125 lb is not much for someone who is 5'6" tall. If your only problem is love handles, it sounds like the main thing you need to do is tone your muscles. Yoga is real good for that, as is pilates. You can also try going for a daily, 30 minute walk.
I'm finding, myself, that posture is also very important when it comes to those love handles. Keeping the spine and shoulders straight (as opposed to hunched over) goes a long way toward diminishing the illusion of love handles. It's also better for your spine to keep it straight (but not rigid). You can also strengthen your tummy muscles by sucking in your tummy to make it flatter. Try that several times/day and hold it for 15-20 seconds.
Thank ya so much!! My tummy is flat...the only problem is in my sides!!! Thank ya!!