If you want to really reduce your debt. Make a list of what items you are spending on a weekly basis. Take note of what items you can do without. Start on the luxury items.. but this is usually easier said than done.
Spending money is fun. And in this day and age where everything is high tech and there are lots of gizmos en gadgets that may tickle our fancy and make us want to buy them. Even if we really cant afford or need them. And in the end we accumulate lots of outdated junk and lots of debt.
Before we spend big money by getting a loan via credit card or personal loan on the latest and greatest gadgets, we must ask ourselves. Do I really need it? Can I live without it? How much would be the re-sale value incase I want to dispose of it? Will it be obsolete in a few months?
A very good example of gadgets that are notoriously expensive when new models come out are celphones. Specially for us pinoys, buying the latest models out there is also a sign of status. But by waiting a few months the prices will drop dramatically and almost in half. And since there are new models coming out every month from nokia and sony ericsson . Its really not practical buying the latest model out there.