Get out of debt: a practical step-by-step plan
Debt can feel overwhelming. Yet a few concrete steps will get you there. It starts with an overview, continues with a plan that fits you and ends with sticking to that plan.
Do this today
- Collect all bills with outstanding balances.
- Write down the remaining amount, interest rate and monthly payment for each debt.
- Calculate what you can truly spare for extra repayments after fixed costs and reserves.
- Choose a strategy: highest interest first or smallest debt first.
Step 1: list all your debts
Without an overview you cannot choose where to put your money. Note every debt, including credit cards, personal loans and payment plans. Read our article on creating a debt overview to learn which details you need.
Step 2: map your income and unavoidable expenses
Fixed costs, groceries, transport and reserves are not part of your free cash. Set them aside so you know what really remains. The Schuldenvrij app calculates this automatically based on your household size and your own bank statements.
Step 3: choose a payoff strategy
The two best-known strategies are the snowball method and the interest-rate strategy. With the snowball you pay off the smallest debt first, then roll that amount to the next one. With the interest-rate strategy you focus on the debt with the highest rate. Read more in which debt to pay off first.
Step 4: start small and keep rolling
Extra repayments do not have to be hundreds per month. Even a fixed € 25 or € 50 can shave off months or years. Once a debt is gone, add its monthly payment on top of the next debt. Your payoff speed will naturally accelerate.
| Strategy | How it works | Best for |
|---|---|---|
| Snowball method | Pay off smallest debt first, roll payment to next | You need motivation to keep going |
| Interest-rate strategy | Pay off highest interest debt first | You want to pay as little interest as possible |
| Roll-forward strategy | Freed-up payments stay in the payoff plan | You can keep paying all debts normally |
Step 5: celebrate small wins
Every debt that disappears is a milestone. Celebrate it not with big spending, but by making it visible. The app shows how much interest you save and how many months sooner you finish.
Need extra help?
If you cannot make ends meet or if debts weigh too heavily, free help is available. Read help with debt for phone numbers and organisations that can guide you.
Frequently asked questions
How long does it take to get out of debt?
It depends on your total debt, interest rate, monthly payments and how much extra you can repay. With a roll-forward plan the app shows exactly when you will be debt-free.
What if I cannot repay anything extra?
Keep paying the agreed minimums at least. Sometimes you can free up small amounts by temporarily reducing expenses or by asking for help.
How do I know what interest rate I pay?
Your interest rate is on your statement, in your loan agreement or in your online loan portal. If there are multiple rates, use the annual percentage rate.
Also see the debt payoff guide.