Paying off debt faster requires dedication, discipline, and a solid plan. When I was trying to do too many things at one time, I just couldn’t get ahead. Once I started breaking it down and focusing on one thing at a time, I started to have those quick money wins that kept me going. Here are 5 tips to help you pay off debt faster.

1. Know What Debts You Have: You have to know exactly what debt you have and who you owe it to. This is the time to get your head out of the sand and face reality. List out your debts on paper or a spreadsheet. Make columns and list the name of the debt creditor in one column, then the total balance you owe in another column, then the minimum monthly payment amount in another, then finally the interest rate in the last column.
2. Create a Budget: Start by analyzing your income and expenses. List ALL your sources of income and track ALL your expenses, including essential living costs (needs) and discretionary spending (wants). This includes all the times you stop for coffee or eat out. Go back through your bank or credit card statements so you can get an accurate number. You will be surprised when you compare that total with what you thought you were spending. Identify areas where you can cut back to free up extra money that can be used to pay off your debt.
3. Use the Debt Snowball Method: One approach is to use the debt snowball method, where you tackle the smallest debts first while making minimum payments on other debts (except for the house). As you pay off each small debt, you gain momentum and motivation to tackle the larger ones. This method can be more psychologically rewarding because it can give you that quick win you need to keep going. Before you know it, you will be ready to start saving aggressively and even pay off your house.
4. Increase Income: Finding ways to increase your income can significantly accelerate debt repayment. Consider picking up extra shifts, taking up a part-time job, freelancing, or selling items you no longer need. Any extra money you make can go directly towards paying off your debt.
5. Avoid New Debts: This step is critical. While you’re working on paying off your current debts, it’s essential to avoid building up new ones. Cut up credit cards, unsubscribe from tempting shopping emails, cancel subscriptions (especially ones you are not using or free trials you forgot about) and resist the urge to splurge on unnecessary purchases. Stick to your budget and focus on your goal of becoming debt-free. Write down what you want to do once you’ve paid off your debts and keep it in your wallet or create a vision board to keep you on track. Look at it when you need inspiration. Just imagining how your life will be without that stress can be a powerful motivator.

Remember, paying off debt is a process that requires persistence. Focus on one goal at a time. Celebrate each milestone and progress you make, no matter how small it may seem. And just like that snowball, it will start going faster and faster. Before you know it, you will be rid of all of your debt. Believe me. That’s a great feeling!