Use these tips to reduce your debt.

If you are carrying a lot of debt on credit cards and loans, you still can set a plan to save. First we suggest you look at your debt situation as part of your "Budget Planning Tips" to see how much you are spending on credit.

By setting a plan to reduce your high-interest debt you'll get closer to saving money today.

• Identify your monthly payments for credit card balances, loans, rent-to-own obligations and other items you are making installment payments on.
• Stay timely on your payments to eliminate late payment charges.
• Pay off fastest, if possible, those items that contain additional costs such as late payment charges, over-the-limit fees and higher interest rates.
• Stop using your credit cards for day-to-day expenses. Use cash or checks so you spend only money you actually have.
  • If you must use a credit card, try to use only one and set a limit for yourself.
• Could you consolidate all of the debt onto one credit card with a better interest rate? Or could you consolidate all of your debt into a lower interest rate loan?
• Talk to the people at your credit union about your options
• Contact your creditors to discuss repayment options if you are having trouble. They may consider alternative plans if you help them understand what you are capable of doing.
• Consult a non-profit credit counselor, such as the National Foundation for Credit Counseling at www.nfcc.org or 800-388-2227.

Avoid Bankruptcy

Avoid declaring bankruptcy as a debt reduction alternative. Declaring bankruptcy could affect your credit rating for up to 10 years. You could be placed into a high-risk credit rating that will make credit more expensive to obtain. Also, some obligations may not be eliminated even if you declare bankruptcy. Talk to the people at your credit union or a non-profit credit counselor before deciding to declare bankruptcy.