Too Much Debt? 11 Ways to Shed It by Year-End

Maybe you racked up a pile of medical bills that your salary couldn't cover. Or maybe you incurred extra childcare costs during the pandemic, and now you're deep in the hole because of it. No matter how you landed in debt, you may be eager to eliminate it by the time 2021 comes to an end. And here are a few tactics you can employ to make that happen.

Our credit card expert uses this card, and it could earn you $1,148 (seriously)
As long as you pay them off each month, credit cards are a no-brainer for savvy Americans. They protect against fraud far better than debit cards, help raise your credit score, and can put hundreds (or thousands!) of dollars in rewards back in your pocket each year.

But with so many cards out there, you need to choose wisely. This top-rated card offers the ability to pay 0% interest on purchases until late 2021, has some of the most generous cash back rewards we’ve ever seen (up to 5%!), and somehow still sports a $0 annual fee.

That’s why our expert – who has reviewed hundreds of cards – signed up for this one personally. Click here to get free access to our expert’s top pick.

You may need to start spending a lot more mindfully if you want to free up money to pay down your debt. Put yourself on a strict budget that limits your spending in nonessential categories, like leisure and travel, so you're able to work toward your debt payoff goal.

Spending less in a few minor expense categories could go a long way toward getting yourself out of debt. If you downgrade your cell phone plan, cancel a subscription box, and splurge less at the supermarket, you could put yourself in a great position to chip away at your balances.

If cutting small expenses in your budget makes you miserable month after month, an easier approach may be to choose one large expense to spend less on. That could mean giving up your car or downsizing to a smaller apartment once your lease runs out.

It takes money to pay off debt, and working a second job is a great way to boost your earnings. Best of all, there are plenty of side hustles you can pick up that don't even require you to leave the house, from telemarketing to web design to blogging.

If you get a tax refund, you have a prime opportunity to knock out a serious chunk of your debt. Resist the urge to spend that cash, tempting as it may be.

Our credit card expert uses this card, and it could earn you $1,148 (seriously)
As long as you pay them off each month, credit cards are a no-brainer for savvy Americans. They protect against fraud far better than debit cards, help raise your credit score, and can put hundreds (or thousands!) of dollars in rewards back in your pocket each year.

But with so many cards out there, you need to choose wisely. This top-rated card offers the ability to pay 0% interest on purchases until late 2021, has some of the most generous cash back rewards we’ve ever seen (up to 5%!), and somehow still sports a $0 annual fee.

That’s why our expert – who has reviewed hundreds of cards – signed up for this one personally. Click here to get free access to our expert’s top pick.

If you're sitting on a stimulus check that you don't need to cover your bills, then it pays to apply it to your existing debt. If you received a full stimulus, it means your balance could shrink by $1,400, just like that.

If you're rewarded at work for a job well done, you have another opportunity to slash some of your debt. Take those bonus or commission checks and use them to lower your outstanding balance.

If you owe money on several credit cards, it could pay to do a balance transfer, where you move your balances over to a new card with a lower interest rate. Better yet, find a balance transfer card with a 0% introductory APR for even more savings.

A personal loan lets you borrow money for any reason, and generally, personal loans come with much lower interest rates than credit cards. If you take out a personal loan and use it to pay off your credit cards, you'll save money on interest and make your debt easier to shed.

If you have a decent amount of equity in your home, then a cash-out refinance could be your ticket to paying off your nagging debt. Granted, you'll then have a larger mortgage to pay off, but given today's refinance rates, you'll save a ton on interest compared to what a credit card or personal loan might charge.

Our credit card expert uses this card, and it could earn you $1,148 (seriously)
As long as you pay them off each month, credit cards are a no-brainer for savvy Americans. They protect against fraud far better than debit cards, help raise your credit score, and can put hundreds (or thousands!) of dollars in rewards back in your pocket each year.

But with so many cards out there, you need to choose wisely. This top-rated card offers the ability to pay 0% interest on purchases until late 2021, has some of the most generous cash back rewards we’ve ever seen (up to 5%!), and somehow still sports a $0 annual fee.

That’s why our expert – who has reviewed hundreds of cards – signed up for this one personally. Click here to get free access to our expert’s top pick.

You probably have a number of gadgets or electronics taking up space in your closet that you don't really need. Or, you may have clothing, accessories, or sporting equipment you're willing to part with. If you sell those items online or hold a yard sale, you might drum up enough cash to make great progress in your debt payoff plan.

Debt can be a real drag, and the longer you carry it, the more it's apt to cost you. Follow these tips to shake your debt by the end of the year -- and kick off the new year with a nice, clean slate.