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Need to Get Out of Debt But Don’t Know Where to Start? 5 Simple Steps to Get Started Right Now

Need to Get Out of Debt But Dont Know Where to Start 5 steps

Ever entertained the idea of getting completely out of debt but never figured out how to get started?  I think most anybody who’s in debt or has been in debt has entertained that idea at some point.

You realize you’re not comfortable with how much debt you have, and you realize that you need to do something about it, but then you become paralyzed.

You just don’t know what steps you need to take to get started.

Well, you’re in luck, because today I’m going to show you the best first steps you can take to start moving you down the glorious road to debt freedom!


Getting Out of Debt is Not Always a Piece of Cake

One of the first things you should realize is that climbing your way out of a debt hole is not always a piece of cake.  Now, with that said, it’s certainly not impossible, and it’s something anyone can do if they’re committed to the process. Angie and I committed to using these steps when we were getting out of debt, and you can do it too.

It takes work, time, and patience to get the job done, but the debt free results are definitely well worth the effort!


5 Steps to Start Getting Out of Debt

Need to Get Out of Debt But Dont Know Where to Start 5 stepsBefore you start the 5 simple steps, the first thing you have to do is get your mind and attitude right.  You have to decide you won’t be denied in achieving your goal of debt freedom.

That means you have to get mad and naked (find out more about that here).

Once you’ve gotten mad and naked, there are 5 simple steps you can do right now to get started:

1.  Make a List-  Write down a list of every single debt you owe, no matter how small.

2.  Find Out The Details-  Beside each debt, write down how much each payment is, and how often the payment is (weekly, monthly, quarterly, etc.

3.  Add ‘emUp-  Add up all your debts to get a grand total of how much you owe.  Then add up all your monthly payments to figure out how much you’re paying toward your debt every month.

4.  Make a Plan-  You have to have a plan if you want to succeed in getting out of debt.  The first step is to fill out a “Debt Rocket” plan that will show you the path you need to get all your debt paid off in a systematic way.  You can download free Debt Rocket forms here.  They include complete instructions on how to fill them out and how the Debt Rocket plan works.

 5.  Make a Budget-  Learning the habit of making a monthly budget is one of the most important things you can ever do to get control of your money and keep control.   A consistent monthly budget will do 3 things:

  • It frees up money you didn’t know you had because you haven’t been keeping track effectively.
  • A budget helps you figure out if you need to earn more, or if you’re just wasting a lot of money, or both.     
  • A budget gives a name and a place for every single dollar, so you don’t waste money and spend more than you make.

To learn more about how to start a budget, read this post on how to make a budget, and download the free budgeting forms you’ll find there.

Change Doesn’t Always Come Easy

As I said before, getting out of debt is not always easy, It takes time, patience, and commitment.  Usually the hardest part is just getting started.

I can tell you from personal experience, taking that first step is always tough because it means you have to change some things in your life and develop new habits.  Change doesn’t always come easy.

In fact, our mind, body, and spirit all have a tendency to be resistant to change.


Permanent Debt Freedom

But when you finally get mad and naked, and decide you’ve had enough of all that debt dragging you down, making you feel stressed and worried, then you can proceed with these 5 simple steps and bring permanent change to your life.

If you’ve decided it’s time for you to be committed to getting out of debt and on a better path financially, these 5 steps will certainly get you started.  You can also get a deeper teaching about how to do it by taking my CFF online get out of debt course.  You can find out more about it here.

Question:  Have you ever considered getting out of debt but never took the first step?  What held you back?  Leave a comment and tell me about it.



How to Get Out of Debt (Part 8)- There Will Be Resistance

Are You Paralyzed With Fear Because You’re In Debt?

Read More Posts On Debt Here

Photo Credit: Istvan via Compfight cc


Ready to Get Serious About Getting Out of Debt?

Celebrating Financial Freedom Online Get Out of Debt CourseIf you’re seriously considering changing your financial life by getting out of debt, then you have to check out my free mini-course that will get you started on the right track.  It’s a shorter email version of my popular online get out of debt course.

In this 6 day mini-course, I’ll reveal the steps that my wife and I took to get out of debt, and even eliminate our money fights for good!  Best of all, it’s absolutely free!

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  • http://batman-news.com Nicole Mcwhorther

    My husband and I are really trying to get out of debt and it seems like every time we try we hit a road block…something happens that we are prepared for and we get off track and never get back on…We want to purchase our first home and while I believe it is possible I am really stuck on where to start…

    • http://www.CFinancialFreedom.com Dr. Jason Cabler

      This may be a case of not being organized enough with your get out of debt plan. If you make a written get out of debt plan that includes an emergency fund, you have a much better chance of working your plan to completion, even if you experience a bump in the road.

      I wrote a series of posts on how to get out of debt using a detailed plan that can help get you back on track. You can find it on this page: http://www.cfinancialfreedom.com/resources/the-how-do-you-get-out-of-debt-series

      If you want to get more in depth with it, I have a paid course available that teaches this, along with how to deal with your spouse when it comes to money, changing your family tree, and how you’re manipulated to get into debt in the first place, among other things. You can learn more about it here: http://www.cfinancialfreedom.com/65-2/

      If you have any questions about your specific situation, don’t hesitate to shoot me an email, I’m happy to help!

      Thanks Nicole!

  • 2-copper-coins.com

    My wife and I are $600 away from paying off the last of our $37000 of student loan debt. We did almost exactly what you have offered here as we worked on paying it off. We are never going back into debt for anything (house included) and man it feels so good to almost be there.

    • http://www.CFinancialFreedom.com Dr. Jason Cabler

      Dude, that’s awesome! Feels great to see light at the end of the tunnel doesn’t it? That just proves this stuff actually does work when you stick with it. It won’t be long now!

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  • Travis Pizel

    The surprising thing for my wife and I when we were first starting our process of paying off credit card debt is that we didn’t even know how much we really owed. As things get out of control you put on blinders and don’t even want to know. We were SHOCKED when we finally added it all up. Change definitely doesn’t not come easy…..we had no idea how much we really needed to change our lifestyle at first. It was an iterative process over time…it would have been much easier had we come to grips with the change that was necessary at the start!

    • http://www.CFinancialFreedom.com Dr. Jason Cabler

      I think one of the biggest things most people have to overcome is just realizing the truth of their situation and how they got there. It’s so easy to put it off, ignore it, and forget about it because facing the truth is hard.

      I think you’re right that it’s an iterative process. It takes time to come to grips with it all and start figuring out the steps to change your situation. It’s the people who are willing to figure it all out and move forward that succeed in getting out of debt.

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