The best way to pay off your technical debt is to assess what "loans" were taken at the end of each iteration. Ask your developers to identify specific hacks they would like to unwind, and quantify how much time they think they need to do so.
They do not need to pay debt off immediately, but it is good to gauge the extent of the needed repair while the shortcuts are still fresh in the developers' minds.
Would like to make this a standard part of iteration reviews.
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