This post is part of a series called 13 Money Resolutions for 2013. One of my goals this year is to pay off over $25,000 in debt, in addition to my regular mortgage and loan payments. Thanks to the sale of my Paris flat on December 28th, I’ve already paid $9,500 towards this goal.

To reach my target, I need to come up with about $3,000 each month. This breaks down to $2,000 to meet my $25,000 goal, plus $800+ for usual repayments and paying off my credit card balances monthly. Although it doesn’t seem financially necessary, since there are 0% balance offers and my average interest rate is under 5%, I’ve decided I want to eliminate this debt in 2013.

I understand many people don’t have the luxury to choose how aggressively they can tackle their debt, often because there’s not enough money or because high-interest rates slow their progress. It’s time to take action. Repeating the same habits won’t change your situation. If you’ve followed the initial steps of the 13 Money Resolutions for 2013, you’ve likely cut unnecessary expenses, started saving, and ensured you’re getting the best deals. This should free up some extra cash, which you should use to pay down your debt.

When you manage to reduce a monthly bill, pretend you’re still paying the old amount, and use the savings to pay off your highest balance credit card. If you find an extra job, act as if you’re still earning the same and apply all the extra income towards debt. Small actions can add up quickly – change your car’s oil yourself and put the saved money toward debt.

You’ll soon find yourself making significant progress on your financial goals. The trick is not to keep the extra money but to use it immediately to pay down debt. If you save $10 by reducing your data plan, set up an automatic $10 debt payment. If you refinance your mortgage, keep making the old payment amounts to reduce the principal faster. If your loans don’t have early repayment penalties, you can make these smaller extra payments directly. Otherwise, set up a savings account for these funds and make larger payments periodically.

There are various approaches to paying down debt:

– Pay off the smallest balance first, then use that momentum to tackle the next smallest balance.
– Pay off the highest interest debt first to reduce the overall interest you’re paying.
– Add a small amount, like $5 or $10, to your regular payments each month.
– Make bi-monthly payments on your mortgage.

These strategies can accelerate your debt repayment and help you achieve your 2013 financial goals more quickly.

What strategies do you use to speed up debt repayment?