Paying off debt can be frustrating and confusing if you don’t have the right plan. For more than 25 years, Dave Ramsey has taught people a step-by-step approach to slashing their debt called the 7 Baby Steps.
On Baby Step 1, you save $1,000 in an emergency fund, and on Baby Step 2, you pay off all your debt using a method called the debt snowball.
How to Pay Off Debt: The Debt Snowball Method
List your debts from smallest to largest, regardless of interest rate.
Attack the smallest debt with a vengeance, while making minimum payments on the rest of your debts.
Repeat this method as you plow your way through debt.
Look, Baby Step 2 takes a few months to finish for some people and a few years for others. So if you’re on this step and laser-focused on paying off that last debt, it’s possible the grind is starting to become . . . well, a grind. Maybe you’re exhausted, and feel like it’s going to take forever to become debt-free.
Hold that thought, because we’re here to give you ideas on how to become debt-free sooner. Here are 25 ways to get out of debt.