In the previous part of debt elimination secrets, you readsaw that it is possible to get your rates reduced through some sincere negotiation efforts. Even balance transfer is not bad if you master the rules of the game. I have already explained those rules - all you have to do is just to follow them. Now that you have reduced the total amount of debts, the next step is to arrange money so that you could pay off your debts. Even if you are suffering from the worst financial phase of your life, there are still ways to arrange risk-free cash. Let's go exploring themhow.

Step V - Get That Extra Cash That You Never Thoughtink You Hadve
Considering the complexities in the calculation in step IV, you will probably go through a lot of chicken scratches and revisions on the master list you prepared in step II. Now, get ready for something moreanother such thing. The next step inof debt elimination is to x-ray all your spending in order to find out the holes your hard earned cash is leaking out from. Look into your regular bills and try to find out thea way to cut down on out unnecessary spending. You just have to walk through all of the required expenses and work out on how to lower that figure. Some of the major areas that you have to look into include food, entertainment, automobiles and electricity bills.

Entertainment
When I suggest cutting down your entertainment expenses, I mean cutting down of "expenses" not "entertainment".

• You can start by canceling those club memberships that you use rarely. For example, membership to a country club that you visit less than once a month is not worth the money you are investing on it.
• Cancel subscription to newspapers and magazines that you rarely read or don't read at all. These are just expensive clutter.
• Stay away from the idiot box. Eliminate your cable bills entirely. ELIMINATE? Ok, don't panic. If you can't live without watching television, you can at least trim a bitback on your premium channel selection.

 Save On Energy Costs

• Use CFL Bulbs. Compact fluorescent light bulbs do not only have a longer lifespan but the electricity usage is also significantly reduced. 
•  Most of the time, we forget to turn off certain electrical devices. This way, they keep on running even if we are not using the same. That's why I always recommended utilizing the features, such as timers and power strips. If there are some electrical devices that you are not using at all, it is better to unplug them.

Automobiles

• If you have an option, you may choose to use public transportation instead of using your own vehicle.
• If you have a friend or relative who you can share your ride with to and from work, you must catch on this option. This will reduce traffic on road, but more importantly, you will save a significant amount on fuel cost. 

Food

• Eating out regularly can be incredibly expensive. Therefore, try to eat food at homeget your food cooked at home.

Save Some More

• Try to reduce your cell phone bills. I personally recommend a prepaid connection, as it keeps a check on the phone bills.
• Some consumable habits, such as excessive smoking and drinking, carry no real benefits, but can be a constant drain on your budget. So, you know what you have to do.

Always remember, a penny saved is a penny earned. See my eEzine article "Smart Spending - The Key To Achieve A Debt Free Life" for more comprehensive detailsdetail on the role of budgeting in the debt reduction game plan.

Cutting down these expenses will open up some breathing room in your budget. The tiny amount saved on each item will accumulate in to a big amount, which you can use asto send it in as an extra debt payment. This way, your smart spending actions can actually be transformed into debt reduction. There are still four more steps to go, where you will learn how to develop an effective debt repayment plan and how to let it work for you.