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6 Ways to get out of Debt


Getting out of debt is not always an easy task. If you have a sizable amount of debt, it’s likely that just making one small adjustment isn’t going to get rid of it completely. Often a combination of several approaches is needed to make significant progress toward being debt-free. Here are some great ways to help you get out of debt that you can often combine for greater effect.

1. Create a Budget. Keeping track of expenses and setting goals for spending is essential to get out of debt. One of the best ways to help set a budget, and stick to it, is to track your finances using Horizon’s Online and Mobile Banking. You can also use the handy Budget calculator to help get started.

Horizon Tip: New to budget creating? Check out our article Budget Creating 101!

2. Find a Roommate.  Rent and mortgage payments are often your largest single monthly expense. While living alone may have some perks, it usually costs much more than living with others. Not only will you split the monthly payment, but you may also share costs for other expenses like cable, cleaning supplies and utilities.

3. Brew Coffee at Home. Your morning stop for that perfect cup of specialty coffee may not seem like a large expense when looked at individually. Let’s say, for example, your morning latte costs $4. If you stop just 3 times a week, that adds up to about $50 per month that you could be putting toward your debt.

Horizon Fun Fact:  Studies have shown that theaverage American worker spends over $1,000 a year on coffee from chains such as Starbucks®.


4. Get a Second Job. While most techniques for getting out of debt involve reducing spending, don’t forget that there is another way to have more money for paying off debt each month — earning more. Finding a supplemental job can be a great way to earn more income during time you previously weren’t working. As an added bonus, you may be spending less if your weekends are occupied with a new job rather than your usual recreational activities.

Horizon Tip:  Maybe we can help you! Check out our current list of job opportunities.

5. Cut Back on Monthly Services. If you’re paying for cable, consider whether you can cut back on premium channels or ditch the DVR to save money. Or, maybe your cellphone bill covers more minutes and data than you need; if that’s the case, you should consider switching to a lower tier plan.

6. Cook More. Dining out is almost always more expensive than cooking a meal for yourself. Just because you’re avoiding dining out doesn’t mean you need to miss out on time with friends.

Horizon Tip:  Remember, just as accumulating debt takes time and may have a number of causes, getting out of debt will require time and a combination of several techniques to achieve. 

Looking for additional financial advice? Visit Horizon Bank online now or contact us today at 888-873-2640.

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