Paying off debt — especially high-interest credit card debt — can feel overwhelming. If you’re juggling multiple balances, rising interest rates, or living paycheck to paycheck, it’s natural to wonder: What is the best way to pay off debt faster and not fall further behind?
The short answer: There is no single shortcut. The best ways to pay off debt fast combine smart budgeting, the right repayment strategy, and tools that reduce interest and simplify payments. When used together, these steps can help you regain control, reduce stress, and make steady progress toward financial stability.
Below, we break down 8 practical, proven ways to pay off debt faster and build smart money habits that will keep you on solid financial footing.
Tip 1: Create a Realistic Budget You Can Follow
A solid budget is the foundation of every successful debt payoff plan. One common guideline is the 50/30/20 rule:
- 50% of income for needs
- 30% for wants
- 20% for savings and debt repayment
If that breakdown isn’t realistic right now, especially if money is tight, that’s okay. Start with what is possible. Even small adjustments — like cutting one subscription or redirecting extra income toward debt — can create the momentum you need.
Tip 2: What Is the Best Way to Pay Off Debt Faster?
The best way to pay off debt faster is to follow a clear repayment strategy that fits your financial reality and keeps you motivated.
Two popular approaches include:
The Debt Snowball Method
- Pay minimums on all debts
- Put extra money toward the smallest balance first
- Build confidence and momentum through quick wins
The Debt Avalanche Method
- Pay minimums on all debts
- Focus extra payments on the highest-interest-rate debt first
- This saves more money on interest over time
If you’re living paycheck to paycheck, the snowball method can be especially effective. Early wins can free up cash and make the process feel manageable.
There’s no universally “best” method. The best plan is the one you’ll stick with month after month.
Tip 3: Build Better Money Habits to Free Up Cash
Paying off debt faster often starts with freeing up extra dollars. Small habit changes can make a big difference, such as:
- Cooking more meals at home
- Avoiding impulse purchases
- Canceling unused subscriptions
- Buying used instead of new when possible
For example, canceling unused streaming services could free up $20–$50 monthly, and delaying non-essential purchases by 48 hours can reduce impulse spending.
Every dollar saved can be redirected toward debt repayment or emergency savings, helping you move forward faster.
Tip 4: How Does Debt Consolidation Work?
Debt consolidation is a strategy that combines multiple debts into one payment — often with a lower interest rate — making debt easier to manage and potentially faster to pay off.
Common debt consolidation options include:
- Personal loans with fixed rates and predictable monthly payments
- Balance transfer credit cards with low or introductory APRs
- Home equity loans or HELOCs, depending on eligibility and goals
Debt consolidation doesn’t erase what you owe, but it can:
- Simplify monthly payments
- Reduce interest costs
- Help you stay organized and focused, reducing stress
For best results, consolidation should be paired with a solid budget plan to avoid adding new debt while balances are being paid down.
Tip 5: Automate Payments to Stay on Track
Automating bills and minimum payments helps prevent late fees, missed payments, and unnecessary interest charges.
With automated Bill Pay, you can:
- Schedule payments in advance
- Receive and manage bills in one secure place
- Avoid writing and mailing checks
- Reduce stress and stay organized
- Protect your accounts with online banking security
Plus, at 1st Ed, our Bill Pay program is free through online or mobile banking.
Tip 6: Don’t Try to Do It Alone
Accountability matters when you’re paying down debt. It can be easy to get off track or feel discouraged if you’re just a party of one on this financial journey.
Whether it’s a trusted friend, family member, or financial professional, having someone to support and encourage you can help you stay focused during setbacks.
Even a simple monthly check-in can reinforce progress and motivation.
Tip 7: Prepare for the Unexpected
An emergency fund helps prevent new debt when life throws a curveball — like a medical bill, car repair, or unexpected loss of income. This can help ensure unexpected expenses don’t undo your progress.
When possible:
- Set aside savings for emergencies
- Use windfalls (bonuses, tax refunds) wisely
- Increase retirement contributions after raises
You can also take advantage of 1st Ed’s available insurance services (like GAP Coverage or Disability Insurance) to help protect your finances.
Planning ahead protects the progress you’re making.
Tip 8: Seek Expert Guidance When Needed
Sometimes the smartest move is asking for help. Financial advisors can provide guidance on:
- Debt repayment strategies
- Savings and investment planning
- Retirement and long-term security
Seeking advice doesn’t mean you’ve failed; it means you’re being proactive about your financial future.
Do Balance Transfers Damage Your Credit Score?
Many people are concerned that a balance transfer may cause a small, temporary dip in their credit score. However, many people see positive long-term effects when balance transfers help:
- Lower overall credit utilization
- Reduce high-interest balances faster
- Simplify monthly payments
Used responsibly — especially during a low introductory APR period — balance transfers can support healthier credit over time.
How to Pay Off Debt Faster If You Live Paycheck to Paycheck
If money is tight, focus on progress, not perfection:
- Track spending to find one small area to cut
- Start with one balance instead of all of them
- Automate minimum payments to avoid fees
- Use consolidation tools carefully to reduce interest
Even modest steps can build momentum and reduce financial stress.
A Smarter Way to Pay Down Credit Card Debt with 1st Ed
If high-interest credit card balances are slowing you down, a balance transfer can be an effective tool.
At 1st Ed Credit Union, we offer a low introductory APR on balance transfers (right now 2.99% APR for 18 months) with our VISA credit cards.
Other benefits include:
- Reduced interest costs even after the introductory period (especially compared to traditional credit cards)
- Helps pay off credit card debt faster with our simple terms and competitive interest rate
- No annual fee
- No cash advance fee
- Simplified payments
When combined with smart budgeting and a clear repayment strategy, this approach can help you regain control and move forward with confidence.
Start the New Year with an Easier Debt Payoff Plan
The best ways to pay off debt faster aren’t about quick fixes; they’re about building habits, choosing the right strategy, and using financial tools wisely.
Explore 1st Ed’s balance transfer offer on new Visa credit cards, low-rate personal loan options, home equity loan options, or speak with a representative to find the best path for your situation.
Not a member yet? There’s no better time to join. Let this be the year you simplify your finances, reduce debt stress, and build a more secure financial future.