Tip 1 : Budget to Save - The first step to debt reduction is establishing a detailed budget. By writing down your income and expenses in detail you will be able to easily establish if you are living beyond your means.

Tip 2: Avoid Using Credit Cards - Most people get into financial trouble because of excessive use of credit. If you are looking to reduce your debt it is wise to close most if not all of your credit cards. It may take some time to do this as there may be outstanding balances to pay off.  Over time - focus on replacing your credit cards with a debt card.
 

Tip 3: Make sure that you reconcile your Bank Statements - Unless you reconcile your bank statements regularly you will not be able to ensure that you have been charged correctly for the expenses you have incurred.

Tip 4 : Impulse Buying - You should be aware of the tricks used by retailers to encourage you to spend more than you intended. It is critical to change your mind-set when you go shopping to ensure that you do not buy what you did not intend to when you went shopping.

Tip 5: Be Pro-active - If you are struggling financially, don’t wait for the debt collectors to call you. Open and honest communication is an essential part of breaking the cycle of debt.

Tip 6 : Do not borrow for recreation - Save cash for the holidays so you avoid adding to your debt money intended for recreation.

Tip 7 : Try to cut out every day expenses. - See what you are able to give up. Do you really need to buy the newspaper every day when you can read it online? Do you need to buy magazines from a news stand when you can save a bundle by subscribing or just borrowing them from the library? Do you need to spend $10 on lunch each day when you can buy frozen meals for $3 or less, or make your own sandwiches for under $1? It adds up quickly.