Ever tried getting out of debt but don't know the first steps to get started? It's easy to want to get out of debt, but for many people that never translates to actually taking the right steps to begin the process. In this article, I'll show you the best first steps you can take right now to start getting out of debt. These are steps anyone can do, and they'll help you get the ball rolling so you can start getting out of debt for good!
One of the first things you should realize is that it's not always easy to get out of debt. Now, with that said, it’s definitely not impossible. Anyone can do it when they're totally committed to the process!
The first time Angie and I tried getting out of debt was a half-hearted attempt. In fact, we ended up failing miserably. But once we decided that failure was not an option and we completely committed to paying of our debt for good, that's when the good stuff started happening!
Since then we've paid cash for all our vacations, four five cars, four college degrees, and our daughter's wedding!
It takes work, time, and patience to get the job done, but the debt free results are definitely well worth the effort!
5 Steps for Getting Out of Debt You Can Do Right Now
Before you start these 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.
Once you’ve gotten mad and naked, there are 5 simple steps you can do right now to start getting out of debt:
1. Make a List
Write down a detailed list of every single debt you owe. No matter how small or large, write each one down and be totally honest with yourself. You'll never get out of debt until you stop living in denial about how much you owe.
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 ‘em Up
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
Once you know how much you owe, then you can make a plan. It's absolutely essential to have written a plan if you want to succeed at getting out of debt. The first step is to fill out a “Debt Rocket” plan (some people call it a “debt snowball”) that shows you everything you need to pay off your debt in a systematic way.
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, spend less, or both.
A budget gives a name and a place for every single dollar, so you never spend more than you make.
If you've tried budgeting before and failed, read this post to figure out why that happened. This one is helpful too.
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.
I also wrote a great book on how to start budgeting that's easy to follow and can get you up and running quickly. You can find out more about it here.
Taking the First Steps is Tough
Of course, doing the five steps above won't get you completely out of debt. There's definitely more to it than that. As I said before, getting out of debt isn't always easy. It takes plenty of time, patience, and commitment to get the job done. Usually the hardest part is just getting started.
I can tell you from personal experience, taking that first step is always tough. Angie and I were resistant to change because we didn't want to get out of our comfort zone. Eventually though, we realized our “comfort zone” was much more uncomfortable than changing our ways with consumer debt.
So I'm encouraging you to get mad and naked. Decide you’ve had enough of all that debt dragging you down, making you feel stressed and worried. Then proceed with these 5 simple steps for getting out of debt and bring permanent change to your life.
If you’ve decided it’s time for you to commit to getting out of debt, these 5 steps will get you a quick start. You can also get a deeper teaching by taking my CFF online get out of debt course. Find out more about it here.
Question: Have you ever wanted to out of debt but never took the first step? What held you back? Leave a comment and tell me about it.
Reader Interactions
Comments
Nicole Mcwhorthersays
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…
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: https://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: https://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!
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.
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!
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!
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.
[…] Brauchen Sie Schulden, aber wissen Sie nicht, wo Sie anfangen sollen? 5 einfache Schritte, um Sie sofort zu starten. Erfahren Sie, was meine Frau Angie und ich getan haben, um Schulden zu machen, als wir entschieden haben, dass ein Scheitern keine Option ist. #Schuld #aus den Schulden kommen #Finanzen #schuldenfrei #Geld http://www.cfinancialfre … […]
[…] Need to Get Out of Debt But Don’t Know Where to Start? 5 Simple Steps to Get You Started Right Now #Steps #GetOutofDebt #Start Photo Credit: Istvan via Compfight cc http://www.cfinancialfre… […]
[…] the most frequent reason I’m given is the one about too much debt. Most of the people that come to me seeking help with finances in their later years have been […]
[…] on tithing, it’s not likely God will send a bolt of lightning to strike you down. You can still get your debts paid. However, you can’t expect the blessings or intervention that He promises to tithers […]
[…] that will free up some “extra money” so they can get their debts paid off quicker. After the debts are paid, they’ll start tithing again and everything will be […]
[…] complicaciones que mantienen las cosas surgen desorganizado económicamente de no hacer un par de cosas simples. Cuando usted no puede hacer algunas o todas estas cosas, es fácil para sus finanzas a […]
[…] the biggest problems I’ve seen with my readers when it comes to money fights, is that they have no plan for their money. When there is no plan, as in a written budget along with a plan for getting out of debt, then […]
[…] if you want to get out of debt, you gotta have a plan. Getting out of debt is a straightforward, step by step process that anyone can do. It will take some discipline, effort, and time, but the end result is the […]
[…] or another, has decided that they need to get out of debt for good. So they haphazardly begin paying off debt without a concrete plan in place as to how to do […]
[…] the biggest complications that keep things disorganized financially arise from not doing a few simple things. When you fail to do some or all of these things, it’s easy for your finances to descend into […]
[…] here are a few things you can start doing now that will help you toward that goal of gaining more control and ensuring that your financial future […]
[…] after being inspired by what John did, she made a plan, worked hard at it, and over time became debt free. She is now able to sponsor several hungry […]
[…] since this is a blog that’s primarily focused on getting out of debt and living a debt free lifestyle, there is obviously one thing I don’t recommend having more of, […]
[…] people have some pretty extreme ways of saving money. But we have to remember that becoming debt free, saving, and living on less than you make is not about deprivation, it’s about achieving […]
[…] 5 Simple steps to get started getting out of debt. Taking the first step is hard. The simple steps to start| Debt Freedom | Change | Getting Out Of Debt […]
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…
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: https://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: https://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!
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.
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!
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!
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.