 TITLE: Debt-Free Living: How to Get Out of Debt for Good CONTENT: There are many debt-reduction strategies to choose from, which might overwhelm you when you first make the decision to focus on eliminating debt. One way to start is to write down all your debts, including their current balances, interest rates and minimum monthly payments. That will give you clarity on which ones to tackle initially.\nThis, however, can be a hard step; seeing the amount of money you owe staring back at you may lead to shame or fear. But remember that there are many, many people who have the exact same goal as you, and who have gotten out of debt and stayed that way. You can do this.\nOnce you've created a list of your debts, take these steps:\n*   **Reduce interest rates where possible.** Start by limiting the amount you have to pay back by lowering interest rates. Call your credit card companies and ask for an interest rate reduction (which may be more likely if you are a longtime customer and don't have a history of late or missed payments). Consider refinancing car loans or high-interest private student loans if you meet the qualifications and stand to save money. Refinancing your mortgage may also be worthwhile if you're eligible for a lower rate that offsets closing costs.\n*   **Consider debt consolidation.** Depending on the type of debt you have and your credit score, consolidating debt might help lower interest rates and make paying off debt easier. Balance transfer credit cards give you an introductory period with low or 0% APR, if you have good or excellent credit, letting you pay off credit cards without accruing interest. If you have more than just credit card debt, such as personal loans, a debt consolidation loan could help you combine them into one monthly payment—ideally at a lower rate than you're currently paying.\n*   **Cut expenses, add income or both.** You'll typically need to free up at least a little extra money to make progress on your debt. Tax refunds, work bonuses, economic stimulus payments and other one-time windfalls can get you started. Or, find an extra $25 or $50 a month by cutting a subscription you don't use, taking on freelance or gig work, or limiting takeout meals to, say, once a month.\n*   **Utilize a specific paydown strategy.** Once you understand how much you owe, and you've taken steps to reduce interest rates if possible, choose a debt payoff method. You can pay off the most expensive debt first, meaning the one with the highest interest rate, using the debt avalanche method. This way will save you the most money, but it can also take a while. The debt snowball strategy, on the other hand, lets you pay off the smallest balance first, giving you a more immediate morale boost. END