How to Pay Off Debt Faster in Australia
Aug 14, 2026
How do I pay off debt faster in Australia?
List every debt with its interest rate and balance, then put any extra money toward the highest-interest debt first while making minimum payments on the rest. This method, often called the avalanche method, saves the most in interest over time. If you need motivation more than mathematical efficiency, paying off the smallest balance first (the snowball method) can work better, because it builds momentum through quick wins.
Start with a full list
You can't attack debt strategically if you don't know exactly what you owe, to whom, at what rate. Write it all down: credit cards, personal loans, buy-now-pay-later, car loans. Seeing the full picture is often the most confronting and most useful step.
Avalanche versus snowball
Avalanche (highest interest rate first) minimises the total interest you pay. Snowball (smallest balance first) builds motivation through faster wins. Neither is objectively wrong, the best method is the one you'll actually stick with.
Stop the bleeding first
Extra repayments don't help much if new debt keeps piling on top. Before focusing purely on repayment speed, look at whether spending is still outpacing income anywhere, and address that first.
Consider consolidation carefully
Combining multiple debts into one, lower-rate loan can help, but only if the total cost is genuinely lower and you don't use the freed-up credit to rack up more debt elsewhere. This is general information, not a recommendation, speak to a licensed adviser or your lender about your specific situation.
Free help exists
The National Debt Helpline (1800 007 007) offers free, independent financial counselling for anyone struggling with debt in Australia. It's a genuinely useful resource and completely free.
Build the system that stops it recurring
Paying off debt is one thing, staying out of it is another. That's the habit-building side of things, which is what our Well memberships are structured around, alongside a monthly group coaching call to keep you accountable.
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This newsletter is for informational purposes only and does not constitute financial advice. Total Money Management | AFSL 568642.
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