How to Lower Debt Fast

Lowering or eliminating your debt can ease your mind and reduce stress. Different debt-elimination methods are available. To successfully get rid of your debts, you need to pick a strategy that works for you and stick with your outlined plan. Be patient and you will lower or pay off your outstanding balances fast.

Instructions

1

Confront your balances. Face your debt head on by tallying your balances. Locate credit card statements and other bills and calculate the total.

2

Sacrifice personal luxuries. Be prepared to cut out extra expenses such as dining out, unnecessary shopping or expensive vacations until you have paid off your debt. Review your monthly expenses and consider other ways to cut back. For example, you might cut massage services, memberships to clubs or trade-in your car for a lower payment to save money.

3

Develop a routine of making higher payments. Lower your debt faster with higher payments each month. Evaluate your finances to see if you can afford to double your car or student loan payments. If you normally make a $20 payment on credit cards, aim for a payment of $100 or more a month to eliminate debt quicker.

4

Use your extra time wisely. Brainstorm ways to make extra money in your free time. Start a lawn care service in the evenings or weekends, babysit your neighbor's children, freelance or find part-time work. The extra money can speed up your debt elimination efforts.

5

Ask for a lower interest rate. Call your credit card companies and ask for a lower rate. This method reduces your interest and minimum payment. Continue to make higher payments each month despite a lower minimum. In turn, more of your payment goes toward the balance.

6

Dip into your emergency fund. Borrow from your personal savings to eliminate credit card debt and other loans.