Tips on Debt Reduction

1. Establish a Budget. Often, families who make a reasonably good income say they don't know where it all goes. You can find out by making all your purchases by check for a period of three months. Then simply study your checkbook register for that period. Many are surprised to learn how much money is spent on unnecessary items.

2. Set goals for your family. Many families live from paycheck. They aren't really enjoying life; they're just existing- just getting by. Why not set goals for your family? Pay off some debt by a set of date. Save money for your next car. Have the children start saving regularly for their college expenses. Setting goals and meeting them brings satisfaction.

3. Destroy your credit cards. Credit cards are of the major causes of family indebtedness. They are so easy to use and so hard to pay off. If you find that you are not paying off the cards in total each month or that you are using them to purchase items that you would not otherwise have bought, then you should destroy your credit cards before they destroy you or your marriage.

4. Purchase depreciating items with cash. In general, families who use cash to make their purchases spend less. For one thing, when you save up for an item, you are more likely to make sure you get the best deal available. On the other hand, you're more likely to purchase things that will soon be used up or eaten when you can delay paying for them than when you have to lay out the cold, hard- and hard-earned- cash.

5. Begin economy measures. Sometimes we're not aware of how mush we could reduce our monthly expenses just by watching some of the small things. Take utilities, or example, just setting your thermostat a little higher in summer and a little lower during the cold months and turning out the lights in rooms not being used can save a significant amount over the course of a year. You can also save by making fewer and shorter long-distance calls, by shopping on sale days and by eating out less often.

6. Have a sale.Most of us have closets and basements and garages cluttered with items that we never use again, things like children's clothes and toys; old books, magazine and record albums; tools and leftover building materials- the list goes on and on. Why not collect all this "stuff", have a yard sale, and place the proceeds on your debt?