In life, there will always be times where credit cards and loans can seem like a very good idea. That new refrigerator you need because yours has decided to give up the ghost, for example, is a prime reason that many people choose to rely on their ability to get credit. The thing is, you don’t need these; only society tells you that you do! There used to be a time where people would save up their cash for what they wanted before they went to buy it. There wasn’t any borrowing being done. However, we now live in a time of impulsivity and we want things now, worrying about the consequences of that later.

Reducing your debts to a more manageable level is one thing but wiping them out completely is quite another. Debt isn’t something that is easy to get rid of, especially if you’ve indulged in a little bit of burying your head in the sand and not dealing with it the way that you should have. Some people get so over their heads they end up needing to go through finding the right lawyer to start bankruptcy proceedings. Getting the right information is so important before taking that step, and most people try to avoid it altogether. So, it’s time to take a deep breath and learn that you have to face the problem instead of running from it entirely, and here are four steps to help you to get out of debt for good.

Step One: Add Up What You Owe

Sit down and go through the drawer with all the red letters – we know you have one. You need to know exactly how much you owe and to whom. Work out which debts are the most important and make a list of them by urgency and amount.

Step Two: Consolidate

Where loans and credit cards are not a good idea for frivolous and impatient spending, they can be an excellent tool for consolidating your debts. Take the total amount of debt that you have and approach your bank to ask for a loan for the full amount. Once you’ve received this loan, pay every single debt off. Not only will you reduce your monthly payments, you’ll have cleared the balance for everyone but the new loan.

Step Three: Balance Other Finances

Once you’ve cleared those debts that have been hanging over you, check out your other finances and balance those to make sense for your monthly budget. Make sure that everything is in the green and if it isn’t, call creditors that are left for utilities and make a plan of action.

Step Four: Get Help

The best thing that you can do for your debt situation is to get advice and help from the right people. You don’t have to live in fear of the doorbell going, instead, you need to get the support you need. It’s good for your mental health and your financial wellbeing, so don’t get left in the weeds.


Greg Kononenko
Greg Kononenko

My name is Greg Kononenko and I am a full-time online blogger and owner of Dad's Hustle. I'm a dad, and my passion is to help other mums and dads to start their own "hustle" and improve the financial future of their families.

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