Debt is a reality for many Americans.
If those numbers make you dizzy, don’t despair: Paying off debt is possible with hard work, discipline and focus.
Need some inspiration? Here’s what these 13 people did to become debt-free — and you can, too.
1. Know WHY You Want to Be Debt-Free
“My number one tip is to know why you want to become debt-free,” said Jessi Fearon of The Budget Mama.
Is it so you can travel more, leave your job or go back to school? Having a reason can help you stay on track.
“Write it down along with all the debts and amounts you owe to keep you motivated. It’ll help to keep you from spending money carelessly.”
Fearon and her husband paid off $55,000 in 17 months.
2. Look at the Full Picture
Gather all the information you can on your debt, advises Lance Cothern, the writer behind The Money Manifesto.
“Write down the loan type, the amount owed, the minimum payments, the months left on the loan, the interest rate, whether the loan is variable or fixed and any other information you may need to know,” he said.
Once you’ve done that, you can choose if you want to pay off the loan with the highest interest rate or the lowest balance.
Cothern paid off the highest-interest-rate loans first, and then variable-rate loans since he knew they could increase at any moment.
He and his wife paid off $80,000 in less than three years.
3. Stop Adding to Your Debt
Jackie Beck, who developed an app to help people get out of debt, said too many Americans think of credit as a means to an end.
If you want to be debt-free, you have to change your mindset.
“That means committing to no longer thinking of debt as a solution,” she said. “In other words, stop borrowing.”
This could mean not applying for a credit card, cutting up your current one or lowering your credit limit.
Beck paid off $147,000 in debt.
4. Only Use Cash
Blogger Jessica Garbarino recommends living on a cash budget if you’re going to pay off debt. That means canceling your credit cards and only keeping your debit card if you want to use plastic.
“Being on a cash budget will force you to make different decisions and change behavior,” she said.
“It helped me pay off $56K in debt [in five years].”
5. Remove Temptation From Your Inbox
Sometimes, paying off debt means turning off external temptation.
If you want to go one step further, Wade recommends subscribing to your favorite personal finance blogs for daily motivation.
“Your inbox will instantly turn from a money-sucking temptation to a motivation and action-based financial planner to help you get your money on track,” he explained.
Wade and his wife paid off $43,000 in six and a half years.
6. Be Candid With Friends
“Share your goals with your friends,” she said.
“Ask them to help you out by coming over to your house for entertainment rather than going out. Game night is a great way to spend time with friends, while having fun and saving money.”
Jensen and her husband paid off $60,000, mostly in student loan debt, in five years.
7. Find Free and Cheap Entertainment
Toni Perrien Husbands, co-founder of Debt Free Divas, echoes Jensen’s ideas. She put money toward debt and looked for frugal fun.
“We attended free concerts and movies in the park, attended pot luck game nights with friends, and attended outings hosted by churches or universities,” she said.
She and her husband paid off $107,000 in seven years. Talk about a lucky number.
8. Find Ways to Make More Money
“Extra income allowed me to pay off $40,000 in student loans in seven months,” she said. “There’s no way I could have cut that much out of my budget, but I definitely had extra time to devote towards earning more money.”
9. Ask for Help
You shouldn’t hide what you’re going through, said Thomas Nitzsche, media relations manager for ClearPoint.
“Many creditors have a hardship plan for those who can demonstrate a need, and there are many local nonprofits out there who can help give guidance,” he explained.
“Don’t be too proud to ask for help, but don’t contact anyone without doing your due diligence first!”
Financial counseling organizations can help answer your questions and provide solid feedback. As Nitzsche notes, check for reviews and accreditation with the Better Business Bureau. If you’re worried about missing payments, call your lenders; they’re often able to help.
Nitzsche had 60% of his medical debt written off and then set up a 12-month payment plan for the rest, which was around $2,500.
10. Create a Physical Barrier to Spending
Sometimes paying off debt requires you to get visual.
Financial coach Whitney Hansen taped her budget to her debit card. That way, she had a physical reminder not to spend money.
“It definitely saved my bacon a time or two when I was getting out of debt,” she said. Hansen paid off $30,000 of debt in 10 months.
“If nothing else, it’s a pain in the butt to remove your budget every time you want to make a purchase.”
11. Make a Visual Reminder
Military writer Kate Horrell did something similar.
“If I’m trying to tackle a particular financial goal, I make a chart and put it somewhere obvious, like on my refrigerator,” she said.
Horrell and her husband were trying to pay off a car loan when Horrell decided to chart their progress. She taped it to their fridge, where she says it became part of her daily thought process.
“It is amazing how fast you can knock something out when you are thinking about it 20 times a day.”
12. Calculate Your Daily Interest Rate
It’s one thing to know your total amount of debt, but it’s another to figure out how much you pay in interest every day, said Melanie Lockert, the blogger behind Dear Debt.
She recommends calculating your daily interest rate, using the following formula: Interest Rate x Current Principal Balance ÷ Number of Days in the Year = Daily Interest.
“Imagine what else you could do with that money,” she said. “Get mad. Take action.”
Lockert paid off $81,000 worth of student loans in nine and a half years.
13. Only Buy Groceries Online
It might sound counterintuitive, but shopping online could help you stick to your budget and pay off debt.
Financial coach Melissa Comstock Thomas recommends buying groceries online.
“You stay on budget when food shopping because you can see your balance owed as you virtually put items in the cart,” she said.
Thomas reduced her grocery bill to $450 a month — not bad for a family of four! This strategy helped her family pay off $43,000 of debt in less than four years.
Your Turn: Do you use any of these strategies or tips to pay off debt?
Zina Kumok writes about paying off $28,000 worth of student loans in three years at Debt Free After Three. She has been featured in DailyWorth, LifeHacker and Time.