How to Get Out of Debt: A Step-by-Step Guide

Debt feels overwhelming. But with a clear plan and consistent action, you can become debt-free. Here's how.

Step 1: Face the Numbers

List every debt you have:

• Credit cards
• Student loans
• Car loans
• Personal loans
• Medical debt
• Money owed to family

Write down: balance, interest rate, minimum payment.

Step 2: Choose Your Strategy

Avalanche Method (Mathematically Best)

Pay minimums on all debts, throw extra money at highest interest rate first. Saves the most money.

Snowball Method (Psychologically Best)

Pay minimums on all debts, throw extra money at smallest balance first. Quick wins keep you motivated.

Step 3: Find Extra Money

• Cut subscriptions you don't use
• Reduce dining out
• Sell stuff you don't need
• Pick up a side gig temporarily

Step 4: Track Everything

Use Pocket Clear to see where every dollar goes. Awareness is the first step to change.

Step 5: Stay the Course

Debt payoff takes time. Celebrate milestones. Keep going.