Tax and Personal Finance Tips

Creating a Debt Reduction Plan

No one can borrow money forever. At some point, individuals, like governments, must reduce their debt or it will greatly hinder their economic freedom. From Mint.com, here at some steps to take to reduce personal debt.

Track
You need to know where your money is going in order to see what can be cut.

Balance
After finding out where your money goes, you need to make sure you are spending less than what you have coming in. See if there's a way to lower your biggest recurring expenses.

Refinance
Try to aggregate your debt at a lower overall rate. You may be able to transfer loans to favorable credit card rates.

Rental Income
Create revenue streams that don't require your direct involvement to reduce your debt burden. One practical way is through renting or licensing property.

Investment Income
As your debt drops and your credit rating improves, look for chances to lend capital at more favorable rates.

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