How to Get Out of Debt
Learn how to get out of debt with our detailed step-by-step guide. Follow our easy instructions to get it done right.
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0 of 6 steps completedStep-by-Step Instructions
1 Step 1: List All Debts
Step 1: List All Debts
Write down every debt with balance, interest rate, minimum payment, and due date.
Debt Payoff Workbook
Planner for organizing and tracking debt elimination
Total Money Makeover Book
Dave Ramsey guide to getting out of debt
2 Step 2: Create Bare-Bones Budget
Step 2: Create Bare-Bones Budget
Track all income and expenses, cut non-essentials, and identify money to put toward debt.
Budgeting App Premium
YNAB or EveryDollar subscription for budget tracking
3 Step 3: Choose Debt Payoff Strategy
Step 3: Choose Debt Payoff Strategy
Use debt snowball (smallest balance first) or debt avalanche (highest interest first) method.
Debt Snowball Calculator
Printable worksheets for snowball method
4 Step 4: Pay Minimums Plus Extra to Target Debt
Step 4: Pay Minimums Plus Extra to Target Debt
Make minimum payments on all debts, then put all extra money toward your target debt.
5 Step 5: Increase Income or Reduce Expenses
Step 5: Increase Income or Reduce Expenses
Take on side work, sell unused items, negotiate bills, or cut lifestyle expenses to accelerate payoff.
Side Hustle Guide Book
Ideas for earning extra income to pay off debt
6 Step 6: Avoid New Debt
Step 6: Avoid New Debt
Stop using credit cards, use cash or debit only, and build emergency fund to prevent new debt.
Cash Envelope System
Budgeting envelopes for cash-based spending