Let's start by cutting up all our credit cards, and only paying cash for what we think we can't live without. That's the first step in reducing your debt.  Maybe by the time you save the cash to buy that item, you will find that you don't really want it after all. So you have the cash to pay on a debt, or maybe even pay off a small one.  That's another way to reduce debt.  Pay off all the little bills that seem to eat into your paycheck each month.  You will be surprised at how much you can save if you don't have to pay a few dollars here and there. Those little bills can get you into trouble because sometimes you tend to forget to pay them, and that adds up, and reflects on your overall credit score. Just one more reason to get them out of the way, then you can concentrate on the bigger stuff, like your car payment and your mortgage. Shop around and see if you can get a lower rate of interest on your home loan. If you find one, by all means, refinance. It's money in your pocket in the long run.( Better your pocket than the bank's). Try to cut down on unnecessary spending.  Does the lunch or coffee you buy really taste better than something you bring from home? You'd be surprised at how this adds up each week, if you do it every day. So, there are a lot of ways to reduce your debt if you just think about it for a bit.