The same way all debt does. Debt can only exist if you owe. To owe you either have to borrow money and owe or acquire a debt from services. Now when the Incoming funds is than the Outgoing debt is acquired. Why should we be acquiring more debt and giving away money to foreign nations when we as a nation have an ever increasing debt of which our grandkids will be paying off unless it is brought under control.
True some things must due to high initial cost of a item have payments made to the loaners. Our government must learn to live withing OUR MEANS and stop spending on ridiculous pork which it has no authority to fund.
These kind of methods are not used when it comes to the federal government. One might argue that if such methods were used that the federal government would not be able to borrow a dime. But alas, unlike you and I the feds can not only manufacture money they can manufacture debt and increase their receivables (taxes/fees) whenever they want without a care of what the market bears. That's a scary combination.
Stopping foreign aid would reduce cash outlays, cash outlays which we stupidly fund with borrowed money. Along with stopping foreign aid, since the federal government owns about a 1/3 of all land in the US (50% of California for example) it would be a great idea to sell some of the land and assets the feds own. Selling federal land assets would bring in a lot of money and also more income for the states since federal land is not taxed.
If along with this we impemented the Fair Tax plan we would have a booming economy. "Booming" would not even describe it.
But none of these kinds of things will be done because people in control in Washington don't want to lose the power they have to jack with the rest of us.