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How Can I Pay Off My Debts Faster?

Being stuck in debt for years may create constant financial stress, and can result in substantial interest and charges accumulating.

Being stuck in debt for years may create constant financial stress, and can result in substantial interest and charges accumulating, increasing the total amount you ultimately end up repaying.

It’s easy to feel trapped in an endless cycle of debt when you are only able to afford the minimum payments each month. But there are proven strategies you can leverage to pay off debts faster by reducing interest costs and channelling more money toward attacking your balance each month.
This guide shares actionable and practical tips to help you accelerate your debt repayment.

Whether it’s adjusting your budget, making lump sum payments, consolidating debt, or even considering alternatives like debt management plans, there are options to explore.

Key Takeaways:

  • Make more than the minimum payment to pay down principal faster. Even small increments help.
  • Pay off highest interest rate debts first while making minimums on the others through the 'debt avalanche' method.
  • Consolidate multiple debts into one through a lower-rate loan to reduce interest fees.
  • Use windfalls like tax refunds, bonuses, or gifts to make lump sum payments on debts.
  • Review budgets to find areas to trim spending and divert those savings to extra debt payments.
  • Reduce interest costs through balance transfer credit cards or loan refinancing when possible.
  • Avoid taking on new debt during repayment periods so all cash flow goes toward existing debts.
  • Consider debt management plans, where it may be possible to negotiate reduced interest rates on your behalf.
  • Potentially explore options like debt relief orders, bankruptcy, or debt charities as alternatives.

How to Pay Off Debts Quicker

Pay More Than Minimums

Many lenders only require 2-3% minimum payments on credit cards and loans. This stretches out interest accumulation. Paying even 5-10% more monthly directly cuts down your balance faster. Create a realistic budget that allows for more than minimum payments.

Direct Windfalls to Debts

Use one-off bonuses, tax refunds, cash gifts, or other surprise extra funds to make lump sum payments on debts. This takes a chunk out of balances right away rather than drip feeding extra payments month-to-month.

Consolidate Debts at Lower Rates

Consolidating multiple high interest-rate debts like credit cards onto a lower interest rate consolidation loan can save money through reduced interest. More of your payment goes to the balance. Compare rates across lenders to find the best deal.

Refinance When Possible

If you secure improved income or credit, refinance debts on more favourable terms to lower interest rates. Refinancing mortgages, student loans, car loans and more can accelerate payoff timeframes.

Transfer Balances to 0% Deals

Shift credit card balances over to 0% balance transfer cards. Make repayments during the 0% period before interest kicks back in again.

Some cards offer 0% terms for up to 29 months.

There is usually a fee involved for balance transfers so it is best to shop around to check for the best terms. It is important to repay your balance in full during the 0% term, to avoid interest being charged on the debt once this term ends.

Reduce Expenses and Divert Savings

Review budgets to identify areas you can trim spending on wants rather than needs. Limit eating out, subscriptions, entertainment etc. Put those extra savings directly towards debts for faster payoff.

Adhere To 'Debt Avalanche' Payoff Order

Pay minimums on all debts, while putting any extra funds towards repaying the account with the highest interest rate first. Once that’s paid off, roll that payment amount into the debt with the next highest rate. This method minimises expensive interest fees.

When to Consider Other Debt Relief Options

For some, alternatives like debt management plans, debt relief orders and bankruptcy may be the only viable routes to dealing with overwhelming unsecured debts that cannot realistically be repaid quicker through conventional means. These options are likely to impact your credit rating but can provide a lifeline when you are unable to keep up with payments.

While not ideal, it’s important to recognise when your financial situation calls for more radical action. Continuing to take on debts without a realistic end date can dig the debt hole deeper. Speak to a nonprofit debt charity or financial advisor to discuss alternatives.
With commitment, proactive budgeting, and consistent payments over time using the right strategies, you can take control of your debt and pay it off faster than you may think.

We Can Help You Consolidate and Save

Here at Consolidation Expert, we understand the heavy burden long-term debt repayment places on borrowers. Our debt consolidation loans help streamline your repayments into one monthly payment so you can pay off what you owe faster and with less interest.

Consolidating through a competitively priced personal loan matched to your credit profile avoids the need for collateral while simplifying your finances. To check eligibility and compare top consolidation loans from our panel of specialist lenders, take just minutes to try our online tool.

You could consolidate debts quicker than you think!

We Could Help You To Consolidate and Save

Here at Consolidation Expert, we understand the heavy burden long-term debt repayment places on borrowers. A debt consolidation loan could help streamline your repayments into one monthly payment so you can pay off what you owe faster and with less interest.

To check eligibility and compare consolidation loans from our panel of specialist lenders, complete our online application.

Representative 14.8% APR

We are a broker, not a lender.

Representative Example: Borrowing £15,000 over 60 months, repaying £355.28 per month, total repayable £21,316.57.

Total cost of credit £6,316.57.

Interest rate 14.8% (variable).

The lenders on our panel offer loans for 12-360 months, with rates from 4.7% APR to 42.6% APR.

The Representative Example is based on all loans paid out by lenders between 1st Jan 2022 and 31st Dec 2022.

Further reading

Read Is it Possible to Consolidate Short-Term Same Day Loans?
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Read Can I Consolidate Holiday Loans with Other Debts?
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Read Can I Consolidate My Debts Without a Guarantor?
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