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Debt can sometimes feel like an impossible challenge to overcome. However, with a defined plan and approach, you can get on the track to financial freedom. In this article we'll explore some action steps and strategies to pay off debt. 

Identify your Debt

The first step to tackle debt is to make a list of all of your balances. This should include credit cards, loans, and any other outstanding debts. With each item, include the balance, interest rate and minimum monthly payments.

Set Goals

Establish clear goals for paying off your debt. This could be a timeline for becoming free of debt, paying off a particular balance, or similar objectives. Be sure that your goals are realistic for your financial situation.

Create a Budget

A budget can allow you to identify opportunities to cut back to allocate more money towards paying off debt. It can also help you not incur any additional debt by understanding where you’re spending money.

Once you’ve noted all your debt, set goals and created a budget, it’s time to pick a method to pay it down. 

• Snowball Method: The snowball method is focused on paying off the smallest debt first while making minimum payments on the others. Once the smallest debt is paid off, you continue to pay each debt from smallest to largest. This approach can help keep you motivated by providing measurable victories as you get started.
• Avalanche Method: The avalanche method involves paying off the debt with the highest interest rate, while making minimum payments on the rest. Long term, this method will save you more money in interest.

Other Ways to Tackle Debt

Secure Lower Interest Rates

Seek opportunities to secure a lower interest rate such as a balance transfer offer or a different type of loan. By paying less interest, you can pay off your balance faster.

Consolidate or Refinance

Look into debt consolidation or refinancing options. By consolidating debt, you could make a single payment and lower your interest rate. Refinancing is another way you may be able to reduce interest on your loans.

Automate Payments

Setup automatic payments to ensure all due dates are met and no late fees are incurred.

While paying off debt requires patience and a well defined plan, the reward of financial freedom is well worth the effort.