7 Steps to Help You Get Out of Debt (From My 20 Years in Banking)

Debt can feel like a heavy chain around your neck. I have seen thousands of people struggle with it during my 20 years in banking. The good news is—there is a way out. If you follow these 7 simple steps, you can take control of your money and start living with peace of mind.

1. Face the Truth About Your Debt

The first step is to be honest about how much you owe. Many people avoid looking at the numbers because it feels scary. But you cannot fix what you do not see. Write down all your debts—credit cards, loans, personal lines of credit—along with the interest rates and minimum payments.

2. Stop Borrowing More Money

You can’t get out of debt if you keep adding to it. This means no more new credit cards, no personal loans unless it’s for a true emergency, and no “buy now, pay later” deals. Learn to live with what you have and use cash or a debit card instead.

3. Create a Simple Budget

A budget is your money map. It tells your money where to go each month instead of wondering where it went. Write down your income and your monthly expenses. Separate the “needs” (like rent, utilities, groceries) from the “wants” (like eating out, shopping, subscriptions). Cut down on wants until your debt is under control.

4. Choose a Debt Payoff Plan

There are two popular ways:

• Snowball Method: Pay off the smallest debt first, then move to the next one. This builds motivation.

• Avalanche Method: Pay off the debt with the highest interest first. This saves you more money over time.
  Pick one and stick with it.

5. Negotiate With Your Lenders

Many people don’t know they can call their bank or credit card company and ask for lower interest rates or better payment terms. In my banking career, I saw customers save thousands just by asking. Be polite but firm, and explain that you want to pay off your debt faster.

6. Find Extra Money

Look for ways to earn more—side jobs, selling unused items, or offering services. Even an extra $50 a week can make a big difference when you put it toward debt. Also, check your budget for small savings, like canceling unused subscriptions or making coffee at home instead of buying it daily.

7. Stay Consistent and Patient

Debt payoff is not a sprint—it’s a marathon. There will be months when it feels like nothing is changing, but every payment you make is progress. Celebrate small wins and keep going until you are debt-free. Once you are, keep living below your means so you never go back.

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Final Word:
Getting out of debt takes courage, discipline, and a plan. I have seen people in worse situations than yours succeed—and you can too. Follow these 7 steps, stay focused, and soon you will enjoy the freedom that comes from living without debt.

Ready to take control of your money and get out of debt? Check out my Money Tips eBooks on Amazon for easy, practical advice from my 20+ years in banking. Start your journey to financial freedom today!