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Pay off debt faster and cheaper. Learn about debt payoff strategies and find the best debt payoff solution to suit your needs. This website explores ways to pay off debt, including secured and unsecured consumer debts. Ways to pay off debt include both outside service help, do it yourself approaches and budget overhaul. Alternatives are explained, along with pros and cons.

There is no universal best way to pay off debt and each person has a unique set of circumstances. The best way to pay off debt depends upon multiple factors. The best payoff solution may depend on:

best way to pay off debt

  • Type of debt involved (unsecured and or secured).
  • Amount of debt to be paid off.
  • Your credit score and history.
  • Your debt-to-income ratio.
  • Your financial circumstance in general and ability to meet with payments.
  • Interest rates applicable to current debt.
  • The specific creditors owed.
  • Your acceptance of risk.
  • Availability of / access to monies with which to pay off debt.
  • Your specific pay off debt goal.
  • Inclination and ability to do it yourself.
  • Ownership of any collateral.

Pay Off Debt

Holding debt costs money in the form of interest payments; the price for using someone else's money. The higher the interest rate applicable to your debt and the longer the time before you pay off debt, the more it costs you. In simple terms, the faster you pay off debt the cheaper the cost of debt. You can of course pay off debt immediately, given a suitable lump sum of money. Since most people don't have this option, here we look at ways to pay off debt over time; tips to pay off debt most effectively and efficiently:

1. Maximize the amount of money put towards debt repayment (Budget Overhaul).
2. Maximize the Effectiveness of Repayments (Personal Repayment Techniques).
3. Minimize the amount of money wasted on interest payments (Debt Consolidation).

1. Pay off debt Through Budget Overhaul

best way to pay off debtIn many cases, in order to pay off debt successfully some degree of budget overhaul is necessary. Even those seeking outside service help must still take control of their budget in order to pay off debt effectively and deal with what is often the root cause of debt. There are two major benefits of examining your budget:


- Helps you come to grips with overspending; one of the primary causes behind debt problems.
- Helps you release and generate monies that can be put towards larger debt repayments enabling you to pay off debt faster.

a) Maximize Your Income / Generate Money to pay off debt.
b) Minimize Expenditure / Cut Spending and Cut Costs.

Free money to pay off debt. One goal of a budget overhaul is to generate and /or release money in order to increase the amount that can be used for debt repayment. Cutting back on spending and reviewing the cost of existing expenditures for cheaper options is important. Money that you can save instead of spending can be used to pay down and pay off debt faster.

2. Pay Off Debt Using a Personal Repayment Technique

Debt Pay OffWhat debt to pay off first. Reviewing and making changes to your budget and expenditures helps to ensure that you have the maximum amount of money available each month with which to make debt repayments designed to pay off debt quicker. If you have multiple creditors and a choice over the amount that you repay to each creditor each month, then you need to consider a strategy to prioritize repayments.


Techniques help determine which debt to pay off first. The goal is to successfully pay off debt in the shortest amount of time using an effective strategy. Two common techniques are:

- Avalanche approach to pay off debts
- Snowball approach to pay off debts

For a summary of these techniques see Debt Solution

3. Pay Off Debt With The Help Of Debt Consolidation

debt payoff

Debt Consolidation is an approach to dealing with the effects of debt (not the cause of debt). Consolidation alternatives can lessen the cost burden of debt, primarily by taking advantage of lower interest rates. The approaches are designed to make the debt situation more manageable and to save you money in the short-term and/or long run by the time of debt payoff.

Pay off Debt Loans

Loans to pay off debt are an immediate creditor debt payoff solution. Loans to pay off debt help end original creditor obligation by shifting the debt to a new lender. Loan pay off debt? Taking a loan to pay off debt is a way to reduce the original debt burden; a loan to pay off debt still leaves you owing the balance, but now terms should be more favorable, made possible through a lower interest rate.

As with all options, the pros and cons of a personal loan to pay off debt should be understood.

Other Debt Pay Off Consolidation Alternatives

Debt pay off through settlement or DMP are other consolidation approaches that can be followed to payoff debt more efficiently. These approaches only allow you to payoff debt that is unsecured, dealing mostly with credit card debts.

Pay Off Debt

Should you pay off debt or save money? If you are carrying credit card debt and making a routine savings deposit at the same time then the money would be better used on debt repayments. To save or pay off debt should not be confused with the debate over whether to use existing savings to pay off debt. In some situations, holding onto savings is a better strategy than using savings to pay off debt. There is no clear cut answer. What is clear is that significant credit card debt is often a sign that someone is spending beyond their means and a budget overhaul is an urgent priority and the first step forward. Pay off my debts with a service? A consolidation service may help pay off debt by leading you to the debt free goal but to pay off debt successfully requires personal commitment and sound budget control. Pay off my debt with 401K? Using 401k to pay off debt is normally considered to be a step of last resort. Grants to help me pay off my debt? There are no grants to pay off debt, that is no organization provides money simply for paying off a person's debt. Grants to pay off debt is a scam. No personal financial assistance is available as a grant. To move forward and pay off your debt in the best way start with our home page article How To Get Out Of Debt.

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