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Chipping away at credit card and other high-interest debts during an economic downturn is your best investment. So how do you do it? You have to find wiggle room in your budget by looking at where your money is going and brainstorming ways to cut back. For the next two weeks, track every single penny that leaves your wallet, every swipe of your debit card. You'll be surprised at how much of your spending is discretionary—a sandwich here, a rented movie there. Once you see how the little things add up, you'll have an easier time throwing that cash toward your debts, where it can really have an impact on your balance sheet.

And if you think you've cut back on everything you can, remember that other, bigger items can be adjusted as well. Maybe this year, you pick a family vacation spot that's within driving distance rather than having to shell out for pricey plane tickets.
Please note: This is general information and is not intended to be legal advice. You should consult with your own financial advisor before making any major financial decisions, including investments or changes to your portfolio, and a qualified legal professional before executing any legal documents or taking any legal action. Harpo Productions, Inc., OWN: Oprah Winfrey Network, Discovery Communications LLC and their affiliated companies and entities are not responsible for any losses, damages or claims that may result from your financial or legal decisions.

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