One of the “positive” results of the recent recession is that many people who previously went through each day blindly charging expenses on their credit cards have realized the folly of their ways. With a new understanding of debt and how it has a lasting impact on their ability to reach other financial goals, more people are buckling down and facing the daunting task of reducing their debt. Unfortunately many people are realizing it will take much longer to eliminate their debt than it did to get in the situation in the first place. Out of all the debt elimination methods currently available, we will cover here three methods that result in fast debt elimination.

Snowball Method - If you are in debt and have the means (funds) to aggressively tackle your debt the snowball method will probably be your best bet to get out of debt fast. You begin by listing all of your debts in order either by highest interest rate or lowest balance. From a numbers standpoint, paying off high interest debt will result in the most savings however many people like to see the progress of paying off one debt at a time which makes choosing the lowest balance method useful. In any event, you will tackle each debt one at at time until you eliminate all debt. Start by contacting your creditor to negotiate better terms whenever possible. Then you will revisit your budget to eliminate any and all unnecessary spending. If possible you may also pick up a side job to increase your income. By taking all available disposable income and applying it to the first credit card balance you can then begin to aggressively pay down your debt. While focusing on the first account, you will continue to make minimum payments on all other accounts to keep them current. Once your first debt is paid off, you then take the money you were applying to that account and begin paying your next debt until all debts are paid in full. Depending on your resources you can quickly see your debt go down, encouraging you to continue the process.

Debt Settlement - For those people who do not have the resources to aggressively tackle their debt, debt settlement is an option that helps eliminate debt quickly. Most programs last from 12-36 months and involve negotiating a settlement on your current credit card balance. If your creditor is willing to accept a settlement, you will make one lump sum payment for less than the amount owed and your debt will be considered paid. This process is reserved for people facing a severe financial hardship with little to no means of setting up a structured payment plan. The negative consequences make it a risky process and one that should be carefully considered before selecting it as your method of eliminating debt.

Bankruptcy- The last and final resort for people who no longer have funds to meet their financial obligation. This is a legal process that involves asking the court to forgive your debt. Unlike years ago, you will not get out of debt “for free”. Whenever possible repayment plans are set up or assets are sold to repay your creditors. You may find yourself out of debt in a short period of time, however it will take years if not a lifetime to overcome the social stigma and negative impact on your credit.

Getting out of debt fast is rarely as “fast” as most people would like. Regardless of the process you choose, you should be prepared to repay your debt in some form for at least one year and perhaps several before getting back on track financially. Of course paying the minimum payment could result in a lifetime of financial struggle, so a few years doesn't seem that bad when all things are considered.