Debts are what you owe,
and debts make you poorer.
Assets are what you own,
and assets are tools to build wealth.
In order to build financial assets, such as savings accounts, investments, or homeownership, the first step is debt reduction. Knowing how to prioritize debt and how to effectively deal with each type of debt - taxes, student loans, credit cards, bounced checks or medical bills - is essential.
Creating and using a debt reduction plan will lead to successful debt reduction. As less money is consumed by debt, money can be used for savings and investments to build wealth.