Debt is a hole that one never wants to find themselves in but many people do. Whether it’s through bad investments or poor choices, everyone has a unique story of how they got into debt.

Everyone knows the saying, “once you hit rock bottom, there’s only one way to go: up.” Unfortunately, a large portion of the country knows this feeling already.

Climbing out of debt, just like anything, is not a snap occurrence. For some, it can require months or even years of financial diligence and control before they can cut the ribbon on their debt-free life.

Check out our list of some of the best and worst ways to try and climb out of debt.

The Worst Ways

Playing the Lottery/Gambling

It was hard to resist buying a lottery ticket a few years ago when the jackpot cracked $1 billion. That’s all it should have been and all it should be. Betting on winning the lottery is at the top of this list for a reason.

Your odds of winning the lottery of 1 in 14 million. You’re more likely to be killed by a cow or die drowning in the bathtub.

Gambling and betting are way too risky to even try. You might consider yourself a football expert, but even the talking heads haven’t made themselves rich. Best to stay away from these two activities completely before you end up in more debt.

Waiting for Inheritance

Even though the media has coined the passing of income from baby boomers to their children as the “great wealth transfer”, those awaiting inheritance shouldn’t bank on it.

More and more baby boomers and those of older generations are spending all of their money just to take care of themselves. That means there isn’t going to be a lot of money left over in the future. Even if you know you have an inheritance coming, you should be taking care of your debt yourself.

Borrowing From Retirement

Most people have some kind of retirement set up, either a 401K or an IRA. The advice is to put money in there every year until retirement age.

Don’t take money out of your retirement. Not only are you hurting your future self, but you’ll also incur a 20% penalty from the IRS for withdrawing the cash.

Debt Settlement Companies

Even with all the bad options above, this may be the worst idea out there. On the surface, debt settlement companies may seem great. They knock down your debt! Less monthly payments! Freedom!

Not so fast.

These people simply buy your debt and now you’re owing money to someone new. Plus, these companies may charge you even more that what you owed earlier. It’s an easy way to never escape the sharks and ruin your credit score.

The Best Ways

Smart Investing

Making smart investments will help you climb out of debt gradually. Many people use investments, such as trading or property ownership. You don’t have to go it alone with either, as property ownership is something that can be done in a group. Even though many loans require 20% down, you can still find a way to turn the investment into money.

To get the most out of it, you’ll need to do a lot of the work yourself. Hiring a contractor may be easy, but it is much more expensive.

Budgeting to the Max

One of the reasons you may be in debt is because you never had nor followed a strict budget. Now is the time to start.

One of the easiest ways to strictly budget yourself is to put your money into jars. Credit cards can be tempting because you don’t ever feel like you’re spending something, but seeing your money in front of you has a bigger effect.

Put away money for essentials, savings, bills, etc. You can see your money coming and going, meaning you’ll be much more in control.

You may have to go with a bare-bones budget, but it’s worth it.

A Part-Time Job

Getting out of debt is never easy, so you can expect to go through some bumps along the way. Many people turn to a second job that is usually part-time or seasonal.

This helps balance your budget a little more and helps knock out the debt faster. Speaking of knocking it out faster, you should always be paying more than the minimum. If not, interest charges can creep in and all of a sudden you’re back to where you started.

Think of any skills you have or look for jobs that require little training. Driving, dog walking, babysitting or taking surveys are just some of the ways people can earn some extra cash to get them out of debt.