Be content with a smaller home. Many people plan their home purchases based on the hope that their job will continue and that employment or business income will remain constant or increase. With this in mind, they apply for the largest possible mortgage they can get, from the most lenient lender (allowing much higher debt ratios than normal or safe to assume). Rather, look at what you can comfortably afford to pay per month––based on a payment that won't wreck your potential to take opportunities such as an annual holiday, romantic getaways, new clothes, theater tickets, charitable giving, etc. Make sure you can sleep at night when the mortgage payment comes due every month. In other words, you decide what is a comfortable payment, not the lending institution.

Here is the acid test: Your mortgage payment, plus insurance premiums, property taxes, maintenance costs, and any condo fees, ought not to exceed 25% of your gross monthly income––keeping you on the conservative side.

Lower your credit cards interest rate. Do you realize that if you have good credit, you can reduce your credit card interest rate simply by calling the credit card company such as Visa or Master Card? Here is what you do: Ask them if they have a lower interest rate than you now pay, then be quiet and let them answer. Once asked, a credit card company may offer a lower rate if you simply change your plan and pay a small premium. Some rates are lowered as much as five to ten percent immediately upon your request—especially if they think they are competing with another card for a lower interest rate. Be aware that you may lose some of the benefits of a more prestigious card such as frequent flyers points. If you change over to a low-interest card, try to redeem your accumulated points first. The lowering of interest will depend on your payment history with the credit card company.

Lower your long distance bills. Like the credit card company, the telephone company that now bills at fifteen cents per minute may offer five cents per minute just because someone else offered you that lower rate. So why not try to get your long distance rates lowered ? Some long distance firms allow the same rate on personal toll free lines, which are great for business universal lines, not to mention the savings when calling from a cell phone or telephone booth (great rates can be arranged for all North America). Other plans cost less than three cents. They may utilize the Internet, and are a bit more cumbersome to use, but the savings are immense and these calls can originate from a residence or cell phone.

Find a part time job. Consider taking on a part time job to pay off the debts such as photographing weddings or being a disc jockey on weekends.