How to Pay Off Debt in a Short Time

Paying off your debt in a short amount of time is a goal that will not only help you save more of your money in the long run, but will help your credit score and your peace of mind. Paying off your debt in a short time will take discipline and hard work. The higher your debt balance is, the more difficult this task can be. With a plan, anyone can pay off his debt, regardless of the balance.

Instructions

1

Add up all your debt. This can be any debt that you are desiring to pay off in a short time, such as credit cards, car loans or personal loans. Begin a ledger book with this balance at the top.

2

Decide how soon you want to pay it off. Set a realistic goal, but one that is going to push you to work harder at paying off your debt. Remember, the sooner you pay it all off, the more money that can go into your pocket.

3

Divide your debt by the number of months you have to pay it off. For example, if you have $5,000 in debt, and want to pay it off in 9 months, divide $5000 by 9. The result is you must pay $555 a month to pay off your debt. Look at your budget to determine if this is a realistic option for you.

4

Renegotiate terms with your lenders. This can possibly earn you a lower interest rate, which can speed up the process of paying off your debt. Some lenders will offer settlements of a one-time payment, while others may be willing to lower your interest rate, at least temporarily. Every little bit helps.

5

Cut back on extra expenses while you pay off your debt. This could include eating out, cable, long distance, or evenings on the town. Be strict with yourself and you will accomplish your goal. Put any extra money you can "find" towards your debt. Diligently record every penny paid toward debt in your ledger book.

6

Pick up a second job. If you only want this to be temporary, visit an employment agency to sign up for temporary work. Agencies often have positions for all shifts, full and part time. Then you need not feel guilty for leaving when you no longer need the extra income. Put all this extra money towards your debt.

7

Make payments on your debt as soon as you receive any money. You do not need to wait for the monthly statement. If you get paid weekly from your second job, immediately pay a debt bill the day you get your check. Many bills can be paid online at no charge. This will help to ensure that the payments get made, and you will be suprised at how fast little payments can add up.