Debt can feel overwhelming, but with the right strategy, you can become debt-free faster than you think. Here are 7 proven methods to accelerate your debt payoff.
1. The Debt Snowball Method
Pay off your smallest debts first for quick psychological wins.
❄️ How It Works
- List all debts from smallest to largest balance
- Make minimum payments on all debts
- Put all extra money toward the smallest debt
- When paid off, roll that payment to the next smallest
Best for: People who need motivation from quick wins
2. The Debt Avalanche Method
Pay off highest-interest debts first to save the most money.
⛰️ How It Works
- List all debts from highest to lowest interest rate
- Make minimum payments on all debts
- Put all extra money toward the highest-rate debt
- When paid off, move to the next highest rate
Best for: Mathematically-minded people who want to save the most
❄️ Snowball
- Quick wins for motivation
- May pay more interest
- Psychologically rewarding
⛰️ Avalanche
- Saves the most money
- Slower first payoff
- Mathematically optimal
3. Balance Transfer to 0% APR
Move high-interest credit card debt to a 0% APR promotional card.
- Many cards offer 15-21 months at 0%
- Watch for balance transfer fees (3-5%)
- Pay off before the promotional period ends
4. Debt Consolidation Loan
Combine multiple debts into one lower-interest loan.
- One monthly payment instead of many
- Often lower interest than credit cards
- Fixed payoff date
5. Increase Your Income
Even small increases in income can dramatically accelerate payoff:
- Ask for a raise or promotion
- Start a side hustle or freelance
- Sell items you no longer need
- Pick up overtime or a part-time job
💡 The $200/month difference: Adding just $200/month extra to a $10,000 debt at 18% APR pays it off 2 years faster and saves $2,500+ in interest!
6. Cut Expenses Temporarily
Redirect savings to debt:
- Cancel unused subscriptions
- Cook at home more often
- Pause retirement contributions temporarily (controversial but effective)
- Reduce transportation costs
7. Negotiate Lower Interest Rates
Call your creditors and ask:
- Credit card companies often reduce rates by 2-5%
- Mention competitor offers
- Works best with good payment history