The fastest way to pay off debt is to list every debt, pick one repayment order, cut your interest costs where the maths works, and automate more than the minimum. Choose snowball (smallest balance first) for momentum or avalanche (highest interest rate first) for the lowest interest cost, whichever one you will actually stick to. A consolidation loan or balance transfer only helps if the new rate and fees genuinely beat what you are paying now and you close or cut the limits on the old cards.
The fastest way to pay off debt is to list every debt, pick one repayment order, cut your interest costs where the maths works, and automate more than the minimum. That's the short version. The rest of this guide works through all 11 tactics, what each one is for, and when a consolidation loan does (and doesn't) belong in the plan.
Probably you, anyone juggling a couple of credit cards while another Afterpay notification pings their phone. Maybe you're asking yourself: "what's actually the fastest way to clear this credit card debt?" Or: "should I roll everything into one loan and be done with it?" Both get straight answers below.
Forget the fluff. Here's what works:
Australians hold more than $40 billion in credit and charge card balances (RBA payments data), and many cards charge interest at around 20% p.a. At rates like that, every extra dollar you put toward the principal shortens how long the debt takes to clear, which is why the order you do things in matters almost as much as the amounts.
Grab a coffee. Open a spreadsheet. List everything: balance, interest rate, minimum payment, due date, sneaky fees. Credit cards, personal loans, BNPL, that parking fine you're pretending doesn't exist.
Connecting everything to one app makes this faster and keeps it current: the WeMoney app lets you link accounts, categorise spending and set debt goals. Watching that progress bar climb becomes oddly addictive.
Already behind? Don't spiral. Ring your lender and ask for hardship assistance, or call the National Debt Helpline on 1800 007 007 (free, independent and confidential). ASIC's Moneysmart has step-by-step guides too.
Both of the classic approaches have merit, so pick the one you'll actually stick with:
Debt snowball: Pay minimums everywhere, then unleash hell on the smallest balance. Quick wins = dopamine hits = you keep going.
Debt avalanche: Pay minimums everywhere, then carpet-bomb the highest interest rate. Mathematically optimal, emotionally... slower.
Snowball lovers celebrate early victories, perfect when you've got multiple small debts nagging at you. Sure, you might pay slightly more interest overall, but momentum matters more than maths if it keeps you consistent.
Avalanche disciples save the most money long-term. But watching that 20% credit card balance crawl down while smaller debts mock you? That takes discipline.
Choose based on your personality, not what some finance guru preaches.
Here's the deal: rolling multiple high-interest debts into one fixed-term personal loan can work brilliantly. Emphasis on "can."
Your new rate (including the comparison rate, which is the real number) beats your weighted average credit card rates by a meaningful margin. And you're picking the shortest term you can stomach, not stretching it out for lower monthly payments.
Most importantly? You're closing or slashing limits on those consolidated cards. Otherwise, you're just creating space for more debt.
According to Moneysmart's guidance, extending your loan term can mean paying more interest overall, even at a lower rate. And if you keep using those old cards? You could end up worse than where you started.
If consolidation looks likely, compare properly before you apply: we've put the full walkthrough of how to compare consolidation loans in its own guide, along with what to look for in a reputable debt consolidation lender before you hand anyone your details. WeMoney isn't a lender. It's a money management app with a matching service (BrightMatch) that shows you loan options from our panel matched to your credit profile, using soft checks only (no damage to your credit file, and no hard checks a lender can see). You may qualify, subject to the lender's own assessment.
Zero percent for 24 months sounds dreamy, right? It can be, if you're disciplined enough to actually use that window.
Here's how to make it work, per ASIC's Moneysmart:
Not ideal if you're already behind on payments or lack the discipline for a strict payoff plan. Consider consolidation instead.
Weighing a balance transfer against a consolidation loan? The side-by-side is in compare debt consolidation, balance transfers and personal loans.
Paying only minimums? Moneysmart shows this can trap you for years, bleeding thousands in interest.
The fix: automate a fixed amount above minimum, scheduled for the day after your salary lands. Set it and forget it. Use your bank's calculator to pick a target date and monthly amount that actually gets you there.
Time for tough love. Press pause on everything non-essential: forgotten streaming subscriptions, that third coffee, the weekend Uber Eats spiral.
Quick wins Aussies consistently find:
WeMoney auto-detects recurring charges and flags subscriptions you've probably forgotten about. Those $14.99 monthly charges add up fast.
Ring your card provider. Ask for a lower rate. Request fee waivers. If struggling, mention hardship support.
They want you to pay successfully. Defaulting helps nobody. You might be surprised what a five-minute conversation can achieve.
Ask your bank to slash credit limits to bare minimum. As you pay off cards, close them. Ceremonially cut them up if it helps.
Keep one low-rate emergency card if absolutely necessary, then freeze it in a block of ice. Literally.
Even a modest $500-$1,000 buffer stops car repairs or dental emergencies becoming new credit card debt. Park it in a separate high-interest savings account. Label it "Break Glass in Emergency."
Watching utilisation drop and on-time payments stack up? That's dopamine gold. Plus, it's rebuilding your credit score for future you.
WeMoney tracks your free credit score with trend charts alongside debt balances. Seeing both lines move in the right direction keeps you hungry. If consolidation is on your shortlist, the score side is covered in does debt consolidation affect your credit score.
Pro tip: Checking your own score in WeMoney is free and uses soft checks only, no damage to your credit file, and no hard checks a lender can see.
No shame in needing help. The National Debt Helpline on 1800 007 007 is free, independent and confidential, and the financial counsellors there can help you work out a plan and negotiate with your creditors. ASIC's Moneysmart has plain-English guides covering everything from balance transfers to bankruptcy alternatives.
Qualify for a much lower fixed rate and want one predictable payment? Consolidation loan might be your move, but close those old cards.
Can clear everything in 6-24 months with military discipline? Balance transfer could work, just don't touch that new card for purchases.
Want the absolute lowest interest cost? Avalanche method. Need quick wins to stay motivated? Snowball all day.
Already behind or overwhelmed? Call the National Debt Helpline before applying for new credit. Seriously.
Say you've got $5,000 on a card at 20.99% p.a. (illustrative) and you're paying $250 a month. That's roughly 25 months to clear it and about $1,200 in interest.
Consolidate into a 10.9% p.a. (illustrative) personal loan over 24 months and the interest comes to about $590. Add a $195 establishment fee and the total cost is about $780. The difference is a few hundred dollars, enough to start that emergency buffer.
Your own numbers will land differently (rates, fees and how hard you attack it all move the result), and remember that a longer term can lower the repayment and still cost you more in total. To run the same working-out on your own debts, start with how much consolidation could cost or save.
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WeMoney is a money management app and credit intermediary, not a lender. Inside the app:
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Highest interest (avalanche) saves money. Smallest balance (snowball) builds momentum. Pick whichever keeps you consistently paying extra. Consistency beats optimisation.
If the comparison rate's genuinely lower, fees are reasonable, you won't extend the term unnecessarily, and you'll actually close those old cards? Then yes, it can accelerate your payoff.
The application adds a hard inquiry, a minor temporary ding. But clearing balances and reducing utilisation? That's long-term credit score gold.
Contact your lender's hardship team immediately or call the National Debt Helpline on 1800 007 007. Free financial counsellors will help you negotiate and plan. Don't wait.
Minimum viable number. Most Aussies do fine with one low-rate/low-fee card for emergencies. Cancel the rest post-payoff to eliminate temptation and fees.
Your score might wiggle when limits and account age change. But eliminating debt risk and avoiding fees? Usually worth the temporary blip. If score's crucial, reduce limits first, then gradually close cards.
BNPL can still spiral into over-commitment and late fees. Treat it like any other debt: list it, pay it down, and pause new BNPL while in payoff mode.
This article is general information only. It doesn't take your circumstances into account.
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