Debt reduction refers to the process of paying off debts or reducing the amount owed in order to achieve financial stability. This can be done through various methods such as negotiating with creditors, consolidating loans, creating a budget and sticking to it, increasing income, and finding ways to reduce expenses. The goal is to decrease the overall debt burden so that an individual or household has more disposable income available for savings, investments, and other financial goals. Debt reduction can also improve credit scores by reducing the amount of outstanding debt and demonstrating a commitment to responsible borrowing and repayment.