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Want to pay off your debt fast? Here are seven tips that can help:
Getting a handle on your income and expenses can you help you figure out if you have any extra money to pay down your debt. each month can speed up your payoff timeline.
While you’re focusing on , work to build an emergency fund. Even a small one can prevent you from getting deeper into debt if an unexpected expense comes up.
Use this calculator to figure out your budget.
Every dollar counts, really. Cutting down expenses, such as streaming services, ordering delivery for dinner or ditching an expensive phone, can add up fast.
Consider what you would give up in order to be
Halting your debt from growing any larger can make it easier to manage. One way is to stop using your credit cards.
Not adding onto the balance while you’re paying down debt can also help improve your — or the ratio of your debt balance to your available credit — which is a major factor in calculating your credit score. The lower your credit utilization, the better it reflects on your credit score.
Scraping together extra income can increase how much you can put toward your debt, accelerating your payoff.
Look into . Some jobs can be completed in less than an hour, like user testing for websites and apps. Others, like freelancing, will take longer, but may earn you more cash.
Paying off debt is a financial and psychological commitment. Just as you have to have the cash to pay down what you owe, you also have to find a payoff method that works for you.
If some quick small wins early in the process will help you stay motivated, the may be right for you. With this tactic, you put all the extra money you can toward paying your smallest debt first (while covering at least the minimums on your other debts). When it's paid off, you roll the money that had been going to the first debt into paying the next-biggest, and so on, until all your debts are paid off.
But if you're more into delayed gratification and maybe saving a little money, the may be for you. With this strategy, you focus on paying off the debt with the highest interest rate first. Always focusing on wiping out the debt with the highest interest costs can save you money overall and may also speed your debt-free date.
Rolling multiple debts into one payment — ideally with a lower interest rate — through can make your debt easier to manage and less expensive overall. The less you have to pay in interest, the more money you can put toward reducing the underlying debt.
A credit card or are two solid options for debt consolidation. Note that you’ll likely need a to qualify. Also, each lender sets its own requirements, and credit score may be just one piece of the puzzle.
Sometimes debt . If you're having a hard time keeping up with your debt payments and your total debt is greater than 50% of your gross annual income, it might be time to get outside help.
, like debt management plans from a nonprofit credit counseling agency and , may give you the relief you need to move past your debts. Otherwise, paying off what you owe could take years and get in the way of other financial goals, like saving for retirement or a down payment on a house.