My advice to everyone out there is to pay cash for everything and try to avoid debt (except for a mortgage, which is likely necessary unless you’re related to Warren Buffett or Bill Gates). Instead of borrowing money to purchase an item, wait until you save enough money to buy it with cash (unless that item is absolutely necessary).

Here are four ideas that will help you eliminate debt faster and reduce the total cost of debt interest:  

Refinance your mortgage: Shop around when mortgage rates drop to see if you can get a better fixed rate. If you plan to stay in your home for more than two years, and you can improve your mortgage rate by as much as 1 percent, you should consider refinancing. This may reduce your mortgage payments and reduce the amount of money you spend each year on interest payments. However, perform a cost/benefit analysis first. See if refinancing your mortgage will actually save you money, as fees can ultimately crush any savings refinancing may provide you. Thus, try to avoid them. Fees are often negotiable. Offer to refinance if the mortgage company will reduce its fees.  

Avoid paying credit card interest: Don’t make purchases on your credit card unless you’re sure you can pay off your balance before interest charges kick in. All too often, individuals get screwed when they can’t pay for what they bought and the 18%+ interest rates begin accumulating and taking their toll. Don’t be a fool, avoid it. And never use credit cards for cash advances, since interest charges begin immediately.  

Apply for a home-equity loan: If you have a great deal of credit card debt and own your own home, you might consider applying to your bank or mortgage company for a home-equity loan. Then use the money to pay off your credit card debt.

Pay more each month on your mortgage: If you can afford to add to your mortgage payment each month, you will reduce the overall interest costs on your mortgage and speed up the time it takes to retire you mortgage. If you can double your payments, your home will be paid off much faster.
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For more personal finance tips, as well as investment ideas and industry discussions, please visit my blog at http://youngragingbull.wordpress.com !