In debt. I’ve been there. I had a car loan as well as student loans from a six year degree. Just knowing I had to make those payments every month was depressing. I was working, but my income was already promised to someone else even before I got paid. I discovered very quickly that debt was a burden and no fun!! It was time to move on and be done with debt!
My guess since you’re reading this is you’re also tired of being slave to your debt. But now what? Time to figure out what to do to actually pay it off — and pay it off as fast as possible. I’ve got good news for you! Here’s your 7-step guide to get out of debt as quickly as possible.
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1) Make up your mind that debt is the enemy
First, you must truly be done with debt. Whatever it takes, make sure your mind is made up. You know that debt has gotten you nowhere, and it is only hurting your financial situation, not helping. It sends you into a downward negative spiral with your money, and it makes it really hard to “catch back up.” Be mad at it! Be furious at the hold it has on you and your life!
When you start with this mindset, you are more likely to solidify your decision to take steps to get out of debt and stay out of debt! And this, my friend, is the only way to have true financial peace and freedom!
2) Evaluate your thought process from when you originally went into debt
Second, you must think about what got you into debt in the first place. Think about the varying types of debt you have. What was the cause of each debt? The answer to that will be different for different people and the varying types of debt.
It’s very important to narrow this down, and be honest with yourself. Why did you originally borrow this money? What did you believe about borrowing the money originally? Did that belief turn out to be true?
Was that thing you wanted so badly worth the cost over the long-term? Very rarely so. Now, whatever it is (if you even remember what it is!) is probably worth a fraction of what you paid for it. Plus, you have probably paid a huge amount of interest on it! So not worth it!! Even a car may not be worth making payments on over the long-term…
In fact, I would argue that the only debt actually worth it over the long-term would be for a home (and maybe for college). But, even in those cases, you must make smart, extremely wise decisions when considering taking out a mortgage, and especially when taking on student loans.
3) Vow to stay out of debt in the future
Now that you’ve come up with the reasons for how you accumulated your debt to begin with, you must learn your lessons from it and vow to avoid getting into that situation (or those situations) again.
What can you do to stay out of debt in the future? Are there places or online websites you need to 
avoid? Do you need to take a break from social media to quit comparing your “things” and your life to others?
Do you need to start listening to podcasts or reading books that encourage a lifestyle that does NOT keep up with the Joneses? If so, I’d highly recommend this amazing book to start.
That’s it! You must decide to quit using borrowed money as a way to pay for things, and be determined to stay out of any future debt! This is so important, and you cannot skip this mindset step if you truly want to stay out of debt for life.
4) Create your plan of action to get out of debt
Fourth, you must come up with a plan of action to pay off your debts.
The easiest and best way to plan to get rid of your debt starts with your budget. You have to know exactly what income you have to work with and exactly where that money is going. A budget allows you to see that financial picture, plus lets you tell that money where to go. I highly recommend you create and follow a written budget ASAP.
Need a jumpstart to budgeting? Sign up for the next Penny Steward Mama Budget Challenge!
Part of that written plan is to get very clear on who you owe, how much you owe, and how much extra 
you can pay each month. This is in addition to budgeting for your everyday living expenses and living below your income. Cutting expenses in every area of your budget will be imperative as you focus on your #1 priority of getting out of debt.
5) Decide which debt payoff strategy will motivate you the most
Obviously, you continue to pay minimum payments on all your debts. But to accelerate your debt payoff, you must pay extra beyond the minimum payments.
You can choose the debt avalanche or debt snowball method to decide how to apply the extra to your debts.
The debt avalanche method is paying off debt based on interest rate. You list your debts from highest to lowest interest rate and then pay any extra money in your budget toward the highest interest rate first. This avalanche method allows you to come out a little ahead with the numbers. But…I would argue if it was all about the numbers and the math, you wouldn’t be in debt to begin with. 
That’s why the debt payoff strategy I more highly recommend is the debt snowball. With the debt snowball, list your debts by total balance, from smallest to largest. Continue to pay the minimum payments on every debt, but pay the extra toward your debt with the smallest balance. Once that one is paid off, dump that payment plus the extra onto the next balance in the snowball.
With this snowball strategy, you’ll see faster progress and stay more motivated as you actually complete paying off those smaller debts. Gaining that momentum as you go is a bonus for sure!
If you’d like more info on the debt snowball method (and even start to put money in savings), check out the same tried and true strategy my husband and I followed to pay off our debts.
6) Execute your plan to get out of debt
Now comes the hardest part. You have a plan, and you’re determined to stick with it in order to succeed. But this is a huge life change for you! Good habits will need to replace prior bad habits, and you will have to stay aware of where your money is going at all times. Plus you’ll have to avoid those places that have gotten you in trouble in the past. But, I believe in you! I know you can do it!
Keep your written budget front and center in your life at all times. It will remind you every time you spend money whether it is worth it or not. If there is a way to prevent spending money on something, you can put that much more toward your debt! Yeah!
If you need a little extra push and accountability, join the Penny Steward Mama Facebook Accountability group. In that group, we focus on improving important areas in our life, including our finances.
7) Make more money to pay down debt faster
This step is optional, but as mad as you are about your debt, and as excited as you get watching that debt amount go down, you may want to consider it!
As you’re sticking to your budget each day and each month, you realize how awesome it would be to make more money and pay down your debt even faster.
But where do you “find” extra money?
The obvious answer would be to work more. This will look different to different people.
It could be working extra hours or overtime at your primary job. If that is an option, then great! It could also include doing things on the side, selling things that are just taking up space in your home, or finding some online options that pay you for accomplishing certain tasks.
So many options are possible when you begin thinking outside the box.
There are a number of things others are willing to pay you for if you can meet a need for them and save them time. If you’re needing ideas, you can always do some searches on Pinterest 😉
Put it all together to get rid of your debt once and for all!
In summary, once you’ve decided you’re done with debt
and have discovered why you got into debt in the first place, you can course correct to stay out of future debt. Create your plan of action, decide on your debt payoff strategy, and get busy implementing and sticking to your plan! You can always work on bringing in extra income as well.
I’m super excited for you as you embark on your debt payoff journey. I encourage you to reach out if you need some motivation or inspiration, or need help coming up with your plan of action!
Check out the Penny Steward Mama Facebook page and let us know you’re beginning your debt-free journey!
As always, steward your money — and your life — intentionally.
Heather 
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