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Tips for Getting Out of Debt

Written by Dian Herdiana on 8:52 AM

Are you looking for tips for getting out of debt? Many people struggle every month to find ways to cover just the minimum payments on credit cards, personal loans, student loans and many other debts. The problem with paying only the minimum is that it's almost impossible to get out of debt any time in the near future.

When it comes to getting out of debt for good, there are several steps you can take. Always remember that it took you time to get into debt, so it will take a little time and patience to get back out again.

Here are some tips for getting out of debt for good.

Building Your Motivation to Get Out of Debt

The key to effective debt reduction is understanding WHY you want to get out of debt. Most people simply think that being debt free would be easier financially. Others simply don't want the stress and frustration of constant monthly repayments eating into their pay check leaving them with nothing left over for themselves.

Regardless of what your reasons for wanting to get out of debt are, it's important you have a strong, valid reason for creating a debt reduction plan. When you can answer the question of why you want to get out of debt with passion, you'll find it much easier to stay motivated.


If you're truly determined to work on getting out of debt, then you will need to make a promise with yourself not to add any more debt to your current balances. This means not charging anything else to your credit cards and not applying for more credit.

You might think this sounds like an easy step, but the real challenge comes when bills need to be paid or when you've run out of cash at the end of the week. No matter what happens, be determined to stop adding more debt to your balances.

Reducing Balances

If you're paying the minimum payments on your current outstanding credit card debts or other balances, then you may find it difficult to get out of debt quickly. The object is to find ways to pay more than the minimum due to get your balances down as fast as possible.

Reduce Expenses

In order to pay more than the minimum payment due, you'll need to find ways to reduce your current expenses so you'll have more money left over from your pay check each week.

Think about ways you can reduce your current repayment amounts. You might decide to look into balance transfers to lenders offering lower interest rates or you might think about consolidating some of your debts to reduce your payments.

You should also start thinking about other aspects of your spending habits and see if you can find areas you might cut back. Put any extra cash you have towards your outstanding balances immediately.

Increase Income

If you're struggling to survive financially on your current pay check, then you might consider looking at ways to earn a little extra on the side. This extra income should be designated for getting out of debt and put towards your balances each time you receive it.

You might simply hold a yard sale or put some unwanted items on eBay to raise a little extra cash. You could even look at some ways to create a little side-income online.

No matter what you decide, tips for getting out of debt are only going to be useful to you if you take control and make the firm decision to reduce your debts on your own. With patience and determination, you'll be debt free before you know it.

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