How to Get Out of Debt: Top 10, Credit, Budget, Loan, & Card

Sometimes you end up in a tough financial situation and then it can be difficult to get the economy back on its own.

Easy access to quick credit, so even external factors such as unemployment and sick leave can lead to you falling into a debt trap that can be difficult to get out of.

But it is never too late to become debt free and thus get a better personal finances, no matter what your financial situation looks like today.

In this article, I talk about 10 tips that are perfect for anyone who wants to get rid of debt fast.

So, how do you get out of debt?

If you want to get rid of your debts, then make sure to repay your loans effectively. These four steps are a golden formula for effective loan repayment.

  • Map your credits
  • Repay offensively on the most expensive loans
  • Pay the minimum amount on the debts that are not as costly
  • Continue according to this model until the debts are paid off

However, a group loan is the best option, as you thus lower the interest rate for all credits at once.

6 ways on how to get out of debt fast!

1. Review your expenses

Go through all your stuff and sell everything of value if it is not vital to you. Subscribtions that you may not really need, such as home phone, gym membership, streaming services or newspaper subscriptions.

2. Get another job

Even if you already have a permanent job, it can be a good idea to get another source of income, and this in the form of extra work such as newspaper delivery or another form of part-time job.

The extra money you earn should always be earmarked for loan repayment.

3. Create a budget

A budget is a must if you want to have control over your finances. Then you can quickly see where your money is going and start plugging the holes that are far too large.

4. Negotiate a higher salary

It is not uncommon to have the opportunity to increase your salary by 10% annually unless you excel at your job. And if your boss is not prepared to increase your salary, then it may be time to change jobs in order to increase his salary.

5. Borrow money from relatives

If you have friends or family members who have a well-managed financial status, it is a good idea to ask if you can borrow money from them.

It is customary to borrow money from close relatives at a low interest rate, at best no interest is applied at all.

But think before you borrow money from friends and acquaintances, because if you can not pay off the debt, your relationship with them will definitely be negatively affected.

Here’s a video on how to get out of debt if you have low income:

6. Cut your credit cards

Credit cards are often a good idea, as you get the opportunity to take part in free travel insurance, shopping insurance and bonus systems.

Borrowing money with a credit card is, however, a bad idea, as it is customary for a high interest rate of between 15 and 25% to be applied.

7. Avoid all types of credits

Stay away from new loans and credits, unless it is a restart loan or group loan to pay off your debts.

8. Negotiate a better installment plan

If you already have debts with one or more debt collection companies, you should contact them to see if you can get an installment plan you can handle.

If you have had debts with debt collection for several years because you already have a large debt with the bailiff, there are good chances that the debt collection company can reduce your debt (for example, write off the interest) if you start paying off the debt.

9. Contact a debt counselor

Feel free to contact your municipality’s debt counselor if you have difficulty solving your financial problems on your own. They can give you a lot of valuable tips and advice.

10. If possible: consider a restart loan if you have high interest rate loans

If you are not completely under the ice, you can repay your old expensive loans and credits with a loan that has a lower interest rate. If you live in a villa that is not fully mortgaged, you may have it as security for a restart loan.

When you become debt free

When you have become debt free, it is easy to start spending too much again after living frugally for a long time but do not! You do not want to get debts over your ears again, do you? Do this instead:

  • Do not buy expensive stuff unnecessarily. Ignore buying a brand new car, buy a better used one instead if you absolutely must have a car.
  • Do not take out new loans and credits. If you want something you can not afford, skimp for a few months or a year if needed and then pay with cash.
  • Start saving for a buffer that you can take off when you have to and when you want to buy something important instead of borrowing for it. A sensible buffer is a good insurance against future indebtedness.

Use compound interest to your advantage: How to get out of debt

A pretty good tip is that when trying to pay off your debts use the compounding mindset to your advantage.

If you e.g. has a budget where the total interest amount is $200 initially and you pay off your loans for a few months, then the interest rate will decrease to e.g. $180 a month.

Then the tip is to still start from $200 but to take the difference of $20 and use them for further amortization instead of using them for other things. That way, the longer you repay the loans, the faster you will pay off the loans.

This means that every time you pay off something, you have more money to spend on the next loan.

Do this over and over and over again and you will reach the goals much faster!

Tips from the coach – “bonus” money: Get out of debt fast

If during the period you receive bonus money in the form of a tax refund, gift or the equivalent that you had not expected, my recommendation is really to repay the most expensive loans immediately.

It really is a gift that should not be wasted.


In conclusion, I just want to say that there are many examples of people who have turned a bad economy into a good economy.

It really goes like this. It’s just a matter of deciding and then working. My experience is also that it often goes much faster than you think.

Also, if you wan’t a quick summary on the points I have mentioned on how to get out of debt then take a look at the video below:



This article has been reviewed by our editorial board and has been approved for publication in accordance with our editorial policies.

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