How to Get Out of Debt: The Complete 2024 Guide
By Joseph L. | Biohacker from Austin, TX | Last updated January 2025
Debt is one of the biggest stressors in modern life. According to recent studies, Americans carry over $6 trillion in personal debt, with the average American owing over $90,000 across mortgages, student loans, credit cards, and other obligations.
The good news? You can get out of debt faster than you think with the right strategy, consistency, and accountability. I've helped dozens of people eliminate six figures of debt using the systems outlined in this guide.
1. Assess Your Current Situation
Before you can eliminate debt, you need to know exactly what you're dealing with. Most people in debt avoid looking at the numbers, but this is the critical first step.
Action: Create Your Debt Inventory
- 1. List every debt you owe (credit cards, student loans, car loans, medical debt, etc.)
- 2. Write down the total amount owed
- 3. Write down the interest rate for each
- 4. Write down the minimum monthly payment
- 5. Calculate your total debt
2. Choose Your Debt Payoff Strategy
There are several proven debt elimination strategies. The best one for you depends on your psychology and situation.
The Snowball Method (Motivation-Driven)
Pay off smallest debts first, then roll that payment into the next smallest debt. This creates psychological wins and momentum.
The Avalanche Method (Math-Driven)
Pay highest interest rate debts first while making minimum payments on others. This saves the most money on interest.
3. Increase Your Payoff Power
The faster you pay off debt, the less interest you pay. Consider these strategies:
- •Negotiate lower interest rates:
Call creditors and negotiate. Many will lower rates for good payment history.
- •Balance transfers:
Move high-interest debt to 0% APR balance transfer cards (12-21 months typically).
- •Debt consolidation loan:
Combine multiple debts into one loan with lower interest rate.
- •Side income:
Earn extra money and put 100% toward debt. This accelerates payoff dramatically.
4. Stay Accountable with Daily Commitments
This is where most people fail. Debt payoff requires consistent action over months or years. Daily accountability is essential.
How to Use FreshStart for Debt Payoff
Create commitments like "Stick to debt payoff budget" or "Make extra $200 this week toward debt." Each day, FreshStart texts you a check-in question like "Did you stick to your budget today?" Your response triggers AI feedback.
Over time, you see your consistency percentage. Most people who track daily hit their debt-free date within 6-24 months because daily accountability prevents backsliding.
FAQ: Getting Out of Debt
Q: How long does it take to pay off debt?
It depends on your total debt, interest rates, and how much you can pay monthly. The snowball method creates fast wins, while the avalanche method saves the most money. Most people see complete debt elimination in 2-5 years with consistent effort.
Q: Should I negotiate with creditors?
Yes, always. Most creditors will negotiate interest rates, late fees, or settlement amounts. They'd rather get paid something than nothing. Call and ask for a supervisor.
Q: Is bankruptcy an option?
Bankruptcy should be a last resort. It damages your credit for 7-10 years. Explore all other options first, then consult a bankruptcy attorney if necessary.
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