Being in debt is not a bad thing. In fact, even the most successful people have used loans to grow financially. The only difference is that they borrowed for investments that produce revenue enough to pay off the debt. Unfortunately, most of us do the opposite. We borrow to fund our expensive lifestyle, and that’s how we get ourselves into financial problems.  

The good news is that no matter how bad the situation is, you can be debt-free. There are many strategies you can use to knock off debts, but each requires a lot of commitment. In this guide, we have put together 10 ways you can get out of debt. 

1. Stop Creating More Debts 

Stopping creating more debts is one of the biggest tricks to getting out debt. The debt situation gets worse every time you take up a new loan, yet you have other pending loans. To stop the vicious cycle, you need to stop creating more debts. It is one of the most challenging things to do but a crucial step for anyone trying to get out of debt. You can reduce the temptation of taking up a new loan by cutting off unnecessary expenses. 

2. Reduce Your Spending 

The other strategy you need to do is reducing your spending. If you want to stop taking up more loans, you must reduce your expenses. Most people struggling with debts have a lot of unnecessary spending. They are probably living a costly life than they can afford. That’s what drives them into financial problems. Therefore, assess your expense to cut off what you don’t need. You should also forgo most of the expensive spending for cheaper ones. 

woman carrying shop bags

3. Increase Your Monthly Payment 

One of the best ways to knock off debts is increasing your monthly payments. Most of the financial institutions offer debtors some form of incentives when they pay off their loans earlier. So, by increasing your monthly payments, you will be making your loan less expensive. This will be a win-win. You will knock off the debt faster, and you will save some few dollars in the process. That’s a tip that everyone with debts and some extra money should try.  

4. Start Clearing Debts One By One 

If you have multiple debts, one of the best strategies you can use is clearing the debts one after the other. The best ways to go about it categorizing your debts based on their urgency. Clear the toxic debts first. If you have very high-interest debts, give them all you’ve got by increasing your monthly. With fast clearance, you will be saving yourself a lot of money in the long run. Then deal with the next one in that same sequence. That is one of the ways that you can deal with multiple loans successfully. 

5. Request For Lower Interest Rate 

One of the biggest problems that make it difficult for most people to pay loans is the high interest rates. This is a common problem for people with a low credit score or those who have taken up emergency loans. These kinds of loans attract high interest, which can be a problem for most debtors. If you have such types of loans, you can always request your lender to lower your interest rates. If you have convincing reasons, then you can get a lower rate. 

6. Clear The Old Debt 

This can be a bit tricky but is very crucial when it comes to improving you credit score. The old loans you have been unable to pay off are the ones that lower your credit report. So, it is wise to pay them off after dealing some of the toxic loans. However, you need to have a strategy when dealing with this kind of loans. First, you need to contact the creditor to know the state of the loan and if they can cut you a deal. For example, they might agree to reduce the interest.  

7. Fix You Debt-to-Income Ratio 

Lowering your debt-to-income (DTI) ratio is another strategy that can help you knock off debts. This is a ratio that compares the number of monthly debt payment to you net monthly income. The higher the ratio, the worse you are performing financial. If the debt to income ratio above 30 per cent, then you need to work on ways that you can bring it down. Paying your old debts is one of the ways that you can fix this ratio. 

8. Stop Using Credit Cards 

credit card usage

Financial experts always point out credit cards as one of the biggest causes of high debts. The fact that people have credit money on their card that can use whenever you have shortfalls, they are tempted to spending more than they can afford. That is what leads debt problems. So, you can get out of debts by avoiding credit cards. This is a strategy that will help curb your spending and reduce the temptations of borrowing more. 

9. Pick A Side Hustle 

If you rely on one job to address your debt issues and it’s not working, then expand your revenue base. The easiest way to go about it is picking up a side hustle. If you have time to spare, you can take up a gig in another company on a part-time basis. These jobs will provide extra money to pay off loans and also to avoid creating more debts. 

10. Sell Everything You don’t Need 

If you have a lot of stuff that you don’t need in your house, you can sell it to pay off debt. So, if your neighbourhood permit garage sale, consider holding one for all the stuff that you don’t need. You can also contact businesspeople who buy second items and clear all the clutter in your home that you don’t need. Use the money to pay off some of the toxic and old debts. 


Living in debt gives a comfortable lifestyle because you have money when you need it. But when the disaster strike, like losing your job, things quickly get messed fast. So, if you are struggling with debt, these are just some of the strategies to be debt-free.

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