve the same results by taking time to create a list of income and expenses.

Secondly, there are many unscrupulous organizations claiming to set you free from debt. Many of these companies charge outlandish fees or participate in predatory lending practices. Should you decide to utilize the services of debt reduction companies, it is crucial to engage in due diligence. Check with the Better Business Bureau or conduct research online to determine if the company is legitimate and in good standing.

One trusted source for taking control of debt is Dave Ramsey. Ramsey's "My Total Money Makeover" program is a popular choice for people ready to break free from debt. Although this is a paid program, the monthly subscription is less than $10 per month and provides multiple tools to help you gain control of finances. Additionally, Dave Ramsey's website provides multiple free debt reduction articles and resources.

In order to reduce debt, you must create a plan. Start by thoroughly reviewing your monthly bills and determine where you can cut expenses. Keep track of every dime you spend by carrying a small notepad and documenting where your money is going. This trick alone can quickly shed light on unnecessary spending and help you stop spending money on items you don't really need.

Debt reduction can place you on the path to financial freedom. It takes time, patience and perseverance, but little by little you can chip away at debt and break free of the credit chains that bind you. The bottom line is that you need to take action and move forward. Start reading articles from my site.