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How to get out of debt: step-by-step plan and calculator

When loans, microloans, installments and card debt pile up, your salary disappears the day it arrives. You can get out: all it takes is order and a clear plan.

Below are five simple steps and a calculator. Enter your debts to see which one to pay first, how much interest you will pay and the month you will be debt-free.

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5 steps to get out of debt

  1. Stop taking new debt

    Paying an old debt with a new one only digs the hole deeper. Put the credit card away for now and do not buy anything on installment.

  2. Write all debts in one list

    For each one: balance, annual rate, monthly payment and due date. Include money you owe to friends and family.

  3. Check your debt burden

    Divide all monthly debt payments by your monthly income. Up to 30% is healthy, 30–50% is a risk zone, over 50% means you need to act now.

  4. Choose a method

    “Avalanche”: all spare money goes to the highest-rate debt, so you pay the least interest. “Snowball”: you close the smallest debt first, and quick wins keep you going. Keep paying the minimum on the other debts on time.

  5. Talk to the lender

    If you cannot pay, do not wait until you are late. Write to the bank and ask for a longer term or restructuring. This avoids penalties and damage to your credit history.

Debt payoff calculator

Add each debt: balance, annual rate and monthly payment. Everything is calculated on your device, no sign-up needed.

Step 1. Enter your debts

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Enter 0 for an interest-free installment. The rate is in your contract.

What not to do

  • Do not take a new microloan to pay off an old one: that is how a debt spiral starts.
  • Do not pay only the minimum while the interest makes the debt grow.
  • Do not trust “debt helpers” who promise to wipe out debt and ask for money upfront.
  • Do not pledge your home or car for a new expensive loan to cover old debts.
  • Do not hide from calls: talking to the lender works better than falling behind.

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Track your debts in My money

Record income and expenses, check your debt burden every month and build an emergency fund.

Open My money

Frequently asked questions

Which debt should I pay off first?

To save money, the one with the highest rate (usually a microloan or credit card). If motivation matters more, the smallest one. Always keep paying the minimum on the rest on time.

What debt burden is considered normal?

All debt payments together should stay under 30% of your monthly income. Above 50%, take no new debt and talk to the lender about restructuring.

What if I cannot make my loan payment?

Contact the bank before you are late. Many banks can extend the term, offer a payment holiday or restructure the loan. Get every agreement in writing.

Can I take a new loan to pay off my debts?

Only if the new loan is cheaper than the old ones and you have stopped borrowing (refinancing). Closing a microloan with another microloan makes things worse.

This page is for education only and is not financial advice. The calculator gives an estimate: interest, penalties and the payment schedule depend on your contract. Check the exact terms with your bank or lender.