The 13 Best Ways to Pay Off Your Debt in 2024

Being in debt can cause stress and affect your financial goals. It can also negatively affect your mental and physical well-being. If you struggle to pay off debt, this article will show you the best ways to pay off your debt. The more of these you can apply, the faster you will be able to pay off your debt.

#1 Assess your current situation

To pay off your debt, you need to know how much debt you have. Once you get a clear picture of how much debt you currently have, you will know what direction to head.

So, add up all your credit card balances and then find any other type of debt you may have. Once you have figured out your debt, you can create a debt payoff plan.

#2 Create a debt payoff plan

One of the best ways to pay off your debt is to create a debt payoff plan. You may choose to pay off your debt within a certain timeframe or focus on a specific debt (e.g., first paying off the credit card debt with the highest interest rate).

You may work out how much you need to make monthly payments if you want to get out of debt within a specific period.

If you do not have the extra money to put towards debt repayments to achieve this goal, you will need to come up with ideas on how to earn that extra money.

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#3 Cut down on spending

Take a look at expenses you can cut down on or cut out entirely temporarily to save money that you can put toward your debt.

For example, you can cancel or downgrade some of your monthly subscriptions like a gym membership, make coffee at home instead of spending money on takeout coffees, watch movies at home instead of going to the theater, or reduce food shopping bills.

If you cut down on spending, you can put more money toward your debt repayments with those savings. Cutting spending is the easiest way to get rid of your debt.

You can save money every week and month by cutting down on unnecessary or less essential expenses. You can divert as much disposable income as possible to pay off your debt.

#4 Create a monthly budget

If you are going to cut down on spending, the easiest way to do this is to create a budget. A budget will show you where to cut back to find more disposable income.

This can then go towards paying off your dent. So, if you are struggling to pay off your debt, creating a budget can help you get out of your debt faster.

A budget will show you where your money goes every week and month and help you identify areas in your expense category that you can cut back on or cut out entirely temporarily to save money. You can then use that extra money to pay off your debt quickly.

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#5 Become more frugal

The easiest way to live within your means and cut down on spending is to become more frugal. Becoming more frugal will allow you to put even more money into your debt.

You will be surprised at how much you can save monthly by adopting a frugal lifestyle.

Adopting a frugal lifestyle will allow you to save more disposable income for your debt. You can make coffee at home or the office instead of spending money on takeout coffee.

How about cutting back on eating out for dinners or this expense until you pay off your debt? Cashback apps are a great way to save money on your day-to-day shopping expenses and become more frugal.

Buying store-brand items rather than brand-name items is a great way to become more frugal and save money. You can cancel your gym membership and exercise at home or outdoors. There are lots of free workout videos on YouTube if you need guidance and instructions on how to

#6 Try paying off the most expensive debt first

If you have multiple debts, focus on your credit card debt or loan with the highest interest rate. You should put the extra money towards your debt while making only minimum payments on your other debts.

Paying minimum payments will help you eliminate your debt faster, as you will decrease how much you owe over time. Once you clear this debt, you can put that extra money towards paying off the next debt with the highest interest rate.

If you repeat the above process, you could pay off what you owe faster than focusing on the debt with the smallest balance first and making only minimum payments on other debts.

This is called the debt avalanche method. This debt repayment method will help to save you more money on interest while paying off debt quickly.

#7 Transfer your credit card balance

If you have accumulated debt on a high-interest rate credit card, consider looking for a low-interest card or a credit card that offers a 0% introductory APR. You can then try transferring your balance to that new credit card.

Some credit card issuers offer a zero percent interest rate for up to 24 months. Suppose you qualify for a balance transfer credit card with a 0% introductory APR offer.

In that case, you can save money on interest payments while paying down your balance over time and clearing it before the initial period ends.

If you cannot get a 0% balance transfer card, consider a card that offers a lower interest rate than your current one, and then transfer your balance to the new card with a lower interest rate to save money on interest payments.

#8 Negotiate a lower interest rate on your credit card/s

If you struggle to pay off your credit card debt/s, negotiate a lower interest rate with your creditor/s. Depending on your payment history, many creditors will lower your current interest rate if you ask for it. If you have always made on-time, regular payments, you may qualify for a lower interest rate.

You can save money on interest payments by getting a reduced interest rate. You can then use those savings to decrease your balance over time.

#9 Pay more than the minimum

One of the easiest ways to pay off your credit card debt fast is to make more than your minimum payments on your credit card/s. If you make your minimum monthly payments, it will take years to pay off your balance.

If you want to pay off your debt quickly, pay as much extra money as possible on top of your minimum payments.

If you have any savings, it is high time to put that toward your debt repayments before you spend it on nonessentials.

If you have not set aside any money in savings, then put any extra money you can earn or save, even if it is $10 or $20, toward minimizing your credit card balances.

Making more than your minimum monthly payments will help you quickly pay down your credit card debt.

#10 Stop using your credit card(s) for a while

If you want to get rid of your debt faster, stop using your credit card(s) for a while. However, you can use your credit cards if you have the cash to pay your credit card bills immediately.

But the problem is it is easy to be tempted to make unnecessary purchases with your cards even if you can pay off your credit card bill. So, hide your credit cards so you will not be tempted to use them.

#11 Make more money

If you cannot save much by cutting down on spending, then look for ways to make more money that you can utilize to pay off your debt faster.

You can take on a traditional part-time job, do overtime in your current position, ask your employer for a pay raise, and so on.

One of the best ways to earn extra income is by taking on a side hustle. Thanks to the internet, you can make extra money online from the comfort of your home nowadays.

If you have a knack for writing, you can become a freelance writer and earn money by writing articles, blog posts, etc., and content for others online.

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If writing is not your thing, there are many other freelance jobs like virtual assistance, remote customer support, tutoring online, teaching English online, programming, coding, and much more.

If you have any marketable skill, you can utilize that skill to work as a freelancer online to make more money outside of your regular job.

Depending on your situation, you can become a rideshare driver, delivery driver, or personal shopper to earn extra money or even a full-time income.

One of the easiest ways to earn money online is to take paid surveys in your spare time. You can even use some money-making apps to make some extra cash by doing simple tasks.

You can sell some items in your house that you no longer need or want online via sites and apps like eBay, Craigslist, Facebook Marketplace, Poshmark, tredUP, etc., to earn some extra money fast and put it toward your debt repayments.

As you can see, there are so many different ways to make some extra money these days, thanks to the internet and the sharing economy.

If you can earn a few more dollars at the end of each month, you can easily put that extra money toward debt repayment. By making extra repayments of your credit cards or any other type of loan, you will be able to pay off your debt faster.

#12 Use cash windfalls to pay off your debt

Unexpected income can be a great way to pay off your debt faster. If you receive a tax return, an annual bonus from your employer, or other unexpected income, use them to pay off your debt sooner.

This payment will reduce your balance and interest payments over time as long as it is above your minimum monthly payment.

#13 Check your credit report and score often

Good credit history and score can help you pay off your debt faster because your credit history and score impact how much interest you pay.

Having a good credit score means you can qualify for lower interest rates on your existing credit accounts or when you apply for new credit (e.g., a balance transfer credit card with a low-interest rate).

If you get a lower interest rate, you will pay less in interest payments. You can then put that savings toward your debt to reduce your outstanding balance.

However, if your credit report includes any error regarding your credit history (e.g., your payment history, open credit account/s, credit utilization ratio, etc.), it will hurt your credit score.

So, check your credit report and score at least twice a year. If you find any error, contact the related credit reporting agency to fix it.

More Tips on Paying off Your Debt?

As you can see, being in debt does not mean that you cannot get rid of it quickly. Create a budget and stick to it; save as much as possible by cutting down on spending to pay off your debt, earn extra income, and pay off the most expensive debt first to pay off your debt quickly.

If you have more tips, let us know in the comments below!

The Mom Beach Debt Bundle is here to rescue you!

You get our Debt Snowball Spreadsheet, The Snowball Method Ebook, and our Debt Manager Printable Planner in this bundle for just $27! Normally $51.

Invest in the Debt Bundle Here!

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