How to Crush Debt Faster: Proven Habits for Financial Freedom

How to Crush Debt Faster

For some people, the thought of being stuck in a vicious loop of debt is so distressing that they don’t want to wish that upon their worst enemy. If you are currently stuck in a financial rut yourself, you may understand why it is so stressful to have the burden of debt on your shoulders.

But having debt on your name doesn’t mean that all is lost. If you have regular income coming in, you can often settle your debts by following choice tips. To help you with these financial woes, here’s how to crush debt faster.

Understand How Much Debt You Have

While some people reap the benefits of dealing with cash home buyers, others are stuck managing a lifetime of mortgage. To determine how much debt you have on your name and how much time it may take for you to pay it off, take a beat to calculate all the money you owe to different lenders. This helps you get a clearer picture of your situation.

Check Where Your Credit Stands

After you have a better idea about all the debt that you owe, you should get your credit report from one of three major credit bureaus. This report tells you what is your credit score, what type of payments have you missed in the past, and if there are any overdue payments that you need to address. This is a crucial step for making a plan to repay your debt.

Make a Budget and Follow It

Whether you have debt or not, it’s always a good idea to make a monthly budget and track your transactions through it. This helps you keep a close watch on your income and spending, as well as understand how much you can potentially save every month. With solutions like a bullet journal budgeting tracker, you can easily follow this tip and stay on track for paying off your debts.

Be On Time With All Your Monthly Payments

Regardless of how many loans or credit cards you have on your name, you should make it a point to make all of their monthly payments on time. Besides helping you chip away at your debt, this practice also lets you protect and improve your credit score. This process becomes easier once you start following tips for budgeting and have the proper funds set aside for monthly payments.

Be On Time With All Your Monthly Payments

Look Into Refinancing Your Debt

If your debt is significantly large and you have some assets on hand in accounts like a cryptocurrency wallet, you can sell them to pay off your loans and credit cards. But if you don’t have any assets, you can consider refinancing your debt. This process delivers you a loan for the sole purpose of repaying your debt. You can then enjoy perks like better interest rates or affordable monthly payments for this loan. 

Pay Off Expensive Debt First

In addition to refinancing your debt, you can also look into your most expensive debt that comes at high interest rates and consider paying that off. But here, you need to remember that if it is your oldest credit account, the action could lower the average age of your credit history and impact your credit score. This calls for you to understand the importance of financial analysis and make an informed decision.

Prioritize Settlements By Debt Size

In some cases, paying off your smallest debt and then moving on to the next largest debt can also help you settle the amount you owe to lenders. Once again, you need to be careful during this step because it can mean closing your oldest credit account or disrupting the ideal credit mix of having at least one credit card/line of credit and one loan on your name.

Speak to a Professional

If you have to solve a home repair problem, you may find vendors through a home services app. In case you want to address a technology issue, you may call a computer technician. Similarly, if you find yourself overwhelmed with figuring out a plan to repay your debts, you might want to consider reaching out to a financial planner. These professionals charge a small fee, but it pays off in the long run by helping you take control of your financial goals.


Through these suggestions, you can finally reach the financial freedom that you deserve. This helps you live a more comfortable life that’s free of stressful debts.

Marcus Cole

Meet Marcus Cole, your friendly neighborhood wordsmith. With a passion for penning tales that stir the soul, Marcus has honed his craft as a blog writer extraordinaire. Armed with a keyboard and a keen eye for detail, he transforms ideas into engaging narratives that leave readers craving more. Marcus doesn't just write; he orchestrates symphonies of words, crafting stories that resonate long after the final paragraph. With a knack for SEO and a flair for captivating content, Marcus ensures that every blog post is a journey worth taking. Join him on his literary adventures and let your imagination soar.

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