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We used AI to sift through the r/Debtfree Subreddit for good examples of users tackling overwhelming debt. People post anonymously, so we cannot confirm their individual experiences or circumstances.
We’ve been preaching debt-free for years, and we get that it’s easier said than done. So, in this one, we’ve got our tried-and-true advice mixed with a little inspiration from Redditors who are getting it done.
Define your personal 'debt-free' meaning
Adulting can bring on all kinds of debt. Some forms are considered better than others, like say a mortgage you're able to keep up with. A growing high-interest credit card balance, though … not so much.
“If living a debt-free life is your goal, the first step is defining what that actually means for you,” says Tanner Merritt, a certified financial planner in Jacksonville, Florida. “Once you know what ‘debt-free’ means to you, that’s when planning comes in.”
Finding your “why” helps, too, as Reddit user u/Affectionate-Cap-645 discovered and shared on the r/Debtfree sub.
For him (he writes “I’m a guy” in his post), a brand-new baby provided the jolt to go on a “crazy debt payoff spree” and budget overhaul that would put the family on path to be “financially free” by the time the kid turns 6 or 7.
He canceled subscriptions, stopped eating out and shopped for groceries more strategically. According to the post, saving with purpose helped him knock down more than $11k in credit card debt.
Make it about more than just the numbers. Find a “why” that will actually get you to change your spending habits and redirect savings to problem debt.
» MORE: See your expenses and income in one place with NerdWallet’s app.
Run the numbers and don’t kid yourself
Doing the actual math is important, but you don’t need to know calculus.
You do have to be “brutally honest about your cash flow,” says Patrick Huey, a CFP in Naples, Florida. “You need to know exactly what’s coming in and what’s going out — no guesswork.”
It’s as simple as writing down all your monthly debt payments and comparing what you owe to your monthly paycheck. Pay attention to interest rates, too.
For u/Goslowgro, who posted about their debt success, making drastic changes was the only way to make the math work. This r/Debtfree poster had to move back home, work extra jobs, seek free entertainment and drive a “janky but paid-off Kia.”
This person was also facing a mountain of credit card debt, and critically, took advantage of the credit card issuers’ hardship plan. Twelve months later, they said they were down $29,000 in credit card debt. Wow!
Try a proven payoff strategy, or two
Debt snowball is a crowd favorite because it can be motivating. With it, you pick the debt with the smallest balance to pay off first, regardless of interest rate. Put whatever extra you can on it while paying just the minimums on your other debts. Once it’s paid off, you roll the amount that was going toward that bill into paying off your next-smallest debt. The amount you can pay snowballs (so to speak).
u/GonnaGrowHair1 used this method to pay off $23,000 in credit card debt, according to a recent post. The poster says it took working a second job on weekends, cutting every single nonessential expense, and throwing every extra dollar at the smallest balances first, even if it was only a couple hundred extra some months.
When it was all said and done, “I sat in my car outside the bank and just cried,” the person wrote.
Debt avalanche is another effective approach that is kind of the opposite of snowball. You prioritize the debt with the highest interest rate and put extra toward it while paying just the minimums on other debt. This way is likely to save more money, but “a win” may take longer to achieve.
Consider debt consolidation as an option, too. It’s where you roll multiple high-interest debts into one monthly payment at a lower interest rate.
This method helped poster u/Education_Record66 go debt free in less than a year. The poster said they took advice from a boyfriend and opened a 0% interest credit card with a 15 to 18-month duration. They transferred $6,000 of their high-interest debt to it. The $150 fee was worth the interest savings, they said.
Shift your priorities, change your mindset
You have to understand your financial limits and be willing to live within them.
Debt-free clients, Huey says, are “deeply committed to delayed gratification — willing to wait for a purchase until they have the cash, and comfortable not chasing every lifestyle upgrade or fleeting opportunity.”
Finding financial peace can be a lonely journey, posts u/Live_Research5607. While friends are living it up, this poster is tracking every buck and avoiding vacations, meals out and fancy stuff.
The person explains that they still have $14,000 to go, and is using the r/Debtfree community to stay motivated through support from others.
Commenters remind the OP that “it’s a marathon, not a sprint” and that “moderation beats deprivation" on the path to paying down debt.
The moral of the story is getting out of debt isn’t easy.
If it was, nobody would have it. Remember the OP who sat in their car and cried after paying down $23,000?
The delayed gratification is worth it.
Keep 'good' debt current, and plan for emergencies with savings
“I wouldn’t encourage [clients] to take big piles of money and throw it at a home to pay off a mortgage,” says Michael Chadwick, a CFP in Canton, Connecticut. “That’s just a poor use of your capital. As long as you’re making more than you’re paying, keep it.”
Also, credit cards can be a useful way to spend so long as you can pay the balance in full each month.
“If you cut out credit cards altogether, you’ll miss out on valuable consumer protections,” Merritt says. “With a card, you can dispute a fraudulent charge without money leaving your bank account, which isn’t the case with a debit card.”
And remember, crushing your debt goals doesn’t end with a zero balance.
Take the case of u/GroundbreakingBad965. He posted about a decade-long slog to become debt-free.
After paying off his student loans, multiple vehicles and a mortgage, here was the next step: “Time for an emergency fund.”
Building up enough savings to cover a few months expenses can help to keep you out of debt, even when the unexpected happens.
» Ready to write your success story? Read our deep dive on debt payoff next.
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