The Best Ways to Pay Off Debt Quickly

Getting out of debt requires a plan. .
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Debt can sometimes seem like an unconquerable burden, one that weighs down your best efforts to enjoy life. Your hopes of reaching the road to financial freedom, however, need not be in vain. Even the heaviest of monetary loads can be relieved through the implementation of a precise and consistent money management strategy.

Revise the Terms of Your Debt

Creditors are in the business of making a profit. In the end, most realize that it's better to employ flexibility when considering customer accounts, as opposed to the possibility of receiving no money at all. Instead of letting your accounts go delinquent, find out whether any creditors would be willing to revise the terms of your agreement. If you let companies know of your inability to pay, they might be willing to renegotiate the terms of your agreement. By simply adjusting the interest rate or payment schedule of a loan, you can save a considerable amount of money, while making payments more manageable.

Start Small

Dave Ramsey, best-selling author of " The Total Money Makeover," suggests that you "attack the smallest debts first, still maintaining minimum payments on everything else." Doing this, he says, creates a "snowball effect", which allows you to gain "debt-reduction momentum" by making steady, noticeable improvements over time. Once you pay off the smallest debt, you dedicate the amount you were spending monthly on it to pay of the next smallest debt.

Check Your Interest Rates

After eliminating a few of your more "manageable" debts, list the others in order, from those that charge the highest rate of interest, to the lowest. Put all extra income towards your debt with the highest interest, while continuing to cover the minimum payments on the others.


As your account with the highest interest rate becomes small enough to pay in full, eliminate it completely. Cross this debt off the top of your list and begin sending all expendable cash to the next highest one. However, remain vigilant in your efforts to reduce debt. Continue to seek adjustments on accounts that may have refused to renegotiate rates and terms in the past.

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