he average American household carried a total of more than $38,000 in debt in 2018, not counting balances on mortgage loans, according to a study by Northwestern Mutual. That same data found that U.S. adults were twice as likely to owe anywhere from $5,000 to $25,000 than they were to have that much in savings.

Most Americans are spending more than they earn every month, multiple studies have shown. To bridge the gap, they use credit cards, which makes it easy to see why so many are stuck with a significant amount of stubborn debt. Of course, sometimes disaster can strike, such as a serious illness or sudden job loss which can make it impossible to keep up with monthly payments – in that case you might be better off contacting one of the lawyers in Luzerne County, PA, or the county in which you live to discuss bankruptcy options. 

But if you’re hoping to pay that debt off, while it could take years or even decades before becoming debt-free, there are some effective strategies for paying it off faster, other than taking on a second or even a third job.

Use the Debt Snowball Technique

If you’re able to pay more than your minimum monthly payments on credit card and other debt, this method helps to speed up the process, build momentum and also provides you with all-important motivation. First, list all your debts from the smallest to largest amounts. Then use all your excess funds to pay off the smallest balance first, while still making the minimum payments on everything else. When that first card is paid off, use any extra money toward the next one with the smallest balance until that’s paid off and so on. 

Seeing zero balances provides a psychologic effect as you get an automatic happiness boost simply viewing that “win.” Over time, all your balances will disappear one at a time, leaving you with more money to pay off those bigger debts. Before you know it, you’ll be debt-free.

Ask for Lower Interest Rates

If you have a good credit score, meaning at least 730, and you’ve been a long-term customer with a history of making payments on time, it’s worth calling those creditors to ask for a lower interest rate. Even if it’s reduced just a percentage point or two, that can add up to be savings over a year, potentially hundreds of dollars. 

Transfer Balances

It can be a very good move financially to transfer balances from credit cards that have high interest rates to a card that has a significantly lower one, or one that offers special balance transfer deals – some offer zero percent interest for a certain period, typically 12 to 18 months. They key is to make sure you can pay it off within that amount of time or the interest rate is likely to skyrocket, which can result in paying more than you would if you hadn’t transferred the balance. Be sure to avoid making any new purchases on the card you’ve transferred the balance (or balances) too as the low or no interest rate won’t apply to those charges.