Research estimates that all Americans owe more than $7,000 on their credit cards alone, and the average overall debt loan per person is more than $15,000. Plus, all college graduates are already saddled with loans that top $35,000 when they leave college. Do the statistics surprise you?

Most of you owe thousands of dollars worth of debt. And every month, you pay interest on the money you borrow, interest that adds up over time. So why not pay off all the debt as quickly as possible? Once debt free, you would not have to pay any monthly payments or any amount of interest.

Sound harsh? How are you going to repay your loans? As difficult as it is, if you are determined, you can take good control of your financial situation. We’ll share with you some amazing tips that will get you out of debt fast, and then we’ll talk about what you need to do once you’re out of debt.

1. Pay more than the minimum amounts

This is advice that applies to your credit cards, student loans, and other personal loans. Considering credit cards, the average balance of any individual is around $15,000 as we mentioned at the beginning. If the APR is 15%, it means that the minimum amount to pay to the bank is only $625, which you will be repaying in around 13.5 years. Isn’t it too long? Also, let’s not forget that it will take longer to pay off the borrowed amount if you continue to use your credit cards for other purchases during this time.

Instead of paying the minimum amount, your monthly payments should be as large as possible. This will help you save thousands of dollars in interest and allow you to pay off your loan much faster. But before using this tip, contact your bank and make sure there are no prepayment penalties.

2. Try the snowball method

The snowball method is a popular strategy for paying off debt, which again relies on paying more than the minimum monthly amount. List all your debts starting with the smallest, which is the one you will tackle first. Overuse your funds and pay more than the minimum amount for the smallest debt. For your other larger debts, you would still pay the minimum amount.

Now, when you’ve paid off the smallest debt, you can move on to the next debt on your list and start paying more than the minimum amount on that one. In this way, you can continue paying all debts one by one. As your small balances disappear, you free up more dollars, allowing you to pay off your larger debts more quickly. The basic objective at all times is to use all your extra money for debts, starting from the smallest, until you have paid them all.

3. Try to increase your income streams

How many sources of income do you currently have? If you’re just doing one job, how about moving on to other businesses or part-time ventures to earn more money? Doing so will give you more control over your finances, making it easier for you to be debt free.

Reflect on your strengths and see how you can use them. Create an account on websites, like Upwork, where you can freelance in a wide range of industries. And even if you’re not a technical master, it’s absolutely fine. You can still babysit, mow the lawn, or take a job as a cashier at a local store. So earn some extra money and use it to pay off your debts. And once again, do it through the snowball method that we’ve already discussed.

4. Create a basic budget… and stick to it

One of the best and most effective ways to repay your loans is to reduce all your expenses and spend only the minimum that is required. As difficult as it can be, it is one of the fastest ways to get out of debt and is definitely worth a try to improve your financial situation.

You can create a basic budget that allows you to reduce your expenses as much as possible and live only on what is absolutely necessary. Since you all have different needs, your minimum budgets will also be different. But one common thing would be the fact that the budget would be devoid of luxuries like eating out or watching movies. Avoid all unnecessary expenses and use the amount you have insurance to pay off your debts. By the way, when you’re out of debt, you can revise your budget and increase your spending, but only as much as your income allows. Don’t go into more debt to satisfy your cravings and desires.

5. Sell items you don’t need

An easy way to get quick money that you can use to pay off loans. Go through all your belongings and reserve the things you really need and use regularly. Now sell all the remaining stuff and then use the money to get out of debt. The easiest way to sell items is probably a garage sale. But if you’re not allowed to make one in your neighborhood, you can sell online on various websites like eBay.

6. See if you can get a lower interest rate on your credit card

What are the commissions and interest rates of your credit card? And how much money goes into them? Generally, these amounts are on the higher side, often eating up a large portion of your expenses. But sometimes lenders can budget and review your rates, if you have good credit and have made your payments on time. So talk to your credit card provider and try to negotiate more favorable terms.

7. Negotiate your invoices

Your credit card provider won’t agree to lower interest rates? Don’t worry, try to negotiate your other monthly bills now. Yes, you can talk to your utility providers and they will usually be more than willing to give you a better deal. Start with your cable and satellite TV service provider because they are usually the most willing to negotiate. Prepare for the meeting, find out about the rates offered by other service providers, and then make your case. What if it doesn’t work? You’ve still done your research, right? Switch to a provider that offers a lower rate for a similar package. You can also negotiate your internet bills in a similar way. And by the way, combine your Internet and TV bills if you haven’t already, because you can get better rates when you choose the same provider for both. Also try negotiating your medical bills, insurance premiums, and rent amounts.

8. Consider transferring layovers

Another strategy you can try if your credit card provider won’t accept lower rates. Balance transfer options are quite common, and if you do a little research, you may even find an option that allows you to take advantage of 0% APR for around 12-15 months. There may be a small fee involved, usually around 3% of the transferred amount, but this is still a good option. In the long run, you can save money that you can use to pay down debt faster.

9. Combine your debts

Combining debt and credit or combining bills allows you to simplify all your bills by combining all your debts into one monthly payment. Not only is it easier to manage the loan, but you can also get a lower interest rate. The option can be used for multiple debts, multiple creditors, and multiple payments. All of these bills are settled through a debt management program, after which you make a single payment every month for the next 3-5 years. When you pay off all your debt with a single new loan, you enjoy several benefits, such as lower monthly expenses, better cash flows, greater savings, and less stress. Before signing up for any program or loan, it may be a good idea to discuss all possible debt blending options with a financial advisor.

10. Use your bonuses or increases

Did your employer reward you with a bonus or raise this year? Or maybe you got a tax refund. Whatever kind of extra money you get, avoid spending it on anything unnecessary. Instead, use it for your loans, paying more than the minimum amounts.

11. Get rid of your expensive clothes

Are any of your clothes too expensive and take up a significant part of your monthly expenses? If you are in debt, you should try to get rid of all your expensive habits. Find out how you are spending money on a daily basis, and then assess whether or not these purchases are really worth it.

Drinking and smoking are habits that you should definitely give up, not only to reduce your expenses, but also to improve your health. If you eat out frequently, avoid this as well.

12. Avoid using credit cards

When your goal is to pay off your debts sooner, you should stop using credit cards completely so you don’t increase the amount you owe. Does it seem difficult? Leave your cards at home instead of keeping them in your wallet. If you have to use them for an emergency, be sure to pay the full amount next time so no interest is added. Another option could be to use a debit card, which finances the transaction with the amount in your bank account. You are only using your own money so you don’t increase your debt.

Now that you’re debt free

Follow our advice and you will be able to pay off all your debts. And when you have achieved this goal, what do you do next? This is what we suggest.

treat yourself

Because you really deserve it after all those efforts to successfully minimize your expenses to be debt free. So allow yourself to relax, but don’t do anything too fancy.

Check your budget

Until now, you were paying all your extra money to eliminate your debts, but now that the goal has been achieved, you can use the money for something else. Think you’ve been burning out at work? Take a vacation then. Or you could use the money for a home improvement project.

But whatever you do, come up with a proper financial plan. And this plan should not be based on borrowing more money. Because if that’s the case, there was no point in getting out of debt.

increase savings

Since you are no longer in debt, you can think about increasing your emergency funds. If your savings accounts are already impressive enough, then maybe you could start saving for a new car or a down payment if you live in a rental unit.

Boost your retirement accounts

How much money have you set aside for retirement so far? Think of ways to improve your retirement plans. You can increase your monthly contribution or sign up for a different plan.

Keep in mind that if you increase your contributions by just 5% or 10%, they will all add up over the long term and become significant when you retire.

Consider alternative investments

Because some extra income is always desirable, right? Invest your savings in a new project or venture. You could enter the real estate market, the stock market, or any other industry. It all depends on how much you are willing to put up. Whatever you choose, analyze the risks and come up with effective mitigation strategies.

Establish a side business

You can even set up a side business if you have enough time and entrepreneurial skills. Get it right, and if you’re lucky, you may not need to work anymore.

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