5 Steps to Follow for Reducing Debt

Feeling behind on your bills and loaded down under a mountain of debt is a terrible feeling. It’s a burden when you work each month only to still feel crushed by the amount you owe. Unfortunately, many Americans are in that situation. In 2011, 69 percent of U.S. households were in debt, USA Today reports, and the median debt load was $70,000. But there is a light at the end of the tunnel. Follow these five suggestions and you can put yourself on a path to being debt free.

Source: http://www.flickr.com/photos/restlessglobetrotter/

1. Evaluate your situation

You’ve committed to doing whatever it takes to get rid of your debt. In order to do that, you need to figure out exactly what your situation is. Bankrate recommends you begin by pulling your credit report. It doesn’t have to cost you anything to get one, either — you receive one free credit report each year from Equifax, TransUnion, or Experian. The most important part of the process is to make sure you’re reading your report correctly. Don’t underestimate what you owe. This is the time to be honest about the amount of debt you have.