Hello everyone! My name is Brenda Butnick , and I’m a Financial Coach at Jewish Family Service of Greater Dallas. I work one-on-one with clients to help them achieve financial self-sufficiency.

We discussed the final step on How to Repair Your Credit in my last blog, and today we will cover Best Practices to Get Out of Debt.

Getting out of debt involves a multi-step process. Today we will focus on Creating a Plan and Budgeting.

Step 1: Create a Plan and Budget

• List all your debts. Organize them by interest rate and balance to see the full picture of what you owe. Some types of debt, like high-interest credit card debt, should be prioritized over others, such as a mortgage, which can be a long-term asset.

• Establish a realistic budget. Track your income and expenses for a few months to see exactly where your money is going. Find areas to reduce spending, like cutting unused subscriptions, to free up extra cash for debt payments. A budget should also include savings goals—such as building an emergency fund—to prevent future debt.

• Increase your income. To accelerate your debt payoff, look for ways to boost your income. This could include taking on a side hustle, getting a part-time job, or selling items you no longer need. Apply any extra income, such as a bonus or tax refund, toward your debt.

We will discuss How to Choose a Repayment Strategy in my next post on Friday, November 28th.

That’s all for your Financial Fitness today!

Until next time — take care and stay financially fit!