In this situation we look at what to do with the money we're saving, specifically on how to reduce or get out of debt. We'll look first at the smaller debts, such as credit cards and how to reduce debt on them, and then we look at the biggest purchases. We will look at how interest is usually money thrown away.

There are several kinds of debt, and not all debts are necessarily bad. If you have taken out a loan in order to invest money, then this can be a financial benefit if you can afford the payments. The debts we are talking about in this lesson are the debt consolidation that take your money rather than make money for you. Disastrous debts are those you take on to pay off other debts, and these are especially important to get rid of.

A good general reference book for getting out of debt is How to be Debt free' by Paul Clitheroe, but there are many other books available.