How to Pay Off Your Debt as Fast as Possible
By Coach Jim Kaspari
Debt is a four-letter word for many. For generations, paying off everything—especially the family home—was seen as the ultimate financial dream. My parents came out of the Great Depression believing that being debt-free was the greatest safety net you could have. And while that mindset made sense then, today the world is different. The advice we receive from well-intentioned friends or family often keeps us from leveraging money in smarter, more powerful ways.
The real question isn’t just how to pay off your debt fast. The more important questions are:
Should all debt be paid off quickly?
Are some debts actually beneficial?
And mathematically, what is the fastest, most effective way to eliminate the debt you should eliminate?
Let’s shift your perspective.
The Difference Between Good Debt and Bad Debt
Bad debt is easy to recognize: buying clothes, gadgets, vacations, or lifestyle upgrades you can’t afford with high-interest credit cards. This kind of spending—driven by ego, impatience, or the need to keep up appearances—is one of the biggest traps in the American economy.
Treat yourself to the finer things in life, yes, but earn them first. The satisfaction lasts longer.
Good debt, however, is a different conversation.
In 2017, mortgage rates hovered around 4%, while inflation averaged roughly 3%. When you use a bank’s money at nearly the same rate as inflation, you’re essentially borrowing for free. Add in potential appreciation, tax deductions, and principal paydown, and a mortgage becomes one of the smartest forms of leverage available.
Another form of great debt is marketing investment within a business. Done correctly, targeted marketing should produce a 200–2000% return on investment—far outpacing any credit-card interest rate. Investing in growth consistently outperforms trying to save your way to wealth. Growth expands your income. Income expands your options. And options expand your net worth.
The Fastest Way to Pay Off Debt
Now, let’s get to the part you came for: the fastest, mathematically proven method to eliminate bad debt.
This system works every time, and there is no faster method to pay off credit cards or similar revolving debt. Set it up once, follow it consistently, and you’ll have clarity, structure, and peace of mind.
Step-By-Step System
Gather all your most recent credit card or debt statements.
List the creditor name, total amount owed, minimum payment, and interest rate.
Order your list from highest interest rate to lowest.
Decide on an extra dollar amount you can commit each month toward debt (example: $200).
For the highest-interest debt, pay the minimum payment plus the extra $200.
For all other debts, pay minimum payments only.
Once the first debt is eliminated, roll the old minimum payment into the next debt—along with the extra $200.
Repeat until all debts are paid off.
If you place new expenses on any card, pay them off in full each month to avoid backtracking.
This method—often called the avalanche method—pays off debt as fast as mathematically possible because you attack interest first. It also builds momentum with every debt you eliminate.
How it works:
You would pay Target—the highest rate—its minimum payment of $80 plus the extra $200, for a total of $280. Visa and Chase receive minimum payments only until Target is fully paid off.
Once Target is gone, the system becomes even more powerful. You now apply:
• Visa minimum: $450
• Former Target minimum: $80
• Extra monthly amount: $200
Total toward Visa: $730
Notice: you are not paying more per month overall. You are simply reallocating payments in a strategic way, allowing debt to disappear at record speed.
The Bottom Line
Debt is not the enemy—misunderstanding debt is. When you know which debt to eliminate and which debt to leverage, you gain control over your entire financial landscape. Follow this system exactly, trust the math, and stay consistent. You’ll pay off your debt faster than you ever thought possible and free up more resources for growth, investment, and opportunity.