It's 2008 and most of us have plans to improve our finances and specifically reduce debt in the New Year. To do this, we have some tips to kick start your debt reduction plan.


The key to a brighter financial future lies in a setting a realistic budget and sticking to it. Without proper guidance, this is easier said than done. To do this successfully, consider downloading a free budget planner from a trusted website. It's important to understand clearly what money comes into the household (income), what money goes out for food, accommodation and essential living costs (expenses) and who you owe money to (creditors). This can be a daunting task, but we've made it easier with the "Debt Fix Budget Calculator" - it's free.


The budget should indicate your financial position, in other words whether you are insolvent (unable to pay your bills when they fall due) or solvent (able to pay you debts when they fall due). In an ideal world there would be a surplus.


Planning and Goal Setting:
Ask any financial planner and they will say the key to achieving a financial goal is all about planning. Whether your financial goal is to become debt free or develop an extensive investment portfolio or planning for a comfortable retirement, having a plan is crucial. The plan has to be clear and you should be able to track performance in order to gauge whether the plan is working. When you plan your financial goals, you should consider speaking with an expert financial planner /accountant or other financial expert, otherwise there is plenty free advice out there as well - but ensure it comes from a trusted source.


Developing a plan doesn't need to be a daunting task. Basically there are three essential elements to consider:


1. Identify the Goal? Is it long term or short term? An example of a long term goal may be to buy a house whereas a short term goal may be to pay off a credit card or pay off a car loan.
2. Estimate how long it would / should take to reach the goal
3. Work out how to start (this is where you may need some trusted advice)
4. Be realistic, be prepared to sacrifice and keep to the plan.


You need to work out what it will cost you to reach your financial goals and how that fits in with your budget. Some goals cost more than others and will therefore take longer to achieve, but it's all about getting your money to work harder for you. Debt Fix is a company that specialises in helping people manage their debts more efficiently. Debt Fix clients have money problems and obstacles that prevent or hinder them from reaching their financial goals. Through a vigorous assessment of their financial position and presenting powerful, realistic options to address and remove these obstacles, Debt Fix helps realise their goals sooner, relieving stress and anxiety.


About the Author:
Nicholas Bregozzo is a personal debt management specialist and has advised people who have personal debt problems since 2000. During this period he has helped 1000s of people manage their debts and avoid Bankruptcy. Currently he works for Debt Fix with the objective of providing clear impartial advice and solutions for people in serious debt.