The first rule to clearing off your outstanding debts is not to take any more debts, until you settle all outstanding dues. You can follow either of these strategies to pay off your debts quickly.
Tackle your Debts one by one. Clear the Smaller (or More Expensive) Debts First.
Start by listing out all your outstanding debts in order of long-term commitments to short-term commitments. For example, if you have an outstanding credit card bill, personal loan, and home loan, it makes sense to clear the credit card bill first, before focussing on the bigger loans. Another approach is to arrange your outstanding debts based on the interest rates. Clear debts with high interest rates first before tackling the others.
Consolidate all your Debts into One Single Loan
This way, you’re essentially moving all your debts to a single lender. This reduces your worries significantly as you have to focus on paying only one lender, instead of paying half a dozen lenders. However, note that, it may not always be possible to consolidate all your loans into a single lender. Or the new lender may charge you a higher interest rate, which will further increase your debt burden. So, evaluate the pros and cons before choosing this option.
Finally, don’t be discouraged by your slow progress. Plan your budget and set aside a specific amount every month, to pay off your debts. Stay committed and slowly, you can clear off all your debts one by one.
Additional Reading: How To Pay Off Old Or Bad Debt