How to Pay Off Debt Fast! {10 Easy Tricks}

Wondering how to pay off debt fast? These tips and tricks will have you doing a debt free dance in no time! Here’s what you need to do…

Have you found yourself drowning in debt? With skyrocketing inflation and an increasing recession, you’re not alone!

Now when it comes to debt, the name of the game is to pay it off as fast as you can. To an extent, the amount of debt will determine how fast you can pay it off. However, you CAN also supercharge your debt payoff plan with these simple tips and tricks!

Whether you’ve got a few loans remaining or you feel like you’re struggling to stay afloat, here’s How to Pay Off Debt Fast…

How to Pay Off Debt Fast

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#1: Identify All Sources of Your Debt

Before you can get started paying down that debt, you’ll first want to determine all sources of debt you currently have. Make a list and include ALL debt sources… like car payment, mortgage, student loans, each individual credit card, etc.

Now is the time to get organized.  First you’ll need to take a look at your budget and your monthly bank statements to identify all of your bills.  Then, for every debt you owe, you’ll want to identify these details:

1. Total Amount Owed
2. Current Interest Rate
3. Minimum Monthly Payment Due
4. Monthly Due Date for the Bill

Now add up ALL of your debts, to get the sum of your actual current debt. Once you know exactly how much debt you have, you can start making a plan to pay it off, as well as setting goals to keep you going.

#2: Aggressively Decrease Your Expenses

Paying off debt is simple… if you have the money, right? That’s why it’s time to aggressively decrease your expenses. Take a long hard look at your budget, or take the time to create a budget if you haven’t already. Analyze each expense one by one, and determine what you can cut out completely… maybe certain monthly subscriptions, a gym membership, or that daily latte? Then, determine what expenses you can lower… like groceries, gas, etc. To get started, here’s a great resource to help:

How to Save Money Fast

#3: Find a Roommate to Lower Your Housing Costs

When it comes to housing, your apartment rent or mortgage payment can easily be your biggest expense each month. That’s why you may want to consider slashing your housing costs! Whether you bring on a roommate, or just move to a lower cost home, finding a way to cut back on housing expenses is a brilliant way to cut your monthly bills FAST! Plus, now all of that newly found savings can be applied directly to your debt!

#4: Drive a Less Expensive Car

Now that you’re in serious cost cutting mode, it’s time to look at your car. To save BIG, you will most likely want to skip the new car purchase or lease. You can save so much money by simply driving a reliable older car instead.

Also, be flexible on what make and models of cars you are willing to consider. Now is not the time to ‘treat yourself’ with every upgrade out there. That time will come, but for now we need to get a little drastic. Start by looking for the most reliable used cars at the best price and go from there. If you are planning on switching cars, check out these 12 Ways to Save Money on Your Next Car Purchase!

#5: Consider Asking for a Raise at Work

When was the last time you got a raise at work? With the recent explosive inflation, it may be time to consider asking your boss for a cost of living wage increase! Oh I know it can be scary, but the upside can really be worth it! I’ve asked for raises SO many times of the years, and the worst that ever happened was nothing. The best that happened was some BIG raises! So get brave, put on a smile, be sweet, and consider asking!

#6: Boost Your Income With Side Hustles!

In addition to a raise at work, adding in some Side Hustles is a fantastic way to skyrocket your income! Get started with these simple ideas here…

25+ Side Hustle Ideas to Skyrocket Your Income

#7: Sell Stuff You No Longer Need

We all have a way of accumulating clutter, right? So take some time to declutter your home this weekend. Then list items on Craigslist, Facebook Marketplace, Ebay, or drop at a Consignment Store so you can make extra cash to pay down your debt! Your home will be tidier and your debt will smaller. Now that’s a win-win!

How to Make Money Consigning Clothes

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#8: Take The No Spend Month Challenge

Use these No Spend Challenge Ideas to help conquer your debt and to kick your savings into high gear!

No Spend Challenge Ideas

#9: Pay off Your Smallest Loans First

Now it’s up to you to determine what debt you want to tackle first, however a popular method is to pay off your smallest loans first. Why? Well… it will offer you the biggest morale boost to know one entire debt is now GONE!

Simply take all of your extra funds available to go after your smallest debt and get it completely paid off.  Then once your smallest debt is paid off, you can move on to paying off the next smallest debt, and so on.  This method, also known as the ‘Snowball Method‘ will decrease your total number of bills much faster.  With less monthly bills, you’ll have less stress and a real sense of accomplishment to keep you motivated for the long haul!

#10: Continue to Throw All of Your Extra Money Towards Your Debt!

Now this is where things get fun! You’ve been working hard to cut expenses while increasing your income… and it’s time to throw everything you’ve got towards getting rid of that debt!

Got a large tax return? Use it to pay down your debt!

Got a raise at work? Use it to pay down your debt!

You get the idea… a large cash gift for your birthday or Christmas? Pay down debt! You’ll love the feeling of freeing yourself from big chunks of debt all at once!

Just make sure that your extra payments are actually applied towards your loan balance. You may need to contact the servicer of your loans to make sure the extra payments are being applied towards your loan balance, not simply towards the next month’s payment.

I paid off my last home mortgage back in 2012 and being debt free since then has felt so liberating. Trust me, the extra effort required to finally pay off your debt is so worth it. Nothing beats the freedom you’ll feel from watching your debt melt away, one bill at a time until it’s totally gone. What a great feeling that is!

You really can do this!

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