30 Ways to Pay off a Six Figure Debt in Less Than 3 years

this is too much

  • Keep your housing costs between 20%-25% of your take home pay. If you can move back home with your parents while working and paying off youe debts, thats even better.
  • Cancel all membership and subscriptions including cable and gym memberships
  • If you are renting, look for all-inclusive apartment (if possible)
  • Avoid paying for a parking stall if you rent. Instead, consider street parking.
  • Live close to easily accessible transit lines like the bus or train to maximize public transit and minimize the use of your vehicle until the weekend or for running errands.
  • Pay cash for your vehicle and spend no more than $5,000. No car payment
  • Have only one vehicle as a couple.
  • Take the public transit to work if you work downtown or have to pay for parking each day
  • Put at least 35%-50% of your take home pay towards your debt
  • Accept overtime, side jobs or even a second jobs and out the extra money towards your debt
  • Put all extra income towards debt
  • Only go out once a month and spend $60 or less with friends to keep a social life. Invite them to your place instead or find cheap ways of having fun
  • Find free of cheap ways to go out with your spouse for $20 or less
  • Make all vacations staycations, and spend less than $350/week on your staycation
  • Pay cash for all purchases like groceries, gas and gifts. This will curb overspending
  • Divide bills evenly across all paycheques, allowing you to put more towards debt each paycheque
  • Leave your credit card at home
  • Avoid leaving the house and going out when hungry
  • Pack a lunch to work. Don’t eat out at work more than once a month
  • Buy your groceries weekly. You will spend less and waste less food.
  • Avoid people (for a time) that like to spend money in order to have fun.
  • Let your close family and friends know about your debt repayment plan. This will help manage expectations for the holidays and gift giving
  • Don’t buy Christmas gifts. This can quickly become very expensive. Instead, put this money towards debt.
  • Let someone else host family get togethers and chip in on providing some food and helping to prepare the meals.
  • Reuse old holiday decorations or purchase them in January when there is a deep discount
  • Cut down on discretionary spending by 20%-25%. Or if you can, eliminate discretionary spending for a time all together.
  • Avoid people that will be negative about your debt repayment plan.
  • Claim the maximum expenses and deductions on your tax returns to increase your refund and put this amount towards your debt
  • Never use your credit card while paying off your debts, unless you are doing a transaction that requires a credit card and always make sure you have the planned spending to pay it off.
  • Learn from the debts you incurred and cultivate a modest & frugal lifestyle so you avoid this situation in the future.

i feel free

Categories: Debt

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10 replies

  1. These are great tips! I especially like the tips about avoiding people who like to spend and letting friends and family know what you’re doing. We sometimes don’t realize the impact our relationships have on our money.


  2. This is a really helpful guide. My wife and I have already implemented most of this. We need to work on possibly reducing our rent (hard in downtown Chicago) but I think we are doing great on most of the other stuff. It would be awesome if we could move back in with parents, even if it was for a short while, but not living in the same city makes that hard. Thanks for the post!

    Liked by 1 person

    • That’s great. Yes, it would be so great if we could move into our parents place as well, even for one year. The amount of money we would be able to save would be great because we are frugal and would not waste such an opportunity. Unfortunately, my parents live half way across the world and I have not siblings in this province. This has really taught both my husband and I to not rely on anyone financially and stick within our budget. Thanks for leaving a comment

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  3. Nice tips! I’m working on paying off my high 6 figure mortgage in 7 years.

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  4. This is very helpful and informative

    Liked by 1 person

  5. I am starting weekly guest posts on my blog on various topics. I put up a post about it, just in case you are interested.

    Liked by 1 person