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What Are the Six Tips to Get Out of Debt

Posted by CHARLES W. DAFF | May 06, 2020 | 0 Comments

Debt makes getting ahead and achieving your financial dreams nearly impossible. Finding ways to free up money to pay down your debts is doable if you implement the right strategies. Although, it is not for the faint of heart and requires determination, commitment, and perseverance. The path to financial freedom starts with you.

Below you will find 6 tips for paying off your debts.

1. Stop Unnecessary Spending

Every single dollar and cent you can avoid spending should be avoided. Instead of your daily coffee at the corner shop or a monthly subscription to your favorite streaming service, put that money you would have spent towards your debt. You'll see these savings add up over time, helping you get out of debt sooner.

2. Stick to a Budget

Once you have determined your unnecessary spending, work towards getting a handle on your finances. Take a moment to establish your needs versus your wants. Allocate money for each of your necessities and put all of your extra money towards the bigger picture. This means any surplus money goes towards building an emergency fund and paying off debt.

3. Put Extra Money Towards Debt

Any time you receive “unexpected” money such as a gift, savings from purchases, or a bonus from work, put that “extra” money towards paying down your debts.

4. Cut the Credit Cards

Stop incurring debt by cutting your credit card usage. Your debt is immediately easier to handle when you stop debt from growing. Remember, each time you swipe your credit card, the more and more your balance becomes. Remove your credit cards from your wallet to stop the urge to spend. If the temptation is too high, eradicate your credit cards and remove saved credit card information on online accounts.

5. Find a Strategy

There are several strategies that people in debt can implement to help dig their way out. Find a strategy that works for you. Some common methods include:

  • The Snowball Method focuses on paying down your smallest debts (while paying the minimum payment on the others), paying off the debt, and then rolling the amount you were paying onto the next debt.
  • The Avalanche Method — Pay off the highest interest rate debt first (still paying the minimum payment on your other debts), then the next highest, then the next. Because paying interest means paying more money, you can save money over time.
  • Consolidate Your Debt — Combine all of your debts into one monthly payment where you may be able to get a lower interest rate.

6. Other Debt Relief Options

When you are so overwhelmed with debt and can barely keep your head above water, you may want to consider a debt relief option such as declaring bankruptcy. Filing for bankruptcy might give you the relief and fresh start you desire to overcome crushing debt.

Contact Charles W. Daff, Bankruptcy Attorney

If you are an individual or business facing a magnitude of debt, we want to hear from you. Charles W. Daff can help guide you through the stressful experience of Chapter 7, Chapter 11, Chapter 13, or any other form of bankruptcy.  With over 43 years of experience in bankruptcy law, you can trust Charles W. Daff to navigate this overwhelming time and guide you through this legal process. If you reside in Orange County, Riverside County, San Bernardino County or Los Angeles County and are considering filing for bankruptcy, contact us today to schedule your free initial consultation.

About the Author


Bankruptcy Attorney in Santa Ana, CA Charles W. Daff  is a State Bar Certified Specialist in Bankruptcy with more than 43 years experience.   The firm represents clients  in Chapter 7, Chapter 11, and Chapter 13 bankruptcy.


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