Need to pay down debt and nonetheless be capable to get pleasure from life? We now have some easy suggestions for reducing your debt whereas nonetheless having a life!
People reside with a document quantity of debt from high-interest bank cards, private loans, and the whole lot in between. The high-interest debt can result in a paycheck-to-paycheck existence for those who aren’t in a position to set some cash apart for financial savings and plan for emergencies.
Thankfully, many individuals acknowledge this problem and need to do one thing about it, new analysis exhibits. Almost 2 in 5 People say paying down their debt is their greatest monetary precedence, placing it forward of saving an emergency fund or for retirement, in accordance with a new WalletHub survey.
In the identical report, some 51% of People say their earnings (or lack of it) typically prevents them from saving for an emergency, with one other 44% blaming inflation and roughly 34% pointing to money owed they owe.
Regardless of what could be thought of a bleak outlook, there’s excellent news for many who really feel like they’re drowning in debt. One tried and true strategy to repay what you owe extra shortly is to tackle a second job or a aspect hustle, to assist knock out all of these bank card payments (and free your self from the psychological stress that comes with being in deep debt).
It’s essential to notice that not all debt is dangerous. When the debt you owe is for a mortgage or an training (from federal pupil loans, maybe), these will also be thought of investments in your future. And most houses are sometimes bought at a decrease rate of interest than immediately’s sky-high bank card charges and are paid for over an prolonged time period. You may additionally determine that it makes extra sense to prioritize placing your additional money right into a high-yield funding if the returns are better than the curiosity fees in your debt.
The place debt turns into problematic is when curiosity fees start to accrue and your minimal month-to-month funds get out of hand.
So, for our functions, we’re sharing methods to pay down the high-interest debt first, with out taking the entire enjoyable and pleasure out of life.
1. Aspect Hustles for the Win
Whereas some individuals have by no means thought of taking over additional work outdoors of a nine-to-five full-time place to make extra cash, others have been experiencing the life-changing advantages of aspect hustle tradition for years. In truth, a brand new survey from LendingTree reveals that almost 40% of U.S. adults (38% to be exact) report having a aspect hustle within the final 12 months to complement their full-time work.
What are they doing? Respondents within the 2025 survey reported that the high aspect jobs they carried out had been on-line freelancing (15%), grocery or meals supply (15%), and seasonal or part-time work (14%). Different gigs weren’t far behind within the report, with home cleansing and making and promoting issues each garnering 13%, e-commerce resale getting 12%, and social media influencing coming in at 11%, rounding out the highest spots.
The Common Earnings for Aspect Hustles
In case you are amongst those that haven’t had a aspect job in the previous couple of years (or ever), you might be genuinely shocked to learn how a lot you possibly can doubtlessly earn each month. The analysis from LendingTree discovered that these with aspect hustles reported bringing in a mean of $1,215 a month. For full disclosure, the median earnings for the research got here in at $400 monthly. However relying in your wants, even an additional $400 a month may make a giant dent in what you owe.
2. Pay Off Larger Curiosity Credit score Playing cards First
To save lots of essentially the most cash in the long term, many finance specialists say it is best to make a listing of the entire bank card debt you owe, itemizing out the annual share charge (APR) you might be paying on every card. Then, discover the cardboard with the very best charge and work to repay that card first. Keep in mind, it is best to nonetheless maintain making the minimal funds (or extra) on your entire different playing cards to keep away from late charges and different penalties.
When you repay the cardboard with the very best rate of interest, then go to the cardboard with the subsequent highest rate of interest and repeat the method. This debt reimbursement plan is named the debt avalanche methodology.
Professional tip: It’s additionally sensible to keep away from taking over any new debt when you’re already working to repay high-interest bank card debt.
3. Monitor Your “Non-Spending” and Apply it to Your Debt
Licensed monetary planner Sarah Sprague Gerber, who’s the founding father of Momentum Monetary Planning LLC, says one among her favourite suggestions for paying down debt is to trace what she describes as “non-spending.” What’s that? Gerber says it may be issues that you concentrate on spending cash on – typically within the leisure class – however find yourself deciding to not.
“For instance, if you considered throwing your husband a giant birthday bash, however then discover out that he actually simply desires some alone time, you possibly can take the $300 (or $30 or $3,000!) and apply it to your debt,” she says. “In concept, that cash was already going to be ‘gone’ out of your pocket anyway, so that you shouldn’t miss it for those who nonetheless switch it out of your checking and to your mortgage as an alternative.”
Gerber says she has helped a number of purchasers observe that method and in addition make the most of completely different spending workout routines to assist individuals slash their debt in inventive methods. “It’s at all times stunning what they discover and what they begin to discover,” she says. “We make so many choices in a day that when the results of a choice is ‘inaction,’ it typically goes unnoticed. Monitoring this ‘non-spending’ may be very useful, and may present instant gratification of seeing your debt go down.”
How does this work in actual life? “Didn’t purchase the $20 shirt at Goal? Put that $20 in opposition to your debt immediately,” she suggests.
4. Monitor Your Precise Spending
One other extra conventional strategy to method your debt administration is to trace your entire spending over longer time durations, comparable to three months (as a result of one month is simply too brief!), to establish something that you simply’re spending cash on that doesn’t align along with your values, Gerber says.
A part of this effort also needs to embody making a month-to-month finances so you possibly can monitor each greenback that is available in and goes out. To seek out the perfect budgeting methodology in your particular person wants, ask your mates what they use or Google private budgets.
For instance, one among Gerber’s purchasers discovered she was spending a lot cash on going out with pals, however realized that she may simply have them over to her condo or get a glass of wine out with them as an alternative of shopping for a complete dinner.
“I additionally be certain to say to my purchasers that they’re nonetheless getting what they worth most out of the interplay – i.e., celebrating a cherished one’s birthday or going out with pals – whereas spending much less cash. That’s a win-win,” says Gerber.
5. Reward Your self Alongside the Journey to Pay Off Debt
After making a sequence of consecutive funds or paying off a particular debt completely, purchase your self one thing that you simply don’t get to have on a regular basis, suggests Filip Telibasa, an authorized monetary planner who owns Benzina Wealth.
“This might be a meal at your favourite restaurant, a flowery cocktail, or anything.” The important thing, Telibasa explains, is to restrict the extravagance so you aren’t being overly counterproductive. And though this method may go barely in opposition to you proper now, it additionally permits you to keep disciplined over the long term.
“In the long run,” he says, “consistency would be the key to your success.”
Pay Down Debt Wrapup
Many monetary specialists say that paying down debt – and having a strong payoff plan – could be finest completed by taking over additional work, even briefly, to offer your finances a lift. To keep up your motivation, it’s additionally clever to construct in some rewards for good fee habits, comparable to splurging on a small deal with for your self while you repay a giant hunk of debt.
Whether or not you employ the debt snowball methodology or the debt avalanche methodology, persistence is vital. In any case, you didn’t construct up these high-interest bank card balances in a single day, and it’ll most likely take some time to pay it off.
For many who really feel like they’ll’t sort out their debt payoff alone, there are additionally non-profit credit score counseling providers and credit score counselors accessible to lend help and steerage to your efforts. The essential factor is to take motion and transfer ahead with efforts to pay down your excellent debt so you possibly can sleep higher and stay a happier life.
