The No. 1 way of reducing debt is to reduce monthly expenditures. One way to recognize your potentially fatal spending habits is to keep a record of every expense made for one month. You might be surprised to know the result! At the end of each month, you could see that a lot of money is spent on unnecessary items. Visiting the candy machine at school every month could easily take up $30 a month. Although it's a paltry amount, other purchases can add up. An easy $300 may be spent on these "worthless" things.

There are two types of expenses: fixed and variable. Fixed expenses are those you have to pay every month, like car loans and the mortgage. Variable expenses include those you can control, like entertainment and clothing. The best way to reduce debt is by cutting back on variable expenses. Look into cutting back on electric use or switching that cell phone plan when your contract ends. Emails can be used in lieu of long distance phone calls and more attention can be paid to cooking rather than purchasing take out food.

Another way to reduce debt is to take control of your credit card situation. Never use credit cards to help the gap between income and spending. If your credit cards aren't carrying balances, cancel them immediately. In addition, try transferring balances from high interest rates to lower interest rates. Debit cards should be used as more as possible and it is wise to pay more than the minimum monthly payment every month issued by your creditor. The minimum monthly payment is a special number formulated to keep interest flowing if credit card holders pay that same amount every month. Last but not least, pay off high interest rate cards first as well. With these tips, you should be on your way to reducing debt in no time.

The third way to help you get out of debt is to get a second job. While earning extra income does require time an extra workload, it does mean you will be able to payoff the debt quicker. Even if you were to work one extra day every week, over the course of a year, that would be a considerable sum of money, which could go towards directly paying off your credit cards, student loans, and the like. To give yourself every chance of landing a second job, you should rework your resume so that it looks good to potential employers. Remember, your personal CV is an advertisement.