How to Get Out of Debt Faster: Tips from Financial Recovery Experts

For many Australians, debt is a silent burden—whether it’s from credit cards, personal loans, Buy Now Pay Later services, or unexpected expenses. While managing debt is one thing, eliminating it entirely is a different and often more empowering goal. Financial recovery experts agree that with the right approach, support, and behavioural shifts, getting out of debt faster is both achievable and sustainable. This article outlines expert-backed tips that Australians can apply immediately to speed up the journey to financial freedom.

Assessing Your Debt Landscape: Know What You Owe

The first step to getting out of debt faster is clarity. You need to know exactly what you owe—how much, to whom, the interest rates, due dates, and minimum payments. List all debts, including credit cards, personal loans, BNPL accounts, and outstanding bills. Understanding your total debt picture allows you to prioritise repayments and avoid missing deadlines. In Australia, where multiple credit providers operate across various platforms, it’s easy to lose track—so consolidate your data in one place.

Stop Accumulating More Debt: The First and Hardest Step

You cannot pay off debt if you're still creating it. Stop using credit cards, pause new BNPL purchases, and resist the urge to take out new loans. This might mean changing shopping habits, delaying purchases, or using debit cards instead. It’s one of the toughest shifts psychologically, but the sooner you stop the debt cycle, the faster you can begin true repayment.

Create a Customised, Realistic Budget

A generic budget won’t work if it doesn’t match your actual lifestyle. Review your income, fixed expenses (like rent, insurance, and utilities), and variable expenses (like dining, transport, or subscriptions). Set specific repayment goals in your budget. In Australia, many households underestimate small recurring costs, so tracking every dollar for a month can expose hidden spending leaks.

Use the Debt Snowball vs. Debt Avalanche Method

These two debt repayment strategies are widely endorsed by financial experts:

• Debt Snowball: Focus on paying off the smallest debt first while making minimum payments on the rest. This builds momentum and psychological motivation.
• Debt Avalanche: Pay off the highest-interest debt first. This saves the most money over time.

Choose the method that best aligns with your mindset—snowball for emotional wins, avalanche for maximum savings.

Automate Repayments to Stay Disciplined

Automating repayments ensures you never miss a due date, which protects your credit score and saves late fees. Set up direct debits through your bank or service provider. Prioritise debt payments like any other essential expense—rent, food, and transport. Automation reduces decision fatigue and builds financial discipline over time.

Cutting Expenses Strategically Without Feeling Deprived

Slashing expenses doesn’t mean cutting out all joy. Instead, identify areas where you can reduce cost without harming quality of life. Examples include:

• Cooking at home instead of takeaways
• Switching to prepaid mobile or internet plans
• Cancelling unused subscriptions
• Shopping second-hand or during seasonal sales

In Australian metro cities where costs are high, small changes can add up to hundreds of dollars monthly.

Boosting Income with Side Hustles or Temporary Gigs

Increasing your income can dramatically shorten your debt timeline. Consider freelance work, weekend gigs, part-time delivery jobs, or selling unused items. Australia’s gig economy offers many flexible options, especially in urban areas. Even a few hundred dollars a month directed toward debt can accelerate your progress and reduce overall interest paid.

Avoiding Debt Traps Like BNPL and Interest-Only Payments

Buy Now Pay Later services and interest-only loans can seem convenient but often delay real repayment. These traps keep you in debt longer by disguising the true cost of purchases. Be cautious of payment plans that encourage overspending or prolong debt with low upfront commitments. Always review the total repayment figure before signing up.

Negotiating Lower Interest Rates or Payment Terms

Many Australians don’t realise you can negotiate with lenders. Call your credit card company and ask for a lower rate, especially if you have a good repayment history. Consider refinancing high-interest debt or consolidating into a single lower-interest loan—only if it comes with better terms. Communicating with lenders also shows financial responsibility and can open up flexible repayment plans.

Seeking Professional Help: When and Why to Get Support

If your debt feels unmanageable or you're missing payments, professional advice can help. Financial counsellors in Australia offer free, confidential guidance. They can help you explore debt management plans, negotiate with creditors, and create sustainable repayment strategies. Don’t wait until things spiral—getting support early can prevent defaults and legal action.

Staying Motivated with Short-Term Wins and Tracking Progress

Debt repayment is a marathon, not a sprint. Celebrate small victories—paying off a credit card, reducing one bill, or making three consecutive on-time payments. Use a debt tracker or visual progress chart. Motivation is key to persistence, and seeing progress keeps you committed, especially during slow months or setbacks.

Faster Debt Freedom Starts with Intentional Action

Getting out of debt faster isn’t about luck—it’s about focus, structure, and commitment. By combining mindset shifts with practical steps—budgeting, cutting costs, boosting income, and seeking support—you can gain control and move toward financial freedom. In the Australian context, where cost-of-living is rising, acting early and consistently is your best strategy. Debt freedom is possible—and it begins with the decisions you make today.