Conquering Your Debt: A 5-Step Plan

Living debt-free is a major step to financial freedom. Luckily, there are many emerging options to help you pay off your loans at a manageable rate. 

Develop a Repayment Strategy

One of the best ways to begin your journey to debt-free living is by choosing a strategy to help lead the way. Two of the most popular methods include the debt avalanche and the debt snowball. 

The debt avalanche method consists of making a list of all your outstanding debts and their minimum monthly payments and interest rates. Note which has the highest interest rates and put your focus on paying off these loans first, while keeping up with the minimum payments on your other debts. When the highest one is paid off, go to the next highest interest payment. Continue this cycle until you are debt-free.

The debt snowball method involves paying off your smallest debts, followed by the larger ones. That way, you’ll get the satisfaction of knocking debts off your plate and continue to move forward at a motivated rate and with one less interest payment. To do this, order your debts from smallest to greatest. Put as much money as possible into the smallest debts to get it paid off quickly, while paying the minimum amount on the others. Repeat the pattern until finished. 

Prioritize High-Interest Debts

Paying off higher interest debts can make your debt more manageable faster. Interests that pile up will continue to sap the life out of your paycheck (and your checkbook). 

Don’t be afraid to consider using some of your savings to get the highest interest loans paid off. While having a savings account is reassuring, if you do have some money to spare, using it can help your money work for you by getting the debts paid off.

You can also consider asking your creditors for a lower interest rate. If you have an excellent history with making payments and a good account standing, there may be options to lower the rate long term. 

Factor in Repayments

When doing your monthly budgeting, review your repayments more strategically. By putting in a greater percentage of your paycheck than needed, you can help pay off your debts much more quickly. 

Making the smallest minimum payments required by most companies tends to cost more over time due to interest rates, so by investing larger amounts of cash upfront, you’ll be able to save a considerable amount of funds in the long-term. 


Debt consolidation is another option for quicker repayment. This typically involves taking out a loan to pay off your total debt amount. By doing this, you’ll be able to pay towards just one loan per month instead of multiple debts at once. 

This is an excellent choice for people who want to be more organized and potentially pay off loans more quickly. However, be sure to check if the interest rates will be better or worse before deciding on this option.  

Supplemental Income

Living in the era of the gig economy has many benefits. If you want to pay off your loans faster, there are a lot of supplemental income options to suit a variety of skill sets. 

For example, driving for chauffeur companies, delivering food, handyman tasks, or even freelance work can all help make a big difference towards your economic goals.