How to get out of debt step by step without falling into despair?
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Getting out of debt starts with making a complete list of what you owe, choosing a payment method (snowball or avalanche), and allocating a fixed amount each month, however small, while adjusting expenses and, if possible, negotiating with your creditors. It is neither a linear nor a quick process, but it is a process that can be organized, and that organization is what reduces despair.
What is the first step to start getting out of debt?
The first step is not to pay, but to face it head-on. Many people live with debt in a vague way, without knowing the exact total figure they owe. Make a list of every debt: who you owe, how much is left, the interest rate that applies, and the minimum monthly payment. Seeing it in writing, even if it is uncomfortable at first, is what allows you to move from vague anxiety to a concrete plan. From there, any subsequent step becomes more manageable because you are no longer improvising.
Is the snowball method or the avalanche method better?
The snowball method consists of paying off the smallest debt first (while maintaining the minimums on the rest) to achieve a quick win that boosts motivation. The avalanche method prioritizes the debt with the highest interest rate, which usually saves more money in the long run. There is no universally "better" answer: if you need emotional momentum to keep from giving up, the snowball helps you keep up the pace; if what worries you is the total cost of the debt, the avalanche tends to be more efficient in terms of numbers. The important thing is to choose one and stick to it, not to keep changing your strategy every month.
What should you do if your income is not enough to pay all your debts?
If the monthly minimums exceed what you can allocate, the goal becomes twofold: reduce expenses where it is realistic and, in parallel, talk to your creditors. Many institutions have programs for refinancing, extending deadlines, or temporary payment pauses for those who contact them proactively before falling into default. Postponing that conversation out of shame usually worsens the situation. It is also advisable to check if there are debts that can be consolidated into a single installment with better conditions, always comparing the real cost before signing anything.
How to avoid falling back into debt once you start getting out?
Getting out of debt is sustainable when, while paying off what you owe, you start building a cushion—even a small one—for unforeseen events. Without that emergency fund, any unexpected expense (a breakdown, a medical bill) sends you right back to the credit card. It also helps to identify what led to the debt in the first place: small constant expenses, lack of a budget, a one-time event. Understanding the cause is what allows you to design a system—not just use willpower—to avoid repeating the pattern.
Frequently asked questions about getting out of debt
How long does it take to get out of debt?
It depends on the total amount, the interest rate applied, and how much you can allocate each month, so there is no single or guaranteed deadline. What does help is having a written plan and reviewing it every month to adjust as you go.
Should I stop using my credit card while I pay off debts?
In general, it is advisable to pause the use of credit cards while you are in the repayment process, because continuing to generate a new balance directly competes with the effort you are making. Using debit or cash during this stage usually makes it easier to track your budget.
Is it a good idea to take out a loan to pay off other debts?
It can make sense if the new loan has a clearly lower interest rate and a monthly payment you can sustain, but only after carefully comparing the conditions. It is not an automatic solution: if you do not change the habits that generated the debt, the risk is accumulating new debt on top of the old one.
Does having debt affect my mental health?
It is common for debt to generate stress, insomnia, or anxiety, especially when lived with in silence and without a plan. Having a clear roadmap—even if the road is long—usually helps to reduce that feeling of being out of control, because it turns an abstract problem into a series of concrete steps.
If you want a complete, step-by-step guide to organizing your debts and building a realistic plan, in Get Out of Debt: Your Guide to Financial Freedom you will find the tools to start today.