Debt has a way of following you around. It shows up in the mailbox, in late-night worries, and in tense conversations about money. The good news is that debt is not a life sentence. With a clear plan, a little patience, and a united family, you can pay it off one balance at a time.
In this article I walk through a simple, step-by-step plan that works for families of any income level, whether you owe a few hundred dollars or a lot more.
Why Getting Out of Debt Matters
Church leaders have counseled members about debt for generations. President Gordon B. Hinckley put it plainly:
“Pay off debt as quickly as you can, and free yourselves from bondage.”
President Gordon B. Hinckley, “To the Boys and to the Men,” October 1998 general conference
Elder Joseph B. Wirthlin echoed the same idea a few years later:
“Remember this: debt is a form of bondage.”
Elder Joseph B. Wirthlin, “Earthly Debts, Heavenly Debts,” April 2004 general conference
I find that word “bondage” helpful. Debt quietly decides where a portion of your income goes before you ever see it. Paying it off gives that money back to you, so it can go toward your family, your savings, and your ability to serve others.
Step 1: Hold a Family Debt Council
Before you change anything, sit down together. If you are married, both spouses need to be part of the plan. If you have older children, a simple version of the conversation can help them understand why the family is making changes.
Keep the tone kind. The goal is not to assign blame for how the debt happened. The goal is to agree on where you want to go. A few questions to start with:
- What do we owe, and to whom?
- How does this debt make us feel?
- What would we do with the money once these payments are gone?
The free family budget worksheet is a good place to write down your answers.
Step 2: List Every Debt
Next, gather every statement and make one list. For each debt, write down:
- Who you owe (the lender or card name)
- The total balance
- The interest rate
- The minimum monthly payment
Include everything: credit cards, car loans, medical bills, personal loans, student loans, money owed to family, and your mortgage. Seeing it all on one page can be hard, but it is also the moment the problem becomes something you can actually solve.
Step 3: Stop Adding New Debt
You cannot fill a bucket that has a hole in it. While you pay off old balances, make a firm family decision not to add new ones.
Some practical ways to do that:
- Put credit cards away. Some families freeze them in a block of ice or simply remove them from wallets and online stores.
- Pay cash or debit for daily spending. It is harder to overspend when the money is visibly leaving.
- Build a small starter emergency fund. Without a cushion, the next car repair often lands right back on a card. My guide to building an emergency fund explains how to start small.
Elder Wirthlin offered a memorable way to think about it:
“It is much better that a plastic credit card should perish than a family dwindle and perish in debt.”
Elder Joseph B. Wirthlin, “Earthly Debts, Heavenly Debts,” April 2004 general conference
Step 4: Build a Budget That Frees Up Money
Paying off debt faster requires finding money to put toward it. A written budget is how you find it. Start with tithing and fast offerings, then cover your essentials, and then look for what can be trimmed for a season.
Common places families find extra money:
- Eating out and convenience food
- Subscriptions and streaming services
- Phone and internet plans
- Unused memberships
- Selling items you no longer need
If you do not have a budget yet, my guide to a simple family budget walks through it step by step, and my article on budgeting for tithing and fast offerings explains how to keep giving first while you work on debt.
Step 5: Choose a Payoff Method
There are two popular approaches. Both work, and the best one is the one your family will stick with.
The snowball method. Pay minimums on everything, then put every extra dollar toward the smallest balance. When it is gone, roll that payment into the next smallest. Quick wins build momentum, which is why many families love it.
The avalanche method. Pay minimums on everything, then put extra money toward the highest interest rate. This usually saves the most money over time, though the first win may take longer.
Whichever you choose, the key idea is the same: when one debt is paid off, its payment does not disappear back into everyday spending. It rolls forward to the next debt. That growing payment is what speeds everything up.
Step 6: Give Every Payment a Home
Debt payoff works best when the money has a clear place in your plan each month. I give each debt payment its own category, plus one “Extra Debt Payment” category for anything above the minimums. When income arrives, those categories get filled right after giving and essentials.
EnvelopeBudget.com is the tool I use to keep envelopes like these, but a paper ledger or a simple spreadsheet works just as well.
Step 7: Stay Motivated
Paying off debt can take months or years, so plan for the long middle stretch:
- Make progress visible. A paper chain or a coloring chart on the fridge lets kids join in the celebration.
- Celebrate each payoff. A simple family treat or a special dinner at home marks the milestone without undoing it.
- Review monthly. A short check-in during your family budget council keeps everyone on the same page.
- Be patient with setbacks. A hard month does not erase your progress. Pick the plan back up and keep going.
What About the Mortgage and Student Loans?
Not all debt feels the same. Many families focus first on consumer debt like credit cards and car loans, because those balances often carry higher interest and buy things that lose value. Once consumer debt is gone and your emergency fund is in place, you can decide together whether to put extra toward student loans or your home.
There is no single right timeline here. The important thing is that your family has a plan and is moving in the same direction.
When You Need More Help
If your debt feels overwhelming, you are not alone, and you do not have to carry it alone. The Personal Finances for Self-Reliance course offered through ward and stake self-reliance groups covers budgeting and debt in a supportive group setting. Your bishop can also help you think through resources. For very serious situations, a reputable nonprofit credit counselor can help you understand your options.
Debt Payoff Checklist
- Hold a family debt council
- List every debt with balance, rate, and minimum payment
- Decide together to stop adding new debt
- Build a small starter emergency fund
- Write a budget that frees up extra money
- Choose the snowball or avalanche method
- Roll each paid-off payment into the next debt
- Celebrate every payoff and review monthly
Closing Thoughts
Getting out of debt is less about a perfect plan and more about steady, faithful effort. Every extra payment is a small act of freedom for your family. Start this week by listing what you owe, and then take one step at a time.
When the last balance is gone, the money that used to leave each month can finally go toward the things that matter most to you, like preparing for a mission, building your food storage, or simply giving more generously.
