How to Get Out of Debt

Follow a budget

Generally, a budget is a detailed plan for your money. It allows you to organize your cash flow and make a spending plan. With a budget, you can spend your income with purpose by prioritizing bills, cost of groceries, rent, healthcare and childcare expenses. Budgeting can also help you stay on track with your debt relief goals ‐ without limiting your freedom.

What are some of the best ways to budget?

• Automate your finances. Use automated transfers between your checking and savings accounts and set up auto pay for bills whenever possible.
• Cut back your monthly spending by eliminating unnecessary expenses in order to save and pay off creditors sooner.
• Set short-term and long-term savings goals ‐ make them realistic to stay on track.
• Track your progress ‐ make sure you are sticking to your spending limit.
• Use budgeting apps.

Stop using credit cards

To avoid adding on to your current debt, switch to using a debit card or cash. This can help you make thoughtful spending choices and reduce your likelihood of overspending.

Find an alternative source of income

Getting a second job or working part-time as a freelancer provides additional income to pay down your debts.