Do you have a lot of debt? Reducing your debt can increase the amount of money you have available for other spending priorities. Debt can be daunting, but you can get better control of it if you understand how debt fits into the big picture of your finances. You can do this by using a balance sheet, setting goals, and building a strategy to repay what you owe. With regard to federal student loan debt, it's important to understand the consequences of default, how to avoid it, and the steps to get out of default.