Lower the amount of your debt and you'll significantly improve your credit score, reduce the loan rates you could receive and save you a lot in interest payments. It just takes a few easy steps and a little dedication to take charge of your debt.

1. Get organized - Compile all your account, loan and credit information and go over the records with a fine tooth comb. Write down the monthly payment, debt amount, interest rate and term of each debt on a sheet of paper. Next, write down your total monthly income and list your estimated monthly expenses.
   
2. Do the math - Calculate how much you usually spend paying each debt and how much interest that debt collects per month. Define which debts need to be paid off first. Credit card debt and small loans should be paid before low-rate student loans and home loans. A "yes" answer to any of the questions below is a red flag for accounts that need immediate attention:
   1. Are there accounts above 35% of their credit limit?
   2. Do you have any debts with high annual fees?
   3. Do you have any debts with high interest rates?
   4. Do you have any debts that are close to being paid off?
3. Negotiate and consolidate - Start working on those high-interest credit card debts first. Call your creditors and negotiate lower interest rates or move your balances to less expensive credit cards. Accounts that are above 35% of the available line of credit can harm your credit score; pay off or move some of the balance to a different card. If you have a credit card debt that is too large to handle, consider taking out a personal loan from your bank for the amount. Your bank can
   probably give you a much lower rate and a more lenient payment schedule.
   
4. Refinance - After taking control of your credit card and small debts, take a look at your major loans. Would it make sense to refinance your mortgage? Could you consolidate some of your other debts into the loan? What about refinancing your auto loan?
   
5. Execute the plan - Now that you have lowered your rates and refinanced your loans, create a payment schedule and a monthly budget. See exactly how much you can afford to pay each month by subtracting your expenses from your monthly income. Divide the remaining amount between the accounts, paying the most to the debts with the shortest terms and highest interest rates. Create a payment calendar with the due dates and the payment amounts you just calculated for each bill. Sign up for automatic bill payment through your bank or register for online payments to keep you on schedule. Set goals for yourself and don't forget to celebrate when you reach debt-removal.