Let’s be honest—being in debt feels heavy. Mentally, emotionally, financially… everything. I remember checking my balance one night and thinking, “How did I even get here?” If you’re reading this, chances are you’ve had a similar moment.
The good news? You can get out of debt. You don’t need to earn double overnight or live like a monk. What you really need are smart budgeting strategies that fit real life—especially if you’re juggling rent, family responsibilities, and rising costs (yeah, Bangladesh isn’t cheap anymore).
Let’s break this down properly.
Why Budgeting Is the First Step to Getting Out of Debt
Before paying off debt, you need clarity.
Budgeting isn’t about restricting yourself. It’s about telling your money where to go instead of wondering where it went. Once I started tracking my expenses—even roughly—I realized how much money was leaking through small, unnecessary spending.
Without a budget, debt repayment becomes guesswork. With a budget, it becomes a plan.
 |
| Budgeting Strategies to Get Out of Debt In 2026 |
Start With a Clear Picture of Your Debt
This part isn’t fun, but trust me—it’s powerful.
Write down:
Total debt amount
Interest rate on each loan or credit card
Minimum monthly payment
Due dates
Seeing everything in one place feels scary at first, but it gives you control. You can’t fight what you can’t see.
👉 Personal tip: I used to avoid looking at interest rates. Big mistake. Interest is what silently keeps you stuck.
Create a Bare-Bones Budget (Temporarily)
When you’re serious about getting out of debt, you need a bare-bones budget—at least for a few months.
Focus only on:
Essentials (rent, food, utilities, transport)
Minimum debt payments
A small buffer for emergencies
This doesn’t mean zero fun forever. It just means saying “not now” so you can say “yes” later.
Use the Debt Snowball or Debt Avalanche Method
These two strategies are popular for a reason.
Debt Snowball Method
Pay off the smallest debt first
Gain motivation from quick wins
Best if you need emotional momentum
Debt Avalanche Method
Pay off the highest interest debt first
Saves more money in the long run
Best if you’re numbers-focused
I personally started with the snowball method because motivation mattered more to me at that stage. Choose what keeps you going.
Cut Expenses Without Making Life Miserable
You don’t need to cut everything. Just cut smartly.
Some realistic ideas:
Cook more at home (even 3–4 days helps)
Downgrade internet or mobile packages
Pause unused subscriptions
Limit impulse online shopping (huge one!)
Small cuts, done consistently, create big results.
Increase Income (Even Slightly)
Budgeting alone is powerful, but budgeting + extra income? Game changer.
You can:
Do freelance work (writing, design, data entry)
Tutor students online or offline
Sell unused items
Take short-term gigs
Even an extra ৳3,000–৳5,000 per month can speed up debt payoff more than you think.
Build a Mini Emergency Fund
This might sound strange when you’re in debt, but hear me out.
Without an emergency fund, every small problem goes on credit. That’s how debt cycles continue.
Start with a small goal:
৳5,000–৳10,000 is enough initially
This protects your progress.
Track Progress Monthly (Not Daily)
Daily tracking burns you out. Monthly reviews keep you motivated.
At the end of each month:
Check how much debt reduced
Adjust your budget
Celebrate small wins
Progress isn’t always fast—but it’s real.
Stay Consistent, Not Perfect
Some months will be messy. Unexpected expenses happen. Family needs come up. That’s life.
The goal isn’t perfection. It’s consistency.
Even if you fall off one month, don’t quit. Restart. That’s how real people win with money.
Final Thoughts: Debt Freedom Is Possible
Getting out of debt isn’t about being extreme—it’s about being intentional. Budgeting gives you structure. Strategy gives you speed. Discipline gives you freedom.
Trust me, the peace you feel when debt starts shrinking? Totally worth it.
Written by
Farhan Rahman – Personal Finance & Lifestyle Writer
Last updated: July 2025
Farhan writes about budgeting, debt management, and practical money habits for young professionals in South Asia. He believes financial freedom starts with simple, honest decisions—not complicated formulas.
Disclaimer: This article is for informational purposes only. Please consult a licensed financial advisor for personal advice.
