Getting out of debt isn’t easy. Credit card balances, student loans, and car payments can pile up quickly, and high interest charges make it feel like you’re barely making progress. If you only make minimum payments, you could be stuck for years—all while limiting your ability to buy a home, finance a car, or even qualify for new credit.
The reality is that debt doesn’t have to control your future. With the right plan and a shift in habits, you can shorten your payoff timeline and take back control of your money. Here are 13 proven strategies to help you get out of debt faster.
How to Get Out of Debt Fast: 13 Tips
Getting out of debt quickly takes more than cutting back here and there. It requires a clear plan and consistent action. The following 13 strategies will help you cut costs, avoid new debt, pay down balances faster, and build momentum toward financial freedom.
1. Stop Spending Money You Don’t Have
Debt payoff starts with cutting off the cycle that created it. That means no more spending beyond what you earn. It’s not just about skipping a big purchase or canceling a vacation—it’s about changing the habits that quietly drain your money.
Cook at home instead of ordering takeout. Pack snacks instead of grabbing them at the gas station. Limit “just browsing” at stores or online. Small changes may feel insignificant, but added together, they free up real cash that can go toward debt. Every dollar you stop overspending is another dollar you can use to pay balances down faster.
2. Prevent New Debt While Paying Off Old Debt
Paying off debt is hard enough—don’t make it harder by adding more to the pile. If credit cards tempt you, take away the option: cut them up, freeze them in a drawer, or delete your stored payment info from shopping sites.
At the same time, protect yourself from surprise expenses that could push you back into debt. Start by saving a small emergency fund of at least $1,000. That way, if your car breaks down or you get hit with a medical bill, you can cover it in cash instead of reaching for credit again.
3. Cut Expenses and Scale Down Your Budget
A budget shows you exactly where your money is going—and where you can cut back. Start by reviewing your last month of bank and credit card statements. Separate essential costs like rent, mortgage, and utilities from discretionary spending like takeout, streaming services, or impulse buys.
Once you know your baseline, create limits for categories like groceries, gas, and entertainment. Some people find it easier to use the cash envelope method—when the envelope is empty, you stop spending in that category. Even small cuts, like trimming subscriptions or cooking at home, free up money that can go straight to debt payoff.
4. Choose the Right Debt Payoff Method (Snowball vs. Avalanche)
The fastest way to get rid of debt is to focus your extra payments on one balance at a time. Two proven strategies can help:
- Debt snowball method: Pay off the smallest balance first. The quick win builds momentum and motivation.
- Debt avalanche method: Pay off the balance with the highest interest rate first. This saves you the most money long-term.
Whichever approach you choose, keep making minimum payments on all other debts. Then funnel every extra dollar into your target balance until it’s gone. Once that debt is paid, move to the next. Having a clear strategy keeps you motivated and ensures steady progress.
5. Always Make Minimum Payments on Other Accounts
While you focus on one balance at a time, don’t ignore the rest. Missing a minimum payment can trigger late fees, penalty interest rates, and damage your credit score once the account is 30 days past due.
To avoid slipping backward, set up autopay for at least the minimum on every account. Then, direct all extra money toward your chosen debt payoff target. This way, you keep your credit report clean while still making progress toward becoming debt-free.
6. Lower Your Interest Rates by Negotiating with Creditors
High interest charges slow down debt payoff. One of the simplest ways to speed things up is to ask your lender for a lower rate. Call your credit card company and explain that you want to pay off your balance but need relief on interest. You’ll have the best chance if you’ve been a customer for a while and have a record of on-time payments.
Even a small drop in interest—say, from 24% to 18%—can save hundreds of dollars over time. If your creditor won’t budge, consider shopping for a balance transfer card or consolidation loan to lower costs.
7. Use Balance Transfers or Debt Consolidation Loans Wisely
A balance transfer credit card can give you a break from high interest by offering 0% APR for a set period, usually 12–18 months. This allows every payment you make to go toward the balance instead of finance charges.
If you qualify, a debt consolidation loan is another option. Rolling multiple debts into one personal loan often comes with a lower interest rate and a single, predictable monthly payment.
These tools can save money and simplify repayment, but they don’t fix overspending. If you continue to rack up new charges, you’ll end up in the same position again. Use balance transfers or consolidation loans as part of a bigger plan to become debt-free.
See also: Best Personal Loans for Bad Credit
8. Refinance Student Loans, Auto Loans, or Mortgages
Refinancing can lower the cost of non-credit card debt and free up cash for faster payoff. Student loan refinancing may reduce your interest rate or monthly payment, especially if your credit has improved since you borrowed. The same is true for auto loans and mortgages—a lower rate can translate into meaningful savings over time.
Redirect the money you save from refinancing into your highest-interest debts, such as credit cards. Even a $100 monthly reduction on a refinanced loan can speed up your debt payoff significantly when applied consistently.
9. Reduce Monthly Bills by Shopping for Better Deals
Lowering your fixed bills frees up money you can redirect toward debt. Start by comparing rates on car insurance, homeowners insurance, cell phone plans, cable, and internet. Even if you’re happy with your current provider, you may be able to get a discount just by asking.
Gather quotes from competitors, then call your current company and let them know you’re considering switching. Providers often match or beat competitor pricing to keep your business. Even saving $20–$50 a month on recurring bills can make a noticeable difference in how quickly you pay down debt.
10. Sell Unused Items to Pay Down Debt Faster
Decluttering your home can put extra cash in your pocket and help pay down balances faster. Go through closets, garages, and storage spaces to find items you no longer use—clothes, electronics, furniture, and even kids’ gear can bring in money.
Host a yard sale or list items online through eBay, Craigslist, Facebook Marketplace, or apps like OfferUp. Be realistic with pricing since secondhand buyers expect a deal. Even if you only earn a few hundred dollars, that’s money you can immediately apply to your highest-interest debt.
11. Start a Side Hustle or Part-Time Job
If cutting expenses isn’t enough, increasing your income can speed up debt payoff. Side hustles like driving for Uber or DoorDash, freelancing online, babysitting, pet sitting, or selling crafts on Etsy can bring in extra cash. You don’t need special skills or large startup costs—just a willingness to put in extra hours.
The key is to dedicate all earnings from your side hustle toward debt, not everyday spending. Even an extra $200–$500 a month can shave months or even years off your repayment timeline.
12. Apply Windfalls and Extra Cash Toward Debt
Unexpected money can make a big difference if you put it to work. Instead of spending your tax refund, work bonus, or birthday cash, use it to make a lump-sum payment on your debt.
Redirecting windfalls to your highest-interest balance helps shrink what you owe faster. It may feel tempting to splurge, but the long-term reward of becoming debt-free is far greater than a short-lived purchase.
13. Focus on Simple Pleasures Instead of Spending
Debt often grows out of a cycle of rewarding yourself with more purchases. Breaking that pattern can make it easier to stay debt-free. Look for free or low-cost ways to enjoy life—cook at home with friends, take a walk, read a book, or spend time with family.
Shifting your focus to experiences instead of material items helps reduce the urge to spend. Over time, you’ll find that contentment comes less from what you buy and more from how you live.
Debt Relief Options if You Need Extra Help
If your debt feels overwhelming, there are professional options that go beyond do-it-yourself strategies. A credit counseling agency can help you build a budget and may set up a debt management plan where your payments are combined into one monthly amount.
In some cases, debt settlement companies work with creditors to accept less than what you owe, though this can impact your credit score. Bankruptcy is also a last-resort option for those who can’t repay their debts at all.
These solutions aren’t for everyone, but if you’re struggling to make progress on your own, it’s worth speaking with a reputable professional to understand your choices.
Final Thoughts
Paying off debt isn’t just about numbers—it’s also about habits and discipline. Success comes from making small, consistent choices like cooking at home, saving unexpected income, and saying no to unnecessary spending. The process requires patience and delayed gratification, but every payment you make is a step toward financial freedom.
When you focus on progress instead of perfection, you’ll find it easier to stay motivated. Over time, the mindset shift is what ensures you not only get out of debt but also stay out of debt for good.
Frequently Asked Questions
Should I save money or pay off debt first?
It depends on your situation. If you don’t have any emergency savings, set aside at least $500 to $1,000 before focusing on debt. That small cushion prevents you from relying on credit cards when unexpected expenses pop up. After that, prioritize paying down high-interest debt while still contributing a little to savings if possible.
How much debt is considered too much?
Lenders often look at your debt-to-income ratio, which compares your monthly debt payments to your monthly income. If more than 35% to 40% of your income goes toward debt, it may be considered too much. At that point, it can affect your ability to qualify for new credit or loans and may signal that you need to adjust your repayment plan.
Will paying off debt improve my credit score right away?
Paying off debt can boost your credit score, especially if you reduce high credit card balances. However, the change isn’t always immediate. It may take a billing cycle or two for lower balances to be reported to the credit bureaus. Over time, consistent payments and lower utilization will help your credit score improve.
What happens if I can’t make my debt payments?
If you can’t make payments, contact your lender right away. Some creditors offer hardship programs or temporary payment plans. Ignoring missed payments can lead to late fees, collection activity, and damage to your credit score. If you’re truly overwhelmed, you may want to explore credit counseling, debt settlement, or even bankruptcy as last-resort options.
How can I stay out of debt once I pay it off?
The key to staying debt-free is building strong financial habits. Create a realistic budget, use credit cards responsibly, and keep a small emergency fund for unexpected costs. Automating savings and setting financial goals can also keep you focused. Once you’ve paid off debt, try to redirect the same money you were using for payments into savings or investments.
Learn More About Getting Out of Debt
- How to Manage Debt Effectively – Managing your debt can be a challenging task, but with the right strategies and tools, it is possible to become debt-free.
- Best Debt Relief Options – If you’re struggling with debt, debt relief can help. Evaluate your options and consider the pros and cons of each method.
- How to Settle Credit Card Debt – Explore your debt settlement options and make an informed decision about the best way to settle your credit card debt.
- 5 Ways to Consolidate Credit Card Debt – Want to pay off credit card debt faster? Here are 5 ways to consolidate your debt.
- How to Stop Living Paycheck to Paycheck – Learn how to stop living paycheck to paycheck with these practical tips. From creating a budget to building an emergency fund, we’ll help you take control of your finances and achieve financial stability.
