12 Easy Ways to Pay Off Debt Fast (Even With No Money!)

Break down your main goal into smaller goals, and then check off each one as you achieve it – this will not only make the prospect of tackling your debt less overwhelming, but it will also keep your motivation high!

Plus, when you have smaller goals, rather than vague ones, like “pay off $30,000” in debt, it makes your goals seem more attainable. These goals can act as stepping stones toward your bigger goal of being debt-free.

Just remember to be flexible with your goals – sometimes the car needs unexpected repairs, or there’s a trip to the vet’s for the family pet to pay for. Don’t let things like this deter you.

Instead, reassess your financial situation and adjust your goals accordingly – just keep working toward your goals.

3. Use the Snowball method to tackle debt (good for keeping motivation high!)

There are lots of ways to pay off, debt, but the Snowball Method is definitely one of the most popular.

If you follow the Snowball Method, you write down all of your debts in order of smallest to largest.

So, if you had debts across three credit cards, here’s how your list would look with the Snowball method:

• Credit Card One: $350
• Credit Card Two: $900
• Credit Card Three: $1,500

It’s actually one of the fastest ways to pay off debt.

In this method, you pay off the smallest debt first.

It’s important to note that you continue to make the minimum payment on your balances for all of your debts.

But, you focus on paying more to the first, smallest debt.

Once you’ve paid off that debt, so in this case, the $350 one, you move onto the next one – the $900 debt in the example above.

But, you put the money you were using to pay the first debt and add it on top of the minimum payment, towards the second debt.

So, the whole thing snowballs, hence the name!

This method is good if you struggle to keep the motivation to pay off debts. It’s much quicker to pay off a $350 debt, compared to a $1,500 debt. That $350 seems achievable. And, once you’ve paid off that first one, you’ll know you’re more than capable of paying off the rest!

4. Use the Avalanche method to pay off debts (good for saving money on interest payments)

While the Snowball Method is so popular – thanks to those small wins! – another excellent way to pay off debts is with the Avalanche Method.

It’s a good method because it involves you paying off the debts that have the highest interest first, which, in the long run, saves you a lot of money.

If you choose this method, you list your debts in order of their APR – the one with the highest APR first, and the one with the lowest APR last.

Then, take the money you’ve assigned to pay off your debts each month and use it to pay the debt with the highest APR.

After the first one is paid off, just like with the Snowball method, you take the money you used to pay off the first debt to put towards the next debt and focus on paying that off.

Compared to the Snowball Method, the Avalanche method will save you more money in the long run – but for some people, the Snowball method just works better, since many of us like to see little wins!

5. Consolidate your debts

The Snowball and the Avalanche method don’t work for everybody. If you’d prefer a simpler method, then try simply consolidating your debts onto one card or loan.

It can make paying debts easier, as you’ll only need to make a single payment each month, rather than multiple payments across your debts.

You won’t have additional minimum payments to make each month, so your money won’t be tied up – you’ll be able to focus all of the money you have to pay down one debt.

It definitely makes the process of paying off debt less stressful!

6. Transfer your balance – but only if you can afford to pay it off in time

Transfer your balance onto a zero-interest card, and you’ll save money on interest charges.

If you have debts on high-interest credit cards, then a zero-interest balance transfer is definitely something to consider.

It’s handy because you’re not adding more interest charges to the debt that you already owe.

You could save hundreds of dollars in interest charges, which really makes a difference when paying off debts.

7. Always pay more than the minimum payment

If you only pay the minimum amount on your credit card, then it will take so much longer to pay off your debts.

In fact, you’ll barely clear the interest charges from last month. Each month, you’ll continue making the minimum payments without clearing your full balance.

Increase your payments. If your monthly minimum payment is $100, then double it and pay off $200 a month – you’ll pay off your debt twice as fast!

And, you’ll start each new month with less debt.

8. Leave your credit cards at home

Paying off debt is great, but you also need to do things to stop yourself from accumulating more.

A really easy way to do this is to leave the credit cards at home when you go shopping. Just leave them out of your wallet. Spend using your debit card or cash instead.

If you need to, you can use your credit cards once you’ve paid off your debts – but remember, not to get yourself back into debt again.

9. Delete your card information from online stores

When an online store has your credit card information, it’s so much easier to spend money!

You basically click a button during the online checkout and you’ve spent money instantly.

When you have to actually enter your card number, it gives you more time to decide whether you really need the item you’re going to buy.

So delete your credit card information from any of the online stores that you shop with.

10. Change your spending habits

If you change your spending habits, you’ll not only have more money to service your debts, but you’ll also prevent yourself from getting into more debt in the future.