What is one strategy you used to pay off debt (student loans, credit card debt, etc.) as a young adult? How long did it take you to become debt-free, and what advice would you give to others struggling with debt?

Question

Paying off debt as a young adult can be challenging, but effective strategies exist. This article presents expert-backed approaches to tackle debt head-on. From consolidating loans to launching a business, these methods offer practical solutions for financial freedom.

Loretta Kilday · Answer

When I was starting out, I combined a debt-consolidation loan with a strict zero-sum budget—and it completely changed my repayment game. First, I shopped around for a personal loan with a lower fixed interest rate, which allowed me to roll my multiple credit card balances and a small student loan tranche into a single monthly payment. That alone cut my interest charges by about half, so more of every payment went straight toward the principal. Then, each month I mapped every rupee of my income to specific categories—rent, groceries, utilities, savings, and debt—and made sure the budget added up to zero. There was no "mystery money" floating around; if I earned ₹50,000, I allocated exactly ₹50,000. Any leftover cash at the end of a pay cycle went directly toward my loan principal.
By automating the consolidated loan payment and tracking every expense against my zero-sum plan in a simple spreadsheet, I eliminated late fees, avoided interest creep, and stayed hyper-aware of my spending. I also built in small rewards—like a ₹500 treat at my favorite cafe—so I didn't feel deprived. Altogether, it took me about 18 months to pay off nearly ₹600,000 in combined credit card and student loan debt.
My advice to anyone buried under bills is twofold. First, simplify your repayment by consolidating high-rate balances into one lower-cost loan—just be sure you understand any origination fees and commit to not racking up new credit card charges. Second, adopt a zero-sum mindset: give every rupee a purpose, from groceries to debt. When you see exactly where your money needs to go each month, there's no guessing, no missed payments, and no room for waste. Stick with it, celebrate the small wins, and you'll be amazed at how quickly your debt balance shrinks.

Max Shak · Answer

In my early twenties, I found myself staring at a growing mountain of debt—mostly credit cards, some lingering personal loans, and the weight of trying to build something from scratch with little margin for error. I didn't come from money, and like a lot of young adults, I made some decisions that felt necessary in the moment but caught up fast. Getting out of that hole wasn't quick, and it definitely wasn't easy.
The strategy that worked for me was rooted in brutal financial clarity and a mindset shift. I stopped thinking of debt as just a number and started seeing it as a monthly tax on my freedom. That perspective flipped a switch. I wasn't just paying off debt—I was buying back ownership of my time and decisions.
I followed a modified snowball method, but with a twist. Instead of simply attacking the smallest balance first, I ranked my debts by emotional weight—what was stressing me out the most, not just financially, but mentally. I tackled that one first, because momentum is powerful, but so is mental relief. From there, I automated minimums on everything else and threw every extra dollar toward that priority target. I tracked every payment, not to obsess, but to stay connected to the progress. Even $50 made a psychological difference.
It took me just under three years to become debt-free. During that time, I worked long hours, cut unnecessary spending to the bone, and avoided lifestyle creep like the plague. But the biggest shift wasn't financial—it was identity-based. I stopped telling myself, "I'm someone with debt," and started asking, "What would someone who's financially free do today?"
To anyone struggling with debt right now, I'd say this: get radically honest about your numbers. Denial is expensive. You don't have to fix everything overnight, but you do have to own it. Then, design a simple system you can actually stick to—consistency will beat intensity over time. And remember that every payment, no matter how small, is proof that you're not stuck—you're building.

Thomas Mumford · Answer

Hey, founder here who built Undergrads from a Craigslist ad to multi-state operations. My strategy was turning my business idea into immediate debt relief - instead of waiting to launch "perfectly," I started earning revenue within weeks of posting that first ad at Clemson.
The breakthrough was creating a dual-income model where the business paid down my debt while funding growth. I allocated 40% of early profits directly to my student loans and credit card debt from my EY days. Within 14 months, I eliminated $22,000 in personal debt while simultaneously scaling Undergrads across South Carolina.
What most people overlook is using their network as both customers and debt accountability partners. I told my college friends about my debt payoff timeline and asked them to book moves through Undergrads instead of doing it themselves. This created a consistent revenue stream from people who wanted to see me succeed.
My advice: launch imperfectly but launch immediately. Don't wait until your business plan is polished - start generating revenue today, even if it's just $200 per week. That small income stream compounds quickly when you're laser-focused on debt elimination rather than lifestyle inflation.

Brian Quigley · Answer

As the founder of a mortgage advisory firm, I approached my personal debt with the same clarity I offer clients when guiding them through home financing. Early on, I carried a mix of credit card balances and a lingering student loan. Rather than chase multiple tactics, I picked one lane: every bonus, tax return, or freelance payout went directly toward the smallest balance first, without delay, without exception. That steady rhythm gave me momentum, and within a year and a half, I had cleared the slate completely.
When I sit down with young buyers today, I often say, "Treat debt like a scheduled payment to your future freedom." Automate it, lock it in, and remove emotion from the process. Waiting until things "feel right" rarely moves the needle. Whether it's a student loan or a long-term mortgage, a consistent system outperforms willpower. Discipline may sound dull, but over time, it builds the kind of flexibility and confidence that no shortcut can match.

Mike Erickson · Answer

My primary strategy was working two jobs during college to pay for school upfront and avoid debt from the outset. While playing football at Portland State University, I balanced academics with work to graduate debt-free with my business degree.
The key was treating debt avoidance like a business negotiation - I sought every possible way to reduce costs rather than simply accepting standard pricing. Just as I help companies save billions by negotiating better shipping rates, I applied that same mindset to my education costs by finding scholarships, grants, and work-study opportunities.
After college, I started at Airborne Express as a District Manager, and every extra dollar went toward building my emergency fund before I founded AFMS in 1992. The discipline I learned from working multiple jobs while maintaining athletic performance taught me that temporary sacrifice creates long-term freedom.
My advice: attack debt with the same intensity you'd bring to any other major project. Don't just pay minimums - negotiate payment plans, consolidate at lower rates, and find side income streams. The same principles that help my clients save 15-30% on shipping costs apply to personal finances: analyze everything, negotiate aggressively, and never accept the first offer.

Gregory Rozdeba · Answer

As a Finance graduate with student loans myself, I committed to the debt avalanche method - targeting my highest-interest credit card debt first while making minimum payments on other debts. It took me about 3.5 years to become debt-free, but cutting out restaurant meals and picking up weekend consulting gigs helped me put an extra $800 monthly toward debt payments. My best advice is to create a detailed spreadsheet tracking every debt's interest rate and balance, then throw any extra money at the highest-interest debt first - those small wins really kept me motivated.

Martin Weidemann · Answer

I was once driving a Silicon Valley client who, under the guise of small talk, asked a seemingly innocuous question about why I, a tech professional who spoke English fluently, was running a private driver business in Mexico City. In what must have been an unexpected admission, I told him that I simply needed to reframe my perspective on pride and privilege in order to become debt-free.
In 2020, I sold my startup and, while losing a hundred thousand dollars, I owed just shy of $18,000 USD in personal loans and credit card debt. I couldn't afford to wait for another substantial paycheck from a tech company. So, I went out and bought a used black SUV, and started driving international expats and business travelers in CDMX. I didn't stop there, though. I built out Mexico-City-Private-Driver.com. I created an SEO plan, then began publishing local tips, and sought out hotels to partner with and build trust. Within 18 months, I was not only debt-free -- I had a profitable business that was ranked number 1 on Google for "private driver Mexico City".
What helped most with that was productizing myself. I am a hospitality person, a language person, and a digital marketing person. I focused on those things that I could do with the tools I had, and put them all into a premium service that paid out daily, as opposed to biweekly. That small amount of cash flow was immensely helpful.
So my point to others is don't wait around for the perfect career rebound. Whether your talents are conventional or unusual, use your skills to solve real problems. And if you can build a website that earns while you sleep - like a bookings website - you are not just paying off debt - you're reclaiming your freedom.

Cal Singh · Answer

The one thing that assisted me in repaying debt more quickly as a young adult was connecting my payments to my side earnings and not my primary salary. I took up menial jobs on weekends, and all the pesos I earned doing those were directed towards lowering my credit card balance. It took the pressure off my day-to-day budget and made it so that I felt accomplished with every payout, regardless of its size. It was not glamorous work that I did, but when that number went down, it made me feel in control.
It took me approximately two and a half years to clear it all, and the turning point was the realization that I could begin to attack the debt creatively to get it paid off, and not merely endure it as I had been doing. My tip: do not just look at reducing costs. Identify a single means of making more money on your own terms and give it a purpose. It is easier to be consistent when money has a specific job.

Lori Leonard · Answer

As a nurse practitioner who started with $80,000 in student loans, I picked up extra weekend shifts at urgent care clinics and lived with a roommate to save on rent. It took me 6 years to become debt-free, but maintaining a side gig while living well below my means helped me stay focused on my goal. I've seen how financial stress affects mental health, so I always tell people to celebrate small victories and not be afraid to seek financial counseling - it helped me create a realistic payment plan I could stick to.

Tim Burd · Answer

I bootstrapped my way out of debt by treating every dollar like ad spend - I needed to see measurable returns. Instead of the typical "pay minimums and invest" advice, I used a cash flow acceleration method where I'd reinvest debt payments into Facebook ads for small local businesses, then use those profits to knock out larger chunks of principal.
The turning point came when I realized that $500 in monthly student loan payments could generate $2,000+ in monthly revenue through client retainers if I reinvested it smartly for 90 days. I convinced my loan servicer to defer payments for a quarter while I scaled my ad management skills, then paid off the entire balance in month four.
At Agency Y, I now see this same pattern with our Fortune 500 clients - they don't just pay down corporate debt linearly, they leverage cash flow timing to accelerate payoffs. The key is having a skill that can generate 3-4x returns consistently, which for me was Facebook advertising when it was still relatively new.
My advice: pick one high-demand digital skill, offer it at a slight discount to build your portfolio quickly, then use that predictable income stream to attack your highest-interest debt first. Most people fail because they try to balance too many strategies instead of going deep on one proven method.

Allen Kou · Answer

Starting my restaurants left me with significant business loans, so I focused on boosting cash flow by implementing a strict inventory management system that reduced waste by 25%. I dedicated 40% of our monthly profits to debt repayment and lived on a modest salary for 4 years until we cleared our initial business loans. I'd encourage others to look for creative ways to increase income - in my case, adding catering services brought in extra revenue that went straight to debt payments.

Burak Özdemir · Answer

I moved back in with my parents for a while and put my entire rent payment towards my student loans instead. I cleared all my student debt by living like a broke college student again, following house rules, and eating family dinners whether I wanted to or not.
If moving home is possible, swallow your pride temporarily. It's faster than any other debt elimination method, and you'll have your independence back soon. The key is setting a firm timeline with your parents so everyone knows it's temporary, and actually putting all your housing savings toward debt, not lifestyle upgrades. 
Yes, it's humbling to move backward as an adult, but being debt-free quickly beats struggling with payments for years.

Ryan Nelson · Answer

I tackled my $20,000 credit card debt by house hacking - buying a duplex, living in one unit, and renting out the other to cover my mortgage and then some. The extra rental income allowed me to put $1,200 monthly toward debt payoff for 18 months straight. Additionally, I learned valuable lessons about real estate investing that helped launch my career.

Ahmad Altahan · Answer

As a real estate expert, I discovered that selling my old car and using public transit for two years helped me tackle my $35,000 student loan debt head-on. It took me about 3.5 years to become debt-free, and I recommend focusing on one debt at a time while finding creative ways to cut major expenses. For me, ditching car payments and insurance saved nearly $500 monthly.

14 Strategies for Paying Off Debt as a Young Adult

Table of Contents

14 Strategies for Paying Off Debt as a Young Adult

Consolidate Debt and Implement Zero-Sum Budget

Transform Debt into Freedom Tax

Launch Business to Accelerate Debt Payoff

Automate Debt Payments for Future Freedom

Work Multiple Jobs to Graduate Debt-Free

Target High-Interest Debt First

Reframe Perspective and Productize Skills

Connect Side Earnings to Debt Repayment

Pick Up Extra Shifts and Live Frugally

Reinvest Debt Payments for Higher Returns

Boost Cash Flow Through Inventory Management

Move Home Temporarily to Eliminate Debt

Use House Hacking to Tackle Credit Card Debt

Ditch Car for Public Transit to Save

Up Next