Debt
None of this is expert advice. It's what people worked out for themselves, usually the hard way — what actually helped, and what they'd tell someone standing where you are. Take what fits and leave the rest.
If you only read a few
Use credit cards for rewards like cash back on groceries and gas, paying the balance in full after it posts each time.
You get free money from rewards.
one person who lived it
Resist taking on debt.
It can destroy your life.
- Debt has its place.
one person who lived it
Focus on paying off high-interest credit card debt as fast as possible.
Avoids spending thousands annually on interest while the balance remains maxed until payday.
4 people, independently
- Pay off debts by targeting the highest interest rates first, or target the smallest balances first if you need psychological motivation to stay on track.1
Save on breakfast by bringing homemade food to work and use the savings to make extra lump-sum mortgage payments.
Small extra payments add up over time.
one person who lived it
Pay more than the minimum payment on credit cards to prevent debt from swelling.
Paying only the minimum caused debt to swell up.
one person who lived it
Focus on being completely debt-free over achieving an exceptionally high credit score.
Having a lower score with zero debt is preferable to a higher score with debt.
one person who lived it
File form SSA-632 using the phrases 'without fault' and 'defeat the purpose' to dispute overpayment debts.
One person reported this resulted in no longer being liable for repayments.
one person who lived it
Only buy items if you can afford them in cash.
Buying otherwise can lead to deep debt.
one person who lived it
Use balance transfers to lower credit card debt if you are facing variable rates around 20%.
High variable rates can reach 20%, making balance transfers a method to get debt under control.
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Do not co-sign loans; if a bank won't trust someone's finances, you shouldn't either.
5 people, independently
Take out a small federal student loan if you are short by a couple thousand dollars annually, as it is cheaper than credit card interest.
Federal student loans carry lower interest rates than credit cards.
one person who lived it
If you struggle with self-control, avoid using credit cards.
4 people, independently
If you carry a credit card balance month-to-month, cut up the card immediately.
Carrying a balance is harmful.
one person who lived it
Pay debts over the phone if the wages earned during the time required to dispute them in person exceed the cost of paying.
Being at work generates wages, saves gas costs, and allows for employer retirement matching contributions.
one person who lived it
Pay off the loan with the higher interest rate first.
This strategy saves money on total interest paid.
one person who lived it
Avoid going into debt for vacations, as it can lead to long-term financial recovery issues.
One person reported not financially recovering from a Disney trip seven years later.
one person who lived it
Remember that student loan repayment is a marathon, not a sprint.
Student loan payments are described as 'the worst', and this perspective helps manage the situation.
one person who lived it
Submit evidence with your dispute claim to Social Security even if they do not explicitly ask for it.
It strengthens your case for waiving overpayment debts.
one person who lived it
If you have significant debt and lack financial discipline, follow Dave Ramsey's baby steps and budgeting advice.
It helps break defeatist mindsets.
one person who lived it
Check credit union interest rates and consider switching loans if they are lower than your current lender's.
Credit union rates can be surprisingly low compared to other lenders.
one person who lived it
Consolidate high-interest credit card debt into a lower-interest personal loan.
3 people, independently
Consult a nonprofit consumer credit counselor to negotiate with credit card companies and establish an orderly debt payment plan.
They can negotiate on your behalf and set up structured payments.
one person who lived it
Get out of debt and build emergency savings before prioritizing ethical or luxury purchases.
one person who lived it