To reduce smudging either use a tissue under your and to prevent the heel of your palm, the side, and the fingers from dragging across the page and smudging the pencil, or, draw with the pencil lead very softly, so you can just see the lines but they're not so dark that it'll smudge if and when you erase.
You could also get hold of a kneaded eraser, or a gum eraser. It won't reduce smudging but it can be manipulated like playdough in various shapes, and allows you to take off big or large portions of pencil, including smudges. They can be pretty hard to find unless you frequent art shops, or have a stationary shop that stocks them.
I've got three, and they last forever.
You might consider using mechanical pencil too instead of regular pencil. The leads are easier to replace, and they don't wear down as fast, plus no sharpeners.
YAY!
I prefer it over the traditional lead in wood pencils, and I've been able to do more detailed work on ordinary sketching paper with them too, although unfortunately you do have to constantly sharpen the mech-pencil lead for finer lines. I do this by running it back and forth really fast over a spare bit of paper to keep the tip on a lean instead of flat. Takes repetitive action but I find it easier to use than a normal pencil, no shavings.
~ Pyre