The 10 Most Effective Ways on Clearing Debts

Happy asian on beach being debt free

With the financial situation getting tighter every other day worldwide, debts may become almost impossible. However, with a good plan, commitments, and self-discipline, you can clear your debts.

Student loans, credit debt, mortgages, personal and home equity loans- name them all; are some of the commonest debts tying people today. Sadly, some people cannot pay off their existing debts and keep adding more, making them slaves to their lenders. Are you one of them? Worry not; with a good plan, commitment, and self-discipline, you can clear off all your debts, attaining financial freedom. Here are some easy but manageable tips that will help you pay off debts.

1. Work With a Budget

One of the commonest reasons people end up being debtors, even for unnecessary debts, is impulse spending. This refers to the tendency of buying everything and anything that impresses you, even if it’s not in the budget. Although this practice can be deeply ingrained, you can be free of it. The easiest way to do this is working with a budget; sit down toward the end of the month and write down what you have versus what you need. Plan your income and compare it with your expenses, and by tracking the two, you will have enough to pay off any existing debts and avoid new ones. If you find it challenging to make your budget, try a budgeting app and make things easier for yourself.

2. Clear Off the Most Expensive of Debts

In some cases, you may have more than one debt. For such situations, clearing the most expensive debts is the best way to go. Check all your credit cards and sort them in descending order, so you know the most expensive and the cheapest debts. As you pay the largest debt, you boost your annual repayment, ultimately increasing your credit points.

3. Seek Professional Help

Paying off debts is not about how much you earn but your spending habits. Interestingly, you might come across people with the largest-figure earnings, yet they have mired in debts their whole lives. Contrastingly, you will also come across people who barely earn anything, but because of good spending habits, are living a debt-free life. So then, streamlining your spending practices goes a long way to help you avoid debts and clear the existing ones. Besides, professional organizations like provide professional advice to make whoever needs it financially literate. Such bodies can help you streamline your expenditure and pay off your debts.

4. Get the Entire Family Involved

One common financial crisis in families is pulling the burden by yourself. Simply put, it’s a situation whereby one family member is involved in all the financial matters, and the rest only spend. This is dangerous, and if you are going to clear the debts you have fast, you have to involve all the members. It really doesn’t matter how much savings you have if your family members keep spending and borrowing without regard for your debt repayment strategy. In contrast, bringing the entire family on board and discussing everything about your debts helps them ensure self-discipline in their spending and even come through to help you.

5. Go Higher Than the Minimum Payment

Although every credit card has a minimum amount one should pay every month, it doesn’t mean that you can pay more than that figure. Therefore, one strategy that people employ to clear debts is going above the minimum every month. Remember, the longer you take to repay your debts, the more expensive it gets. Consequently, topping up your payment and going above the minimum every month helps you pay less in the long run.

6. Stop Credit-spending 

Purchasing stuff using credit cards may come with incentives from time to time, which is why credits are on the rise. Therefore, one effective way to pay off debts and avoid new ones is to avoid using credit cards. Instead, use cash even if you will not get incentives. However, if you have to purchase items with credit cards, ensure your financial status is in control since every time you buy something, your debts keep accumulating. 

7. Renegotiate Your Credit Card Debts

Like any other flexible business, credit card debts are negotiable. What’s more, just a phone call can take you far when it comes to renegotiating your credit card debts, otherwise called credit settlement. Start by reviewing your credit and payment history, and with everything on point, call the lenders and ask for a lower interest. If that’s not possible, ask for a waiver, and if that too fails, pay the full amount once, and you won’t have spent so much still. In fact, paying a lump sum amount has proven to be cheaper than the recurring monthly installments.

8. Employ a Debt Repayment App

If you know your debt details, including the outstanding debt, the stipulated repayment period, the rates you are charged, you can pay off your debts easily. It even gets better if you have information about the offers your lenders have if you follow a particular repayment plan, an advantage a debt repayment will offer you. Remember, you download the app once, but use it for as long as you want to get assistance repaying your debts.

9. Take Advantage of Deals

Deals are some of the greatest economic saviors you can have around. Please take advantage of them and cut down your expenses to save extra pence to settle your debts. For instance, do your shopping stores offer deals at particular times, say mid and end the month? Time these deals and reduce your spending. 

10. Diversify Your Income

Inflation is real, and currencies keep losing their value. Yet, the economic situation keeps getting tighter every other day, and you have to spend more on commodities. The best way to meet your financial needs amidst all this is to diversify your income. If you depended on one job, you could consider working for two or more jobs or taking a part-time job. Interestingly, you may never know the value of the $50 you earn from extra income.


Debts are becoming almost impossible as living standards become expensive every day. However, if you are committed to paying debts, are well-disciplined, and have a debt repayment strategy, you can settle your debts. Some ways of doing so include having a budget, taking advantage of deals, paying more than the minimum credit amount every month, involving the entire family in financial decisions, and paying the most expensive debts fast to boost your credit points.