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  • Stephen Gardner

How To Start Getting Out Of Debt

Cassie from the community said, Stephen you seem to understand money well. I wondered where or how do I even start to get myself out of debt. Thanks in advance.

This is such a great question!

First you must start with the desire to become debt free.

Several years ago I used a principle I used from the book Think And Grow Rich. I determined what I really wanted and that was to become debt free. I then put that idea in my mind each morning and night. I carried an index with me that said get out of debt.

I carried it and read it daily. When it became to wrinkled I wrote on a new card and tossed the old one. I was determined to keep my focus on becoming debt free and I did.

Next you need to get all your bills and debts on 1 page. If you aren't organized with your debts, you'll be unorganized in your debt elimination journey.

Then seek for margin in your income. Margin is the difference between what you make and what your bills are. For example if you make $4000 and spend $3500 then you have $500 to work with. I call this margin the debt drive down amount.

Then if you don’t have a coach, you want to know which method of debt liquidation is best for you.

Snowball Method

Avalanche Method

Velocity Banking Method

Or Cash flow indexing Method

I'll do a greater dive on each of these so watch for those videos and blog posts.

Each has their own strengths.

Lastly, there is a difference between good debt and bad debt. Bad debt takes money away from your household while good debt brings money to you. A quick example of bad debt would be a credit card at 21% interest with a balance because you bought stuff and didn't pay off the card.

A good debt would be a rental property that pays for the debt and gives you a little extra income from the debt.

I think removing all your bad debt is brilliant…something you can control. This post is meant to be brief and I'll share more on the strategies very soon.


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Stephen teaches about money, finance, getting out of debt and building tax free wealth.