Want to pay down debt and still be able to enjoy life? We have some simple tips for decreasing your debt while still having a life!
Americans are living with a record amount of debt from high-interest credit cards, personal loans, and everything in between. The high-interest debt can lead to a paycheck-to-paycheck existence if you aren’t able to set some money aside for savings and plan for emergencies.
Fortunately, many people recognize this challenge and want to do something about it, new research shows. Nearly 2 in 5 Americans say paying down their debt is their biggest financial priority, putting it ahead of saving an emergency fund or for retirement, according to a new WalletHub survey.
In the same report, some 51% of Americans say their income (or lack of it) often prevents them from saving for an emergency, with another 44% blaming inflation and approximately 34% pointing to debts they owe.
Despite what might be considered a bleak outlook, there’s good news for those who feel like they are drowning in debt. One tried and true way to pay off what you owe more quickly is to take on a second job or a side hustle, to help knock out all of those credit card bills (and free yourself from the mental stress that comes with being in deep debt).
It’s important to note that not all debt is bad. When the debt you owe is for a mortgage or an education (from federal student loans, perhaps), those can also be considered investments in your future. And most homes are typically purchased at a lower interest rate than today’s sky-high credit card rates and are paid for over an extended period of time. You may also decide that it makes more sense to prioritize putting your extra cash into a high-yield investment if the returns are greater than the interest charges on your debt.
Where debt becomes problematic is when interest charges begin to accrue and your minimum monthly payments get out of hand.
So, for our purposes, we are sharing ways to pay down the high-interest debt first, without taking all of the fun and enjoyment out of life.
1. Side Hustles for the Win
While some people have never considered taking on extra work outside of a nine-to-five full-time position to make extra money, others have been experiencing the life-changing benefits of side hustle culture for years. In fact, a new survey from LendingTree reveals that nearly 40% of U.S. adults (38% to be precise) report having a side hustle in the last 12 months to supplement their full-time work.
What are they doing? Respondents in the 2025 survey reported that the top side jobs they performed were online freelancing (15%), grocery or food delivery (15%), and seasonal or part-time work (14%). Other gigs weren’t far behind in the report, with house cleaning and making and selling things both garnering 13%, e-commerce resale getting 12%, and social media influencing coming in at 11%, rounding out the top spots.
The Average Income for Side Hustles
If you are among those who haven’t had a side job in the last few years (or ever), you may be genuinely surprised to find out how much you can potentially earn every month. The research from LendingTree found that those with side hustles reported bringing in an average of $1,215 a month. For full disclosure, the median income for the study came in at $400 per month. But depending on your needs, even an extra $400 a month could make a big dent in what you owe.
2. Pay Off Higher Interest Credit Cards First
To save the most money in the long run, many finance experts say you should make a list of all of the credit card debt you owe, listing out the annual percentage rate (APR) you are paying on each card. Then, find the card with the highest rate and work to pay off that card first. Remember, you should still keep making the minimum payments (or more) on all of your other cards to avoid late fees and other penalties.
Once you pay off the card with the highest interest rate, then go to the card with the next highest interest rate and repeat the process. This debt repayment plan is known as the debt avalanche method.
Pro tip: It’s also smart to avoid taking on any new debt when you are already working to pay off high-interest credit card debt.
3. Track Your “Non-Spending” and Apply it to Your Debt
Certified financial planner Sarah Sprague Gerber, who is the founder of Momentum Financial Planning LLC, says one of her favorite tips for paying down debt is to track what she describes as “non-spending.” What’s that? Gerber says it can be things that you think about spending money on – often in the entertainment category – but end up deciding not to.
“For example, if you thought about throwing your husband a big birthday bash, but then find out that he really just wants some alone time, you can take the $300 (or $30 or $3,000!) and apply it to your debt,” she says. “In theory, that money was already going to be ‘gone’ out of your pocket anyway, so you shouldn’t miss it if you still transfer it out of your checking and to your loan instead.”
Gerber says she has helped multiple clients follow that approach and also utilize different spending exercises to help people slash their debt in creative ways. “It’s always surprising what they find and what they start to notice,” she says. “We make so many decisions in a day that when the result of a decision is ‘inaction,’ it often goes unnoticed. Tracking this ‘non-spending’ is very helpful, and can provide immediate gratification of seeing your debt go down.”
How does this work in real life? “Didn’t buy the $20 shirt at Target? Put that $20 against your debt right away,” she suggests.
4. Track Your Actual Spending
Another more traditional way to approach your debt management is to track all of your spending over longer time periods, such as three months (because one month is too short!), to identify anything that you’re spending money on that doesn’t align with your values, Gerber says.
Part of this effort should also include creating a monthly budget so you can track every dollar that comes in and goes out. To find the best budgeting method for your individual needs, ask your friends what they use or Google personal budgets.
For example, one of Gerber’s clients found she was spending so much money on going out with friends, but realized that she could just have them over to her apartment or get a glass of wine out with them instead of buying a whole dinner.
“I also make sure to mention to my clients that they are still getting what they value most out of the interaction – i.e., celebrating a loved one’s birthday or going out with friends – while spending less money. That’s a win-win,” says Gerber.
5. Reward Yourself Along the Journey to Pay Off Debt
After making a series of consecutive payments or paying off a specific debt entirely, buy yourself something that you don’t get to have all the time, suggests Filip Telibasa, a certified financial planner who owns Benzina Wealth.
“This could be a meal at your favorite restaurant, a fancy cocktail, or anything else.” The key, Telibasa explains, is to limit the extravagance so you are not being overly counterproductive. And although this approach may work slightly against you right now, it also allows you to stay disciplined over the long run.
“In the end,” he says, “consistency will be the key to your success.”
Pay Down Debt Wrapup
Many financial experts say that paying down debt – and having a solid payoff plan – can be best accomplished by taking on extra work, even temporarily, to give your budget a boost. To maintain your motivation, it’s also wise to build in some rewards for good payment behavior, such as splurging on a small treat for yourself when you pay off a big hunk of debt.
Whether you use the debt snowball method or the debt avalanche method, patience is key. After all, you didn’t build up those high-interest credit card balances overnight, and it will probably take a while to pay it off.
For those who feel like they can’t tackle their debt payoff alone, there are also non-profit credit counseling services and credit counselors available to lend support and guidance to your efforts. The important thing is to take action and move forward with efforts to pay down your outstanding debt so you can sleep better and live a happier life.
