Welcome to NerdWallet’s SmartMoney podcast, where we answer your real-world money questions — in 15 minutes or less.
This week’s question is from Diane. She asks: “Hey, Nerds, I’m having some trouble with my debt. I owe around $7,000 on a few credit cards, have an $18,000 car loan … and it feels like I’m never making any progress. How can I pay off my debt faster?”
Follow the three steps to paying off your debt: First, know what you owe. Next, find a payoff path that works best for you. Then follow through on your plan and course-correct as needed.
Juggling multiple debts? Look into the debt snowball method. This approach can keep you encouraged by giving you early wins along the way as you pay off your debt.
Know when you need help. When you’re just barely getting by and struggling to cover all payments on your debt, talk with a credit counselor at a nonprofit credit counseling agency. They offer free budgeting and debt tips.
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