The ultimate guide to paying off debt faster

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Many people think that all debt is bad and should be avoided or paid down as quickly as possible.

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It’s essential to understand their differences so you stay away from bad debt as much as possible and leverage good debt when it can help you.

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Carrying a lot of debt damages both your credit scores and quality of life. Now that you know the difference between good debt and bad debt, what’s the fastest way to pay it off?

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Make a list of your debts

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Knowing how much money you owe is the first step to paying it off. If you haven’t already, make a list of your debts, their interest rates, and balances.

Choose a method to tackle your debts

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After you pay off your bad debts, then you can consider tackling the good ones—unless you have a better use for your money.

Pay more than the minimum

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Once you pay off that first debt, take all the money you were throwing at it and put it towards your next debt. Rinse and repeat this process until you’re debt-free.

Create a budget

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Creating a budget or a spending plan is always important, but it’s critical when you’re paying off debt.

Look for ways to increase your cash flow

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An excellent way to get out of debt faster is to increase your income, cut your expenses, or both.

Consider a balance transfer offer

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If you have multiple credit cards or high-rate loans, using a balance transfer credit card may make sense.

Celebrate small wins!

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Prevent fatigue and burnout by celebrating small wins along the way.

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