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Debt.  We've all had it.  From loans for education, buying your first car, purchasing a house, and more, we've all experienced the feeling of trying to pay back what we owe.  But what is there to do when you feel you're struggling to pay it off promptly?  What if the money you bring in doesn't even put a dent in your repayments and interest?  We're here to suggest a few ways to start confronting your outstanding debt so you can ride off into the sunset with financial freedom.

The first thing to consider is the interest rates on the debt you're paying off.  Many loans (both standard and in the form of a credit card) will have an interest rate at some point in their lifetime.  They may start at 0% through an introductory period to get you to borrow that money.  Still, they will eventually rise to a set rate once that period has concluded.  However, loans can be helpful in several ways during this introductory period. 

Opening a new credit card or loan with a 0% initial interest rate and 0% interest on balance transfers is a great way to help extend your repayment time without worrying about interest.  While you will need to run a credit check and be approved for an additional loan or credit card, a balance transfer effectively pays off the original loan that currently contains interest and transfers the same amount into a new loan that's still in its introductory 0% interest period. This might be the ideal way to pay off a credit card debt you've incurred from a long-time credit card or smaller personal loan, especially at a high interest rate. Keep in mind, some balance transfers cost a small fee when being initiated, but some institutions might allow you to do this for free!

There's also the option of refinancing for larger loans with a longer repayment period.  This is also done to repay with less interest but does not include a 0% period.  Instead, this might happen periodically when interest rates for everyone have lowered, and someone wants to match that same rate to improve their loan.  For example, suppose you have a home mortgage with an interest rate of 7%, and the market interest rate drops to 4%.  In that case, you can refinance your home to lower your interest rate and pay less over time, provided you are able to do so with your loan provider at the time.  This can't be done freely at any time but is always something to remember while paying off any long-term loans.

Suppose you're paying off multiple loans simultaneously. In that case, it may also be in your best interest to pay off the higher-interest loans first and smaller total loans as soon as possible.  While paying minimum amounts on larger loans may sound unnerving, there are a couple of advantages to getting smaller ones out of the way sooner rather than later.

Knocking out loans and lowering your overall debt will help improve your credit score, allowing you more financial freedom and possibly some better options for refinancing and balance transfers.  Secondly, the timeframe to pay them off and avoid additional interest may be much quicker.

Finally, the best way to chisel away at your debt is to watch what you spend and plan a budget.  We need to realize how much our small individual charges add up in total or over a year.  Take the time to add up all your monthly expenses, and then see if there are any subscriptions to cut out or things you can save on.  Sometimes, all it takes to cancel a service you hardly use is to realize how much it costs to keep it!  The same can be said for buying groceries rather than eating out or ordering delivery.  While this won't be the single solution to your debt, it's a sound practice regardless of debt. 

With all this being said, we know debt can be overwhelming.  Just know that most people have some form of it, as most significant purchases will require a loan to be completed.  If you have a plan on how to afford and pay it off, you can successfully end your relationship with outstanding debt and start a new future with financial freedom.