Want to know a scary number? The average American household carries over $15,000 in credit card debt, plus $40,780 in auto loans and $58,140 in personal loans. Just making minimum payments barely keeps the balances from growing. On a $15,000 credit card balance alone, minimum payments cost $375 every month—and $300 of that goes straight to interest.
Every time you try to get ahead, something happens. The car needs a $600 repair. The kids need $150 in new shoes. The utility bills jump $85 unexpectedly. Meanwhile, those credit card statements keep arriving, and the numbers keep climbing. Each month of minimum payments adds another $300 in interest charges – that’s $3,600 a year just in interest payments.
But getting out of debt doesn’t require a huge income or a financial miracle. After paying off $37,000 in debt myself, I discovered it comes down to giving up specific habits that keep us stuck. These six changes cost nothing to implement but can save you $500-$1,000 monthly to put toward debt payoff. They’re not always easy, but they work – even on a tight budget.
Also See: What $37,000 in Debt Taught Me About Money
1. Subscriptions You Barely Use
Pull up your bank statement right now. I’ll wait.
Look at all those monthly charges hitting your account. Netflix, Hulu, Disney+, that gym membership you swore you’d use, those subscription boxes that seemed like such a good deal. Each one might seem small, but they add up fast.
My husband and I found $127 in monthly subscriptions we barely used. That’s $1,524 a year – money that could go straight to debt payoff.
Take Action Today:
- List every subscription you have
- Write down the monthly cost of each
- Be honest – which ones do you actually use?
- Cancel everything you haven’t used in the last 30 days
2. The “I Deserve It” Mindset
“I worked hard this week – I deserve this new shirt.”
“I saved money on groceries – I can spend it on something else.”
“It’s been a rough day – I deserve a treat.”
Sound familiar? I used to tell myself these same things. But here’s the truth – you deserve financial freedom more than any temporary purchase.
Take Action Today:
- Track every “I deserve it” purchase for one week
- Write down how you felt before and after buying
- Replace shopping rewards with free alternatives
- Put the money you would have spent directly toward debt
3. Brand Loyalty
Generic brands used to make me nervous. What if they’re not as good? But when I actually tested them against name brands, I couldn’t tell the difference most of the time.
Switching from name-brand to store-brand products saved my family over $200 monthly on groceries and household items. That’s $2,400 a year going toward debt instead of fancy packaging.
Take Action Today:
- List your 5 most expensive brand-name products
- Try the store brand version of each one
- Keep what works, switch back only if there’s a real difference
- Calculate your monthly savings
4. Your Plastic Dependency
This was a big one for me. Swiping a card doesn’t feel like spending money. But hand over twenty actual dollars? That hits different.
When we switched to cash for groceries and everyday spending, our monthly expenses dropped by almost 25%. Why? Because cash is real. You can see it. Feel it. Watch it disappear.
Take Action Today:
- Take out cash for one spending category
- Use envelopes to separate your cash by purpose
- When the envelope’s empty, you’re done spending
- Track the difference between your cash spending and your usual card charges
5. Shopping Without a List
Walking into Target without a list? That’s dangerous territory. I used to go in for toothpaste and come out $100 poorer.
Lists aren’t just about remembering what you need – they’re about remembering what you don’t need.
Take Action Today:
- Make a list before every shopping trip
- Stick to it. No exceptions.
- If it’s not on the list, it doesn’t go in the cart
- Write down everything you wanted to buy but didn’t
- Calculate how much you saved by sticking to your list
6. The “I’ll Start Tomorrow” Excuse
Every day you wait to start tackling your debt costs you money in interest. Real money. Your money.
If you have $15,000 in credit card debt at 18% interest, waiting just one month to start paying it off costs you $225 in interest alone.
Take Action Today:
- Calculate how much interest you’re paying daily
- Pick one thing from this list to give up today
- Move the money you save straight to debt payment
- Set a reminder to check your progress in one week
Next Step
Getting out of debt isn’t easy. If it was, everyone would do it. But it is possible. I know because I’ve done it. Each of these changes might feel small on its own, but together? They’re powerful.
You don’t have to make all these changes at once. Pick one. Start there. But start today. Because tomorrow’s freedom is worth today’s sacrifice.
What will you give up first?