Skip to Content

How to Lower – or Eliminate – Your Debt

How to Lower or Eliminate Debt in just 5 steps! (#2 Had me out of debt the stress free way!)

© iQoncept / Dollar Photo Club


Debt is one of those four-letter words that inspires fear in the hearts of anyone who owes money. If you have debt, you know how much that burden can weigh on you. The more debt you have, the more stress you feel as you attempt to get your finances in order. If you owe money to creditors or the bank, these tips can help lower or even eliminate debt.


Cut Up Your Credit Cards

If you have debt, chances are a lot of it is on credit cards. When you first get a credit card, it’s so easy to make those large purchases with the intention of paying it off right away. In reality, however, credit card debt tends to snowball out of control, accounting for much of your personal debt. To help lower or eliminate your debt, take the first step by cutting up your credit cards. Although this won’t make the debt disappear, it will prevent you from adding to that debt during hard times.

Consolidate Your Debt

I found myself with a crazy amount of credit card debt at nearly 30% interest.  There was literally no way I could pay much more than the minimum required payment because I had racked up so much debt.   I was able to obtain a low interest loan from my bank with a payment arrangement I could afford and within 3 years I was completely debt free. 

Indeed, one of the easiest and most effective ways to manage your your debt is by consolidating any loans, lines of credit and credit card balances into a single loan with a set repayment schedule and a lower overall interest rate. You will find one payment a month a lot easier to manage and virtually stress free.

Make Larger Payments

The reason debt is so hard to pay off is because of the interest that accumulates. Creditors and banking institutes agree to loan you money, and in return, you must pay them interest on the balance you’ve borrowed. By making larger payments on your debt, you’re reducing the balance that accumulates interest. This will help you lower your debt faster, eventually eliminating it!

Eliminate the Extras

If you’re in debt and you want to get out of it, it’s time to eliminate all of the extras. Do you really need all of those cable channels or that new sweater? When attempting to lower your debt, you’ll need to eliminate those extra expenses out of your budget. The more money you spend on extras, the less you’ll be able to pay on your debt. Once you’ve eliminated those extra expenses, you can use that money to pay down your debt, allowing you to quickly get your finances in order.

Make a Budget… And Stick to It

As you work to pay off your debt, you’ll need to make a budget. A budget allows you to better see where your money is going. Not only does this help you ensure that you can pay your bills, it also allows you to see where any money is being wasted. Once you’ve come up with a budget, it’s vital that you stick to it, even after you’re debt has been paid off.


Although it can be hard to get out of debt, it’s not impossible. These tips can help you take the steps you need to lower or eliminate your debt. What tips do you have to help get out of debt?


Susan T.

Tuesday 29th of September 2015

I'm working on it! I think consolidating my debt would be super helpful. I'm going to look into it.

Victoria Ess

Sunday 7th of June 2015

Consolidating your debt is a great tip that I was told many years ago.

Stephanie LaPlante

Sunday 1st of February 2015

Cut up your credit cards is something my whole family needs to do.


Tuesday 27th of January 2015

Great tips - with my car payments I transferred that loan to my LOC which had a much lower interest rate. I maintained the SAME payments (plus putting some additional money towards it when I had extra) and in the end saved myself a decent amount of money!

kristy e

Sunday 25th of January 2015

great tips, we stick to a budget since Im a stay at home mom now