Getting Out of Debt Reasons Debts Go Unpaid   • Loss of income   • Unemployment • Illness • Death     • Overextension   • Poor money management • Emergencies • Illness • Death • Failure of relationships, divorce • Materialism • Need for instant gratification     • Defective goods and services     • Fraudulent use of credit   Reducing Your Debt Load There are two effective ways to change your debt load and debt/income ratio:   • Cut spending • Bring in more money. Cutting spending can be the fastest way to reduce the debt load, unless additional work and income is readily available.  Some have equated cutting spending with surgery for your money management.  But as you heal with better financial health, you'll probably also notice that your attitude, relations with others, emotions and sense of humor start getting better too. Recognize that you don't have to continue to add to your debt load with additional purchases.  Remember, you may have found a terrific bargain on a stereo, but if you don't pay it off for three years, the money you "saved" won't matter. Avoid "impulse purchases".  You'll be surprised at what a difference this can make. Cut down on eating out.  The cost of dining out for a week compared to a week of meals bought at a grocery store and cooked yourself should quickly show you how fast you can reduce your debt load by taking small steps now.  A little bit every day is a great start on your financial fitness program. Think about ways to bring in additional money - either an extra part-time job or a better paying primary job.  There is more than one way to change your debt load!		Related Links For related links and additional reading, select your country/ market below. Select country/market Australia/New Zealand Greater China Japan Korea South/South East Asia General Interact with Visa Financial Tools Quizzes

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