Debt Reduction or Debt Elimination- Do the Words You Use Make A Difference?

If you’ve read Think Your Way To Wealth for any period of time, you’ve probably noticed that I use Debt Reduction and Debt Elimination fairly interchangeably. They both mean basically the same thing right?

Not really, and although I have thought about the difference for some time, I haven’t necessarily thought about it when I write about Debt Reduction or Debt Elimination. Now, I am not going to pull out Webster’s Dictionary here, but in my mind I find the following difference:

Reduction implies lowering the amount of something from a higher level to a lower level.

Elimination means getting rid of something completely.

There is definitely a difference there in meaning.

Debt Reduction= A Process

Debt Elimination= A Goal

So if I really think about it, I am trying to eliminate my credit card and other consumer debts. I am not really trying to reduce them. Unless you want to say I am trying to continually reduce them until they are zero, or completely gone.

Reduction is the process of getting to zero, or the way I am going to reach a state (or goal) of debt elimination.

As in ” I am going to keep reducing debt until my debt is eliminated”.

Does it Make a Difference Which Words You Use?

Possibly. If your goal is to eliminate your debt (knock it down to zero), and you are very clear that it is your goal, then it probably does not matter if you are calling the steps you are taking reduction or elimination. But if you are going through the motions of trying to reduce your debt, and eliminating it is not your goal, then you may need to evaluate what your ultimate goal is-and decide if debt elimination is your ultimate goal, or if you are just going through the steps of debt reduction. You may not be focusing on the ultimate goal enough. (Although I highly recommend debt elimination as your ultimate goal for consumer debt).

Any Thoughts?

Disclaimer: For the sake of not using the same word every time I write about “reducing my debts until they are totally eliminated”, I reserve the right to use either debt elimination and debt reduction as I see fit .