How to pay off a $30,000 debt in one year, according to experts

With a strategic approach and discipline, borrowers can pay off a large sum of debt within one calendar year. Getty Images/iStockphoto

Even in a favorable economy, owing $30,000 in debt can feel overwhelming. But it's even harder in a challenging economy with elevated interest costs. 

That's especially the case now, with average annual credit card APRs hovering around 22% and some cards charging rates near 30%. Adding to the strain, the cost of groceries, gas and other everyday essentials hasn't come down fast enough to significantly impact those struggling to make ends meet, let alone pay down debt. 

Paying down a large, five-figure amount, like $30,000 in one year is possible, but it requires a strategic plan and the discipline to stick to it. Cutting out coffee runs and creating a budget helps, but it'll take bigger, more proactive steps to free up enough cash to pay off significant credit card debt like $30,000 in a year.

Below, we'll explain how you can pay off $30,000 in debt, and what experts say can help you become debt-free by this time next year.

Start by exploring your credit card debt forgiveness options here.

How to pay off a $30,00 debt in one year, according to experts

Paying off a debt of this size won't happen with a single move. Instead, it will require a combination of the following steps:

Create a consistent repayment schedule

"While paying off a large sum of $30,000 or more in debt over one year may seem impossible to some, the reality is there are those who are able to do so successfully," says Alex Beene, a financial literacy instructor at the University of Tennessee at Martin. Beene says the first and most important step is making a repayment schedule and sticking to it. Whether that schedule is daily, weekly or monthly, the key is choosing one you can consistently follow. That consistency is crucial to digging your way out of debt.

"From the successes I've seen, the more frequent the repayment, the better, as you can see the progress more readily," he says. "It's also important to start that trend first before looking at expanding your income. The unfortunate reality is many that focus on increasing their income first normally fall victim to letting their debt go to the wayside and grow even larger."

Start tackling your credit card debt today.

Look for a difference-making savings change

Scaling back on small expenses like daily coffee or dining out can absolutely help you chip away at your debt. But a lofty goal like paying off $30,000 in debt in one year may require bigger moves to move the needle.

Gabriel Shahin, a CFP and founder of Falcon Wealth Planning in Ontario, California, says, "It's about taking one step back to make infinite steps forward." One way to do that, he explains, is by downsizing your vehicle, which could free up $5,000 to $15,000. He speaks from experience.

"When I started my company, I was $50,000 in debt—not $30,000—and it was all on zero-interest credit cards," Shahin says. "I made a difficult decision to sell my Lexus LS 430 and buy a Toyota Prius. That choice helped me redirect funds toward building my future. Needless to say, I'm no longer driving that Prius, but it was exactly what I needed at the time to move forward."

Take steps to lower your interest rate

You can pay off a large debt sooner by making sure most of your payments go toward your principal debt balances, and less toward the interest charges. Accordingly, aim to lower the interest rates on your debt, particularly with high-interest credit card accounts.

One of the most straightforward and overlooked ways to get a lower rate is to call your creditors and ask for a lower hardship rate. "Start by calling your lenders as negotiation works more often than you think," says Christopher Stroup, certified financial planner and founder of Silicon Beach Financial. "Most importantly, improving your rate often starts with simply asking." Many creditors are willing to work with you, especially if you're experiencing a documented hardship. You might qualify for a temporary rate reduction, waived fees or other concessions.

The experts we consulted agreed that 0% APR balance transfer credit cards and debt consolidation loans are useful tools to get a lower rate and pay down debt quickly.

As Beene explains, "With credit cards, the easiest way is typically to find a card targeting credit rebuilds that offer 0% transfers and interest for a period of time. That can alleviate the problem of growing debt while you attempt to pay it down."

A debt relief company can help you negotiate a lower credit card interest rate, too. Learn more here now.

Boost your income to make higher debt payments

Cutting expenses and lowering your interest rate are just one side of the equation. The other side is finding ways to bring in more income. The fastest route is often asking your employer for a raise or volunteering to work extra hours. Taking on a part-time job can also make a big impact on your monthly cash flow, but think carefully before jumping into a side hustle, says Beene.

"I avoid using the words 'side hustle' because the reality is for many, side hustles aren't what they're promoted as being," he says. "While some can generate significant income, most do not, and the financial burden of having to track income, expenses and taxes can be too time-consuming. Finding a part-time job on nights or weekends with a good hourly wage is going to be the safest option for most."

The bottom line

It's possible to pay off $30,000 in debt in one year, but make sure you address any spending patterns that contributed to the balance so you don't end up in the same situation again. If your debt situation is more serious and you're struggling to make minimum payments, you might consider alternative options. For instance, if you've already exhausted traditional payoff strategies, it could be worth exploring a debt management program (DMP) through a nonprofit credit counseling organization or working with a reputable debt relief service.

Whatever path you're considering, weigh the pros and cons carefully and make sure the strategy you choose aligns with your long-term financial goals.

Tim Maxwell

Tim Maxwell is a freelance writer who covers investing, real estate, banking, credit education and other personal finance topics.