There are effective techniques for paying off your short-term debt so you can focus on other financial goals. These steps can help you get started.

1. Rework your budget

Start by finding extra money in your budget. It doesn’t have to be a lot, but it does have to be enough so you can stop adding to your debt and start paying off the amounts you owe. There are lots of money-saving ideas out there, and every little bit can help. Instead of buying books, use the library. Bring lunch to work. Combine your auto and homeowners insurance policies to receive a discount, if possible. Start with one or two strategies. Once they become habits, consider adopting another. This frees up money you can put toward your debts.

2. Earn extra income

In addition to limiting expenses where you can, you can also begin earning extra income that you’ll use to pay down your debts. Consider taking on a side job to earn extra money. Look for short-term work you can do when you have free time. Registering as a deliveryman, freelancing online, walking dogs or tutoring students are all great options that you can start doing efficiently.

3. Categorize your debts

Make a list of all the debts you have. You can sort these debts in one of two ways: from the smallest balance to the largest, or from the highest interest rate to the lowest. Once you have them listed in one place, you’ll be able to choose your strategy for paying them off.

4. Choose your payoff strategy

There are many strategies for paying off debt. Some people find that paying off a smaller debt is very exciting and gives them the momentum to keep going. However, the debt with the highest interest rate costs you the most money over time. Remember that you aren’t stuck in your choice; as long as you’re paying your minimum balances, you can change your strategy for paying off the rest at any time.

5. Reduce other debt

Refinancing can free up money you’re currently paying toward a loan by lowering your interest rate. When you refinance, you’re replacing your original loan that has a higher interest rate with a new loan that has a lower interest rate. If you have debt like a moto loan, student loan or any personal loan, you can refinance it and use the extra money you were paying on it to put toward your short-term debts.

6 Keep a record

Make sure to keep a record of how much you’re paying off so you can see your progress. This will help you stay on track and will give you encouragement to keep going.