Best Ways to Trim Your Budget and Pay Off Debt Faster

By Emory Clark

In 2025, interest rates on debt remain high, and the average credit card interest rate has reached a staggering 21.37%.

If you’re carrying debt from month to month, it can feel like you’re basically giving away money to your credit card companies and lenders. The longer you take to pay off the debt, the more money you hand over in interest payments.

Tired of giving your hard-earned cash to creditors? Paying off debt is easier said than done, but using these creative tips can help you pay it off faster.

1. Start with your biggest expenses

Many financial experts gripe about things like avocado toast and lattes. Don’t get us wrong, those little expenses add up over time. However, cutting out $5 here and there won’t make nearly as big an impact on your budget as cutting out some of your largest expenses.

To make the biggest impact, look at your last few months of financial statements and make a list of the non-necessities you’re spending the most on. Perhaps it’s a gym membership, cable TV or meal deliveries. 

If you can commit to cutting those costs for a few months, or even longer, you can redirect the money to make a bigger dent in your credit card debt and other bills.

2. Plan ahead to avoid last-minute spending

When it comes to the everyday, impulsive purchases, a lot of them are the result of a lack of preparation. If you leave home without packing your lunch, for example, you might end up spending $20 or more on one meal during your lunch break. 

So instead of winging it, make sure you plan ahead each night for the food and beverages you’ll need while you’re out and about the next day, including coffee and water. Even better, take some time to do healthy meal prep once or twice a week. 

3. Ask these questions before every purchase

Do you have any criteria you use to decide whether or not to make a purchase? Or do you leave it up to impulse? 

If you’re simply going with your gut when you spend money, it’s time to try something new. Before you do any more spending, take some time to develop a list of questions that you’ll ask yourself before each purchase. For example:

• Is this a need or a want?
• Have I waited at least three days to make sure it’s not an impulse buy?
• Did I check to see if I could find a better deal somewhere else?
• Did I run the purchase by a loved one to see if they thought it was a good deal?
• Do I already own something else I could use instead?

You might even want to save these questions in a note on your phone, and pull them up any time you’re tempted to make a purchase.

4. Change where you shop

If you find yourself needing to shop, remember that you can buy most items at several different price points. Sure, you can go to a department store or buy brand-name items online. But you might be able to find practically new items that still have their original tags, in any of the following places:

• Consignment and secondhand stores
• Facebook Marketplace
• Garage sales
• Flea markets 

Alternatively, consider asking a friend or family member if they have items you can borrow. 

5. Swap out your non-essentials

For non-essential expenses, look for ways to get the same product or service for free or for less.

For example, do you really need that Netflix membership, or could you use the complimentary streaming service that’s available through your local library? Do you really need that gym membership, or could you watch workout videos on YouTube? 

For each of the non-essential expenses you see on your credit card statement or bank statement, consider whether there’s a way you could swap it out for something more cost-effective, at least until you’ve made significant progress with your debt.

6. Put your raises and bonuses to use

When you get a raise or a bonus, you might be tempted to spend the money right away, or even to spend it before it shows up in your paycheck. But when you do that, you’ll ensure your financial situation never improves. 

Instead of setting yourself back, log into your debt account and increase your monthly payment by the same amount that your take-home pay has increased. If you do this, you’ll never miss the money because you won’t get used to spending it.

Additional tips for saving money and paying off debt

Need a few more easy ways to save money and eliminate debt faster? Here are some more tips for cutting costs and eliminating debt:

• Cut back on your utility usage.
• Avoid bank accounts or credit cards that charge annual or monthly fees.
• Get a part-time job.
• Use your tax refund to pay off debt.
• Take on a roommate.
• Sell the things you don’t use online. or have a garage sale.
• Make homemade gifts versus buying gifts.
• Have family game nights at home instead of going out.
• Look online for coupons and discounts before buying anything.

Need more help managing debt?

If you’re still struggling to chip away at your debt, NFCC-certified credit counselors are here to help. Our counselors can review your budget and debt accounts and help you come up with a personalized strategy for paying everything off. 

They can talk you through the ins and outs of everything from using the debt avalanche method to taking out a debt consolidation loan or even enrolling in a Debt Management Plan (DMP).

Emory Clark is the lead attorney at Clark & Washington, LLC.  Their bankruptcy lawyers in Atlanta offer sound financial and legal advice in bankruptcy cases. Clark & Washington’s exclusive work on Chapter 7 and 13 bankruptcy cases allow them to advise and counsel their clients through each step of the process.