Smart ways to pay off your debt faster

Debt Consolidation

Managing Debt

Personal Finance

+ 1

Team MONEYME|28 February 2023| 2-minute read

Debt has become part of everyday life. But, that doesn’t mean you want it hanging around forever. The longer your debt lasts, the more you end up paying—in interest and fees. That’s not to mention the emotional cost. 

That’s why we’re handing you some clever tips to help you pay your debt as soon as possible. 

Avoid late payment fees 🙅 

One-off fees might feel small, but they add up over time and will make it harder to pay off your debt. Avoid the snowball effect by making minimum repayments on time, every time.  

Plus, whenever you can, pay a little extra. Even if it’s just a few dollars each time, it’ll make a difference in the long run. If possible, make repayments more often than once a month.  

Tackle the debt with the highest interest rate first 🥊 

For most borrowers, it’s interest that causes the most financial pain. That’s especially true at the moment, with interest rates on the up.  

If you have multiple debts, work out which has the highest interest rate. Then, repay that one first, and as fast as your income will allow. Once it’s done and dusted, move onto the debt with the second highest interest rate, and so on.  

Consider using your savings 🤔 

Dipping into your hard-earned savings to repay a debt might sound unappealing. After all, aren’t your savings there so you can reward yourself with a holiday at the end of the year? 

The problem is debt is a ‘negative instrument’. It accrues fees and interest, which means it’s forever digging into your life-long savings. Sacrificing some of your savings now could be worthwhile, for a better outcome in the longer term.  

That said, it’s a good idea to hang on to some savings in case of an emergency, such as an unexpected job loss or a medical issue that prevents you from working. 

One debt is better than two (or three or four) 👆 

Got more than one debt? Struggling to juggle repayment deadlines?  

Consider rolling your debt into one. That way, your life will be simplified—because you’ll make just one repayment per month. Plus, you could end up with a better interest rate when you consolidate your debts. If you’re ready to simplify your finances, we have the solution for you.

Refinance for a shorter term 🕺 

Another option for restructuring your debt is refinancing for a shorter term. This means you’ll repay your debt over less time than you originally planned. Repayments may be higher, but the beauty is you’ll be forced to sort out your debt more quickly.  

At MONEYME, we spread loan and credit card repayments over a maximum of 5 years, unlike banks who (in the case of credit cards) allow you to repay over decades, meaning you could pay much more in interest.  

Taking control 🏆 

Being in debt can feel overwhelming. But, once you’ve made the commitment to repaying as soon as possible, and taken charge with these steps, you’ll start to feel less overwhelmed and more like you’re controlling your money—rather than it controlling you.