How to Pay Down Debt Quickly: 12 Doable Strategies That Unlock The Cuffs!

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Maybe you have a mountain of student loans. Or just a little bit of credit card debt. Whatever form of debt you carry, it is possible to get out from under it quickly.

Is it easy? Probably not. Just like anything else worthwhile, paying down debt fast requires focus and determination. But you’ve found the right place. This site offers amazing free resources to unshackle your debt cuffs quickly.

how to pay off debt quickly, top strategies to pay down debt fast with a plan

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So, let’s begin! Here are 12 effective strategies to help you pay down debt quickly. Combine your favorites if you aim to be debt-free within 6 months to a year.

1. Create a Detailed Budget

Zero based monthly budget template example: free printable tracker

I recommend starting with a zero-based budget. This type of budget puts you back at the beginning. And then builds your budget up from scratch. By doing this you can evaluate each expense for whether it’s worth keeping.

Pro Tip: Be honest and motivated, but also realistic. You want a budget that you can stick to for more than a few days.

2. Use a Proven Method (& Stick to It)

There are two effective ways to get out of debt. Pick which one works for you, and then stick to it!

the Debt Snowball Method

Pay off your smallest debts first to gain momentum and motivation. Once one debt is paid, you roll that payment into the next.

free debt tracker printable for the two payment methods

the Debt Avalanche Method

Focus on paying off high-interest debts first to save on interest charges. This can help reduce your overall debt faster. But note that it also takes longer to see a win. It can be harder to keep going psychologically.

3. Increase Your Income

This is huge! One side income could eliminate your debt in half the time if you use it towards your debt.

how to boost your income, increase salary and prevent needing emergency cash immediately

So, ask for a raise or take on a part-time job, freelance work, or a side hustle to bring in extra money.

4. Sell Unused Items

Declutter your home and sell items you no longer need through garage sales, online marketplaces, or consignment shops.

home decluttering checklist

Use this decluttering checklist or take the decluttering 30 day challenge.

5. Use Windfalls and Bonuses

Most of us receive money we didn’t expect from time to time. While you are paying off your debt, put aside anything extra that you can find.

Use:

  • tax refunds
  • work bonuses
  • inheritance or money from family
  • cash gifts

These are small wins that can give your debt payoff efforts (and your mind) a big boost!

You can also look for hidden cash in this challenge >>

6. Set up Automatic Payments

Set up automatic deposits to go directly to your debt payments. This removes any temptation to use it for something else! And it will help you stay accountable.

7. Keep a Small Emergency Fund

emergency savings fund challenge and free printable

Keep a small fund, perhaps $500-1000 in cash, to make sure you’re covered if you have a small financial emergency. The last thing you want is to add new debt to what you already owe.

8. Cut Out the Low Hanging Fruit

Trim expenses on anything you don’t need during this time. Start with dining out, entertainment, and subscriptions, as you don’t need these to live well. Then, redirect the money to your debt payments.

Remind yourself that this is temporary. Once you’ve hit your debt payment goal, you can adjust your spending again. But for now, your financial freedom is worth more than expensive drinks at a bar.

9. Negotiate Better Terms

Contact your creditors to see if you can negotiate lower interest rates. Even a small reduction can save you money over time. And this only takes a phone call!

You can also consolidate your debt. Try to combine multiple debts into one loan with a lower interest rate. This simplifies your payments and reduces interest.

10. Transfer Balances to Lower-Interest Cards

strategies to pay down debt fast, debt payment payoff tips

Consider transferring high-interest credit card balances to a lower or 0% interest card. Just be sure to pay it off before the promotional period ends!

11. Make Bi-Weekly Payments

Split your monthly debt payments in half and pay every two weeks. This results in one extra full payment per year. It’s a great strategy to pay more without noticing a big sacrifice.

12. Track Your Progress

Free printable debt tracker chart for your budget, make a plan

Regularly monitor your debt reduction with a debt tracker. Celebrate milestones with small rewards to stay motivated and keep pushing toward your goal.

Stay persistent and celebrate your small wins! You will pay off debt quickly and regain financial freedom!

What’s Next?

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