Debt reduction is the process of reducing or eliminating debt owed by an individual or organization. Debt reduction strategies may involve making regular payments, negotiating with creditors to lower interest rates or the total amount owed, consolidating debt into a single payment, or seeking the assistance of a debt management professional.

The primary goal of debt reduction is to improve an individual’s or organization’s financial situation by reducing the amount of debt they owe and the associated interest payments. Debt reduction can also help to improve credit scores, reduce stress and anxiety associated with financial difficulties, and free up funds for other important expenses, such as savings or investments.