Debt can feel overwhelming, especially when unexpected expenses throw off your financial plans. My husband and I faced this challenge firsthand after purchasing our first fixer-upper in NYC. The renovation costs quickly exceeded our budget, leaving us in a financial hole when we decided to use credit cards to finance a majority of the costs #funtimes #kidding. However, by using the right tools and strategies, we were able to eliminate our debt over time and regain our financial footing. If you’re struggling with debt, here are five powerful tools that can help you pay it off more efficiently.
5 Tools to Help You Eliminate Debt Faster
1. Debt Payoff Calculators. One of the first steps to tackling debt is understanding how much you owe and creating a realistic payoff strategy. Debt payoff calculators, like those available on NerdWallet or Bankrate, allow you to input your balances, interest rates, and monthly payments to see how long it will take to become debt-free. These tools can also compare the debt snowball vs. debt avalanche methods, helping you choose the best approach based on your financial situation.
2. Debt Consolidation Loans. If you’re juggling multiple high-interest debts, a debt consolidation loan can simplify repayment by rolling everything into a single, lower-interest loan. This strategy can reduce your overall interest payments and make budgeting easier. Companies like SoFi, Marcus by Goldman Sachs, and LendingClub offer competitive consolidation loan options, but it’s essential to compare terms and fees before committing.
3. Home Equity Loans or HELOCs. For homeowners, leveraging home equity can be a strategic way to eliminate high-interest debt. We used our home’s equity to secure a home equity line of credit (HELOC), which provided lower interest rates compared to credit cards and personal loans. This allowed us to pay off our outstanding debts faster. However, this option should be used cautiously, as your home is collateral—meaning missed payments could put your property at risk.
4. Budgeting Apps and Expense Trackers. Staying on top of your finances is crucial when paying off debt. Budgeting apps like YNAB (You Need a Budget), Mint, and EveryDollar help track expenses, set spending limits, and allocate funds toward debt repayment. By monitoring our spending and cutting unnecessary costs, we freed up extra money to put toward our debt, accelerating our progress.
5. Balance Transfer Credit Cards. If a significant portion of your debt comes from credit cards, a 0% APR balance transfer credit card can provide relief by allowing you to transfer balances to a card with no interest for a set period (typically 12-21 months). This can give you time to pay down the principal without accruing additional interest. Popular options include Chase Slate Edge, Citi Simplicity, and Discover It Balance Transfer. Just be mindful of balance transfer fees and ensure you can pay off the debt before the promotional period ends.
Paying off debt takes time and discipline, but with the right tools, it’s entirely possible to regain control of your finances. Whether you’re using a debt calculator to create a plan, consolidating loans, leveraging home equity, budgeting more effectively, or taking advantage of balance transfer cards, each tool can play a role in eliminating debt faster. If you’re facing financial challenges, don’t be discouraged—start exploring these strategies today and take the first step toward a debt-free future!