How to Get out of Debt You want to get out of debt and improve your credit score but are not sure how to get started. Use the information below to learn how to manage your credit score and improve your creditworthinessBecoming Debt Free Involves Five Steps to Financial Health.This year, choose a smart resolution that will positively impact your pocketbook and your peace of mind. Pledge to reduce your debt and boost your credit score. Lowering the amount of debt you carry can significantly improve your credit profile, reduce the loan rates you could receive, and save you a lot in interest payments. It just takes a few easy steps and a little dedication to take charge of your debt.Get the FactsCollect all your account, loan, and credit information and go over the records with a fine-tooth comb. Write down the monthly payment, the debt amount, interest rate, and term of each debt on a sheet of paper. Next, write down your total monthly income and list your estimated monthly expenses. Order your Credit Report and Credit Score online to get a baseline for tracking your improvements.Do the MathCalculate how much you usually spend paying each debt and how much interest that debt collects per month. Define which debts you need to pay off first. For example, pay credit card debt and small loans before low-rate student loans and home loans. A “yes” answer to any of the questions below is a red flag for accounts that need immediate attention:Which debts have the highest interest rates?Are there accounts above 50% of their credit limitDo you have any debts that are close to being paid off?Which debts have the highest annual fees?Negotiate and ConsolidateStart working on those high-interest credit card debts first. Call your creditors and negotiate lower interest rates or move your balances to less expensive credit cards. Accounts that are above 50% of the available line of credit can harm your credit score, pay off or move some of the balance to a different card. If you have a credit card debt that is too large to handle, consider taking out a personal loan from your bank for the amount. Your bank can probably give you a much lower rate and a more lenient payment schedule.RefinanceAfter taking control of your credit card and small debts, take a look at your major loans. Would it make sense to refinance your mortgage? Could you consolidate some of your other debts into the loan? What about cashing out some home equity to pay off high-interest debt?Stick to Your PlanNow that you have lowered your rates and refinanced your loans, create a payment schedule, and a monthly budget. See exactly how much you can afford to pay each month by subtracting your expenses from your monthly income. Divide the remaining amount between the accounts, paying the most to the debts with the shortest terms and highest interest rates.Create a payment calendar with the due dates and the payment amounts you just calculated for each bill. Sign up for automatic bill payment through your bank or register for online payments to keep you on schedule. To continue to keep your credit on the track, register for Credit Monitoring online, and you’ll receive quarterly credit reports, credit alert emails, and trend charts that outline how much your credit improves over time.Set goals for yourself, and don’t forget to celebrate when you reach debt-removal milestones!