HOW TO PAY OFF DEBT FASTER — 25 PRACTICAL STRATEGIES THAT ACTUALLY WORK

Paying off debt doesn’t have to feel overwhelming. With the right structure and consistent habits, you can dramatically reduce interest, eliminate balances faster, and free up your cash flow.

Here are 25 proven strategies that can help you build momentum and get ahead financially.

1️⃣ Make an extra mortgage payment

One extra payment per year can shave years off your amortization.

✔️ reduces interest

✔️ shortens payoff timeline

✔️ builds equity faster

A single annual bonus or tax refund can make a major impact.

2️⃣ Switch to accelerated payments

Bi-weekly accelerated payments create one extra full payment each year.

✔️ lowers interest costs

✔️ speeds up amortization

✔️ easy to fit into most budgets

This simple change creates long-term savings automatically.

3️⃣ Increase your mortgage payment

A 5–10% payment increase reduces interest dramatically.

✔️ small increase → big savings

✔️ builds equity faster

✔️ easy to automate

Match annual raises and your mortgage shrinks much faster.

4️⃣ Make lump-sum prepayments

Even one lump-sum payment per year can remove years from your amortization.

✔️ applies directly to principal

✔️ reduces long-term interest

✔️ accelerates payoff

Use tax refunds, bonuses, or savings when possible.

5️⃣ Renegotiate your mortgage when rates drop

Lower interest rates reduce your payments and total interest cost.

✔️ review penalties

✔️ compare savings

✔️ assess timing

Even a small rate drop can save thousands.

6️⃣ Keep your credit score strong

Your credit score directly influences your interest rates.

✔️ pay on time

✔️ keep balances low

✔️ avoid maxing credit

Better credit = cheaper debt.

7️⃣ Consolidate high-interest debt into your mortgage

Rolling multiple debts into one lower-rate payment simplifies everything.

✔️ one payment

✔️ lower interest

✔️ structured payoff

Keep total payments the same or higher to eliminate debt faster.

8️⃣ Use RRSP contributions to generate a tax refund

RRSP deposits create refunds you can apply to debt.

✔️ reduces taxes

✔️ boosts savings

✔️ accelerates mortgage payoff

Smart planning multiplies results.

9️⃣ Go variable rate but pay like fixed

Paying a higher fixed-rate amount while on variable reduces principal quickly.

✔️ variable often starts lower

✔️ extra goes directly to balance

✔️ built-in buffer

Get professional advice before choosing variable.

1️⃣0️⃣ Port your mortgage when buying a new home

Porting helps avoid penalties and higher rates.

✔️ keeps existing rate

✔️ avoids fees

✔️ simplifies transitions

Confirm your mortgage includes portability.

1️⃣1️⃣ Automate savings toward debt

Small automatic transfers add up fast.

✔️ builds discipline

✔️ prevents overspending

✔️ creates lump-sum power

Once the account equals a full payment, apply it to debt.

1️⃣2️⃣ Use cash instead of cards

Cash reduces overspending and increases awareness.

✔️ improves budgeting

✔️ cuts impulse purchases

✔️ lowers card balances

Physical money is harder to part with.

1️⃣3️⃣ Avoid “no payment for 6 months” offers

Delayed payment plans often cost more long-term.

✔️ interest grows

✔️ payments pile up

✔️ encourages overspending

If you can't afford it now, don’t buy it.

1️⃣4️⃣ Downsize if needed

A smaller home can reduce debt dramatically.

✔️ lower mortgage

✔️ lower utilities

✔️ lower upkeep

A lifestyle adjustment can bring major financial relief.

1️⃣5️⃣ Rent out unused space

Rental income accelerates debt repayment.

✔️ basement suite

✔️ spare room

✔️ short-term rental

Even a few hundred per month makes a big difference.

1️⃣6️⃣ Convert interest into tax-deductible interest (case-by-case)

Certain structures allow interest to become deductible.

✔️ applies to business owners

✔️ applies to investors

✔️ requires proper setup

Get professional tax advice first.

1️⃣7️⃣ Create a debt priority list

Not all debts are equal.

✔️ list balances

✔️ list interest rates

✔️ rank importance

A clear plan = faster progress.

1️⃣8️⃣ Pay off highest-interest debt first

The avalanche method saves the most money.

✔️ reduces total interest

✔️ frees cash faster

✔️ speeds up payoff

Always tackle the most expensive debt first.

1️⃣9️⃣ Pay tax-deductible loans last

Non-deductible debt should be eliminated first.

✔️ maximizes savings

✔️ increases efficiency

✔️ reduces financial drag

Deductible debt can wait.

2️⃣0️⃣ Eliminate high-interest “ugly” debt early

Credit cards are the most damaging form of debt.

✔️ highest interest

✔️ fluctuating balances

✔️ expensive minimums

Clear them aggressively.

2️⃣1️⃣ Tackle “bad” debt next

Car loans and similar loans drain cash flow.

✔️ depreciating asset

✔️ long amortizations

✔️ high interest

Remove these next after credit cards.

2️⃣2️⃣ Pay off “good” debt slowly

Good debt includes mortgages and investment loans.

✔️ lower interest

✔️ secured

✔️ long-term value

Focus on harmful debt before good debt.

2️⃣3️⃣ Finance a car — don’t lease (in most cases)

Financing builds ownership and costs less long-term.

✔️ no mileage fees

✔️ no surprise penalties

✔️ more flexibility

Leasing only makes sense for certain business structures.

2️⃣4️⃣ Don’t keep savings while carrying expensive debt

Savings accounts earn little compared to what debt costs.

✔️ pay debt first

✔️ keep LOC as emergency backup

✔️ reduce interest costs

Immediate savings improve cash flow.

2️⃣5️⃣ Maintain the minimum balance to avoid bank fees

Avoiding monthly fees keeps more money available for debt.

✔️ prevents waste

✔️ increases cash flow

✔️ boosts monthly savings

Every dollar saved helps kill debt faster.

💬 Final Thought

Debt freedom is built through structure, intentional choices, and consistent habits — not drastic changes. Focus on the highest-impact strategies and apply them steadily for long-term success.

If you want a personalized debt-reduction plan tailored to your income, credit, and goals, message The Frontline Mortgage Group anytime. We’ll map it out step-by-step.