Paying down your debt can help you reach your savings and financial goals more quickly. Those goals may be applying for new credit, reducing the amount of interest paid over time, or becoming debt-free.

Here are some tips for paying off debt:

Target one debt at a time.

Carrying multiple debts at one time is often overwhelming, and it can be difficult to figure out where to focus your repayment efforts first. Targeting which debt to pay off first can be done in one of two ways:

1) Pay off your most expensive loan first.

Your most expensive loan is the loan with the highest interest rate. By paying it off first, you’re reducing the overall amount of interest you pay and decreasing your overall debt. Then, continue paying down debts with the next highest interest rates to save on your overall cost. This is sometimes referred to as the “avalanche method” of paying down debt.

2) The snowball method.

With the snowball method, you pay off the card with the smallest balance first. Once you’ve repaid the balance in full, you take the money you were paying for that debt and use it to help pay down the next smallest balance. This method can help you build momentum as each balance is paid off; you see quick wins and feel like you’re making progress.

Pay more than the minimum.

Paying more than the minimum each month will help you pay off your debt and reduce your interest costs. The secret to paying off your loan more quickly is to constantly make extra payments. Some lenders permit you to make an additional payment each month, with the condition that it be applied to the principal. Check the terms of your loan before you start to see if there are any additional costs or prepayment penalties.

Pay more than once a month.

Pay your credit card bills more frequently than the required once per month. This can make it simpler for you to keep track of how much debt you owe. Paying your credit card bill regularly may also keep your credit utilization at or near zero. The percentage of your total available credit that is presently being utilized is known as your credit usage ratio. One of the factors credit reporting companies take into account when determining your credit score is the utilization ratio.

Keep track of your bills so you can pay them faster.

Utilize bill reminders and Online Bill Pay to stay on top of your debt. Simply schedule the amounts you want to pay and when you want to pay them. Additionally, you can set up payment reminders and sign up to receive eBills from payees who support electronic invoicing.

It may take longer than you'd like to crush your debt, but it is possible. Define a realistic timeline and set attainable goals. Keep working at it and best of luck!