How Do I Get Out of Debt?

Stop Borrowing

The first step in getting out of debt is to stop borrowing. To do that, you have to stop spending more than you earn.

Make a Budget

So, make a budget and cut out any expenses you can. It may help to cut up your credit cards or lock them away in a safe place.

Make a Plan

While you are making a budget, figure out the most you can afford to pay each month to reduce your debts, then make those payments without fail. If you have debts on more than one credit card, either pay off the card with the highest interest rate first and work your way down to the card with the lowest rate, or pay off the smallest loan first and work your way up to the largest.

Don't Overspend

Once you’ve paid off your debts, don’t give in to the temptation to start over-spending again. Instead, take the money you were paying each month on your debts and begin to save it. That will give you a financial cushion the next time an emergency strikes. Learn more about reducing spending and creating a budget.

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Take the Pledge

Savers who make a plan are twice as likely to save successfully. 

Take the America Saves Pledge

Tip of the Day

  • Let this be the year that you put an end to bringing in the New Year with financial guilt and stress.  http://ow.ly/rcJIn 

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Kristin Hendricks, a single mother from Texas, understands the importance of saving money and following a tight budget. She decided to make saving money a priority when she gave birth to her son.

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America Saves awarded one lucky saver, Pedram R. from California, $750 for sharing his #ImSavingFor story. Pedram said, “Saving is important to me because it proves I am not willing to buy unnecessary things to please others or to be perceived as successful.”

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A Think Like A Saver Attitude

Melissa has always been thrifty with a #ThinkLikeASaver attitude. This served her family well when her husband lost his job in 2014. Using their savings, Melissa’s family stayed afloat while her husband found a new job. During his job search they used a majority of their savings, but that is OKAY. Savings are fluid! They’re supposed to be used in the case of emergency, and this qualified as such.

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