1. Assess your financial situation: Do you have debt? How much? What is your debt-to-income ratio? You should regularly check your financial health, and learn how to figure out if you have too much debt. Obviously if you go to get a loan they will base part of how qualified you are on how much debt you have. If a bank wants to check your financial health, why not check your own? How much are you worth? Is it a negative amount? Knowing how much you are worth should help you see where you need to put your focus. Are you headed toward bankruptcy? If you assess your financial situation you will be able to protect yourself from some of the harder parts of being financially unstable.

2. Understand the basics of how credit works. The next thing you have to do to get out of debt is understand credit. Do you know what your credit report says? Do you know your credit score? And even more importantly, do you know how to improve your credit history? Most lenders use your credit score, also called your FICO score to determine your credit worthiness, which is displayed in the interest you get and the amount you are allowed to borrow. If you understand how credit works, then you will be able to clean up your credit and get out of debt with a better foot to put forward.

3. Get help when you need it. One of the best ways to get out of debt is to ask for help when you need it. Just because you know how to pay your bills on time does not mean that you don't have a debt problem. Are you managing your minimum monthly payments? Or are you chipping away at your debt? If you are just paying on time, or not even paying on time, there are things you can do, and one of those is to seek credit counseling. Find a reputable company that will help you get out of debt and work toward a brighter future. Bankruptcy does not have to be the answer, so work with someone to help you get out of debt and back on track.

4. Budget and cut costs. The next thing you have to do is learn how to save money on credit cards and other costs, learn to pay more than a minimum balance, and budget out every penny so you know where your money is going. If you want to get out of debt you have to start paying attention to where your money is going. Make a budget and let your money dig you out of the debt hole by putting each penny you can toward paying off debts.

5. Avoid credit and debt mistakes. The last thing you need to do to get out of debt is to learn how to avoid mistakes. One of the biggest is using a credit card when you do not have the self control to do so. This includes things like ringing up a high balance because you have an interest free card for a year. Do not fall temptation to the sort of loans that mean high interest short turn around. For example, payday loans are a bad idea. Buying an expensive new car.bad idea. There are a lot of bad ideas, and few good ones. So start by getting out of debt, then take a class on money management.