6 Ways to Finally Get Out of Debt

Debt plagues 80% of Americans. If you’re in debt, whether it’s from college, life emergencies, or financial negligence, then it’s time to get out. If you feel like the stress of your debt always hangs over your head, it’s time to find ways to eliminate that stress for good. Your debt is part of your life right now, but it doesn’t have to be part of your future. You don’t want to work when you’re eighty, and you don’t want to spend the rest of your life wondering where to find medical bill money. If you want to be financially stable, rest assured that you can be.

Getting out of debt isn’t easy. If it were, you’d have figured out how long ago! It won’t be enough to continue your current lifestyle; to eliminate your debt, you must make some serious life changes. Be ready to makeover your life. Some changes may seem difficult, but they’ll be worth it if you get rid of your debt once and for all. Here are six ways to finally get out of debt.


Budgeting is one of the best ways to start taking better care of your income. If you aren’t budgeting now, you should be. A budget helps keep you in control of your finances. Many Americans who struggle with debt add more to their total. Your debt pile can stop growing today, and your first step toward making that happen is a budget. Create an Excel document with columns for your utilities, rent/mortgage, groceries, etc. You should put 10% of your income into savings every month. If you find that you don’t have enough income to go around, try cutting back. Give yourself a set amount for groceries every month, and try to stay within your limits.  

Talk to an Accountant

If your financial situation looks like a mess, even after you budget, then it’s time to consult an accountant. An accountant can help you turn your bleak financial situation into a workable plan. Contact accounting and auditing services right away about your budget. An accountant helps you decide where to cut back, and how much you have to give up to eliminate your debt. You accountant also helps you come up with a plan, as well as counsels you about inflation, cost of retirement, and other future worries. Once you see a professional, it’s harder for you to regress on your budgeting goals.

Stop Consuming

You may not have enough income to go around, especially if you want to start knocking off debt payments. Part of your new budgeting goal should be to spend in a different way. You can keep using your credit card, but start thinking of your purchases as cash. Don’t spend money that isn’t in your bank. Start paying off every credit card bill. If you don’t have enough money left in a budget category, spend less. Buy less expensive groceries, get clothes from Goodwill, or appliances from a thrift store. Stick to your budget, even if it means not buying what you’d like every time.

Get a New Career

Your income problem might come down to a few things. However, one of the biggest is a low-paying job. If your salary doesn’t meet all your needs, consider gaining a new career any way you can. With debt, taking out loans for school isn’t easy. Find ways around student loan problems, as much as you can. Online education classes are often less expensive, and allied health degree programs help you pay off student debt faster. Think through a career change with care, but make the right decision for your future. If you need a better salary, start investigating new career opportunities.  


On the other hand, your income might be fine. Your problem may be the size of your lifestyle. If you live in a big house, own more than one car, and live outside your means, it’s time to make some changes. Many people made the same mistake you did, but it’s in your power to reverse it. Instead of trying to keep the lifestyle you have, downsize it, and live in a more comfortable fashion. Move to a smaller, less expensive house. Not only will you save money on your mortgage and property tax, you might even be happier. Moving may seem like a drastic solution when it comes to your debt, but a drastic solution might be just what you need. Peace of mind makes your happier longer-term than that big house, any day.  


You have a great deal of right-now debt on which to focus, and many right-now problems to solve. You should, however, start taking care of the future you, as well. If retirement living in Sydney is your dream, start preparing for your future. Open a retirement fund, and start saving. Old age comes with more medical bills, and the inability to work certain jobs, so you must make sure you provide for yourself at the end of your life. A few good stock market investments and a 401K can make your future lifestyle much less stressful. The debt you handle today makes your future better in many ways, including your ability to take care of yourself as you get older.

Getting out of debt isn’t easy, unlike getting into debt was. If you’re looking for a magic solution to your debt, you’ll just be disappointed. Instead, find ways to simplify your life. You may feel like a budget will stress you out and make you feel pressured. However, knowing what money you have to spend often helps calm your shopping experience. When it comes to your financial future, make the right moves. Start working hard, and make big changes to get out of debt today.

Adam Hansen

Adam is a part time journalist, entrepreneur, investor and father.