How to Get Out of Debt 

Debt can feel like a heavy burden that weighs on your shoulder every day. It can be hard to escape when you don’t know where to start or how to make it happen. Fortunately, entrepreneur and financial coach Raphael Sternberg has outlined a few steps to get out of debt and stay on track financially. Let’s take a look at the three-step process he recommends for becoming debt free.

The Three-Step Process

Sternberg’s approach to freedom from debt can be broken down into three easy steps: 

Step One: Look At The Budget 

First, Sternberg initially recommends that you create an accurate budget and then ensure that you stick to it. This budget will help you keep track of your spending and make sure that you are making progress toward becoming debt free. He also suggests tracking your expenses to identify where you are spending money unnecessarily so that you can cut back or eliminate wasteful expenditures. Once you have developed an accurate budget and identified any areas where you could cut back, it is time to cut down on your debts.

Take inventory of all your assets – this includes your machinery, inventory, or anything else you don’t need anymore. Offloading these assets will give you some extra cash flow which can help pay off debts quicker. In addition, it’s also essential to evaluate your current situation honestly by reflecting on your accomplishments and challenges. Once you have done this, you can draw reasonable conclusions from them, which will help inform the next steps in getting out of debt.

Step Two: Develop a Strategy 

Sternberg recommends focusing on the debt with the highest interest rate first – this way, more of each payment goes toward reducing the principal rather than just paying off interest charges. Consider speaking with a financial planner or accountant who can advise on how best to manage finances during this process and suggest any potential tax benefits available, given your current situation. Additionally, try negotiating with creditors if possible; sometimes, they may be willing to work with you to devise a payment plan or reduce some of the charges associated with the loan.

Step Three: Take Action 3

Finally, Sternberg suggests developing an emergency fund to avoid going into more debt when unexpected bills arise or other issues arise. Having an emergency fund will give you peace of mind knowing that if something comes up, you won’t have to rely on borrowing money or going into debt to pay for it.


Being in debt can feel overwhelming, but there is hope! Entrepreneur Raphael Sternberg has outlined three steps – creating an accurate budget, cutting down on debts, and developing an emergency fund – which will help anyone who wants to get out of debt and stay there. Through careful planning, budgeting, and discipline, anybody can become debt free – all it takes is a little effort! So don’t let yourself become overwhelmed by debt – follow these steps today and start taking control of your finances! ​​​​