Finding good debt reduction advice can be tough if you want to lower your personal debt. Too much available information makes it appear impossible. Then there are those that claim to offer advice that will help you get out of debt but is actually geared to keep you in debt longer. There are others who believe you should live on almost nothing. While the majority of them mean well, they may not be the best solutions for your current position. Regardless of which technique you choose, the following tips will help you get out of debt.

The first thing you should do is determine your financial situation. Make a spreadsheet or write down all your debts on a piece of paper. Include all companies and people to whom you owe money, including auto payments, mortgages, personal loans, credit card balances, school loans, and any past-due obligations. Write down the total amount you owe, the smallest monthly payment, and the interest rate you’re being charged next to each creditor.

Once you’ve completed the list, sum up the totals in all columns except the interest rate. You’ll now be able to see the total amount of debt you owe, as well as the total smallest monthly payments you must make. The numbers will surprise you, but it’s crucial debt reduction advice because it reveals to you how much debt you have.

The next stage is to determine how much money is coming in and how much is being spent. Make a note of all your regular sources of income, as well as any money you might access if you needed to (but don’t touch your retirement funds). This will give you a better notion of how much you can put toward your debt, but there’s still one more step…

You should also keep track of all your spending. Don’t forget anything. The better, the more truthful and accurate you are. Once you know where all your money is going, you can start looking for places where you can save money.

Finally, combine all this knowledge and start paying down your debt. The much money possible should be freed up and put into the smallest possible loan (while paying the least amount on all others). You might even be able to pay it off straight immediately if you’re lucky. Roll over the amount you were paying on the previous loan each time you move on to the next one. If you keep doing this, you’ll be debt-free sooner than you think.