* List all your debts, total owed, payment amount, and percent of interest charged. Start with the one you owe the least on and concentrate on paying it off. After you have paid it off, add that payment to the payment on the next debt in sequence and watch your debt disappear.

* Consider hiring a debt management firm to work with your creditors. They may be able to get back interest eliminated or a reduction of amount owed. Check out the qualifications of any firm to verify they are reputable.

* Consider consolidating debts with a reputable lender. This will reduce your monthly debt, but don’t be tempted to increase spending.

* If bankruptcy is the only way left, Chapter 13 bankruptcy is a way for the debtor to stop all collection efforts. It works somewhat like a consolidation loan. Once payment is made to the court it distributes the payment to the creditors.

* Chapter 7 bankruptcy should only be considered as a last resort. All your unsecured assets are liquidated, and affected creditors paid. This will impact your credit report for years.

* If you purchased a home with less than 20% down, chances are you private mortgage insurance (PMI) was tact on. This is not cheap insurance. Examine your equity to see if your mortgage debt is down to 80% of the value at closing. If so, contact your mortgage lender to drop the PMI. This will reduce your debt.

* If you pay home insurance on a monthly basis you are likely being charged fees for this privilege. Saving enough each month so you can pay the annual or semi-annual fee in one lump sum will reduce your debt.

Prepare a budget and try these tips. Debt can be reduced, but it takes time and effort.

Thank you to our guest blogger, Erika Stewart!

Erika Stewart is an experienced freelance author whose articles can be found on countless financial websites. Her topics of interest include: personal finance, frugal living and insurance. She currently writes for www.Cheapinsurance123.com.