Take Steps to Control Your Debt As you can see, a big part of building wealth is making wise choices about debt. You need to maximize assets and minimize liabilities to maximize net worth. To manage debt you need to know how much you have and develop strategies to control it. When you decide to reduce your credit card debt analyze your debt and developed a strategy to reduce it.

To reduce your credit card debt and the monthly interest paid you to find a card with a lower interest rate and transfer your credit card balance to that account. Bob reviewed his budget and cut expenses. Also, it is important to cut up your old credit cards except one because this will insure that you do not add more debt to it while trying to pay it down. Finally, it important to note that the one card saved should only be used for emergencies.