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Debt is a major cause of stress. People saddled with debt have difficulty making plans and achieving their life goals.

However, tools such as a reliable credit card payoff calculator or adopting the snowball method are available to help you manage debt. There are also strategies you can utilize to reduce the amount of money you owe.

To help you get started and begin using that credit card payoff calculator, here’s more information about debt and how you can free yourself of it.

What Causes Debt?

Everyone wants to get out of debt. But to understand your current situation and pay off debt, it might help to look back and identify what got you deep in debt in the first place.

The common causes of debt can range from poor financial habits to unexpected medical expenses. Granted, there are many causes of debt that may or may not reflect on the values of the individual. Nevertheless, having debt can negatively affect not just a person’s credit score, but their lives moving forward.

Whatever the cause of your current state of indebtedness, knowing why and acknowledging your debts is the first step towards financial freedom

Ways to Get Out of Debt

Although debt causes anxiety and can give you countless nightmares, there are ways to get out of debt. Some well-known strategies include the following.


You could take advantage of a refinancing scheme if you have a good credit history. With refinancing, you can pay off multiple loans using a single private loan at a reduced interest rate. You can even reduce your loan period depending on your financial standing.

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Enrolling in auto-pay

Talk to your loan service provider and have them enroll you in an automatic payment program. All they need to do is activate auto-debit on your checking account on a set day every month. This can help you stay on top of your repayments and never miss a due date.  

Debt settlement services

There are third-party companies that can help you reduce your debt by negotiating settlements with your creditors or debt collectors. Debt settlement allows you the best way to pay off debt at a reduced lump sum. 

However, debt settlement should be your last resort as it can affect your credit score significantly.

Credit counseling

Credit counseling can help make repayments easier and eliminate debt. A credit counseling agency can negotiate with your creditors to help you save money through reduced interest rates and monthly payments. 

Nevertheless, signing up for a credit counselor’s debt management plan can also negatively affect your credit report.

DIY Methods

Aside from the above strategies, there are DIY methods you can implement in your debt management plan to get out of debt and achieve financial freedom.

Calculating how much you owe and making payments as needed

Keep track of your IOUs. Whether it’s a personal loan, student loan, or mortgage, you need to calculate all your debts and plan for regular payments. 

You can implement the debt snowball method by aiming to pay off the smallest loan first, while also allocating minimum payments to others. This would help you eliminate your loans gradually until you are able to pay off your bigger loans. 

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Making extra payments 

If you receive “extra money,” allocate these toward paying off your debts. These can be in the form of incentives such as bonuses, unexpected cash gifts, or benefits.

You can also reduce your loan amount by making more than one payment each month. The best way to do this is by scheduling payments coinciding with your two monthly paydays. 

Adopting a “poor mindset”

Get away from the carpe diem and YOLO mindset and face the facts. You’ll only be able to pay off debt successfully by not going overboard and treating yourself to something extravagant to celebrate, even if you have extra cash. 

Keep your eyes on the prize and postpone non-urgent goals. If you’re single, share your room or apartment. Plan and cook your meals. Eat ramen when you need to. 

Joining the gig economy

If your schedule allows it, finding a good side hustle or gig can help you get out of debt faster. Just don’t use your extra earnings as an excuse to waste your financial resources on non-essential things, such as smoking and drinking. You can take help of technology for accounting your data.

You’ll feel good about yourself when you see your loan balance decreasing.

Shabbir Ahmad

Shabbir Ahmad is a freelance enthusiastic blogger & SEO expert. He is the founder of Shifted Magazine & Shifted News. He contributes to many authority blogs including porch, hackernoon & techcrunch.