Many of our personal debts can be managed and kept under control if we made a conscious effort to do better financially. Many of the debt-traps that we get into are due to sheer indulgence, laziness and lack of some foresight. Below are some guidelines to reduce your debts. It does not take a financial wizard to implement these tips. All you need is discipline. Read on:

1. Get your thinking right
Living debt-free in the modern world is not all that easy. But it is not all that difficult if you keep your wits about you. The thing to do is to separate the good debt from the bad debt. Don’t buy into your own bondage. Take care of the pennies and the pounds will take care of themselves.

2. Shop sensibly
Avoid impulsive buying. Don’t always go for new stuff. Buy second hand. Look around for deals and special offers. Compare prices and bargain where necessary. Try to shop on the internet for better prices. Pay cash when you have in excess and negotiate for better prices from shops. Garage sales are a great place to bargain and get stuff at throw away prices.

3. Break bad habits
If you smoke try to stop it! You could probably finance a trip home on the amount you spend on cigarettes in a year. Try to replace unnecessary visits to malls and high end restaurants with a visit to a friend, a gym or some other healthy creative pursuit.

4. Blitz the money munchers
Avoid gimmicky gadgets like costly cell phones and other electronic gadgets that you usually buy on a whim. There is no end to these. Try to replace hour long cell phone calls, unending cable TV viewing with more sociable interactive activities. Avoid big night lunches, take away meals and holiday lunches. All of these can be culprits and are replaceable with cheaper alternatives. Never go shopping on an empty stomach!

5. Plan ahead
If you’re lucky enough to receive an annual bonus, prevent the downer which inevitably follows the euphoria of having extra cash because you haven’t planned in advance. If your annual holiday takes four months to pay off, rather use some of your bonus, or put away some of your cash to carry you over. Another idea is to save your one dollar coins in a big jar at the end of the day and use it for something major at the end of the year.

6. Make it a family affair
Get everyone to sacrifice something and make simple gifts instead of buying them. Get everyone to come out with ideas of cheap outings and meals. Let them know it’s for their own happiness in the long run.

7. Cut credit cards
The best solution would be to leave the credit cards at home but it is the most difficult thing to do for most people. At the very most hang on to one or two credit cards. Opt for cards with lower interest rates. Pay off the balance on the credit card with the highest interest rate first and then slowly do the same each month with all other credit cards until you are left with one credit card with the lowest interest rate. Use your credit card for major shopping or for emergencies and not for pleasure. Don’t ask for increases on your card limit and even if offered decline the offer. Try to combine all your debts into one card.

8. Pay off your house
Always remember that the one thing that can’t be taken away from you even if you don’t have money in your bank account is your house. When you get a bonus or some additional windfall cash use it to pay off some of your mortgage outstanding. The interest amount on the mortgage loan over a period 20 to 25 years works out to a sizeable amount. Just calculate and see it for yourself. With increasing rates of interest it would do good to get rid of this at the soonest.

9. Take baby steps
Take stock of all you repayments and consolidate all your payments as far as possible. Start with an account with the smallest repayment value and pay if off. If you were paying $500 on a debt and you settle the account, take that $500 and put it towards the next smallest debt. The quicker you close down your short-term debts the quicker you will redeem yourself from monthly repayments.

10. Budget Budget Budget!
Budget and live within your means. Often people attempt to live beyond their means and end up landing in trouble at some stage in their lives. People attempt to live their lives backwards. Be the one who you really are, then do what you need to do to get the money and then have what you want.

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