Reduce your debt in 2009 by using the following tips.

Consolidate Your Debt – There are still banks and credit unions who can provide personal loans to consolidate your debt. If you have student loans or tax debt. Those can be handled separately. If you have a lot of equity in a home you might be able to consolidate your debt into a home equity loan. You would need to have more than 20% equity to qualify for a loan like that.

Try Debt Settlement or Debt Negotiation – Working with a reputable debt settlement or debt negotiation company might help you be able to lower payments and pay off debt much faster. Just be careful that the debt company is reputable.

Cut Back on Small Luxuries To Pay Down Debt – Go over your bills and expenses and see where you might be able to cut back. Even saving $50-$100 per month to pay down debt faster can help you get your debt to such a manageable size, that you can start making triple sized payments a year or so later.

Downsize Your Car or House – Try selling your expensive SUV and getting a more economical car with a reduced payment. Use the difference in payment to get out of debt faster. Or, if you can sell your house, consider moving into a smaller house or something more affordable.

Reducing or eliminating debt in 2009 will be more difficult than it has been in over a decade, but there are still ways to do it. The biggest way to make a difference in the size of your debt will be to use a combination of any of the tips listed above. Once you are able to get your debt lower, you will free up more of your money to pay debt down even faster, and so on. Debt can be an overwhelming one year and then completely under control a couple of years later with self-discipline and a good financial plan.

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