Getting out of debt fast requires three essential components: a clear budget that tracks every dollar, a strategic debt repayment method like the debt snowball approach and multiple income streams to accelerate payments. By combining spending reduction strategies with increased income, you can eliminate debt months or even years faster than minimum payments alone.

My Personal Journey From Debt to Financial Freedom

I used to believe debt was simply a way of life—an unavoidable reality that everyone dealt with. Credit card balances, car loans and overdrafts felt normal to me. That mindset kept me trapped in a cycle of payments, interest charges and financial stress.

Everything changed when I discovered personal finance books and podcasts. I learned that many people either worked intentionally to become debt-free or maintained such strong financial habits that they never accumulated debt in the first place. This revelation was transformative.

Read more: 8 Personal Finance Books That Changed My Life

My husband and I implemented the debt snowball method and watching our first debt disappear created incredible momentum. The psychological impact was powerful, each paid-off balance motivated us to attack the next one with even more intensity. One of our most embarrassing debt moments? My husband was taking expensive flying lessons while we were drowning in debt. We had no business spending that money, but we hadn’t yet committed to our financial transformation.

Today, I want to share the exact strategies that helped us turn our finances around and I know that they can work for you too.

What Types of Debt Should You Focus on Eliminating?

Before diving into strategies, let’s clarify what we mean by “debt.” This guide focuses on consumer debt including:

• Credit card balances
• Store cards and retail credit
• Bank overdrafts
• Personal bank loans
• Payday loans and loan sharks
• Car loans and auto financing
• Student loans

If you’re ready to become debt-free, you must first commit to one non-negotiable rule: stop creating new debt immediately. No more credit card purchases, no more loans. This may represent a significant lifestyle change, but as Henry Ford said: “If you always do what you’ve always done, you’ll always get what you’ve always got.”

Step 1: Create a Comprehensive Budget That Works

Why Budgeting Is Your Foundation for Debt Freedom

Budgeting isn’t a restrictive chore, it’s a powerful tool that gives you complete visibility into your financial life. Without a budget, you’ll never know where your money is actually going or identify opportunities to redirect funds toward debt repayment.

Benefits of budgeting for debt elimination:

• Identifies unnecessary expenses you can cut immediately
• Shows you exactly how much you can apply to debt each month
• Prevents overspending that creates new debt
• Gives you control over your money instead of wondering where it went

I offer a free Intentional Spending Plan that makes budgeting simple and sustainable. When you budget with intention, you tell your money where to go rather than wondering where it went.

Grab your free copy of The Intentional Spending Plan HERE

Step 2: Choose Your Debt Repayment Strategy

The Debt Snowball Method: My Recommended Approach

The debt snowball method prioritizes paying off your smallest balance first while making minimum payments on all other debts. Here’s why this approach works so effectively:

How the debt snowball method works:

1. List all debts from smallest to largest balance (ignore interest rates)
2. Make minimum payments on all debts except the smallest
3. Apply every extra dollar to the smallest debt
4. Once paid off, roll that payment amount into the next smallest debt
5. Continue this pattern, creating a “snowball effect” of increasingly large payments

Why I recommend the debt snowball: The psychological wins matter enormously. Watching debts disappear created unstoppable momentum for my family. Each eliminated balance proved we could succeed and motivated us to attack the next target with renewed energy.

The Debt Avalanche Alternative

Some people prefer the debt avalanche method, which targets the highest interest rate debt first. While this approach saves more money on interest mathematically, many people abandon it because the psychological wins come too slowly. Choose the method that keeps you motivated and consistent.

Read more: Debt Snowball vs Debt Avalance

Step 3: Increase Your Income Aggressively

Apply All Windfalls and Bonuses to Debt

Every bonus, tax refund, cash gift, or unexpected income should go directly to debt repayment. Don’t even consider spending these windfalls on wants or luxuries until you’re debt-free.

Start a Side Hustle From Home

Side hustles have never been more accessible thanks to the internet and gig economy. Consider these proven options:

• Online tutoring or teaching
• Freelance writing or graphic design
• Dog walking or pet sitting services
• Babysitting or childcare
• Selling handmade items on Etsy
• Virtual assistant services
• Social media management

Every dollar earned from your side hustle should go directly to debt elimination.

Get a Part-Time Job or Gig Work

If a side hustle doesn’t appeal to you, consider traditional part-time work:

• Uber or Lyft driver
• Food delivery (pizza, DoorDash, Uber Eats)
• Weekend restaurant or retail positions
• Seasonal work during busy periods

Yes, this means temporarily sacrificing free time. But remember: this is temporary. You’re trading a few months or years of extra work for decades of financial freedom.

Sell Items You Don’t Need

Generate immediate cash by selling belongings you no longer use:

• Check your attic, garage, closets, and storage spaces
• Sell items on Facebook Marketplace, eBay, or Poshmark
• Host a garage sale or yard sale
• Consider selling valuable items you can live without

Apply 100% of these proceeds directly to your debt. Even small amounts add up quickly.

Step 4: Dramatically Reduce Your Expenses

Stop All Restaurant Spending and Takeout

This is non-negotiable during your debt elimination phase. The only time you should be in a restaurant is if you work there. Restaurant meals and takeout orders drain money that should go toward debt repayment.

Implement Strategic Meal Planning

Since you’re eating at home for every meal, meal planning becomes essential:

• Plan your weekly menu before grocery shopping
• Check your pantry and refrigerator first to use what you have
• Create a detailed shopping list and stick to it religiously
• Shop alone, children and spouses encourage impulse purchases
• Consider grocery shopping online to avoid temptation and track spending in real-time

Use the Cash Envelope System

People spend significantly less when using physical cash rather than cards. The cash envelope system forces accountability:

1. Allocate cash to specific budget categories (groceries, gas, entertainment)
2. Place cash in labeled envelopes
3. Once an envelope is empty, stop spending in that category
4. Watching physical money disappear makes spending more tangible and controllable

Maximize Savings With Coupons and Cashback Apps

Modern coupon strategies go far beyond newspaper clippings:

• Use cashback apps: Green Jinn, Checkout Smart, Shopmium
• Sign up for grocery store loyalty programs for personalized discounts
• Search for online promo codes before every purchase
• Stack coupons with sales for maximum savings

Eliminate or Pause Expensive Hobbies

Review your recreational spending honestly. Golf memberships, hobby supplies, expensive gym memberships and costly activities must be paused until you achieve debt freedom. Remember that this sacrifice is temporary.

Find Free Entertainment Alternatives

You don’t need to live a joyless life while eliminating debt, but you must choose free activities:

• Local libraries (books, movies, programs)
• Parks and hiking trails
• Free community events and festivals
• Game nights at home
• Museum free admission days

Concerts, theme parks, and expensive outings can wait until you’re debt-free. Remember: this is delayed gratification, not permanent deprivation.

Step 5: Master the Psychology of Debt Elimination

Stop Comparing Yourself to Others

Your neighbor’s new car, your coworker’s vacation photos, your friend’s restaurant check-ins—none of that matters. You don’t know their financial situation. They might be drowning in debt themselves.

Focus exclusively on your own financial goals and progress. Comparison steals your motivation and tempts you to spend money you don’t have.

Clarify and Display Your “Why”

Why are you pursuing debt freedom? Your reasons will fuel your commitment during difficult moments:

• Financial security for your family
• Ability to save for a home down payment
• Funding your children’s education without loans
• Early retirement plans
• Dream vacation or experience
• Peace of mind and reduced stress

My family has posters throughout our house featuring photos of our financial goals: Disney World, our dream home. These visual reminders keep us focused when temptation strikes.

Learn to Say “No” With Confidence

You have no money available for discretionary purchases, so the answer must be “no.” Practice saying it firmly but kindly:

• “We’re not spending on that right now”
• “That doesn’t fit our budget”
• “We’re working toward other financial goals”

This boundary is temporary. You’re not saying “never”, you’re saying “not yet.”

Try a Spending Freeze Challenge

Challenge yourself to avoid all non-essential spending for a defined period:

• Start with a “no-spend day” each week
• Progress to a “no-spend week” each month
• Eventually attempt a full “no-spend month”

Even saving $10 during these challenges accelerates your debt payoff. Track your success and apply every saved dollar to debt.

I host a free Facebook group called “2025 No Spend Challenge” filled with supportive, like-minded people working toward financial goals. Join us for accountability and encouragement.

How Long Does It Take to Get Out of Debt?

The timeline for debt elimination depends on several factors:

• Total debt amount
• Interest rates on your debts
• How much extra money you can apply monthly
• Whether you increase income through side hustles
• Your commitment to reduced spending

Most people who follow these strategies aggressively can eliminate consumer debt within 18-36 months, even with significant balances. The key is consistency and intensity.

What Happens After You Become Debt-Free?

Imagine having all the money you currently send to creditors available for other purposes:

• Building an emergency fund for true financial security
• Saving for a home down payment
• Investing for retirement and wealth building
• Funding experiences that matter to your family
• Living without financial stress and constant worry

This vision should motivate you during difficult moments. Your future self will thank you for the temporary sacrifices you make today.

From Expense Tracking to Intentional Spending: The Real Solution

Many people meticulously track expenses but never make financial progress. Why? Because tracking what happened doesn’t change what will happen.

The transformation occurs when you shift from reactive expense tracking to proactive intentional spending. Instead of categorizing past purchases, you plan future spending aligned with your values and goals.

Ready to Create Your Debt-Free Plan?

Download your free Intentional Spending Plan template and start planning your money with purpose rather than just tracking where it went.

Schedule a free 15-minute strategy call with me to create an intentional spending plan customized to your life, values, and financial goals.

Final Thoughts: Your Debt-Free Journey Starts Today

Getting out of debt fast requires commitment, strategy and temporary sacrifice. The road will be challenging. Friends and family may not understand your choices. You will face temptation.

But you have a vision. You have a plan. And thousands of people have successfully walked this path before you.

The clients who achieve the biggest financial transformations are the ones who stop tracking what happened and start planning what they want to happen. They shift from expense tracking to intentional spending, and everything changes.

You can do this. Your future self will thank you for starting today.

Frequently Asked Questions About Getting Out of Debt Fast

Q: Should I save money while paying off debt? A: Build a small emergency fund of $500-$1,000 first, then focus all extra money on debt elimination. After becoming debt-free, build a full 3-6 month emergency fund.

Q: Should I continue investing while paying off debt? A: If your employer offers a 401(k) match, contribute enough to get the full match (it’s free money). Otherwise, pause investing until debt is eliminated.

Q: What if I have a financial emergency during debt payoff? A: This is why a small emergency fund is essential before aggressive debt repayment. If a true emergency exceeds your fund, handle it and then return to your debt elimination plan.

Q: How do I stay motivated when progress feels slow? A: Celebrate every paid-off debt, no matter how small. Track your progress visually. Connect with supportive communities like my No Spend Challenge Facebook group. Remember your “why.”

Q: Can I really become debt-free if I have a low income? A: Yes. While higher income accelerates the process, commitment and strategy matter more than earnings. Many low-income individuals have achieved debt freedom through disciplined execution of these principles.