7 Steps to Get Out of Debt: A Practical Guide from a Dave Ramsey Financial Coach
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Debt can feel overwhelming, but with a clear plan and determination, you can achieve financial freedom. As a financial coach inspired by Dave Ramsey’s principles, I guide clients to break free from debt and build a stable financial future. Here are seven actionable steps to help you get started. If you need more support and power-packed guidance, check out my life-changing Debt Crusher online course here (ON SALE NOW).
If you are new to the Dave Ramsey Financial realm, check out my post here on how to get started on the best basic financial education around. If you are ready to purchase the Financial Peace University workbook, check it out here on Amazon.
Step 1: Commit to the Process
Getting out of debt starts with a decision. Write down your "why"—the reason you want to be debt-free. Whether it’s providing for your family, saving for a home, or reducing financial stress, keeping your motivation front and center will sustain you through challenges.
Step 2: Create a Written Budget
Every dollar needs a job. Use a zero-based budget to allocate every penny of your income. List your monthly income, subtract your essential expenses, and direct the remainder toward debt repayment. Apps like EveryDollar make budgeting simple and effective.
Step 3: Build a Starter Emergency Fund
Before tackling your debt, save $1,000 as a starter emergency fund. This cushion prevents you from relying on credit cards when unexpected expenses arise. Prioritize this savings goal, even if it means selling items or picking up extra work temporarily. I have created a strategic and empowering online course that focuses only on helping you to create a starter emergency fund - and FAST. Check it out here ( ON SALE NOW).
Step 4: Use the Debt Snowball Method
List your debts from smallest to largest, regardless of interest rate. Focus on paying off the smallest debt first while making minimum payments on the others. Once it’s paid off, roll that payment into the next debt. The momentum you gain from small wins builds confidence and accelerates your progress.
If you want some rock-solid support, biblical guidance and power-packed strategies on how to make this work for you, your spouse and your family - check out my Debt Crusher online course here. It’s on sale right now too!!
Step 5: Cut Expenses and Increase Income
To speed up debt repayment, find ways to free up money in your budget. Cancel subscriptions, dine out less, and shop smarter. Simultaneously, explore opportunities to increase your income, such as freelancing, overtime, or a side hustle. Every extra dollar can make a big impact.
Step 6: Avoid New Debt
Pause credit card use, stop financing purchases, and say no to new loans. Living within your means is crucial for long-term financial health. If you don’t have the cash for something, wait until you do.
Step 7: Stay Focused and Celebrate Milestones
Paying off debt is a marathon, not a sprint. Stay motivated by celebrating small victories along the way. Track your progress visually—create a chart or debt thermometer—and mark every achievement.
The Freedom Awaits
Getting out of debt isn’t easy, but it’s worth every sacrifice. The financial freedom you’ll gain allows you to invest in your future, give generously, and live without financial stress.
Ready to start your journey? As a Dave Ramsey-trained Financial Coach, I’m here to guide you! First, if you haven’t gone through the Dave Ramsey Financial Peace University (FPU), purchase the workbook here and consider joining a free class.
If you have been through FPU and need some more in-depth support and guidance, I have created in-depth, biblical and revolutionary online courses (ON SALE NOW) that will skyrocket your success and joy while on this journey. I have four life-changing courses, including one that empowers you, (and your spouse/family) to start crushing debt today. Let’s jump-start your journey to financial freedom!
Helping you achieve financial peace, one step at a time.
Your Financial Coach, Victoria
