How To Get Out of Debt: Simple Steps that Actually Work

Debt can feel overwhelming, especially when balances continue growing despite making monthly payments. Many people feel stuck, stressed, or unsure where to begin. The good news is that getting out of debt usually starts with a few simple behavioral changes, not complicated financial strategies. The process may take time, but small, consistent actions can gradually improve your financial situation month after month.

The basic rule for eliminating debt is simple: stop charging. Making just the minimum payment each month will cause the debt to decrease and eventually disappear if there are no new charges.

Stop Adding New Debt

Put all credit cards away in a drawer.
If you don’t carry them or copy the account numbers, you are far less likely to use them. For many people, reducing access is one of the most effective first steps. Creating a little distance between yourself and impulse spending can help break the cycle of relying on credit cards for everyday purchases.
Eliminate all automatic charges.
This is the time to cancel all the subscriptions you don’t really need and transfer the ones you do need to a debit card or a prepaid Visa or MasterCard you can buy at a discount store. You can also use this card for online purchases. Small recurring charges may not seem significant individually, but over time, they can quietly drain your budget and make debt repayment more difficult.
Go on a drastic “survival budget” for one month.
This should lower expenses enough to pay for the prepaid card or build your bank balance for your debit card purchases. Of course, you shouldn’t make many purchases on a survival budget, since you are only spending on absolute necessities like shelter and food.

A survival budget is not meant to be permanent. It is a temporary financial reset designed to stabilize your situation, reduce unnecessary spending, and create breathing room as debt balances begin to decrease.

That’s it! Certainly, you can get out of debt more quickly if you develop a budget and attack your highest-interest debt first, but the only action required is to make every payment due without incurring any new charges.

Each month, your minimum payments will drop a few dollars, and those dollars will be available for cash purchases or additional debt reduction. Your financial situation will get just a little better each month. Debt payoff is often less about dramatic changes and more about consistency.

Debt Payoff Strategies

If you want to speed up the process, organize your statements according to the interest rate (APR) charged. Then, each month, make the minimum payment on every account except for the one with the highest interest rate. Put a few extra dollars on that payment, and you will save more and get out of debt more quickly.

When to Seek Help

If you have trouble finding a few extra dollars or if you struggle just to make the minimum payments, you should get help. Some people have extra challenges in life and may need to talk with a social worker. Others may just need help with budgeting advice or assistance getting payment relief from some creditors. Those people should talk with a non-profit credit counselor.

A non-profit credit counselor may be able to help you:

Build a realistic monthly budget
Review repayment options
Understand your financial situation
Reduce financial stress
Develop a long-term debt management strategy

The bottom line is that the only cure for debt is to spend less than you earn. It can be very difficult to build brand new spending habits, but remember, you can’t get out of a hole if you don’t stop digging.

Take the First Step Toward Financial Peace

At Take Charge America, our certified nonprofit credit counselors have helped people take control of their finances for more than 40 years. Whether you’re struggling with credit card debt, falling behind on payments, or simply unsure where to start, we can help you understand your options and create a realistic plan forward.

Start your FREE credit counseling session online here, or call 877-357-6309 to speak with a counselor.

The sooner you take the first step, the sooner you can start building a path toward financial stability and peace of mind.

Frequently Asked Questions

What is the first step to getting out of debt?

The first step is stopping new debt from being added. Even small new charges can slow down progress. Many people begin by putting credit cards away, reducing unnecessary spending, and focusing on making consistent monthly payments.

Should I stop using my credit cards completely?

For many people, temporarily stopping credit card use can help break the cycle of relying on debt for everyday expenses. Some choose to store cards away while continuing to make payments on existing balances.

What is a survival budget?

A survival budget is a temporary spending plan focused only on essential expenses such as housing, utilities, transportation, groceries, and necessary medical costs. The goal is to reduce spending long enough to stabilize finances and begin reducing debt balances.

Is it better to pay off the highest-interest debt first?

Paying off the highest-interest debt first is often called the “debt avalanche” method. This strategy can reduce the total amount of interest paid over time. Others prefer the “debt snowball” method, which focuses on paying off smaller balances first to create momentum and motivation.

What happens if I only make minimum payments?

Making minimum payments while avoiding new debt will gradually reduce balances over time. However, interest charges can significantly extend the repayment timeline. Paying even a small amount extra each month may help reduce debt faster.

How long does it take to get out of debt?

The timeline depends on income, expenses, interest rates, and total balances owed. Some people may take months, while others may take several years. Consistent payments and reduced spending habits can help improve financial stability over time.

Should I close my credit card accounts?

Not always. Closing accounts may affect your credit utilization ratio and potentially impact your credit score. Many people simply stop using their cards while paying balances down.

What if I cannot afford my monthly payments?

If monthly payments are becoming difficult to manage, it may help to speak with a nonprofit credit counselor. A counselor can review your financial situation, discuss budgeting strategies, and explain available repayment options.

How can nonprofit credit counseling help?

A nonprofit credit counselor may help you:

Create a realistic monthly budget
Review debt repayment options
Understand your financial situation
Improve spending habits
Develop a long-term financial plan

Can I get out of debt without taking out another loan?

In many cases, yes. Some people are able to reduce debt through budgeting, reducing expenses, and making consistent payments over time without borrowing additional money.