Drowning in debt? 4 simple strategies to pay it off faster

Carrying a large amount of debt is a heavy burden — one that can hold you back from achieving your financial goals. Whether it's debt from credit cards, student loans or something else entirely, it's crucial to pay it off quickly and get much-needed financial freedom and peace of mind. 

But with current interest rates at 22-year highs, it may be tough to find the right strategy to do that. And with inflation impacting the value of the dollar, your extra income may not be stretching as far as it did a year ago. That can make it even harder to repay what you owe.

Luckily, you have options to help expedite your debt repayment. And if today's high interest rates are compounding what you owe, it's important to take steps now — before your debt continues to grow. 

Don't wait. Find out how debt consolidation can help you right now.

Drowning in debt? 4 simple strategies to pay it off faster

If you're struggling under the weight of your high-interest debt, here are a few strategies to help you accelerate your repayment journey.

Take advantage of debt relief options

If you're struggling with significant debt and finding it difficult to make payments, debt relief options — like debt settlement and credit counseling — can provide a lifeline. 

For example, nonprofit credit counseling agencies can help you create a debt management plan. With this type of plan, you'll make monthly payments to the agency, which then distributes the money to your creditors as per a negotiated plan. This can result in lowered interest rates and waived fees, making it easier to repay your debts over time.

Another potential avenue is debt settlement. In this process, a debt settlement company will help you negotiate with creditors to pay a reduced amount, typically in a lump sum, to settle your debt. While debt settlement can lead to a significant reduction in your debt burden, it's important to note that it can have negative repercussions on your credit score and may involve tax implications.

Explore your debt relief options here now.

Consider a debt consolidation loan

Another option to consider is a debt consolidation loan, which involves taking out a new loan to pay off multiple existing debts. This strategy combines all your debts into a single, more manageable loan, usually with a lower interest rate. By streamlining your debts, you'll simplify your monthly payments and reduce the chances of missing payment dates. 

Debt consolidation loans can be particularly effective if you have multiple high-interest debts, such as credit card balances. This approach not only simplifies your debt repayment plan but also helps you save on interest payments over time.

Or, if you have good credit, you might qualify for a personal loan with a lower interest rate than your credit card debts. You can use the personal loan to pay off your high-interest debts, and then focus on repaying the personal loan at a more manageable rate.

Find easy ways to earn extra income

Finding additional sources of income can significantly impact your ability to pay off debt faster. But while taking on a weekend job or overtime hours at your day job may seem like the only options, you don't necessarily have to take on a full-time second job — or even a part-time job — to do it. 

Side hustles are immensely popular because they're an easy way to boost earnings, and they don't typically require you to work set hours each week. If you have a skill that can be monetized, use it to earn some extra money, whether it's freelance writing, graphic design, tutoring or pet sitting. Or, you can opt to drive for a rideshare or food delivery service instead. 

You can also earn some spare cash by completing easy tasks online in your spare time. For example, participating in paid online surveys can be a convenient way to earn extra cash from home. Numerous market research companies offer compensation for sharing your opinions on various products and services. While it's not a substantial income source, the earnings from paid surveys can still contribute to your debt payoff strategy. Learn more about how you can earn extra cash with paid surveys now.

Opt for a balance transfer

A 0% balance transfer credit card can also be a powerful tool to tackle credit card debt more aggressively. Many credit card issuers offer promotional periods during which you can transfer existing credit card balances to their card at a 0% interest rate for a specific period (usually 6 to 18 months). This interest-free period gives you the opportunity to pay off the principal debt without accruing additional interest. 

However, it's important to be cautious of balance transfer fees and make sure you can pay off the debt before the promotional period ends. Otherwise, you'll be right back to where you started — paying off debt that's growing from high rates of interest. 

The bottom line

Paying off your debt quickly requires discipline and a strategic approach. By exploring ways to earn extra income, considering debt consolidation or balance transfer options and being aware of debt relief alternatives, you can take control of your financial future. Just remember that each financial situation is unique, so assess which strategies align with your goals and circumstances to determine the right plan for you.