7 Ways To Pay Off Debt Quickly

No one likes a lingerer, just like James Franco in Pineapple Express! So why do so many people let debt linger in their lives? It is holding you back! Ditch it in 2018 and change your life. Below is a list of action items you should follow if you are serious about crushing debt in 2018.

*This is not a debate on if you should finance a car to go buy stocks or real estate article. This is a I am sick of sending off payments every time I get a paycheck article. To avoid this classic finance argument lets assume this debt is everything other then low interest rate mortgages (under 4%).

1.)  Earn More Money

No shit Sherlock! I know it is a tough one to read on an internet list but it is the truth. When paying off debt you need all the firing power you can get. That is why no matter how much you plan on making this year, make more! That is right just because your boss set your salary doesn’t mean that is the only money you can make. Most of my readers are from North America and this is 2017 soon to be 2018 stop making excuses. Whatever amount you make you can do better, find ways to make more and apply it to your debt.

2.) Pay Off High Interest Debt First

Math is important, and it controls finance. A high interest rate will keep you in debt longer then you need to be. List out all debts on a sheet of paper, get the interest rates in front of you. No matter the size of the debt your most hated enemy is the highest rate! Find the highest rate and debt and pay it off. Then move down the list and crush the next one.

3.) Get Angry At Your Debt

To many people make debt a normal part of life. If it is not bothering you then you would have already stopped reading. Get mad that you work hard to make someone else rich and then send your paychecks off to someone who is loaning you money! You are on the wrong end of the deal get fired up and get rid of it.

4.) Set A Goal

Goals are very UNDERATED. Goals have tremendous power write down what you plan to accomplish and how long it will take you to get there. Do the math and write down a number that you will need to pay towards your loans each month. Don’t come home until you have that amount in your bank or pocket to make the payment, hustle!

5.) Learn To sacrifice

Stop acting entitled and learn a lesson in humility along your way to debt freedom. You do not need the latest of whatever it is you have your eye on. Skip the item of the year and instead position yourself for a better future.

6.) Announce What You Are Doing To Friends And Family

Our closest friends and family have the biggest impact over our actions. Who wants to make mom disappointed or feel embarrassed in front of your best friends. It won’t be easy but you have to let these people know your goals.  Let friends know you can’t go out this weekend because you are paying off debt. Or tell your parents you can’t fly home. Just let them know why you are doing what you are doing. They will most likely be more supportive of your efforts then you think!

7.) Set A Reward For Big Milestones

Realize that there is an end in sight. You are doing this for a reason. I recommend setting a goal to reward yourself at the end of the journey. Use your new cash flow to pay for a trip or get something you delayed purchasing while paying off the debt. If your debt level is large set mini rewards don’t burn yourself out but stick with it!

Final Thoughts

You are not alone in this journey many people carry debt at some point in their lives. Focus on why you are paying off your debt. No matter your situation I promise it will get better if you stick with a plan and follow through. Good luck to all those on your debt payoff journey!

What Are Your Thoughts?
  1. What would you recommend to someone trying to get out of debt?
  2. Share your debt story.
  3. Why did you get into debt in the first place?

Spread The Wealth!

32 Comments on “7 Ways To Pay Off Debt Quickly”

  1. Canadians are up to their eyeballs in debt so this would be good to read. A lot of people don’t think mortgage debt is considered debt unfortuntely.

    1. Mortgage debt is no doubt debt! I think if people use debt (for investing) in real estate it is fine if you know what you are doing. Personally though I have a goal to be completely debt free including a personal residence, that is freedom!

    1. Everyone has to work. I think being a good worker bee is important. Even more important is being a good entrepreneur!

        1. I agree. To many people get angry at the work they are doing because they feel like they are getting the short end of the stick. You can’t always change the situation you are in but if you think like an owner you will progress faster. The other important truth is to move on if you feel you are not being rewarded fairly. Free market system with employment! Great advice.

  2. Mr. DM, I am personally very debt adverse so I agree with everything you say here. My philosophy was always to pay myself first and not buy things until I had the money saved. That’s tough with house, so my philosophy was to pay off the mortgage early. Tom

    1. Paying yourself first is such an important concept. I am sure you are enjoying the foundation you have in your life because of following that rule alone.

    1. That’s right, wherever our focus goes that is where we all see change. Some people focus on Thursday night football, others focus on starting a business and becoming debt free. We all have choices to make and only so much time and energy to accomplish goals.

  3. I definitely agree w/ paying off the highest interest rate first because that’s the most efficient thing to do.

    But apparently I hear so many stories of success when people use the snowball method? Pay the smallest amount of debt first because small achievements boost confidence and motivation.

    I was so shocked when I learned about this method bc it’s something I personally wouldn’t do. But I guess it works for a lot people — looks like psychology plays a huge role!

    And yes, writing down goals help. I am getting rid of my students loan by the next two weeks. And I’m so determined to do it before 2018 bc I wrote it down on the blog haha! It has always been on my shoulder since… not the debt itself but bc I announced it on www. 😅

    1. Congrats on ditching the student loans it will feel great! I think publicly stating your goals to the internet, friends, and family makes you work harder for them. It is like having a gym partner to keep you accountable. All your readers would wonder if you are legit if you didn’t work hard to accomplish your own goals! Good thing we know FSP is indeed to legit to quit.

      I think the method of paying off the smallest balance first is totally fine for those who want to follow that route. I think the psychology of making progress feels good and keeps people motivated. At the end of the day once the debt is gone most people will realize how good life is and will not go back.

  4. I thought hurricane season was over. Enjoyed your stance on debt – like you mention above, there are two variables (1) amount $ made and (2) amount of money spent (don’t let amount made affect amount spent!) that can be altered to impact the amount of debt owed. Since majority of us can’t decide to raise our own salary, we have to opt for option (2). Which means learning a little humility, checking the ego, and not buying the iPhone X. Debt is the silent killer #beaware #raceforthecure

    1. Haha, I am glad someone else likes that movie. Was starting to think my references were sailing over everyone’s head. Big time on #2, I see a lot of people get done with advanced schooling and land a great job making bank. Unfortunately they move right up to that lifestyle without making a plan for the new found money. I enjoy the high earners blogs out there as they make it okay for someone who is say a doctor to not run out and buy the BMW right away.

      I am not in the miser and skimp and save forever category. However, I think it is a MASSIVE advantage to be focused in your first decade of real earning power, then later in life you can relax and enjoy the luxury’s of life.

  5. Nice list DM. One of my favorite quotes “Savings are a gift to the future, Debt is a burden on it”. I don’t know who said it but I have a little sticky note beside my desk to remind myself.

    1. That is a great one Steve! I am going to blast that one on Twitter! Don’t see your handle, are you in the Twitter universe?

  6. Hey DM! My favorite is no. 5 (learn to sacrifice). Sometimes it’s not even that hard – how many times have we bought something only to use it for a couple of weeks and then never again? I think impulse buys are a huge enemy of financial freedom.

    1. I agree Miguel. I am so thankful I learned this early in life. Most of the time when I make up something in my head to go buy I never use it as much as I thought I would. If I really want something I know it and go buy it guilt free, I avoid buying things just because a thought comes into my head for a week though.

  7. Number 3 works well – I get pissed off at myself for even contemplating the potential acceptance of going into debt if there are ways for us to avoid it.

    I think I’ve commented previously that we currently have no debt, but we had a choice when my wife was about to start grad school. We would have taken out loans for NYU but we were able to afford a great city college in New York City.

    1. I think that is wise Mike. Who knows what that alternative path might have looked like. I do not know of many people who regret not going into debt in the past though!

  8. I really like that list! I want to add to 6.) that you add some form of commitment by telling others what you are about to do. They will reach out to you and ask how you are doing paying off your debt. You probably don’t want to tell them that you have quit on this after telling them just a few weeks ago that you are about to start. This gives you just a little extra motivation.

    1. I agree it is important to be held accountable. No one wants to look like they gave up! When you tell those around you that you respect you will work harder to make your goal a reality. Great point.

  9. A good list Mr.DM. I think 3. Getting angry at debt and 5.Learning to sacrifice should be top of the list. They will ensure we do not end up increasing our debt. The right mindset is very important to keep us motivated.

    1. Mindset is so important in life. The bigger the pile of debt the better your mindset needs to be. You have to really commit to going for it and figure out ways to keep motivated.

  10. I’m glad you mentioned earning more money. There’s a ton of things you can do other than earn more money (and some are much easier than increasing your income), but at the end of the day if you really want to pay off debt quickly it makes sense to increase your income.

    1. I agree, cutting costs is important but as your income grows you really feel the power to pay down debt and invest heavily.

  11. Out of the 7, I could have predicted 6 of them. The one that really caught my attention is the telling people about your plan to pay off your debt. You know, I’m someone that internalizes a lot to close friends and family. Isn’t it ironic considering that we are pretty open about investing and our finances on our blog. But for some reason, I keep a lot of this private when I’m out and about with friends and family. Much like problems or trouble in life, vocalizing is a huge help. Why not vocalize your financial goals to those as well? Thanks for putting the list together. I appreciate the read tonight!

    Bert

    1. Glad you liked it Bert. I think there is something to be said for letting the people in your inner circle know what you are doing. No one wants to be embarrassed in front of their friends and family so I think it is helpful to stay motivated.

  12. I would recommend staying patient and to fight the good fight. Your debt didn’t pile up over night so you should’t expect to get out of it that quickly. Have some patience, grit, and through some consistency in there and you’ll be just fine.

    1. Agreed! It feels great to get out of debt. I have been clear of everything but a mortgage for a while now and I love this new NORMAL!

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