4 ways to pay off your debt faster in 2023

A woman looking worried, at a table with papers and a laptop.

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If you owe money, you may want to read this.

Key points

  • Paying off debt faster can save you money in interest charges.
  • There are a number of techniques you could use to get out of debt sooner.
  • Refinancing or consolidating debt is one possible trick you can try, as well as generating additional income if possible.

Being in debt can be expensive and annoying. You’ll be forced to pay finance charges to creditors, which is money you can’t use for things that are more fun. And the fact that you have to keep making payments every month for months or even years can be a huge hassle, especially if you’re pay the debt for long vacations or things you no longer use.

If you owe money to Credit cardsloans, personal loans, or other lenders, there are steps you can take to make repayment faster and easier. In fact, if you want to make a bigger dent in your debt in 2023, these techniques can help you make that happen.

1. Getting angry at your debt

It may seem like strange advice, but try to get a little angry about the fact that you have this debt that prevents you from doing other things. If you get upset about paying all these finance charges, this can be a great motivator to get really serious about paying off debt.

After all, if you feel like you’re beating your creditors every time you send in a big extra payment and it costs them a little bit of interest, you’ll be much more motivated to make the sacrifices necessary to do so. .

If you can channel your anger over wasted funds into action and make it feel like a huge victory every time you deprive your creditor of interest charges, you’ll be moving much further on your debt sooner than you expected.

In fact, you might be excited to skip a meal or cut back on entertainment just so you can deprive MasterCard of those precious extra dollars it was hoping to get from you.

2. Refinance your loans

Lowering the finance charges you have to pay is another great way to pay off your debt faster. Every dollar of interest you can save is more money going to pay off your loan balance faster.

If you have high-interest debt, getting a personal loan at a lower rate and using the loan proceeds to pay off your more expensive loans will make your life much easier. You will have a new loan at a more favorable rate that you can focus on paying off.

3. Treat paying off debt like a job

You wouldn’t go into work without a plan for how to do your job effectively, so don’t try to pay off your debt without taking seriously how you’ll approach the task.

You can investigate different payment techniques, such as Debt Snowball vs. Debt Avalanche and decide which approach works best for you.

You can also commit to doing at least one thing every day to try to pay off your balance, whether it’s looking to refinance, clipping a coupon to save some cash on groceries that you can then divert toward your debt, or making a big batch meal to reduce costs. grocery costs and redirect that money to pay off the loan.

Finally, earning more money and putting it directly toward your loans could make a big difference in how quickly you become debt free. The more extra money you can earn, the faster and easier you can eliminate your credit balance.

Try as many of these four techniques as you can and you should end 2023 owing a lot less than when you started the year.

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