This weekend I was talking to one of the new neighbors who had just moved in a week or two ago. We chatted about the great fall-like weather we were having and how great its timing was for his moving in - mostly small talk, getting to know you kind of stuff.

As we were talking, his son walked up to the conversation. His dad introduced him. He said hello, and in the single-minded way only kids can truly master, asked his dad if he could borrow $50 for a new skateboard.

Michael's dad replied with some of the most sage debt management advice I've heard:

It's funny sometimes how you can watch these little wavelets go around the financial community. It's sort of like the waves that get started at sporting events except in this case it's writers picking up on each others' stories and taking a topic a little further, or off in another direction.

I recently saw a little wave of articles asking and answering the question about what to do with extra money:

Given some amount of extra money, should I invest that money, or would it be better to pay down debt?

I just couldn't jump on this one because to me it always seemed so obvious. The best strategy is the one that leaves you with more money in the end. The problem is only a little complicated because all debts are not treat equally, just like not all income is treated equally, in the eyes of the IRS. The answer relies on how the interest paid and the income earned are treated when it comes to taxes.

So many people I talk to want to know what's the best strategy for prepaying their mortgage. Ah, yes, the dream. We want to own our own homes but we don't want to be paying for them forever.

The answer I always give people is that if they want to pay off the mortgage sooner they should pay as much of the principal as soon as possible. The odd thing is people don't seem to grasp this. Maybe it's the result of advertising and marketing overplaying the appeal of "making one extra payment". It sounds so simple: Make an extra payment on your mortgage every year and you'll own your home that much faster.

More and more people these days are in over their heads in debt. I'm seeing and hearing about foreclosures and bankruptcies. Good people who simply let go of the controls a bit too long are struggling under heavy loads of debt.

The burden of debt can never be taken lightly, not when it's excessive. When you're in too far you need a strategy to reduce the load to manageable levels. Here are eight things you can do to reduce and better manage debt:

Maybe it's because it's January and there is this "start the year off on the right foot" thing everyone wants to get in sync with; but I've been seeing a lot of articles and advertising about consolidating your debts and paying them off and - shudder - living without debt.

Living without debt? Can this be true? Yes, there are those who would have you believe you should operate on a cash-only basis. They believe owing others money is a bad thing and that you should do everything in your power to get out of debt and stay out of debt.

They cut up their credit cards, save up and pay cash for cars and pour every extra bit of money into paying off the mortgage.

I don't get this. I think this is a poor way to manage your financial health. Why do I think this way? Here are two reasons:

1. Credit is the means by which we gain access to other people's money to use for our own purposes. In economic terms, this is the process by which resources are allocated to where they can do the most good. Eschewing credit creates inefficiencies, and that's bad for the economy and our way of life.