How to Clear Debt Quickly

Clearing or reducing debt can help improve your personal finances and possibly raise your credit score. A better credit rating opens the door to various opportunities such as home ownership. Debt can become a huge burden on your shoulders, but fortunately, debt doesn't have to rule your life. You can overcome debt and get rid of your balances.

Instructions

1

Reduce unnecessary spending. Having extra money isn't an excuse to spend whimsically. Fight impulsive shopping, and create a monthly budget for dining out, shopping and other extras. Stay within budget, and do not use a credit card.

2

Put your credit card in a place where it's not easily available for everyday use. Keeping credit cards in your wallet increases the temptation to spend. Remove them and place them inside a locked box.

3

Review your living expenses. A high mortgage or rent or a high automobile payment can hinder your debt elimination efforts. Think of ways to cut the cost on major expenses. Move to a cheaper residence, or opt for a less expensive car. Use the money saved to clear your debt balances.

4

Stop paying minimums. You can clear debt quickly by simply making higher payments or lump sum payments. If you owe $1,000 on a credit card, aim to pay $250 a month for the next five months to get rid of the balance. Eating out less, shopping less or forgoing other non-essentials may create the needed extra income.

5

Make additional money to get rid of debt. Eliminating debt might entail sacrificing your free time and looking for part-time work. Ask your employer to consider giving you overtime work, or take a job on the weekends and nights. An extra $600 a month will allow you to pay off a $2,000 debt in a little more than three months.