Guides
How to get out of debt: order, method and a realistic plan
Getting out of debt is more about order and consistency than earning more. With a clear plan, knowing how much you owe and to whom, and payments you do not forget, debt stops being a cloud and becomes a list that gets shorter.
List everything you owe
Write down each debt with its total amount, monthly payment, interest rate and due date. Seeing everything together, even if uncomfortable, is the first step to stop improvising.
Always cover the minimums
Before any strategy, make sure you pay the minimum on every debt on time. Late payments add fees and make things harder.
Choose a method: snowball or avalanche
With any extra money you can put in, there are two common paths:
- Snowball: pay the smallest debt first. It is more motivating because you close debts quickly.
- Avalanche: pay the highest-interest debt first. It usually costs less overall.
Stop taking on new debt
While you pay, avoid adding new debt. Review your variable expenses to free up a little money each month and put it toward paying down what you owe.
Never miss a due date
A large share of late fees comes from forgetting. Write down payment dates and set reminders before each due date, especially for installments and cards.
How to do it with FinGest Pro
In FinGest Pro you record your payments and installments and get reminders before each due date, so you do not pay extra for forgetting. With your budgets and the monthly summary you see how much you can put toward debt, and with savings goals you follow your progress toward financial freedom.