Wish there was an easy way to get rid of your debt? You're not alone. Millions of Americans feel as though they never make a dent in their balances. For many, developing a strategy to reduce debt is the first step to financial freedom.

Below are some suggestions on how to pay off your debt and more important, stay debt-free in the future.

Pay down your debt

It's a simple concept, yet many are unaware of it: With almost any loan, you can pay more than you owe each month.

Why would you ever want to do that? Simple. The more you pay with your monthly payment, the less time you'll be in debt. Plus, you could possibly save hundreds or thousands in interest.

The example below illustrates that when you pay more monthly, you reduce the time you're in debt AND you can save on interest ($834).

If you own your home, a home-equity loan is a great solution for consolidating high-rate credit cards and other debt. It uses the equity you've built in your home to pay off your debts and have just one monthly payment.

	Here's why you should use the equity in your home to pay off debts:
	You'll make only one monthly payment (instead of many). You may be able to save more money each month. You may be able to save at tax time (consult your tax adviser).

Are your debts out of control?

	Here are some warning signs:
	Making minimum payments on credit cards Creditors are calling or sending letters demanding payment Borrowing money to pay off debt Making late payments Maxing out credit cards

Develop a budget-and stick to it.

The first step in controlling your financial freedom is to take a look at how much money is coming into the household and how much money is going out. Surprisingly, a large number of people don't have a realistic view of what they're spending money on.

	Separate and total into a list all of your fixed expenses (things like mortgage payment, student loans, auto loans, credit cards, etc.) and your variable expenses (entertainment, clothing, recreation, etc.).
	Identify the expenses that are necessary (covering your basics: housing, food, healthcare, insurance, etc.) and use a portion of your remaining monthly income for savings and "fun" things.
	You can then prioritize the list in order of highest interest rate to lowest. With leftover income, work on paying down the highest rate loans and cards first.