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Get Out of Debt the Right Way

Get Out of Debt the Right Way

Get rid of your debt faster with debt relief

Choose your debt amount

$25,000
$1,000$100,000+
See if you qualify

Or speak to a debt consultant  844-731-0836

Betsalel Cohen
UpdatedJul 9, 2024
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    3 min read
Key Takeaways:
  • There are no easy ways to get out of debt if you have serious debt problems.
  • Know how much you owe, how much you can pay and keep your expectations realistic.
  • Use Bills.com resources including Debt Coach to find the best way to get our of Debt.

Find Your Way to Get Out of Debt

Getting out of debt is a worthy goal, but that is easier said than done. It’s important for you to know that you are not alone. The news is full of stories about underwater borrowers, students with huge debts, and households with massive credit card debt. It’s not very easy to get out of debt. Otherwise, everyone would just say the magic words and- poof!- the debt would be gone.

Five Easy ways to get out of debt?

There are no five easy ways to get out of debt, unless you don’t have a real debt problem, no matter what you read.

You can read about programs that make it sound easy, outlining five (give or take a few) steps to get you out of debt. They give you common sense advice, like:

  1. Make more money.
  2. Stop using your credit card.
  3. Pay off you debt quicker. Make more than your minimum payments.
  4. Save Money.
  5. Take low interest cash out refinance mortgage or loan consolidation loan.

These are all great ideas. If you are able to put any into practice, do so. However, most debt problems are not solved so simply. They call for concerted action. The best way to get out of debt varies, from person to person. Some people can solve the problem on their own. Others will need professional debt help. Be patient. Just because there is no easy way, does not mean that help you won’t solve your problem.

Preliminary steps

Any of the ways to get out of debt and stay debt free require you to establish healthy financial practices, including keeping and maintaining a budget.

Here are a few preliminary steps to prepare you to get out of debt:

  1. Organize your financial paperwork. Keep separate files for your different credit accounts, income statements, bank accounts, bills, and expenses.
  2. Prepare your budget. Use the Bills.com budget guide to help you set up your budget.
  3. Know exactly how much you owe and how much you can afford to pay each monthly towards your debt.
  4. Keep your expectations realistic. Think about how much stress you can handle. Remember, there are no magical solutions.

Finding the Best Way to Get Out of Debt

The best way to get out of debt is the one that works for you, that is consistent with your goals and ability to pay. Accelerated payments, loan consolidation, cash-out mortgage refinance, debt counseling, debt management, debt settlement, and bankruptcy are all good ways to get out of debt. These are complicated terms and each of them takes diligent effort to complete.

In order to help you find the best way for you to get out of debt, take these three steps:

  1. Read the Bills.com excellent article about debt relief options.
  2. Use the Bills.com Debt Coach. Based on your debt, assets, and goals, the Debt Coach will recommend the best way to get out of debt.
  3. Quick tip: Contact one of Bills.com's pre-screened debt providers for a free, no-hassle debt relief quote.

Get rid of your debt faster with debt relief

Get rid of your debt faster with debt relief

Take the first step towards a debt-free life with personalized debt reduction strategies.

Choose your debt amount

$25,000
$1,000$100,000+
Get started now

Or speak to a debt consultant  844-731-0836

Did you know?

Debt is used to buy a home, pay for bills, buy a car, or pay for a college education. According to the NY Federal Reserve total household debt as of Q1 2024 was $17.69 trillion. Auto loan debt was $1.62 trillion and credit card was $1.12 trillion.

According to data gathered by Urban.org from a sample of credit reports, about 26% of people in the US have some kind of debt in collections. The median debt in collections is $1,739. Student loans and auto loans are common types of debt. Of people holding student debt, approximately 10% had student loans in collections. The national Auto/Retail debt delinquency rate was 4%.

The amount of debt and debt in collections vary by state. For example, in Iowa, 20% have any kind of debt in collections and the median debt in collections is $1500. Medical debt is common and 9% have that in collections. The median medical debt in collections is $526.

Avoiding collections isn’t always possible. A sudden loss of employment, death in the family, or sickness can lead to financial hardship. Fortunately, there are many ways to deal with debt including an aggressive payment plan, debt consolidation loan, or a negotiated settlement.

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