13 Ways to Get Out of Debt Faster

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Introduction

Debt is one of the most common financial burdens people face today, often creating long-term stress, limiting opportunities, and impacting credit scores. Whether it’s credit card debt, student loans, personal loans, or medical bills, the feeling of owing money can be overwhelming. However, getting out of debt is achievable with the right plan, discipline, and mindset.

This comprehensive guide outlines 13 practical strategies to accelerate debt repayment and regain financial freedom. From budgeting techniques and debt repayment methods to side hustles and automation, each tactic offers a pathway to becoming debt-free with confidence.

1. List All Debts and Learn the Numbers

The first step in any debt repayment strategy is full awareness. Gathering all information about current debts is essential for building a repayment plan.

What to Track:

Organizing this data in a spreadsheet or financial app can offer clarity and help prioritize repayment strategies.

2. Build a Sustainable Budget

A clear budget ensures that income is allocated effectively. It helps identify areas of overspending and ensures consistent debt payments.

Budget Components:

• Income: Salary, freelance work, benefits
• Fixed Expenses: Rent, utilities, insurance
• Variable Expenses: Food, gas, subscriptions
• Debt Payments: Credit cards, loans
• Savings: Emergency fund or retirement (if possible)

Allocating a specific portion toward debt reduction keeps progress steady and visible.

3. Choose a Debt Repayment Method

Two popular strategies exist for debt repayment, each with its own benefits.

Selecting the method that best fits personal psychology and financial goals can improve consistency and success rates.

4. Eliminate Unnecessary Spending

Review monthly discretionary expenses and identify areas for reduction. Redirecting these funds toward debt repayment can accelerate the process.

Common Cutbacks:

• Unused subscriptions or streaming services
• Daily takeout or coffee runs
• Impulse shopping
• Premium service tiers not fully used

Every small reduction contributes to larger payments over time.

5. Increase Income Through Supplemental Work

Supplemental income can dramatically reduce the time it takes to eliminate debt. Even part-time or occasional income streams can make a difference.

Income Opportunities:

• Freelance services (writing, design, tutoring)
• Gig economy apps (rideshare, food delivery)
• Selling unused items online
• Seasonal or weekend part-time jobs

Allocating all extra income directly to debt repayment can provide noticeable results quickly.

6. Automate Debt Payments

Automated payments ensure that bills are paid on time, reducing late fees and improving credit history. Automating minimum payments is a good baseline; automating extra payments can enhance progress.

Advantages of Automation:

• Avoid missed payments
• Maintain consistency
• Eliminate temptation to divert funds elsewhere

Set automation to align with paydays to ensure funds are available.

7. Explore Debt Consolidation Options

Debt consolidation combines multiple debts into a single loan with a potentially lower interest rate. This simplifies repayment and can reduce total interest costs.

Considerations Before Consolidating:

Evaluate all terms carefully and use reputable lenders or credit unions.

8. Contact Creditors for Negotiation

Some lenders may offer better terms to customers facing financial hardship. Negotiating can result in reduced interest rates or structured payment plans.

Tips for Effective Negotiation:

• Contact customer service directly
• Be polite and explain financial situation
• Ask for temporary rate reductions or hardship programs
• Follow up in writing and track all agreements

Lenders may prefer partial payments over potential defaults.

9. Take on a Side Hustle for Additional Cash Flow

Adding a side hustle can generate consistent income dedicated solely to debt repayment.

Popular Side Hustle Ideas:

• Dog walking or pet sitting
• Virtual assistant work
• Reselling vintage or thrifted items
• Online tutoring or teaching

Choosing a flexible gig allows income generation without disrupting daily responsibilities.

10. Use Bonuses and Windfalls Strategically

Applying unexpected financial gains directly to debt can shorten repayment timelines substantially.

Sources of Windfalls:

• Work bonuses
• Tax refunds
• Gifts or inheritances
• Rebates or cash-back offers

While it can be tempting to spend, applying these funds to debt can reduce balances dramatically.

11. Monitor Progress and Celebrate Milestones

Tracking debt reduction motivates continued effort and builds momentum. Celebrating small victories reinforces progress and boosts morale.

Tools for Tracking:

• Budgeting apps (e.g., Mint, YNAB, Rocket Money)
• Spreadsheets with monthly updates
• Printable debt payoff charts

Reward small milestones with non-financial treats, such as a relaxing day off or free leisure activities.

12. Maintain Motivation with Support Systems

Staying motivated throughout a long repayment process can be challenging. Support from friends, family, or communities can make a significant difference.

Motivation Strategies:

• Join online or local debt support groups
• Follow debt-free journey stories for inspiration
• Set visual goals with charts or trackers

Accountability and encouragement increase consistency and resilience.

13. Avoid New Debt and Build a Safety Net

While paying off existing balances, it’s important to avoid accumulating new debt. A small emergency fund can prevent reliance on credit cards during unexpected expenses.

Emergency Fund Target:

• Minimum: $500 to $1,000 for minor emergencies
• Ideal: 1 to 3 months of essential living expenses

This cushion helps maintain debt repayment momentum, even during financial disruptions.

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Conclusion

Getting out of debt takes focus, discipline, and making smart choices. You can get rid of your debt and become financially independent by following a structured repayment plan, cutting costs, making more money, and sticking to your plans.

You can use each of the 13 strategies above on its own or in combination for the best results. The most important thing is to be consistent and open to change. You should be willing to change your plans when necessary, but you should still be committed to your long-term financial goals.

Not only does being debt-free give you peace of mind, but it also gives you the chance to build wealth, invest in your future goals, and take back control of your finances.

Frequently Asked Questions

What is the snowball method of paying off debt?

The snowball method focuses on repaying debts from the smallest balance to the largest. As each balance is paid off, the amount allocated rolls into the next debt. This method builds momentum and motivation by offering quick wins early in the process.

What is the avalanche method?

The avalanche method prioritizes paying debts with the highest interest rates first. This strategy minimizes the total interest paid over time, helping reduce the overall cost of debt repayment more efficiently than the snowball method.

Should I use a budgeting app?

Yes, budgeting apps can help monitor expenses, track debt progress, and stay organized. Popular apps such as Mint, YNAB (You Need a Budget), and Rocket Money are designed to simplify personal finance management and help users stay accountable.

How do I know if debt consolidation is right for me?

Debt consolidation may be a good option if the new loan offers a lower interest rate than your current debts and has manageable terms. It works best for individuals with consistent income and moderate-to-good credit scores.

Is it necessary to have an emergency fund while paying off debt?

Yes. A basic emergency fund helps prevent the need to use credit cards or loans when unexpected expenses arise. Even a modest amount, such as $500, can reduce reliance on new debt and protect progress toward financial goals.

Can I negotiate with lenders even if I’m not behind on payments?

Yes. Many lenders are open to renegotiation for borrowers in good standing. Asking for reduced interest rates or hardship plans can result in more manageable terms without negatively affecting credit.

What’s the best way to use a windfall?

Windfalls, such as tax refunds or work bonuses, should ideally be applied to high-interest debts. This can reduce principal faster and decrease interest paid over time. Using windfalls strategically accelerates debt payoff.

What’s a realistic timeline for becoming debt-free?

Timelines vary depending on debt amount, income level, and repayment strategy. For moderate debt levels, a 12 to 36 month timeline is achievable with consistent effort. Large debts may take longer, but steady progress yields results.

Can side hustles significantly impact my debt?

Yes. A side hustle generating even a few hundred dollars monthly can reduce repayment timelines by months or years. Applying all side hustle earnings directly to debt creates rapid progress.

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Reviewed and edited by Albert Fang.

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Article Title: 13 Ways to Get Out of Debt Faster

https://fangwallet.com/2025/09/09/13-ways-to-get-out-of-debt-faster/

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