10 Best Ways To Approach Paying Off Debt

Last Updated by Neiko Johnson on 
January 28, 2022
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There are a lot of ways to approach paying off debt.

Some people think that the best way to pay off debt is to focus on the smallest debts first, while others believe that you should attack the largest debts first.

There are pros and cons to both methods, but ultimately the best way to pay off debt is the way that works best for you.

In this blog post, we will discuss 10 different approaches to paying off your debt fast!

1. The best way to pay off debt is the one that works for you

There is no one-size-fits-all answer when it comes to the best way to pay off debt.

What works for one person might not work for another.

The best way to pay off debt is the way that works best for you and your unique situation.

It's all about making smart money decisions and sticking with them for the long run.

2. Pay off your smallest debts first

This method is often called the "Debt Snowball" approach. The idea is to focus on paying off your smallest debts first, while still making minimum payments on your larger debts.

Once the small debts are paid off, you can then focus on the larger ones.

The advantage of this method is that you can see results quickly and get motivated to keep going. The disadvantage is that you may be tempted to spend more money once your small debts are paid off.

This can be motivating because you see your progress quickly and it gives you a sense of accomplishment.

This is the method we used to pay off debt and it really kept us focused throughout our 4-year debt-free journey and now we are debt-free!

3. Pay off high-interest rate debts first, but don't forget about low-interest-rate debts too!

This is called the "Debt Avalanche" approach.

The idea is to focus on paying off your high-interest rate debts first, while still making minimum payments on your low-interest rate debts.

Once the high-interest rate debts are paid off, you can then focus on the lower ones.

The advantage of this method is that you will save money on interest payments. The disadvantage is that it can take longer to see results.

4. Believe you can become debt-free

Sometimes it's simply believing you can reach debt-freedom and you have what it takes to do so.

Paying off debt can be frustrating and discouraging but it's important to have a purpose for paying off debt.

When you are working towards a goal with a clear, defined reason it will keep you focused no matter the circumstances.

Remember, you are in control of your money and your future so believe that you can become debt-free!

There are a lot of different approaches to paying off debt.

Some people think that the best way to pay off debt is to focus on the smallest debts first, while others believe that you should attack the largest debts first.

There are pros and cons to both methods, but ultimately the best way to approach paying off debt is the way that works best for you.

5. Set up automatic payments if possible so you're never late on payments again!

One of the best ways to pay off debt is to set up automatic payments.

This way, you never have to worry about being late on a payment again and it will help keep you organized.

It's also a great way to avoid any penalties or fees that may be associated with being late on a payment.

You can set up automatic payments through your bank, or you can use a service like PayPal to automate your payments.

This is one of the best ways to approach paying off debt because it helps keep you organized and on track.

Paying off debt can be very overwhelming, but if you take things one step at a time and make small changes in your spending habits, you can become debt-free!

6. Try not to take out any new loans while paying back old ones - it's easier when you have less debt!

When you're trying to pay off debt, it's important to focus on reducing your expenses and increasing your income.

This means that taking out any new loans is not a good idea because it will only add more debt to your pile.

It can be difficult to resist the temptation of new loans, but if you want to get out of debt, you need to stay focused and avoid any new debts.

It's much easier to pay off debt when you have less of it!

When you're trying to pay off debt, focus on reducing your expenses and increasing your income. This will help you get rid of your debt faster!

Paying off debt is one of the best things you can do for your financial future. It's important to have a plan and stay focused on your goal.

These are some tips that will help you approach paying off debt quickly and efficiently!

7. Consider refinancing loans with lower rates or consolidating credit cards into one card for simplicity and ease of use

If you have high-interest-rate loans or credit cards, it may be worth it to refinance them.

Refinancing a loan means that you take out a new loan with a lower interest rate to pay off your old one.

This can save you money in the long run and make it easier to manage your payments.

If you have several credit cards, it may be worth it to consolidate them into one card.

This will make it easier to keep track of your payments and reduce the amount of interest you're paying each month.

When trying to pay off debt, refinancing loans or consolidating credit cards can be helpful strategies to approach paying off debt.

You can even consider refinancing your student loans with LendKey.

8. Live on a budget

One of the best ways to pay off debt is to live on a budget.

This means that you need to track your expenses and make sure that they are less than your income.

It can be difficult to stick to a budget, but it's worth it in the long run.

When you're living on a budget, you can't afford to spend money on unnecessary things.

When trying to pay off debt, it's important to live on a budget so that your expenses are less than your income. This will help you approach paying off debt quicker.

Related reading: Budgeting 101: How to Create a Budget

9. Get an accountability partner

An accountability partner can be a great way to help you stay on track when trying to pay off debt.

This is someone who will help keep you accountable and motivated, and who will also provide support.

It's important to find an accountability partner who is supportive and helpful, rather than someone who will push you too hard or make you feel bad about yourself.

An accountability partner can be a great way to stay on track when trying to pay off debt!

Find someone who is supportive and helpful, rather than someone who will push you too hard or make you feel bad about yourself.

When trying to pay off debt, it's important to set goals and stay focused on your goal. These are some tips that will help you approach paying off debt quickly and efficiently!

10. Increase your income

This is ultimately one of the most important tips of them all. Having more income will speed up your debt-free journey.

Once you are able to increase your income and keep your lifestyle the same you will have more margin when paying extra towards your debt.

If you can find ways to increase your income, it will make it easier for you to approach paying off debt.

Paying off debt is one of the best things you can do for your financial future. It's important to have a plan and stay focused on your goal.

Related reading: Best Work From Home Jobs

Final word - Approach paying off debt

When it comes to approaching paying off debt, there are a lot of helpful tips and strategies that can make the process much easier.

By reducing your expenses, increasing your income, refinancing loans, consolidating credit cards, living on a budget, and getting an accountability partner, you can approach paying off debt in a way that is best for you.

Increasing your income is ultimately one of the most important things you can do to pay off your debts quickly and efficiently.

Stay focused on your goal and you will be able to achieve success!

Do you feel prepared to pay off debt? Why or why not?

Article written by Neiko Johnson
Neiko is a personal finance expert and Co-founder of Secret to Finance. Along with his wife Alexis, they learned how to get out of debt and paid off $400,000 in 4 years.

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