The best way to pay off debt is slowly but surely. If you are struggling with debt, then, by definition, you will not be in a position to make any quick or large inroads into your debt, so you can only start off small.
The key is not to be disillusioned by this slow progress, then lose the will to see it through. Many people end up spending more money on unnecessary items when they get a little downhearted, so becoming disillusioned is a state of mind best avoided if you sincerely want to pay off your debts.
Tips for the best way to pay off debt:
To keep enthusiastic, you might want to apply for a debt consolidation loan. You need to make a plan, write it down and stick to it. The logic is that the best way to pay off debt is to attack your larger, high interest debts first. This is certainly the most sensible approach, because these debts will be leeching the most from your finances.
Some people, however, have found that focusing on the larger debt actually does not work for them. These people have found that the ideal way to pay off debt is to hit the smaller ones first. This is for psychological reasons. A smaller debt can be paid off more quickly, and can then be crossed off the list. It gives the appearance of real progress, rather than chipping away slowly at the large debt and knowing it could be many months before the debt can finally be crossed off.
Then again, perhaps the method to pay off debt is to make a balance transfer, consolidating all your debts into one low interest loan. Reducing a credit card debt from 15% to 0% is entirely possible, provided your credit history will allow it. At 0%, you will be allowed anything from six to sixteen months to pay your dues before your rate ramps back up again. Alternatively, you can opt for a rate of 5% to 9% which is set for the life of the loan. This large, lower interest rate loan can then be tackled without the sense of panic that accompanies a higher rate of interest.
Whichever approach you decide is best for you, there is one factor that runs through all these options. You must focus on your goal and maintain your commitment. Your sights must always be on the end result of restoring your finances to perfect health. Ultimately, the best way to pay off debt is to remember how horrifying the alternative might be.