5 Things to Give Up to Get out of Debt - The Million Dollar Mama (2024)

Debt – everyone’s favorite topic of conversation over dinner, right? Probably not.

According to NerdWallet, theaverage American household has over $15k in credit card debt alone. Add student loans, car loans, and other consumer debt into the equation and the amount of debt a lot of people are carrying skyrockets. The good news is, you don’t have to live the rest of your life drowning in debt. It’s not going to be easy (but nothing worthwhile ever is.)

You may also try these financial planning tips for newlyweds if you’re just starting out.

5 Things to Give Up to Get out of Debt - The Million Dollar Mama (1)

1. Your Free Time

One of the best ways to get out of debt it to start looking at your spare time from a different angle. Too often, we use our spare time as an opportunity to spend money. Even if we don’t go out with intent of spending, we usually end up doing.

Instead, start looking at your spare time as an opportunity to start making money.

There are tons of different ways you can make extra money in your spare time, and a lot of them can be done from home.

Check out:

How to Get Paid Up To $22/hr Teaching English Online (Along With a Link to Apply!)

10 Real Ways to Make Money Online That Aren’t Online Surveys

How to Make Money From Home as a Virtual Assistant

50 Online Jobs and Business Ideas for Moms

The Top 5 Legitimate Survey Sites That Pay Real Money

Additionally, starting a blog in your spare time can be an amazing way to make money from home. I make a full-time income blogging, so it’s definitely my favorite! If blogging is something that sounds like fun to you, then make sure you enroll in my free blogging course for beginners. Just enter your details in the form below to sign up.

2. Eating Out

It’s nice to dine out every now and then, but did you know that Americans now spend more money at restaurants than they do at grocery stores?

With the average cost of a restaurant meal being almost $13 (plus tip), this amounts to $65 per person, per week if you dine out 5 times. Considering that a healthy meal that feeds a family of four could easily be made for $10 (or less), you’ll save a lot of money by making your own meals at home.

Meal planning makes it really easy to start cooking your meals at home.

If you’re into the Paleo diet (or if you just like eating meat) you also might want to check out Paleo Plan. They offer awesome meal plans (plus a ton more) and they offer a free Paleo Starter kit so you can check them out for free before you commit to anything.

Additionally, make sure you download the free Ibotta app, which gives you cash rebates on hundreds of items at the grocery store. Get a bonus $10 just for signing up.

3. YourCluttered Closet

If your closet is overflowing with clothes (but you still have nothing to wear!) don’t worry – I was there! Then I discovered ThredUp. I decluttered my closet and made some extra cash by selling my old clothes – win-win! In the process, I also found that I no longer have the problem of not having anything to wear. It seems like the less I have, the easier it is to choose an outfit 🙂

You can join ThredUp here, and you’ll get a $10 bonus credit.

4. Mindless Spending

According to a surveydone by Visa, the average consumer spends over $1000 a year on “mystery spending.” All of those small purchases you make, but don’t remember – a candy bar at the grocery store, a frappuccino at the Starbucks drive-through, a bottle of nail polish at the drugstore – constitutemindless spending. Being mindful about every purchase you make will make a big impact towards reducing your debt.

5. A Keeping Up With The Joneses Mentality

Keeping up with Joneses usually means keeping your debt up, too. Too often we fall into a comparison trap, looking at pictures on Facebook or Instagram of all the vacations, fancy cars, expensive jewelry, designer purses that our friends or acquaintances have. We start getting the mindset of “if she has that, I want it too.”

As soon as you stop trying to keep up with the Joneses and start practicing gratitude for what you have, then you’ll go a long way in reducing and getting yourself out of debt.

For more information on getting out of debt, read:

  • 10 Financial Habits to Adopt That Will Change Your Life
  • How We Paid Off All Of Our Debt

5 Things to Give Up to Get out of Debt - The Million Dollar Mama (2)

Ana

Hi I’m Ana. I’m all about trying to live the best life you can. This blog is all about working to become physically healthy, mentally healthy and financially free! There lots of DIY tips, personal finance tips and just general tips on how to live the best life.

5 Things to Give Up to Get out of Debt - The Million Dollar Mama (2024)

FAQs

How to fill out the debt snowball worksheet? ›

Make a debt snowball worksheet

On your worksheet, list your debts and use the total amount you owe to order them from smallest to largest. Then, create two columns: one for your minimum monthly payment and another for the amount you actually pay each month.

What is the snowball method of getting out of debt? ›

The "snowball method," simply put, means paying off the smallest of all your loans as quickly as possible. Once that debt is paid, you take the money you were putting toward that payment and roll it onto the next-smallest debt owed. Ideally, this process would continue until all accounts are paid off.

Does the debt snowball really work? ›

The truth about the debt snowball method is it's a motivational program that can work at eliminating debt, but it's going to cost you more money and time – sometimes a lot more money and a lot more time – than other debt relief options.

How can I help my daughter get out of debt? ›

One of the biggest ways that parents can help their adult children with debt is to support their children's own efforts to pay down their debt. For example, a grandparent could help with childcare while the parents work extra hours to pay off debt. This helps your adult children to help themselves.

How to help family get out of debt? ›

Lend them money.

You could lend your loved one money with an interest-free loan to pay off their balances. High interest on credit cards can make paying off debt difficult, so this arrangement can help them get out of a debt cycle. If you go this route, write up a loan contract both parties feel good about.

What are the 5 elements of a credit score? ›

What's in my FICO® Scores? FICO Scores are calculated using many different pieces of credit data in your credit report. This data is grouped into five categories: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%) and credit mix (10%).

What are three ways you can get out of debt faster besides the debt snowball? ›

What are the three main strategies for paying down debt? Three big strategies for paying down debt are the snowball method, the avalanche method and debt consolidation. Let's take a closer look at how each of these strategies works, so you can figure out which one makes the most sense for you.

Is snowball or avalanche better? ›

If you're motivated by saving as much money as possible down to the last penny, you'll probably prefer the "avalanche" method. On the other hand, if getting a quick win right off the bat encourages you to keep moving forward, then the "snowball" method will likely motivate you the most.

How can I get out of $20000 debt fast? ›

Use a debt consolidation loan

With a debt consolidation loan, you borrow money from a lender and roll all of those debts into one loan with a single interest rate. This allows you to make one monthly payment rather than paying multiple creditors.

What is an example of a snowball debt? ›

Here's an example of how a debt snowball works. Let's say you can afford to put $1,000 every month toward paying off your three sources of debt: $2,000 in credit card debt (with a minimum monthly payment of $50) $5,000 in auto loan debt (with a minimum monthly payment of $300)

What is an example of the snowball method? ›

Debt Snowball Example

Using the debt snowball method, you would first tackle the debt on credit card 2, as it has the lowest balance. When that's paid off, you'd add the payment you were making on credit card 2 to the minimum payment for credit card 1, and so on until all your debts are paid off.

Should you pay off smallest debt first or highest interest rate? ›

Prioritizing debt by interest rate.

As you work your way down the list, be sure to continue making the required minimum payments on all accounts. The avalanche method can save you both money and time. Chipping away at your priciest debts first reduces what you'll pay in interest in the long run.

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