How to Reduce Personal Debt

Managing personal debt is crucial for financial health. High debt can limit options and increase stress.

1. Assess Your Debt

List all debts with interest rates and minimum payments.

2. Create a Budget

Allocate funds to pay down debt faster while covering living expenses.

3. Choose a Repayment Strategy

• Debt Snowball: Pay smallest debts first for motivation.
• Debt Avalanche: Pay highest-interest debts first to save money.

4. Negotiate Lower Interest Rates

Call lenders to request reduced rates, balance transfers, or consolidation loans.

5. Avoid New Debt

Cut unnecessary spending and avoid new loans until existing debt is manageable.

6. Seek Professional Help

Financial advisors or credit counseling agencies can provide guidance for complex situations.

Conclusion

Reducing debt takes discipline and planning. Use strategies that fit your situation and track progress consistently.