Get out of debt by increasing your income or spending less. Start by making a list of what you owe and what you spend each month.

You can also use debt consolidation, which is a type of loan that pays off multiple outstanding debts, or a debt settlement company to negotiate with creditors.

1. Refinance

Obtaining a personal loan at a lower interest rate can make your debt repayment more manageable. If you have several outstanding credit card balances, you may be able to combine them into a single loan with one monthly payment.

You can also use the debt snowball method to eliminate your debts more quickly. This strategy targets your smallest debts first, while making minimum payments on the rest. Once the smallest debt is paid off, you take the money that was used to pay it and apply it to your next lowest debt. This process continues until you are debt-free.

If you have a steady income but still struggle to pay down your debt, consider picking up a side hustle. This could be as simple as a rideshare driver job or more involved like transcribing or cleaning. A side gig can help you make additional payments toward your debt and save extra money for emergencies. Having an emergency fund can prevent you from using your credit cards to cover expensive expenses and can help motivate you to continue paying down your debt.

2. Debt consolidation

Bankruptcy lawyers in Harrisburg PA notice that there is a lot of cookie-cutter financial advice on getting out of debt that suggests ways to earn more money or cut up your credit cards. The truth is that the most realistic way to get out of debt requires both a change in lifestyle and a change in your attitude toward money.

A debt consolidation strategy can help reduce the number of outstanding balances and monthly payments you must manage. It works by rolling multiple loans and balance transfer credit cards into one new loan or credit card with a lower interest rate, which allows you to focus on a single monthly payment. However, this approach has drawbacks, and it should only be used if your credit score is high enough to qualify for a good debt consolidation rate and you have cash flow that consistently covers your debt payments. Otherwise, it might actually lead to more debt over time. It is also not a substitute for budgeting.

3. Debt settlement

If you’ve exhausted other debt-reduction options such as lowering expenses, revamping your budget and prioritizing high-interest balances, consider negotiating with creditors or using a debt relief company. Keep in mind that this option can affect your credit score and you’ll likely need to pay taxes on forgiven amounts, which the IRS counts as income.

If you go this route, it’s typically best to stop making payments during negotiations (as long as you can afford the minimum amount). Instead, stash that money in a savings account, and make sure you have at least 75% of the value of the first debt you intend to settle.

Contact the creditor or debt collector that currently owns your debt, and offer to repay a lump sum in exchange for a complete release of your obligation. Be sure to get the agreement in writing before you send any payment, and preferably by certified or cashier’s check so you can prove it was received.

4. Budgeting

Creating and sticking to a budget is essential for anyone seeking to reduce debt. It takes time and strong self-discipline, but it can be done. One of the first steps is to realize how and why you got into debt. This can be difficult for many people, but it is necessary if you want to get out of debt. That means no more swiping credit cards or taking out loans for things you can’t afford.

To create a budget, gather your bills and pay stubs along with receipts for expenses like groceries, entertainment and transportation. Find places where you can cut back, even temporarily, to free up money to put toward your debt.

Next, prioritize your debts according to their interest rates and consequences for non-payment. Then, use a debt repayment plan to make your debts go away faster. If you need help organizing a debt relief strategy, there are nonprofit counseling agencies that can provide assistance.