11 Ways to Quickly Get Out of Debt and Rebuild Your Credit Score to Apply for Loan

I will show you the top 11 ways to quickly get out of debt a bit faster and so that you can rebuild your Credit Score to Apply for a new loan. With this guide, you will be able to payoff your current loan, remove repossession from your credit history and grow your credit score from 300 to 800.

As of late 2017, the average American carried $6,354 in credit card debt and over $24,700 in non-mortgage debt, including car loans. Student loan balances reached a record high of $34,144.

More than half of Americans spend more than they earn each month, using credit to fill the gap, as indicated by a Pew Research study. Many people find the burden of debt overwhelming, leading them to avoid facing the reality of their financial situation by ignoring it. You must learn how to pay off your debts so that you can Rebuild Your Credit Score After Repossession for missing payments.

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At times, unforeseen events like job loss, costly home repairs, or serious illness force people to confront their financial circumstances. Such disasters can disrupt their ability to manage monthly payments, making them realize the fragility of their financial situation.

However, some people simply grow tired of living from pay check to paycheck and desire a better life. It’s perfectly acceptable to seek a simpler existence and to take control of one’s life and future. For many, becoming debt-free through hard work is the most effective way to achieve this sense of control and financial freedom.

How to Pay off Debt Fast

Here’s a list of steps to quickly pay off debt fast:

  1. Assess Your Debt: First, you must take stock of all your debts, including credit cards, loans, and other outstanding balances.
  2. Create a Budget: Secondly, develop a detailed budget that outlines your income and expenses. Try to allocate extra funds towards debt repayment.
  3. Prioritize Debts: After that, list your debts from highest interest rate to lowest. Focus on paying off high-interest debts first.
  4. Use the Debt Snowball Method: You can start by paying off the smallest debt while making minimum payments on others. As each debt is paid off, move on to the next.
  5. Cut Unnecessary Expenses: Ensure you identify areas where you can cut back on expenses and redirect that money towards debt repayment.
  6. Increase Income: Make sure you explore ways to boost your income, such as taking on a part-time job or freelancing.
  7. Negotiate with Creditors: Make calls, send email to Contact creditors to negotiate lower interest rates or more manageable repayment plans.
  8. Use Windfalls Wisely: Whenever you receive unexpected money like bonuses or tax refunds, put it towards paying off debt.
  9. Avoid New Debt: Stop using credit cards or taking on new loans while working to pay off existing debt. You can destroy you card for now.
  10. Build an Emergency Fund: Set aside some money in an emergency fund to avoid resorting to credit in case of unforeseen expenses.
  11. Stay Committed: Be sure to stay on course. Stick to your debt repayment plan and stay focused on your goal of becoming debt-free.

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Best 11 Steps to Get You out of Debt Faster

Realizing your debt is out of control and getting out of debt can be challenging and emotionally taxing. Regardless of the type of debt you have, it may take years or even decades to become debt-free.

Thankfully, there are effective strategies to expedite debt repayment and make the process less burdensome.

If you’re determined to get out of debt, here are some proven methods to consider:

  1. Pay more than the minimum payment.
  2. Try the debt snowball method.
  3. Pick up a side hustle.
  4. Create (and live with) a bare-bones budget.
  5. Sell everything you don’t need.
  6. Get a seasonal, part-time job.
  7. Ask for lower interest rates on your credit cards — and negotiate other bills.
  8. Consider a balance transfer.
  9. Use ‘found money’ to pay off balances.
  10. Do away with expensive habits and budgets.
  11. Step away from the expensive things

Now, let’s discuss them one after the other for further understanding. Let’s go;

1. Try to Pay more than the minimum payment

If you have a credit card debt of around $15,609 with a typical 15% APR and are making only the minimum monthly payment of $625, it will take approximately 13.5 years to pay off the balance. This is assuming you don’t add any more charges during this period, which can be challenging in itself.

To fasten the process of paying off your debts, it’s advisable to make more than the minimum monthly payment. This approach not only reduces the overall interest you pay but also shortens the time it takes to become debt-free. Be sure to check if your loan has any prepayment penalties before making extra payments.

If you’re looking for some assistance in this regard, there are free online and mobile debt repayment tools available, such as Tally, Unbury.Me, or ReadyForZero. These tools can help you track and manage your progress as you work towards paying down your balances.

2. Try out the debt snowball method

If you’re willing to go beyond the minimum monthly payments on your credit cards and other debts, consider using the debt snowball method to accelerate the process and gain momentum.

To start, make a list of all your debts from smallest to largest. Focus on paying off the smallest balance first while continuing to make minimum payments on the larger loans. Once the smallest balance is cleared, use the extra money to tackle the next smallest debt, and so on.

As you eliminate these smaller balances, you’ll have more funds available to address larger debts. This “snowball effect” builds confidence with each small victory and motivates you to keep going. Eventually, all the extra funds will be directed toward your debts, leading to their complete elimination and achieving a debt-free status.

3. Pick up a Side Job, Trade or Hustle

Making use of the debt snowball method will help accelerate debt repayment, but boosting your income can further enhance your progress. Most individuals possess talents or skills that can be monetized, such as babysitting, lawn mowing, house cleaning, or offering virtual assistance.

Online platforms like TaskRabbit.com and Upwork.com provide opportunities to earn extra income on the side. The crucial step is to use any additional money earned to immediately pay off loans, thereby expediting your journey to becoming debt-free. Find Job Here.

4. Create (and live with) a bare-bones budget

To fasten debt repayment, it’s necessary to reduce expenses as much as possible. One effective tool is creating a bare-bones budget, where you cut expenses to the minimum and live frugally for as long as needed.

A bare-bones budget varies for each person, but it should exclude any non-essential spending like dining out, cable TV, or unnecessary purchases. By strictly adhering to this budget, you can allocate a significant portion of your income toward debt repayment.

Remember, bare-bones budgets are temporary strategies. Once you are debt-free or closer to your goal, you can gradually reintroduce discretionary spending back into your monthly plan.

5. Sell of Everything (Car or Property) you don’t Need

If you need to generate cash quickly, consider assessing your belongings. Many of us have items we rarely use and could do without. Selling these extra possessions can provide funds to pay off debts.

Organizing a traditional garage sale, if allowed in your neighborhood, is an inexpensive and straightforward method to sell unwanted belongings. Alternatively, you can explore selling items through consignment shops, online resellers, or Facebook yard sale groups for additional convenience.

6. Get a seasonal, part-time job or Business

As the holidays approach, local retailers seek flexible, seasonal workers to maintain store operations during the busy season. You can consider taking up one of these part-time jobs to earn extra cash for your debt repayment.

Even beyond the holidays, various seasonal job opportunities are available throughout the year. Spring offers positions like seasonal greenhouse workers and farm jobs, while summer includes tour operators and outdoor temporary workers like lifeguards and landscapers. Fall brings opportunities in haunted house attractions, pumpkin patches, and fall harvest events.

Note: No matter the season, temporary jobs without long-term commitments are accessible options to supplement your income.

7. Ask for lower interest rates on your credit cards — and negotiate other bills.

When facing high credit card interest rates that impede your progress in paying off balances, consider calling your card issuer to negotiate for lower rates. It’s a common practice, and if you have a history of timely bill payments, you stand a good chance of obtaining a reduced interest rate.

Additionally, besides credit card interest, several other bills may be open to negotiation or elimination. For more insights, check out the article “Six Bills You Can Negotiate Down to Save Money.” Remember, there’s no harm in trying, as the worst outcome is a simple “no.” Reducing fixed expenses allows you to allocate more funds towards paying off your debts.

If negotiating isn’t your strong suit, you can seek assistance from services like TrueBill. This app will assess your purchase history to identify forgotten subscriptions and recurring fees, helping you make budget cuts and even negotiating bills on your behalf. There’s a guide on “How to Negotiate Debt Settlement with your Credit Card Company” I have previously written to assist you.

8. Consider a Balance Transfer

If your credit card company is unyielding on interest rates, considering a balance transfer might be a viable option. Some balance transfer offers provide a 0% introductory APR for up to 18 months, albeit with a possible balance transfer fee. You can read my previous guide on “How to do Credit Card Balance Transfer to Another Issuer with No Fee” for better understanding.

If you have a credit card balance that you can realistically pay off within the promotional period, transferring the balance to a new card with 0% APR could save you money on interest, facilitating faster debt repayment.

9. Use ‘Found Money’ to Pay off Balances

You know, most of us encounter some form of unexpected money throughout the year, which we can refer to as “found money.” It could be an annual raise, an inheritance, a work bonus, or maybe even a substantial tax refund during springtime. These windfalls can actually play a significant role in our journey towards becoming debt-free.

The idea is that whenever you receive such unexpected income, you can put it to good use by using it to pay off a substantial portion of your debts. If you’re following the debt snowball method, you can use the money to tackle your smallest debt balance first. On the other hand, if you’re left with only larger balances, these extra funds can help you make a substantial dent in those debts as well. It’s a smart strategy to leverage these opportunities and accelerate your progress towards achieving a debt-free life.

10. Do Away with Expensive Habits & Budget

When you find yourself in debt and struggling to make ends meet each month, taking a close look at your spending habits is a smart move. It’s essential to examine even the small daily expenses, as they can add up significantly over time.

The first step is to evaluate whether these daily purchases are truly worth it, considering your financial situation and long-term goals. By doing this, you can identify areas where you can cut back or eliminate unnecessary expenses.

If you have expensive habits like smoking or drinking, it’s clear that quitting them will have a positive impact on your finances. These habits not only drain your wallet but also hinder your progress towards your financial objectives.

For less extreme expenses, such as daily lattes, frequent restaurant lunches, or fast food, the key is to gradually reduce them with the ultimate goal of eliminating or replacing them with more affordable alternatives. Making these adjustments can free up a considerable amount of money that you can redirect towards paying off debt or building a more secure financial future.

In the long run, being mindful of your spending habits and making conscious choices to minimize unnecessary expenses will significantly contribute to your journey towards financial stability and debt reduction.

11. Step away from the expensive things

You know, we all have our weaknesses and temptations when it comes to spending. It could be the allure of the local mall or our favorite online store, the longing for a delightful meal at a favorite restaurant, or the temptation that comes with having a credit card readily available.

The thing is, when you’re actively working on paying down debt, it’s crucial to resist these temptations. Constantly giving in to the urge to spend can make it incredibly challenging to avoid accumulating new debts, let alone making progress on paying off the existing ones.

To tackle this, it’s best to steer clear of situations or places that trigger your temptation. That might mean taking a different route home to avoid passing by enticing shopping areas or avoiding online browsing to prevent impulsive purchases. Keeping your fridge well-stocked with essentials can also help you resist the temptation of ordering expensive takeout or dining out.

And if you find credit cards to be a significant source of temptation, consider temporarily stashing them away in a sock drawer or a safe place where they won’t be easily accessible. This step can prevent you from adding more debt to your plate and help you stay focused on your debt repayment journey.

Remember, it’s not about permanently depriving yourself, but rather making strategic choices to stay on track and achieve the goal of becoming debt-free. Once you’ve successfully paid off your debts and gained more control over your finances, you can always reintegrate those temptations in a more balanced and responsible manner.

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Professional Advice to Pay off Your Debts

You know, living in debt can become a comfortable routine if you don’t confront the reality of your financial situation. However, when unexpected events occur, they can quickly change your perspective and motivate you to seek a way out of the paycheck-to-paycheck lifestyle.

The good news is that regardless of the type of debt we’re facing—be it credit card debt, student loans, car loans, or any other financial burden—there is a path to freedom. It might not be an overnight fix, but with a well-thought-out plan and determination, a debt-free future is possible.

The key is to create a solid plan and stick to it persistently. There are various strategies we can adopt to accelerate our debt repayment journey. It could be prioritizing high-interest debts first, utilizing the debt snowball method to tackle smaller balances, or exploring debt consolidation options to streamline payments.

Believe me that by committing to any of these strategies, you can make significant progress in reducing your debts faster. And the sooner we achieve a debt-free status, the quicker we can regain control of your life and start living the way you truly desire. So, it’s all about taking that first step, staying focused, and working towards the financial freedom you deserve.


Unfortunately, the space between realizing your debt is out of control and actually getting out of debt can be wrought with hard work and heartache. No matter what kind of debt you’re in, paying it off can take years — or even decades — to get out of debt.

Fortunately, some strategies exist that can make paying off debt faster — and a whole lot less painful. If you’re ready to get out of debt, consider these tried-and-true methods:

  1. Pay more than the minimum payment.
  2. Try the debt snowball method.
  3. Pick up a side hustle.
  4. Create (and live with) a bare-bones budget.
  5. Sell everything you don’t need.
  6. Get a seasonal, part-time job.
  7. Ask for lower interest rates on your credit cards — and negotiate other bills.
  8. Consider a balance transfer.
  9. Use ‘found money’ to pay off balances.
  10. Drop expensive habits.
  11. Step away from the expensive things

Editorial Note:

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What are some strategies you have used to pay down debt quickly? Have you ever tried anything on this list?

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