How to Get Out of Debt

We’ve all been there. One unexpected bill, a missed paycheck, or even just trying to keep up with the cost of living—and suddenly, you’re juggling credit card payments and feeling overwhelmed. But here’s the good news: debt doesn’t have to be forever. With a clear plan and the right tools, you can take control of your finances and start building a debt-free future.

In this guide, we’ll break down everything you need to know about getting out of debt—even if you’re starting from scratch. Whether you’re dealing with credit cards, personal loans, or medical bills, this step-by-step approach can help you make real progress.

Before you can tackle your debt, you need to get the full picture.

List all your debts, including:

• The total balance
• Minimum monthly payment
• Interest rate
• Due dates

A simple spreadsheet or a printable tracker can help. You can also use our Debt-to-Income Ratio Calculator to understand how your debt compares to your income.

Pro Tip: Use tools like Mint or Empower to automatically sync and categorize your accounts.

This step is hard but essential.

• Avoid using credit cards unless absolutely necessary.
• Pause subscription services and online shopping apps if they’re tempting you.
• Create a “spending freeze” challenge—even just for a weekend or a week.

Every dollar you don’t spend is one that can help reduce your balances.

It might seem backward to save before paying off debt, but even $500 can protect you from needing to use credit in emergencies.

Start Small:

• Sell items you don’t use anymore (Facebook Marketplace, Poshmark).
• Use cash-back or rebate apps like Rakuten or Ibotta.
• Transfer gig income (DoorDash, Etsy, etc.) straight to savings.

There’s no one-size-fits-all method. Pick the one that fits your personality and situation:

• Pay off smallest balance first.
• Builds momentum and motivation.

• Pay off the highest interest rate first.
• Saves the most money long term.

• Combine debts into one lower-interest loan.
• Fewer payments, possible lower monthly cost.

Automate payments to avoid late fees and stay consistent.

Use a budgeting app that lets you:

• Set up payoff goals
• Track your progress visually
• Sync accounts and notifications

Our Savings Goal Calculator can be a great motivator too. You can use it to track how much you’re saving in interest by paying down your balances faster.

You don’t need to cut everything, but a few key moves can go a long way.

Easy Wins:

• Cancel unused subscriptions (try Rocket Money)
• Meal plan and cut takeout spending
• Call your internet or insurance provider and ask about discounts

Try our Monthly Budget Calculator to identify how much you can allocate to debt each month.

If your situation feels too overwhelming, you’re not alone. A certified credit counselor can help you:

• Create a debt management plan
• Negotiate with creditors
• Avoid bankruptcy when possible

Look for counselors through nonprofit organizations like the NFCC (National Foundation for Credit Counseling).

Every time you pay off a credit card, hit a milestone, or stay on budget for the month—celebrate it! Tracking wins keeps you motivated for the long haul.

Getting out of debt takes time, but every small step moves you closer to financial freedom. Whether you’re just starting or already paying things down, what matters is consistent progress.

Save this post, share it with someone who needs it, and bookmark Budget Plan Pro as your go-to guide for money management.