12 Speedy & Efficient Ways To Getting On Top Of Your Debt

There are few things worse than being horribly in debt.

It’s a burden that’s hard to get free of, and it really drives down your credit score, making it super difficult to get all of the things you need.

But the good news is that people get out of their debts every single day, and with this guide, you can too.

In this article, I’m going to share with you 12 different ways to start getting out of debt.

Don’t worry, however, you don’t have to pick which one - you can use several different ones all at the same time.

And without further ado, let’s get straight to it.

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1. Pay Above The Minimum Amount

I wanted to make this number one on my list, because this is how credit companies and banks maximize their payment from you.

By only paying the bare minimum, the debt keeps getting carried over and over and never really comes down.

Ideally, the more you can pay every month, the better. But don’t pay more than you can afford to. You still need money to live on.

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2. Pay Off The Most Expensive Debts First

Once you’re free of your biggest debt burdens, you’ll have a lot more left over to pay off the rest with. 

Cheaper debts are easier to pay in a more gradual, long-term way, compared to having to pay really big sums of money every single month.

There’s no sense in paying more money on something than you really have to, so get those expensive ones out of the way first.

3. Refinance Your Mortgage

Your biggest bill month to month is your mortgage. In some instances, it can add up to all of your other debts combined.

You’d be amazed how much money you can fall into by refinancing your mortgage. You will be able to pay off several debts in one go, while still remaining a proud homeowner, and having a foot still firmly on that property ladder.

Also read: Pay Off Credit Card Debt

4. Be A One Car Household

Do you really need more than one car?

If you both need to travel in your job, having two or more cars per household is fair enough. But if you’re both going and forth to the same places every day, you could save a considerable amount of money by taking public transportation instead for your commute. Or one of you could even cycle to work.

5. Consolidate Your Debts

Sometimes it’s just easier to take one loan out and pay all of your debts on it, leaving you with just one solitary loan repayment to make every month, at a far lower rate than you were previously paying on all of your debts combined.

It might sound counterintuitive at first, but it does work well for some people.

Also read: Calculate Opportunity Cost 

6. Start A Side Hustle

You could always get a second job, if you have the time and don’t have kids to attend to.

Low skilled jobs are often very easy to come by, especially if you already have experience.

Or if you prefer, you can be an entrepreneur, and make money doing what you love. It’s super fulfilling, and can help drive your debt down.

7. Drive A Good Quality Used Car And Not A Brand New One

Used cars can often be just as good quality as brand-new ones, especially if you get one from a good, trusted, and well established car dealership. And they’re significantly cheaper, whatever way you choose to finance it.

Even if your car is a status symbol to you, the stranger in the parking lot doesn’t have to know that it’s a used car.

Also read: How Can I Start Saving For A House In My 20s

8. Speak With A Credit Counselor, Free Of Charge

How convenient is it that you can get credit counseling and coaching completely free of charge.

The reason this service can be made available for free is because the debt management companies want to sell you a debt solution, so they will provide the counseling for free in the hope that you will choose the debt solution recommended by themselves and offered by them.

9. Save Money On Frequent Spends Such As Food, Bills And Transport

This is the most obvious solution for most people. The less money you spend on the essentials, the more cash you will have to pay off your various debts.

You could switch to a cheaper grocery store, sell your car and use cheaper transport, and of course check out money comparison sites to get better deals in utility bills, health insurance, and more.

10. Track Your Spending And Identify Areas To Cut Back

If you want to get on top of your finances, you need to know exactly where your money is going each month and how much you're spending in different areas.

It is only when you have a clear picture of your financial situation that you can truly be in a position to make a plan going forward.

Quite often, your bank will be able to provide this service for you on a smartphone banking app.

11. Use A Budgeting App To Plan Your Spending

I can also recommend downloading a budgeting app. It can help you to decide how much money you think is appropriate for spending on various things in your life. 

There are even apps specifically aimed at couples who split their bills, and send reminders when something needs paying.

12. Spend Less Than You Meant To Spend

I saved the trickiest one for last!

Rather than seeing your budget limits as a goal to work toward, you should feel rewarded when you spend less than you originally set out to. This way, you can save money easily that can toward paying off your debts.

Wrap Up

The sooner you start paying down your debt, the sooner it’s gone, and you are free. Even if you just pick one method to help you for now, that should get things moving in the right direction. But for the best results, I recommend trying as many as possible. 

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Good luck!