The bills are arriving daily and you still haven't figured a way to get more paydays per month. You write the checks with the method of which ones need to be paid first and when the checkbook says zero you stop. It really doesn't have to be that way. There are no secret methods, you don't need to put a ring of candles around your checkbook and bills and play tranquility style music as you perform a dance around them all. It really is rather simple.

I like to compare a debt reduction battle to fighting the battle of the bulge.

Unless you have found a way to increase your income, you need to first calculate the amount of net income you bring home after taxes. This is the amount you have to work with each month. Never exceed this amount and you will begin the process of reducing your debt (fat) weight. At this point you need to calculate what your monthly bills are. Add up every bill you have. Subtract this number from your monthly net income to determine how much cashflow you have remaining to apply to debt. If you have gotten yourself into the position that you spend more then you bring in, then it is time to re-evaluate your monthly bills to see if there is anything that you can eliminate. Once you have this number look at it as the amount of fat you need to whittle away at. How do you eat an elephant? One bite at a time.

Ok, you have this number of monthly debt (fat). So lets examine each and every bill. You need to get serious and ask yourself if you really need to have each and every bill/service the bill reflects. If not, if it is not required to sustain life then eliminate it. Look at it as calories that sustain this fat debt you have and want to reduce. If the calorie(s) are not required then cancel the spending/service reflected by the bill.

Now, lets examine your checkbook. Go through your checkbook and look at each line item, line by painful line. Ask yourself if the entry was required to sustain life. Did you really need to write that check? If not, determine the behavior pattern that caused you to write the check in the first place and then make the decision to eliminate it. You will be surprised at how many people write checks or stop at the ATM machine on a weekly basis so they can purchase things that they really don't need. This type of spending adds up and is a major cause of debt problems. If you don't need the item (calories) don't buy (eat) it.

We have covered your bills and your spending. With reduction of these types of spending habits (eating those unneeded calories) you will begin to see progress in your goals to reduce your debt weight. It will not be easy for most of you. Nobody said it would be. It is easy to eat and gain weight but it is always harder to loose that undesirable weight. However if you stick with it and don't stray off that debt reduction diet you will see the rewards and begin to feel better about your financial situation and about yourself in general.

In conclusion here are the simple steps to reducing the weight of your debt.

1. Add up your net income per month.

2. Add up your monthly bills.

3. Subtract your bills from your net income or your income from your bills whichever fits you situation.

4. Armed with the number from step 3 you now have the amount of debt weight you need to whittle away at.

5. Look at each bill and ask yourself, "Do I really need to have this item/service to survive?", if not eliminate it.

6. Look at your checkbook line by line and ask yourself the question, "Did I really need to write this check and did I need it to survive?" ,if not, determine to stop that type of spending.

7. By reducing the amount of non-survival type of spending, you have now begun the debt reduction process. Abiding by this new type of spending diet, you will soon reap the rewards of your efforts.

Following these simple steps should put you on the right path towards debt reduction. These steps will stop the addition of fat to your budget. Part two will address how to loose the weight you currently have and tone up. Now once you have begun this process you need to take a look at how to increase your income with an investment strategy or a business of some type. We offer many articles and books on how to become debt free and retire rich. No, it is not a fantasy that is just for your dreams. Being debt free and retiring young and rich can be yours.