Want to know how you can become debt-free in 2026? These tried-and-tested tips are sure to help you pay off debt fast.
Are you looking to become debt-free in 2026? That's an amazing financial resolution- congratulations on raising your standards and saying "No more!". I had the same goal a few years ago, and with these tips and tricks, I was able to pay off over $150,000 in student loans in less than two years.
In this post, I will go over the exact strategies I used to pay off six-figures in student debt FAST. I know they will be so helpful to you on your journey to becoming debt-free.
This post is all about how to become debt-free.
#1. Stop Borrowing Money
The most obvious (but the most crucial) step in being debt-free is to make a promise to yourself that you will no longer borrow money. Kiss those credit cards goodbye, say farewell to future car loans, you are done. You are no longer a person that goes into debt.
My goal for you is not just to have you become debt-free, but to STAY debt-free. And in order to do that, you need to develop a deep hatred for all debt. We want a permanent identity change, not a quick fix.
A common mistake people make when trying to become debt-free is to transfer one debt to another, like getting a personal loan at a lower interest rate and using it to pay off high interest credit cards. I do NOT recommend this. You will feel like you did something when you didn't. You are still broke and in debt. With my debt-free method, you do not need these maneuvers to be successful. These types of decisions, in my opinion, are tactics to avoid tackling the problem head on.
Simply put, you can't get out of debt by going into debt.
#2. There's No I in Team
A controversial take...
It's time to get in the High School Musical spirit and start operating as a team. This tip applies only to married couples, so skip to #3 if you're single/unmarried!
Financial issues are the #1 cause of divorce, and if you're married, I can guarantee there's been at least one argument over finances! It's normal.
In order to become debt-free, it is essential that you and your spouse are on the same page about swearing off debt forever. You cannot achieve debt freedom without working together. You will never be debt-free if you take a divide and conquer approach, "he'll pay his debt and I'll pay mine". NO. It won't work. And if that's the approach you've had to finances in your marriage thus far, your current financial mess is no surprise! If you want the results to change, your approach MUST change as well. Know that getting on the same page financially is possible, no matter how difficult the conversations have been before.
Consider taking a debt-free class together or working through a guided plan as a team.
Sit down with your spouse and talk about why you want to be debt-free. Make a bucket list of things you want to do in the next 10 years that would be really meaningful. Wouldn't it be nice to cash-flow those things together? Start dreaming together about all that can be accomplished when you start working as a team. The best part about this strategy is that you are astronomically more likely to succeed in becoming debt-free, AND you will pay off your debt way faster than if you didn't work together.
#3. We Love the B-Word
Basket weaving? No, budget! The dreaded B word that means deprivation and sadness as I dream of the days I could buy a $6 latte whenever I wanted...
Think again! A budget is not a restriction, it's permission to spend. Getting on a budget is a tired and common recommendation to manage finances because it IS that essential. Most people avoid budgeting because they think they (1) make too much money to dabble in lowly budgeting and/or (2) feel like creating a budget will lead to pain because they won't be able to buy what they want.
Let's debunk both. First, rich people have a budget. Rich people watch their money like a hawk. Rich people VALUE their money and so spend it wisely. They don't spend frivolously or recklessly, that's how they became rich. If they spent willy-nilly, they'd be broke, like you! Ouch.
Second, a budget does not equal pain and deprivation. If a budget is a pathway to debt freedom, that means that a budget means massive joy and freedom! Imagine how good it would feel to pay cash for that vacation instead of putting it on the credit card. It would be a lot more relaxing and a lot more fun. As I said budgets are permission to spend, without any guilt or worry because it's in the budget! This is what a budget can do for you. And once you're debt-free, imagine how much fun you'll have spending all that money that's currently going to monthly payments.
I love using a budgeting app and an Excel sheet to track my budget. It took some fine-tuning for the first couple of months, but now I am in a good routine and rarely spend over the budget in any category. If you don't like apps, a pen and paper will work!
#4. Become a Workaholic
In this rare instance, I am going to encourage addiction. An addiction to WORK. You're already addicted to debt and irresponsible financial choices, so let's swap one addiction for another! I think Bill Wilson would approve in this case.
The best way to become debt-free is to massively increase your income. Cutting expenses and sticking to a budget is very important, but you can only reduce your expenses so much. When it comes to your income, however, you can make a huge difference by working overtime and extra jobs.
This was the primary factor in me paying off my debt so quickly. I worked four jobs. I worked every single day with very infrequent days off. I even went 63 days in a row working before I had a day off! I was so motivated to pay off my debt I didn't care. I knew that on the other side of this debt free journey was massive joy and permanent freedom. I'd never have to work overtime again if I didn't want to! I was working about 80-90 hours a week on average, and I was able to put over $10,000 to my debt monthly. No amount of couponing or bulk shopping can give you this kind of impact on your debt.
I also started looking for work from home opportunities and started making money in spare moments with online surveys.
So start looking for ways to increase your income! Ask for a raise. Start picking up extra shifts. Apply for part-time jobs. Get creative! Sell stuff you don't need, start an in-home daycare, the sky's the limit. Remember that it's temporary pain for a lifetime of gain. Keep your eye on the prize- a lifetime of debt free living!
#5- Stop Caring What Other People Think
Debt is normal. Most people have it. A lot of people think that car loans are just a part of life, like taxes, death, or the sky being blue. Those people are wrong! They have a limited mindset that will keep them in debt forever, but not you. You are now ~enlightened~.
We don't want to be normal; we want to be abnormal. Well, in the financial sense. This means that MOST people will NOT support your choice to become debt-free. This is the cost of going against the grain. It is worth it of course, but it's important to be mentally prepared.
Paying off my student loans is hands-down the best thing I've ever done for myself. I love my debt free life. I don't know any of my classmates that enjoy the debt free living I do! I feel happy and free, and I get to spend what would be going to a monthly payment on things I love, like Jellycats and vacation. That being said, almost everyone that knew about my debt free journey tried to dissuade me. From family to friends, I was met with near constant funny looks and comments meant to discourage me. For me, this meant I was on the right track. If people who are broke make fun of your plan, you’re probably on the right track. And it's true! Why would I take financial advice from someone that's broke and in debt? If you don't want to end up like them, you shouldn't listen to them! So let them make fun! Don't let it soften your resolve. In a year (maybe less), you'll be on a paid-for vacation and they'll be calling their credit card company trying to negotiate payments again...
What is your debt free date? Let me know @ShesFinanciallyFree1 !
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