Ramit Sethi’s top 5 ways to get out of debt fast

Financial expert and podcaster Ramit Sethi wants to teach you how to be rich.

But first, you’ll need to get out of debt.

As the author of the bestselling book I Will Teach You to Be Rich, star of Netflix series How to Get Rich, and the host of the Money for Couples podcast, Sethi has become one of the most influential voices in personal finance today. His advice resonates with millions of people because he doesn’t try to make them feel bad about their spending habits.

Instead, Sethi uses psychology, practical advice, and the wonders of automation to help people gain control over their bank accounts—as well as their lives.

In fact, Sethi says you don’t even have to give up your favorite indulgences, like your daily latte, in order to achieve your goals, so long as you optimize your savings and investing. 

If you’re on the right track in terms of your “big picture” goals, he believes, you’ll have money to spare for small treats, too.

How does Ramit Sethi help people get out of debt?

Getting out of debt is one of the most common financial goals people have; in fact, Sethi’s newest podcast, Money for Couples, sheds light on how financial stress not only impacts your life—it can also destroy your relationships.

Many of the couples who appear on his show are mired deeply in debt, but like many of us, they can’t get out of it because they struggle with where to start.

Sethi’s methods focus on figuring out exactly how much money you’re bringing in the door, and then creating systems that work for you to set, meet, and then achieve your long-term financial goals, but you must begin by getting your head above water.

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The personal finance industry loves to talk about 40-year plans. Most people are just trying to survive the next 30 days. With Mike and Noel, everything is reactive. Paying this month’s bills. Buying what feels good today. No real sense of where they’re headed or what this adds up to. That’s not a plan. It’s drifting. ▶️ Watch the full episode on YouTube. Link in bio. ♬ original sound - Ramit Sethi - Ramit Sethi

5 ways to get out of debt quickly according to Ramit Sethi

Sethi, a Millennial podcaster who studied Psychology at Stanford, is a bit of an iconoclast in the sphere of personal finance.

Unlike Boomer gurus like Dave Ramsey and Mark Cuban, Sethi doesn’t think you need to cut up your credit cards to get out of debt—in fact, he advocates keeping credit cards (and paying off their balances in full each month) so that you can help to build and/or raise your credit score.

Here are the biggest steps he believes anyone can take that will help shore up their finances fast.

Related: Dave Ramsey’s real estate advice: 5 tips every first-time homebuyer should follow

1. Know your numbers

Sethi believes that many people avoid facing their debts because it feels overwhelming.

But in order to take control of your debt, you actually need to understand it.

“Something I’ve learned from talking to tens of thousands of people in debt is that 90% of them simply don’t know how much they owe,” Sethi told CNBC. “And 95% of them have no idea what date their debt will be paid off.”

Sethi advises you to add up all of the total outstanding debts you have. Then, use an online calculator to determine when your debt will be paid off based on how much you can afford to pay. Finally, he encourages people to automate their payments (more on this below) so that they’re taken directly from their paycheck—and avoid the temptation of having that money sitting in their bank account to add further to their debt.

By providing clarity into your finances, Sethi believes, you’re effectively removing fear from the equation. People can make more informed decisions simply by knowing where they stand.

2. Set it and forget it

Sethi is a huge proponent of automating your financial life, which makes sense, since he’s a digital guru who’s amassed millions of followers through online content and social media channels.

But when it comes to your finances, automation is even easier.

“The most important thing is to make a plan with your debt, then to automate your money so it’s getting paid off,” Sethi told CNBC, “That’s what moves the needle.”

Related: Warren Buffett’s net worth: A look at his fortune in retirement

It’s not as hard as it sounds, either. Simply schedule automated payments right after your paycheck is deposited that cover your bills, credit card payments, student loans, and any other debts you need to pay.

In the end, automating your finances adds discipline to your strategy of managing money, and it will actually help you save more, because you’re not constantly thinking about your money.

3. Weed out hidden expenses

So, how can you still enjoy that daily latte if you’re battling major debt? Well, you might be paying for things you don’t even realize, Sethi says. Laser-in on them and you could free up some substantial cash.

“I believe in living a rich life today and a rich life tomorrow—even if you have debt,” Sethi says in his episode entitled “Brutally Honest Guide to Pay Off Debt in 6 Months.”

In order to “find some extra cash you won’t even miss,” he recommends checking into any subscriptions that are outdated or you’re simply not using.

Insurance is another area where he believes you can save big. “Call your providers and say, ‘Hey I’m shopping around for better rates. What can you do for me?’”

Lastly, you can get your caffeine fix if you cut back on other areas of impulse spending—particularly eating out and delivery charges, which can really add up.

“In all of my experience I’ve found that people can free up $500 a month by going through those steps,” Sethi revealed.

4. Play offense

Sethi is big on reaching out to the people you owe money to, particularly by phone. By taking active steps with your creditors, you may be able to negotiate lower interest rates, which will speed up your repayment timeframe.

“It doesn’t work every time, but when it does, you can often save thousands of dollars in interest alone,” Sethi told GoBankingRates.

Then it’s time to attack your debt. Instead of paying off smaller expenses first, which is known as the Snowball Method and popularized by experts like Ramsey, Sethi prefers the “Debt Avalanche,” where you pay off your highest-interest debts first, such as paying off a credit card charging 24.99% APR before tackling a personal loan at 12% APR.

“It's a mathematical approach that saves you the most money over time,” he writes on his blog.

5. Earn more

That’s right. You can significantly decrease your debt simply by getting a raise, a higher-paying job, or taking on a side hustle.  

He also suggests channeling bonuses, commissions, or additional income streams directly toward your balances.

More on personal finance:

• Dave Ramsey’s 3 most controversial pieces of financial advice
• Clark Howard’s 5 best financial tips for smarter spending, saving & investing
• Maria Bartiromo’s 5 best financial insights

This is all part of his emphasis shifting from a “scarcity mindset,” which focuses on cutting costs, to more of an “abundance mindset,” which centers around earning more by leveraging existing skills for extra income.

Sethi’s website even details 11 flexible side jobs to consider, and advice on how to allocate your time getting it off the ground so you can avoid burnout.

Ramit Sethi’s net worth in 2026

According to Fortune, Ramit Sethi has an estimated net worth of $25 million.

His wealth stems from sales of I Will Teach You to Be Rich, his financial coaching programs, digital content, as well as his speaking engagements.

Unlike other Finfluencers, Sethi doesn’t live large. He has shared that he drives an older car and rents his New York City apartment rather than buying one. He often cites the “phantom costs” associated with home ownership, such as taxes, maintenance, and insurance, that can increase costs by 50%.

Related: Ramit Sethi’s 5 best financial insights for building a rich life