8 Surefire Ways to Get Rid of Debt ASAP

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Debt can destroy your financial dreams and personal life. Whether you carry a small balance on your credit card each month or are staring up at a mountain of financial obligations, debt makes it impossible to get ahead.

Paying off debt and loans requires dedication, determination and persistence. Here are a few smart tips on how to get out of debt fast.

1. Stop using credit cards

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If you’re thinking about how to pay off debt in the fastest time possible, start with your credit card debt. Credit cards usually carry the biggest interest rates and that can make your balance balloon out of control.

The first step is to stop using your credit cards altogether. The more you swipe, the more the balance climbs. Even if you continue to use your card, avoid leaning on perks such as the ability to take cash advances. As we explain in “The 10 Most Common Credit Sins and Mistakes“:

“Unlike when you withdraw cash from your bank account via debit card, a cash advance via credit card generally costs you a steep cash-advance fee as well as a steep interest rate. In addition, interest charges start accumulating immediately, usually from the day you take out the loan.”

Having a hard time letting go? Try literally freezing the cards in a cup of ice. By the time you are able to access them again, hopefully you will have changed your mind about spending.

2. Pay as much as you can afford each month

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How to pay off debt fast involves simple math. The more you pay, the faster you’ll be free of your obligations. Don’t just stick with making the minimum payment every due date, or it will take your forever.

Of course, creating an emergency fund should be a top priority. But once you have accomplished this goal, use any funds at your disposal to pay down card debt or student loans. The more you pay, the faster you’ll be free of your obligations.

Did you save money at the grocery store by stacking coupons on top of sales? Use the savings to pay off debt. Did you work some overtime last week? Apply the extra earnings to your debt.

3. Make cuts to your spending

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Take a good look at where your money is going and separate the necessities from mere wants. Skip daily trips to the local coffee shop or your favorite lunch spot. Over time, these savings can add up. Use them to dig out of the hole much quicker than you expected.

If you are struggling to figure out which expenses you can cut, start by crafting a budget. Use software such as You Need a Budget to help you get spending priorities on track. A service like BillCutterz can help you negotiate lower monthly bills and free up more money to put toward debt.

4. Double up on payments

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Congratulations if you have paid off one credit card! However, accomplishing that goal doesn’t mean it’s party time. Keep the momentum going by allocating the funds paid to that debt that are now freed up to make payments on the next balance in line.

5. Use windfalls to pay down balances

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If you get a sudden windfall — such as a tax refund or bonus at work — don’t spend it on a splurge. Instead, bite the bullet and use a portion of the funds to pay off debt.

6. Freelance to earn extra money

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When figuring out how to pay off debt fast, don’t focus too much on saving money. Sometimes, the fastest solution is to earn more income.

Try your hand at freelancing to make a few dollars on the side. In some instances, you may be able to generate a substantial amount of cash, all of which should be contributed to the debt-payoff fund.

Check out marketplaces for freelancers like Fiverr, or consider using your car to make money by driving for a delivery service like Postmates.

For more ideas on trading your skills for cash, check out “10 Ways Anyone Can Earn More Income.”

7. Tackle debts with the highest interest rates first

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Although some swear the best way to pay off debt is the debt snowball method — which suggests that you pay the debts with the lowest balances first to build momentum — it makes more financial sense to clear those debts with the higher interest rates first.

The ultimate goal is paying off debt fast, however, so the choice is yours.

8. Don’t sacrifice the things you love the most

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Paying off debt may require you to make a few lifestyle changes, but it doesn’t have to be depressing. If you have a difficult time adjusting to new circumstances, implement gradual changes so the process won’t become too overwhelming.

If you need help on how to pay off debt fast, or maybe just a little guidance or advice, all you have to do is call 888-739-9616. That’s the number for Debt.com, a national debt help company that will connect you to the service that fits your needs. Give them a call at 888-739-9616 or visit Debt.com for a free consultation with a debt specialist.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

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