What can one do to reduce the amount of debt we carry?  Well, for starters, you can call the companies where you have a debt (credit cards, etc) and ask to have your payments reduced, or your interest rates lowered. If you have good credit, most of these companies will be willing to work with you.  If you have been late on some payments, chances are they are going to refuse. They will tell you that you have to "pay down" some of your debts.  Now, that doesn't make much sense to me, since the reason you are calling them in the first place is because you can't afford the payments! You can't reason with some of these companies, and that's really frustrating. You can call a credit counseling service and explain to them that you are trying to reduce your debt and see if they have any suggestions.  Try to keep track of where all your money is going, and see if you can reduce the amount you spend on anything that isn't really a necessity. The money you save can be used to pay off some debt. You can also get a second part-time job and use that money toward your bills.  Carpool to work and save money on gas.  Take your lunch to work.  Any amount that you can save and put toward your bills will help to get them paid off that much sooner.  You can see if you qualify for a debt consolidation loan, and pay off all your bills and just make one monthly payment.  Some people go as far as filing bankruptcy to get out from under piles of bills, but since that ruins your credit for a number of years you need to give this option serious thought before you do it.