24 Clever Ways to Finally Pay Off Debt

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Debt can feel overwhelming, like a huge mountain that is daunting, intimidating, and honestly a little scary. 

Many people are dealing with this feeling today, whether from student loans, credit cards, or just making ends meet. 

But what if I told you that the path to getting out of debt isn’t as hard as it seems? 

There are some pretty clever ways out there that can put you on a path to getting rid of that debt faster than you thought possible.

Forget the usual cut-out-your-coffee suggestion you always hear; I’m sure you are already doing that. 

Instead, we will look at some creative, outside-the-box ideas that might make you think twice, from using some not-so-common ways to pay off your debt to make the most of your daily expenses.

In this article, we have put together 24 clever ways for you to get out of debt once and for all. 

These are some clever yet practical strategies to tackle that debt that you are dealing with.

So, let’s get started turning that financial mountain into a molehill.

1. Cash Back Apps

Let’s start with an easy way to start paying off your debt by using cash-back apps.

There are a bunch of apps out there that let you earn cash back on your regular buys, which you can then use to pay off your debt.

After you earn the cash back amount, immediately set up a transfer to your credit card to make the extra payment.

2. Payment Challenge Team

If you have friends who are dealing with debt, why not start a friendly game of debt payment challenge?

Divide into teams, set a goal for each team member to pay off a certain amount of debt each month, and see which team can reach its goal first. It’s amazing what a little friendly challenge can do.

3. Transfers With a Twist

Of course, you have heard the advice to use 0% balance transfer offers to get out of debt, but this is with a twist.

Instead of simply moving your balances to another credit card, consider looking for a card that gives you 0% interest on balance transfers and a cash-back bonus for paying the balance within a specific period. These cards are rare, but if you can find out, you can save a good amount of money.

4. No Gifts Year

Instead of exchanging gifts with friends, why not make a pact not to exchange any gifts for a year? Explain that you are struggling financially and are looking for ways to cut back.

Instead, use the money that you usually spend on a gift and pay off your debt.

5. Round Up

A way to chip away at debt is to round up when you pay for purchases and apply the extra amount towards your debt. Some banks offer this service. If yours doesn’t look for apps that do it. Many of them, like Qapital, offer many options for how much to round up and how often to do it.

This may seem like a small amount, but with time, it can add up and make a big dent in paying off your debt.

6. Debt Tracker

Sometimes we just need to be inspired and motivated to stay on track with paying off debt.

Make a creative debt tracker or chart where you can color in each payment made towards your debt; this will show your progress and inspire you to continue.

7. Make a New Budget

Sometimes, we need to make a new budget that works better for getting out of debt.

This could include more money towards paying off your debt and less toward other unnecessary expenses. You might be shocked to see how much you are spending on random things that you can easily cut back on or cut out of your budget and not notice.

8. Negotiate 

You might have heard of negotiating with your creditors or lenders before, but what’s clever about this is how you think.

Instead of just asking for a lower interest rate, think outside the box and come up with creative ways to negotiate your debt.

For example, you could offer to pay a lump sum of money or a shorter payment term in exchange for a lower interest rate.

9. Freeze Your Spending

One of the most effective ways to get out of debt is to stop adding more to it.

So, for a determined period, try not to spend any money at all except for absolutely necessary items, starting with a month, and if that goes well, go for a whole year. If freezing all your spending seems like a lot, consider picking a category and rotating each month.

10. Hide Credit Cards

Now, this might sound like a game, but it’s a serious tactic to reduce your debt.

Take all your credit cards, and ask a trusted family member or friend to hide them from you until you are out of debt. By not having the cards, you can’t spend!

11. Delete Saved Payment Info

Many sites ask you to save your credit card details. They do this because they know the easier it is for you to buy (as in simply clicking a button versus typing in your information), the more likely you are to spend.

So, delete any payment information you have saved online. By having to type it in, you give yourself a chance to think through the purchase more, and hopefully, not spend as much.

12. Make Weekly Payments

When I say make weekly payments, I mean in addition to your monthly payment.

These weekly payments don’t have to be huge, but you need to decide what you can pay each and do it every week. Even if it is $5, that’s an extra $20 a month or $240 a year.

13. Downsize Everything

Another effective way to get out of debt is to downsize everything.

This means moving to a cheaper place, choosing a more affordable car, eating out less often, and cutting back on entertainment costs. For many people, this option is a lot easier than getting rid of cable completely or taking public transportation all the time.

14. Have Potlucks

We all like to go out to eat with friends, but you can still eat with friends and put the money you usually spend toward your debt.

Just take turns having potluck dinners with your friends and enjoy eating together without the expensive restaurant bill.

15. Make a List 

Make a detailed list of your debts so you will know where you stand.

Then, you can prioritize which debts need to be paid off first and which can wait. For many, the best option is the snowball method. This has you organize your debt from smallest balance to largest.

You focus on the smallest balance first, as you can pay it off quickly, which motivates you to keep going.

16. Use Coupons 

Another way to save money is to use coupons for groceries, restaurants, clothing, and even services like car washes.

By using these coupons, you can save more money than you might think, and then you can put that money towards paying off your debt. 

And in today’s digital world, this doesn’t mean clipping coupons. You can install browser extensions that will automatically find and apply coupons for your online purchases.

17. Think Thrifty

Set an amount for clothing in your budget, but instead of buying new clothes, shop at a thrift store.

Next, take the money you saved by shopping at the thrift store and pay it on your debt.

18. Challenge Yourself

Make a game out of getting out of debt by challenging yourself.

If you think you can pay off a certain amount in a month, try to beat that goal and pay off even more.

You can also challenge yourself to find new ways to save money and put that towards your debt.

19. Be Your Own Hired Help

If you hire someone to mow your lawn, wash your car, or clean your house, do these tasks yourself and pay yourself just like you would pay the hired help.

Take the money you paid yourself and put that extra cash towards paying off your debt.

20. Request Gifts Be Cash

If you have a birthday, holiday, or special occasion coming up, ask for cash instead of gifts.

You can then give yourself the gift of a debt-free future by using that money to pay off your debts.

Alternatively, you can ask for gift cards, and use them to make purchases. Then take the money you would have spent on and put that towards your debt.

21. Live With Family 

Living with family or friends is a great way to save money on utilities and rent until you are debt-free. 

While this might not be an option you want to pursue, it can greatly reduce your expenses, and you can put more money toward paying off your debt.

Remember, it’s only temporary and will be worth it in the long run when you are free from debt.

22. Trade Skills 

You can get friends and family to trade services with you instead of paying for them, then use the money you would have spent to pay off your debts.

For example, if your friend is a hairdresser, offer to babysit for them in exchange for a free haircut. 

23. Rent Out Your Stuff

If you have items that are not often used or that you can spare, consider renting them out for extra income to pay off your debt.

This can include tools, sports equipment, your car, or even a spare room in your house.

24. Use Savings

Instead of keeping your savings in a regular savings account, consider opening a high-yield savings account that offers a higher interest rate.

This way, your money will grow faster, and you can use the interest to pay off your debt.

Is Your Debt Out Of Control?

Do you know the warning signs if your debt is out of control? While high balances and only being able to make minimum payments are one sign, they aren’t the only one

SEE THE WARNING SIGNS YOUR DEBT IS OUT OF CONTROL

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