How to Get Out of Debt in 28 Steps

Getting into debt is easy. There are many reasons why people acquire huge amounts of it –medical emergencies, natural disasters, unemployment, divorce, or poor money management. Before you know it, you’re starting to get more debt to pay off other debt. Get out of this cycle by following the helpful steps below.

  1. Reduce your grocery bill

Discover plenty of ways to reduce your grocery bill aside from cutting your portions or resorting to eating only canned goods.

  1. Keep track of how you spend your money

Track your expenses so you can budget your money better.

  1. Consolidate your debts

Have your debts consolidated into a loan.

  1. Refinance your mortgage

You can consolidate your debts into your mortgage if the house you own has sufficient equity.

  1. Create a spending plan

Planning on how to effectively spend your money can greatly help in saving it.

  1. Seek advice from a credit counselor

Talking to a credit counselor may help you figure out all your options.

  1. Learn to shop smart

Shopping smart will allow you to allocate more funds to paying off your debts.

  1. Manage your bills

Paying your bills twice a month can make it less overwhelming.

  1. Follow the Debt Snowball Method

The Debt Snowball Method suggests paying your debts from smallest to largest amounts.

  1. Or try the Debt Stacking Method

Almost like the Debt Snowball Method, but instead of arranging based on amount, you arrange your debts from highest to lowest interest rates.

  1. Consider buying a used car over a brand new one

You can find a great quality used car that can help you save so much money rather than buying a new one.

  1. File a Consumer Proposal

A Consumer Proposal allows you to negotiate with your creditors with the help of a Licensed Insolvency Trustee.

  1. Check if you can file an Orderly Payment of Debts (OPD) in your province

If you’re in Alberta, Saskatchewan, Prince Edward Island, or Nova Scotia, you can use OPD as an alternate option for bankruptcy.

  1. Pay more than the required minimum amount of your debt

There are several reasons why paying more than the minimum can help you financially. For one, you’ll be able to pay off your debt sooner.

  1. Apply for a part time job

More jobs mean more income to use as payment for your debts. Just make sure your body can handle it to avoid spending money for your health.

  1. Create a bare bones budget

A bare bones budget will help you cut down on your expenses to the minimum essentials.

  1. Look for a side business

Turn any particular talent or skill you have into a flourishing side business.

  1. Break expensive habits

A lot of us are guilty of having expensive habits that cause us to spend more than we need to. Breaking these habits may not be easy, but you can certainly do it.

  1. Rent things out

You’ll be surprised with the things you can actually rent out to earn extra cash.

  1. Sell stuff you don’t need

Image via Life Hacker

It’s much easier to sell things nowadays with the use of the internet. You can pay off your debt by selling stuff you don’t need.

  1. Negotiate your bills

If you’re having problems paying your bills, you can actually try to lower them by negotiating.

  1. Ask for a raise

Figure out how to finally ask for that raise you’ve been longing for.

  1. Request a lower interest rate from your credit card company

Paying your credit card debt will be easier if you can learn how to ask them for a lower interest rate.

  1. Try a balance transfer

Transferring debts from a high-interest credit card to a lower-interest one can help you pay it off easier as long as you keep these balance transfer guidelines in mind.

  1. Invest your money

You may not have enough money right now, but saving some so you can wisely invest it later might help you avoid incurring future debts.

  1. Talk to your loved ones for support

It’s difficult to keep a problem all to yourself – especially when your loved ones can help lower your expenses. Talk to them!

  1. Maximize your tax refunds

Know which expenses you can deduct from your taxes.

  1. Pick the right credit card

Image via CBC

Having the wrong credit card for your lifestyle may be one of the reasons why you’re having a hard time paying it.


Getting out of debt may be difficult, but living with it is worse. When you start to feel uncomfortable with the adjustments in your lifestyle, remember that the peace of mind that comes with being debt-free is worth all the hardships you’re facing.

By | 2017-09-29T00:30:34+00:00 May 24th, 2017|Debt|0 Comments

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