1. It is smart to always pay more than what is the minimum amount due on all the debts, which you have. It will not only help in reducing the principal amount, it is also going to ensure that you will pay less interest than what you were supposed to, had you gone on with the actual repayment schedule.
2. If you have multiple credit cards with you and all of them have high dues on them, than rather than paying all of them at once, you should plan your repayment well. First pick the card, which has the highest interest rate. After that, pay off minimum monthly payments for the rest of the cards, but this one. Then, agressively pay off all the debts of this card till it is over. Continue the process till the point that all the credit cards are out of any dues on them. Such process of repaying the card with the higher interest rate is referred to as Snowballing.
3. If your debt is high, it is also smart to cash out the money from your savings account or even your investment. Yes, it seems a foolish decision. However, if you consider the fact that you would be saving at least 12 percent of interest on your credit card bills against insignificant returns on your savings account, you are actually making a profit.
4. In case you are having an insurance with cash value, it is sensible to cash it in and pay of the debt at a faster pace. Yes, it comes out with an interest when you repay the amount borrowed against your insurance policy. However, the interest rate is lower than what people pay for commercial loans or even the interest rates on credit cards.
5. If you have a source, family or friends, from where you can take loan, it is a smarter way to opt for that rather than going for financial institutions. You do not have to worry about interest rates in this case and again, the pressure of repayment is lesser in this case.
6. In case you have a property free from mortgage, it is a smarter move to opt for a home equity loan. These loans are cheaper and they can even get you a deduction on your annual tax returns, as most of these loans are connected to the tax exemption.
7. If you have a lot of money pending on your credit cards, the first thing, which you should do, is that you should cut down on your expenses. Use the money saved from your budgeting to pay off your debt at a faster pace.
8. You also have a scope of taking a loan from 401 (k) retirement plan. You can get up to $50,000 from your retirement plan or 50 percent of the value of the account, whichever would be smaller. The interest rate is low. At the same time, you are not paying interest to the lender. You are paying the interest to your own 401(k) account.
9. If you do not have any other source to pay your debt fast, you should contact your lenders and let them be aware of your situation. Smart lenders will give you a good consolidated deal to ensure that you never get a scope of declaring bankruptcy. Again, you also are in with a chance to clear off your debts.