Get out of debt
Debts & Loans

How To Get Out Of Debt And Save More

We have all ever been in debt, either you owed someone money or you owed an institution or you owed a bank. Either way, it must have felt or still feels like it is impossible to get out of that debt. I know there are different strategies to get out of debt, but I will share what I did to get out of my debt that seemed like a mountain to me at the time. Let’s get to it.

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Track Your Finances

Since money is what you need to get out of debt, you need to track how you are spending it. Take a month and write down everything you use and everything you spend your money on, and I mean everything. Be it the little treat during the day to the big shopping for the month to the commute money, basically everything.

Once you have it all written down you are able to have an idea of where your money goes. And boy will you be surprised. When you have it written down it registers more in your head how much you are actually spending. And you can make a decision as to what you can actually do about it.

Track Your Debt

The debt is what you are actually trying to get rid of, but you need an idea of how much you owe. The interest rate the debt is attracting each month that you still have not completed paying it. You need to write it all down, down to the little money you owe your friend or family because you need to pay it all back.

Create A Debt Management Plan

After tracking your finances and your debts, you need to compare that information. See what you can get rid of that you spend your money on and what that can go towards paying in your debt.

For example in my case, I would eat out almost daily which would cost a lot. So I cut down on the daily eating out, started cooking some meals. And the money I was able to save on that went to paying a friend some money I owed. I made a payment plan with her, that I would pay a particular amount every month until I finished it off.

You can try maybe cutting down on the big monthly shopping expense. And maybe the extra can go into paying that bank loan that has been on your neck. This monthly planner can go a long way into helping you do that.

Make a Budget

You need to have a budget, write down all the things that you need in order of hierarchy. How much you need of each and how much it costs per month. This will be set against your monthly income, so as to analyse your expenses and track your progress. Stick to that monthly budget and do not waiver from it. Using that budget, you can determine if you really need something or you can cut it off from your budget.

Debt Avalanche Vs Debt Snowball

This are tactics or getting yourself out of debt. Debt avalanche method involves tackling the debt with the highest interest rate as you go down to the lower ones. Debt snowball method involves tackling the smallest debt as you move on to the bigger ones. It all depends on you which one you would like to do first. Both are very effective ways of getting yourself out of debt.

Pay Extra Each Month

To effectively get yourself out of a debt that is seriously on your case you need to make a little more extra effort to cut it down further, if you can pay a little extra each month. This will seriously reduce the time it will take to pay off that debt.

You can use a method I felt was pretty effective for me. Have a standing order with your bank, that immediately your salary comes in a certain amount of money is transferred to the account where you owe money. This will reduce any temptations you may have to spend the money on anything else.

Start A Side-Hustle

Sometimes no matter how much you cut down it is still not working to reduce your debt, you need an extra source of income. It is time to get a side hustle, you can get an online side-hustle. You can do Freelancing, or Writing or Transcribing. Either way, they can all bring in that extra cash that you need to get out of the hole you are in.


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Manage Your Money

Once you are able to get out of the debt, you need to learn how to manage your money. This means keeping the budget in place, tracking your expenses, and determining where you can save on. Once you have learnt to manage your money, you will find it easier to start saving for that rainy day.


The most effective way to save money is by tracking your finances, determining what you really need and what you can do without. Once you do that you will see that some money will start being left over. When this starts happening, do not just let your money sit in the bank, you can use your savings to bring you in more money, safely.


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As for me, my most effective saving habit has been having a standing order with my bank. Immediately my salary comes in, a payment is made to my savings account. I cannot really touch that money unless I really need it. So the money that is left in my bank account is what I have to make do with.

Having an emergency fund is vital and it should be something we should all work towards because one never knows what could happen. And if nothing happens you can use the money towards a project like buying a house or any other project you have been dreaming about starting.

My main focus would be to implore you to make it a habit to save even if it is a little as long as it is consistent, it will get you out of debt and you will have more in your bank account at the end of the day, and who wouldn’t want that? Tell me how this works for you in the comments.

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