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Step 1
Make as much money as you can without stressing yourself or anyone else out. Pace yourself, but be prepared to work hard for a year. Getting out of debt will pay rewards and will be a good return on your work. Work some overtime if you can. Take a second job. Sell what you don’t need at yard sales or on eBay or Craigslist. If you have things you don’t use or really don’t need, seriously consider what they might be worth. Instead of trading up, trade down. If you can sell a very expensive item and can use a much cheaper version and the trade leaves you with money left over, it’s worth it as long as the cheaper item's quality doesn’t cause you to spend more.
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Step 2
Get rid of debt you don’t need. It’s really hard to raise your income beyond a certain level. The best thing you can do is cut unnecessary spending. Don’t buy things such as coffee every day, and bring your lunch to work. Spend only on the things you need.
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Step 3
Use coupons and sales. This applies to all of your shopping, but especially in the grocery store. You can save 50-60% percent of your bill by matching coupons and sales. At the grocery store, don’t buy brand-name items when you can buy the store brand.
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Step 4
Don’t eat out. Avoid restaurants at all costs; this one area alone sucks up more money than you can imagine. Even avoid cheaper fast-food places, as that spending still adds up quickly
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Step 5
Change your behavior. You need to change your mindset that you don’t have the money to spend even if you have the ability to spend. Every time you think about spending money when you don’t need to, try to remember this is an investment into getting out of debt and saving for more important things.
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Step 6
Consolidate debt when it doesn’t cost you more now or over a longer period of time. If you consolidate your debt into a mortgage, it may seem like you are saving money now but you are really paying more over 30 years. If you can consolidate your debt into fewer loans where it doesn't cost too much in fees, then this should be done as you will more likely be on top of paying your bills.
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Step 7
Get rid of all or most of your credit cards. Once you have paid them off, get rid of them. This is the best way to stay out of debt in the future and avoid falling back into debt on your way out. You may want to keep one credit card open, as having a credit card that you pay regularly and on time will help your credit. Do not open other credit cards just because you ran out of credit on one card, though. If you do keep one card open, ask the credit-card company to keep you at a lower credit limit that you know you can handle and won't be tempted to exploit. Opening and closing credit cards may affect your overall credit score, so make your choices carefully and then stick with them.
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Step 8
Read and research anything that you do that deals with money. Education will show you where you are wasting or spending money that you might not have even known about. Read your credit-card statements each month so you can catch mistakes or possible fraud. Also categorize your spending every week or month so you can see just where your money is going.
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Step 9
Reward yourself. Don’t go crazy, but you should on a rare occasion reward yourself with something small and inexpensive so that you don’t get discouraged about your situation. After you have done well for a significant period of time or met certain goals in lowering your debt, than do something like have a nice, but still inexpensive, dinner out. Rewards can be a good motivator, but be careful not to reward yourself too much. Getting out of debt will not be easy, but it is worth it, so be patient and stick with it.
