How to Get Out of Debt
Debt feels less overwhelming when you replace scattered worry with a clear list, a priority order, and one repeatable payment plan.
See the full picture
List each debt with its balance, interest rate, minimum payment, and due date. Avoid relying on memory. The goal is clarity, not shame.
Protect essentials first
Housing, utilities, food, transportation, insurance, medicine, and other necessary expenses should be considered before sending extra money toward unsecured debt. Missing essential obligations can create a larger crisis.
Choose a repayment method
- Debt avalanche: Pay extra toward the highest-interest debt while maintaining minimum payments on the rest.
- Debt snowball: Pay extra toward the smallest balance first to create quicker visible wins.
Both approaches can work. Choose the one you are most likely to follow consistently.
Find a realistic extra payment
Review your budget for an amount you can repeat each month. A smaller dependable payment is better than an aggressive amount that forces you to borrow again for basic expenses.
Reduce the chance of new debt
Build a small emergency buffer, remove saved card details from shopping sites, and pause before nonessential purchases. Addressing the pattern around debt matters alongside paying balances down.
Ask for help early
Contact creditors before accounts fall far behind. You may also consider a reputable nonprofit credit counselor. Be cautious with companies promising rapid debt elimination or asking for large upfront fees.
A LifeRise coach can help you turn financial stress into practical habits and accountability. LifeRise does not provide individualized financial, credit, tax, legal, or investment advice.
Tell Us What Feels Stuck →Frequently asked questions
Should I save money or pay debt first?
A small emergency buffer can help prevent new borrowing, but the right balance depends on your obligations, interest rates, and circumstances.
Which debt should I pay first?
The highest-interest method may reduce total interest, while the smallest-balance method may provide faster motivation. Consistency is the deciding factor.
What if I cannot make minimum payments?
Contact creditors promptly and consider help from a reputable nonprofit credit counselor or qualified professional.