Finances > Debt > 5 Easy Ways to Get Out of Debt

5 Easy Ways to Get Out of Debt

These easy ways to get out of debt will help you solve money problems and achieve your financial goals. These tips for creating financial abundance are from money expert Courtney Kostelecky, who teaches regular “Get Completely Out of Debt” seminars.

Here’s what he says about debt:

“Debt – whether it’s good debt or bad debt – can be difficult to deal with. In today’s economy, creditors are becoming much more aggressive in their collection tactics. Consumers need to be aware of what a collector can and cannot legally do.”

For help stopping the downward spiral of debt, click on the How to Get Out of Debt, Stay Out of Debt, and Live Prosperously (Based on the Principles and Techniques of Debtors Anonymous)by Jerrold Mundis. And, read on for Kostelecky’s tips on reducing debt, saving money, and paying your bills…

5 Tips for Getting Out of Debt – the Easy Way

Get financially organized

To pay off all your bills and create financial abundance, you first need to know exactly how much money you owe. Many of people are amazed at how much money they really owe, when they sit down and figure it out for the first time. Set aside three or four hours to calculate your debt and create a plan to save more money.

Prioritize your bill payments

One of the biggest money mistakes people make is paying extra money because of the interest on their debt. Unless you pay off your debt the right way, you’ll never make any real progress. Pay off the debt on the bills that have the highest interest rates, then move on to the bills with lower interest rates.

Don’t focus on interest rates

Yes, it is true that a lower interest rate can save you money, but focusing on this is the main cause for people getting farther in debt. I recently had a personal consultation with someone who transferred their balance on a credit card to a zero % offer. They paid $600 to do this, and the zero % is only good for one year. After that it increases, which could cause financial problems later.

This is also true with mortgages. Every time you re-finance your mortgage, you start the amortization all over again.  This is why many people are taking 40+ years to pay off a 30 year mortgage.

Remember: small changes can have HUGE effects

There are a lot of small money saving techniques and strategies that can help you get out of debt. For instance, you can cut back on one coffee a day (approximately saving $4 per day). This is an easy way to start solving your money problems.

Stay focused on your financial goals

Even though the average person can pay off their credit card debt in 2-3 years using the system I teach, that is still a long time to stay focused.

If you have any questions or thoughts on these ways to pay bills and save more money, please comment below.

Courtney Kostelecky is an author and speaker. Visit DebtFreeNews for his free wealth building and debt elimination tips.

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5 thoughts on “5 Easy Ways to Get Out of Debt”

  1. Laurie Pawlik-Kienlen

    Thanks for your thoughts, Shirley.

    Going bankrupt may wipe the slate clean and it may seem like the easiest way to get out of debt, but it can hurt your credit rating for a long time.

  2. Laurie Pawlik-Kienlen

    I know — sticking to a budget is so difficult! But, it’s one of the best ways to get out of debt and save money.

  3. Reduce Debt To Credit Limit

    It is amazing how getting organized and sticking to budget can help. Most people don’t want to do that, because it takes work. You can really take control of your finances by making a budget and sticking to it.

  4. Laurie Pawlik-Kienlen

    Hi Toni,

    Congratulations on being debt free in two months — that’s very exciting!

    The fact that you paid off your debt will improve your credit rating, because the best way to get a good credit report is by accumulating debt and then paying it off.

    So, using a credit card every month — and paying it off every month — can increase your credit rating because it shows you can handle your money wisely.

    Here’s what Liz Pulliam Weston of MSN Money says: “You can’t raise your scores if you don’t use credit. Credit scores try to predict how well you’re likely to use credit in the future by how well you’ve used it in the past. So while living a cash-only lifestyle may do wonders for your wallet, it won’t boost your scores — in fact, without continuing use of some type of credit, eventually your credit reports won’t even generate credit scores.”

    The trick, of course, is NOT racking up your credit cards so high that you can’t pay them. Instead, use your credit cards for things you’d buy anyway: groceries, gas, household bills, etc. Then pay off that monthly credit card bill before it’s due.

    Here’s some more info on getting out of debt and credit reports:

    Facts About Credit Scores and Credit Reports

    How to Fix a Bad Credit Score

    I hope this helps — and enjoy the progress you’ve made in achieving your financial goals! 🙂


  5. Four years ago I turned all of our credit card debt over to a credit counseling service, and I have been making payments ever since, In two months we will be credit card debt free! My question, What does this do for my credit rating which isn’t so great at the moments, and how can I repair my rating?