Prioritise Your Debts

Assess how much you owe. It is easier to rank this from small amounts to the biggest to make the process less overwhelming. The next step is to prioritise your debts by listing them from highest interest rate to lowest. Focus on paying off the debt with the highest interest rate first, while making minimum payments on other debts. This will save you money in the long run and help you pay off your debts faster. You can also choose to reverse this by starting with the small amounts and working your way to paying the large amounts. 

Consider Debt Counselling

Debt counselling can be a helpful resource if you are struggling with debt. A debt counsellor can provide you with practical advice and tools to manage your debt and create a plan to pay it off. They can also negotiate with your creditors to lower interest rates and monthly payments. However, make sure that you understand any terms and conditions that can come with this option. 

Create A Budget

A budget can help you understand your income and expenses and identify areas where you can cut back. Start by listing all your income sources and fixed expenses such as rent, utilities, and insurance. Then, list your variable expenses such as groceries, entertainment, and transportation. Be honest with yourself and track every expense for a month to get an accurate picture of your spending habits

Consolidate Your Debts

Consolidating your debts into one loan can simplify your payments and lower your interest rate. This involves taking out a new loan to pay off multiple debts. However, be sure to compare interest rates and fees before choosing a consolidation loan, as some loans may have higher fees or longer repayment periods.

Avoid Taking On More Debt

Reducing expenses is one of the most effective ways to reduce debt. Look for ways to cut back on non-essential expenses such as dining out, entertainment, and subscriptions. Consider finding cheaper alternatives or cutting back on these expenses altogether.

Diversify Your Streams Of Income 

Increasing your income can help you pay off your debts faster. Consider other ways of diversifying your income to help you pay off your debt. You can also sell unused items or participate in the gig economy to earn extra money.

Use bonuses to pay off what you owe

If you receive a windfall such as a tax refund, inheritance, or bonus use it to pay off your debts. It can be tempting to spend the money on other things, but the aim is to reduce how much debt you owe.