28 Proven Strategies to Eliminate Debt and Achieve Financial Freedom

Get out of debt fast

Picture it now: Instead of constantly drowning in debt payments, imagine building up your savings and paying cash for vacations. No longer using your paycheck to pay for the past, you can enjoy the present and feel prepared for the future. That sounds like a good life, right? Well, it’s not only possible but also inevitable if you follow the right plan.

If you want to get out of debt and achieve financial freedom, I’ve got you covered with 28 effective strategies. I won’t sugarcoat it – it will require hard work and determination. But trust me, it’s totally worth it!

Change Your Mindset, Change Your Life

Before diving into practical debt repayment tips, it’s crucial to address your mindset. Your beliefs shape your behavior, and if you don’t believe you can be debt-free, you won’t be. So draw a line in the sand and decide that you’re done with debt. Make up your mind to stop swiping that credit card or taking out personal loans for things you can’t afford. If you want something different, you have to do something different.

I know firsthand how it feels to be drowning in debt and desperate for a way out. My husband and I managed to pay off $460,000 of debt. We were determined to do whatever it took to regain control of our lives. And let me tell you, you can do it too! Every day, I see people who have overcome their debt and are now standing on top of it, shouting in victory.

So how did we do it? We followed Dave Ramsey’s 7 Baby Steps, a proven plan that provides a clear path to saving for emergencies, paying off debt, and building wealth. These steps will help you break free from living paycheck to paycheck and gain confidence and control over your money and your future.

But before you can start paying off debt, you need a safety net. Baby Step 1 is to save $1,000 for your starter emergency fund. Once you have that buffer, it’s time to attack your debt head-on.

The Debt Snowball Method

The debt snowball method is the most effective way to pay off your debt quickly, especially if you have multiple debts. Here’s how it works:

  1. List all your debts from smallest to largest, regardless of interest rate.
  2. Attack the smallest debt with all your energy while making minimum payments on the rest of your debts.
  3. Once you pay off the smallest debt, take that payment and apply it to your next-smallest debt.
  4. Repeat this process until all your debts are eliminated.

The debt snowball method works because it provides quick wins and keeps you motivated to tackle the rest of your debt. Most people can pay off all their debt within 18-24 months using this approach. Even if it took my husband and me seven years, the sense of freedom we gained was well worth the effort.

Now, let’s dive into some additional strategies that will help you on your debt-free journey:

1. Make a budget.

Creating a budget is absolutely essential. A zero-based budget allows you to plan for every dollar of your paycheck, helping you identify problem areas and cut back on unnecessary expenses. The free EveryDollar budgeting app can make this process incredibly easy and effective.

2. Start your own business.

Consider utilizing your talents and skills to start a side business that generates additional income. Whether it’s offering a service or creating a product, starting your own business can significantly boost your debt repayment efforts.

3. Get a part-time job.

If entrepreneurship isn’t your thing, get a part-time job or side hustle to earn extra money. Options include driving for ride-sharing services or delivering food. Every extra dollar counts when it comes to paying off debt.

4. Sell the car.

Trading in your expensive car for a more affordable used vehicle can drastically speed up your debt repayment journey. Take the money you save on monthly car payments and direct it towards your debt snowball.

5. Cut up your credit cards.

To break the cycle of debt, it’s crucial to eliminate credit card dependency. Cut up all your credit cards and commit to living within your means. You’ll be amazed at how liberating it feels.

6. Use the envelope system.

Paying in cash can help you spend less compared to using plastic. Use the envelope system to allocate cash for specific budget categories and stick to your spending limits.

7. Pause investing.

Temporarily suspend contributions to your retirement investments, including your 401(k). Put all available funds towards paying off your debt. Once you’re debt-free, you can resume investing with even greater resources.

8. Quit the comparison game.

Avoid comparing yourself to others. Focus on your own financial goals, and resist the temptation to keep up with the Joneses. Sacrificing now will pay off immensely in the future.

9. Involve your children.

Teach your children about money and involve them in your debt-free journey. By educating them about the importance of money management, you can instill good financial habits early on.

10. Take Financial Peace University.

Consider enrolling in Financial Peace University, a program that teaches you how to beat debt and build lasting wealth. This knowledge will equip you with the tools and strategies needed to achieve lasting financial freedom.


Becoming debt-free is within your reach, but it requires commitment, discipline, and a change in mindset. By following these 28 proven strategies and implementing Dave Ramsey’s 7 Baby Steps, you can eliminate your debt and achieve true financial freedom. Remember, it won’t be easy, but the rewards are immeasurable. Start your journey today and take control of your financial future.


Q: How long will it take to get out of debt using the debt snowball method?”

A: The debt snowball method typically takes between 18-24 months, but it can vary depending on individual circumstances. The key is to stay focused, motivated, and consistent with your debt payments.

Q: Can I invest while paying off debt?

A: While it’s important to save for retirement, it’s recommended to temporarily pause contributions to retirement investments until you’ve paid off your debt. This allows you to direct all available funds towards debt repayment and gain control of your financial situation.

Q: Is it necessary to create a budget?

A: Yes, creating a budget is crucial for effective debt repayment. A zero-based budget enables you to allocate every dollar of your paycheck, identify areas where you can cut back, and prioritize debt payments. The EveryDollar budgeting app can simplify and streamline this process.

Q: How can I involve my family in my debt-free journey?

A: Teach your children about money and involve them in financial discussions. Help them understand the importance of living within their means, budgeting, and working towards financial goals as a family. By instilling good financial habits early on, you can set them up for success in the future.

Q: What is Financial Peace University?

A: Financial Peace University is a comprehensive program designed to provide individuals and families with the knowledge and tools to achieve financial freedom. It covers topics such as budgeting, debt elimination, wealth building, and retirement planning. By taking this course, you’ll gain valuable insights and strategies to transform your financial life. Learn more about Financial Peace University here.