🦁 How Do I Get Out of Debt? A Complete Guide to Freedom

🦁 How Do I Get Out of Debt? A Complete Guide to Freedom

If you’ve ever typed “how do I get out of debt” into Google or Bing, you’re not alone. Millions of people are searching for the same answer every year. Debt is one of the biggest financial challenges facing Americans today, and it often feels overwhelming. Whether it’s credit card debt, student loans, auto loans, or medical bills, the weight of debt can impact your stress levels, relationships, and even your health.

The good news is this: getting out of debt is possible. With the right strategy, accountability, and systems in place, you can take control of your finances and start building real wealth.

At Lionhood Financial Coaching, we specialize in helping individuals and families eliminate debt while creating a long-term financial plan that works. Here’s what you need to know.

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1. Understand Your Debt

Before you can pay it off, you need a clear picture of what you owe. Many people avoid looking at their debt, but awareness is the first step toward progress.

Action steps:

• List all debts (credit cards, student loans, auto loans, personal loans, mortgages).
• Write down balances, interest rates, and minimum monthly payments.
• Use a spreadsheet, budgeting app, or even paper and pen to stay organized.

This gives you the “debt snapshot” you need to move forward.

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2. Choose the Right Payoff Strategy

Two of the most popular methods are the Debt Snowball and Debt Avalanche.

• Debt Snowball: Pay off the smallest debt first while making minimum payments on others. Once the smallest is gone, roll that payment into the next one. This builds momentum and motivation.
• Debt Avalanche: Pay off the debt with the highest interest rate first. This saves you the most money over time.

Both work. The best one is the one you’ll stick to consistently.

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3. Consider Debt Consolidation

Another common question people search is “Is debt consolidation a good idea?”

Debt consolidation combines multiple debts into a single payment, often with a lower interest rate. This can simplify your payments and help you save money. But it’s not always the right choice for everyone.

Debt consolidation may help if:

• You have multiple high-interest debts.
• You qualify for a lower interest rate than what you currently pay.
• You’re committed to not taking on new debt.

However, consolidation does not erase debt — it just restructures it. Without discipline, you could end up deeper in debt.

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4. Create a Budget That Works

A realistic budget is the backbone of any debt payoff plan.

Tips to make your budget effective:

• Track every expense for 30 days to see where your money goes.
• Cut back on non-essentials (streaming, eating out, subscriptions).
• Redirect that extra money toward your debt.

Tools like Monarch Money or Rocket Money can automate tracking and keep you accountable. At Lionhood Financial Coaching, we also help clients build simple Google Sheets budgets if you want a no-frills approach.

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5. Build an Emergency Fund

Unexpected expenses often derail debt payoff plans. A small emergency fund (even $500–$1,000) creates a buffer so you don’t fall back on credit cards when life happens.

Once you’ve paid off high-interest debt, aim for 3–6 months of expenses.

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6. Get Accountability and Coaching

The truth is that information alone rarely leads to transformation. Many people know the steps but still feel stuck. That’s where financial coaching comes in.

A financial coach gives you:

• A clear, personalized debt payoff plan.
• Accountability to stick with it.
• Emotional support when motivation fades.
• Long-term strategies to avoid falling back into debt.

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✅ Your Path to Debt Freedom

Debt doesn’t have to control your future. Whether you’re struggling with credit card balances, student loans, or wondering if debt consolidation is right for you, there is a clear path forward.

At Lionhood Financial Coaching, we help people just like you take control of their money, eliminate debt, and build wealth with confidence.

👉 Book your financial coaching session today and take your first step toward financial freedom.