How To Get Out of Debt Fast

If you’re struggling to pay bills and manage mounting debt, you’re not alone. With credit card balances topping $17 trillion in Quarter 3 of 2024 and delinquent payments on the rise, many Americans are struggling financially. Dealing with high-interest debt can eat away at your income, limiting your finances and making it harder to save for the future.

Learn how to get out of debt fast with money-saving tips and advice about the most effective methods to quickly pay off big balances.

10 Tips To Get Out of Debt Fast

After reviewing each debt, make a list of what you owe, including monthly payments and interest rates for each account. Understanding your current financial state will help you identify an effective solution to quickly clear debt.

Consider the following solutions for paying off large balances to avoid extended interest fees and free up more of your hard-earned income:

1.  Set a Realistic Budget Using the 50/30/20 Rule

A budget will also help you find opportunities to cut unnecessary spending and lower your expenses. It can help you identify that you are spending too much on subscription services or on car insurance. You can then reduce your expenses by comparing insurance quotes from different vendors or by canceling your subscription services.

Budgeting is one of the most effective ways to get out of debt. Track all your expenses for a few weeks and monitor your bank account to identify areas where you can save money.

“The first and most simple step is to make a budget,” shares Teresa Dodson, debt expert and founder of Greenbacks Consulting. “Most people never do, and they don’t know what they’re really spending money on. Figure out where you're really at financially, make a plan, set goals, and follow through,” Dodson encourages.

A budget will also help you find opportunities to cut unnecessary spending and lower your expenses. It can help you identify if you’re spending too much on items like subscriptions or car insurance. Reduce your expenses by canceling services or comparing insurance quotes from different vendors.

Try the 50/30/20 budgeting method, which allows you to group all your expenses into three categories. Based on this budget, you’ll set aside 50% for needs, 30% for wants, and 20% for debt repayment and savings.

2. Cut Expenses to Save Money

Every dollar counts when it comes to eliminating big balances. Cutting expenses and saving money increases your ability to pay off debt.

Your budget should provide a deeper look at which costs you can put on hold or eliminate entirely. Reduce your expenses by canceling subscription services or comparing insurance quotes from different vendors. Even small lifestyle changes like cutting back on meal delivery and premium coffee drinks can add more to your wallet each month.

The more money you save, the faster you can get rid of debt. Make extra payments to end debt quickly.

3. Stop Using Your Credit Cards

If you want to get out of debt fast, make it your goal to limit or avoid credit card charges. When you stop building up credit card debt, you’ll freeze your balance for an easier payoff.

Leave your credit card at home and try to pay for purchases with a debit card or cash. As you pay down your credit card balance, your credit utilization ratio will improve, which, in turn, can raise your credit score.

4. Free Up or Create Extra Income

One of the fastest ways to pay off debt is to generate extra income and use it to pay down balances. Start a side hustle or find a part-time job you can manage in addition to your current employment.

Seasonal positions can also boost your income around the holidays. Or, use marketable skills to take on freelance jobs for extra cash. Allocate extra income and any windfall you receive, such as bonuses and tax refunds, to make a lump-sum payment on your debt.

5. Use the Debt Snowball or Avalanche Method

To get out of debt quickly, you’ll need to pay more than the minimum on at least one of your accounts each month. Debt snowball and avalanche are strategies that end debts one by one, either by size or interest rate.

Consider using the debt snowball method to pay off debts from smallest to largest, gaining momentum as you eliminate balances. With debt snowball, you’ll make more than the minimum payment on your smallest debt each month until it’s paid off. After that, you’ll roll the funds you would’ve put toward that account into your monthly payment on the remaining debts.

Conversely, using the avalanche method, you’ll focus on paying off the debt with the highest interest rate first, then move on to the rest. The goal of debt avalanche is to avoid paying more interest by eliminating high-interest debts faster.

Both of these methods involve funneling as much money as possible toward debt repayment and staying motivated as you watch big balances disappear.

6. Hire a Financial Expert

Handling debt on your own can be challenging. If you’re spending a major portion of your income on debt payments, are struggling with monthly bills, and need guidance on how to get rid of debt quickly, it may be time to seek professional help.

Consider seeking help at a nonprofit credit counseling agency. Credit counselors analyze your budget, income, and debt to help you create a get-out-of-debt plan that works for your financial situation. Another option is a financial advisor who can help you create a realistic monthly budget and repayment plan, evaluate and prioritize debts, and make a long-term plan for your finances.

7. Try Debt Consolidation

Some consumers eliminate balances by taking out a personal loan at a lower interest rate and using it to pay off debts. With this debt relief method, you’ll swap multiple monthly payments for a single payment at a fixed interest rate. While a debt consolidation loan can save you money, securing a loan at a reasonable rate depends on your credit score and other factors.

You can also apply for a zero-interest balance transfer credit card and move balances from other cards to the new account. Many credit cards come with an introductory 0% APR for up to 18 months. If you’re confident you can pay off your entire balance during the introductory period, consolidating small credit card balances can help you save money on interest charges and repay debts.

8. Settle Your Debt

If you’re struggling to make the minimum payments on your debt or you’ve missed a few due dates, it may be time to consider professional debt relief. When you partner with an experienced organization, debt settlement is typically one of the fastest options available.

Debt settlement involves negotiating with lenders to settle your account for less than what you owe. With consumers saving an average of 50% before fees, you’ll get out of debt faster by making a lump-sum payment.

A debt settlement organization like TurboDebt helps clients make a customized payment plan and collect funds through a savings account. Once customers collect enough funds, the organization negotiates with creditors on behalf of the consumer, ending the debt with one large, reduced payoff.

9. Use Online Resources

Using online tools and resources can give you a head start in your repayment process. Find an online debt payoff calculator to determine how much you’ll need to pay each month to get out of debt quickly. Search for apps that help you plan debt repayments or auto-save money to pay off balances.

Look for financial resources from trustworthy sources. Many reputable financial organizations offer online libraries, data, and timely blog content on subjects relevant to consumers. Educating yourself on topics like budgeting and investing can make you a savvy consumer and help you avoid debt in the future.

10. Pick a Debt Payment Method and Stick To It

You’ll need a concrete plan to prioritize which debts to pay down first. After researching and assessing your finances, choose the most effective debt repayment strategy that fits your needs. This could involve a self-directed strategy like snowball or avalanche or the help of financial experts and debt relief organizations.

Avoid bankruptcy by applying smart spending strategies and cutting back on expenses to put more toward debt repayment. Overcome thousands of dollars in credit card debt or unpaid medical bills through options like debt settlement or consolidation.

If you’re having trouble getting started, speak with a financial advisor or credit counselor to create a plan. Stay accountable and share your progress with a trusted partner. Committing to debt-free living is the first step on your journey toward financial freedom.

Take Action Today To Get Out of Debt!

Free yourself from the financial burden of carrying heavy debts by making a plan to pay off your balances. Get started today by contacting the experts at TurboDebt. It only takes a few minutes to begin your free consultation. Our advisors will match you with the best debt relief program to suit your finances and lifestyle.

We’ve partnered with thousands of consumers like you, earning over 17,000 5-star reviews across Trustpilot and Google. As a trusted leader in debt relief solutions, let us help you overcome the stress of debt and chart a course for a bright financial future.