The “snowball” system is an influential way of setting up payments for debts. IF you want to save money, have a good budgeting system, clearing debts is the first step. With some of the best practices out there, you can too peacefully repay debts while not compromising on a daily basis. Debt calculators, tricks for credit card debts are all tools, but the root solution is always to avoid debts in the first place.

So, in cases when you don’t have any choice but to take a loan, below are some of the steps or tips that can help you repay them peacefully.

  • The first step of borrowing money is to know your limits because this will always haunt you. So, create a budget first and check your total minimum monthly income.
  • Because debts come with interests, start with paying off the most expensive debt first. If you have not applied yet, keep their terms suitable, but not lengthy.
  • Set up your budget to pay more than the minimum balance for each debit account. And, take advantage of the balance transfer because this can help a lot.
  • The immediate thing to cut further debts is to halt your credit card expenses, so cut down all non-necessary memberships. And, also auto-payments.
  • Because of interests, you might have to work towards bonuses and use them for solely clearing the debts. For example, work from home, secondary income sources, over time, work bonuses, and stuff.
  • And, if not anything starts with emptying your household of unnecessary items. Find a suitable selling price for them; resell them at the best prices. For example eBay or yard sales. Because you have time, only settle on the best resale price.
  • Households in the US rely on credit cards for online payments. Delete your credit card information from all online stores, for the safe side. It can help with unexpected purchases and hence save money.
  • In all the above tips you can see that the priority is always on saving as much money as possible. But, there are tons of ways to save money besides the ones we mention above. Many are instant and others take effect in longer terms. For example, cutting utility bills is a long-term money-saving method. However, cutting grocery expenses can save hundreds of dollars per month, which you can spend towards clearing debts.

Dining Out

An average US household of 4 members spends around $3000 annually on eating outside. This translates to around $60 per person per month. It might not seem much but, combining this with regular grocery expenses means that you can save upwards of $200 per month. Just stick to a healthy diet, seasonal produce, and discounted purchases. This can help a lot towards clearing debts without selling your house or sleeping.


Canceling unnecessary memberships for each small group, luxuries can help you save a load of money, for example, yoga, gym, sports club, and whatnot. Just get rid of them for the duration of the debt clearance. The duration depends on household means of indulging in these activities. Understand that the duration of debts is like a punishment, and the faster you are out of it, the better.

DIY Ideas

It would not go into account statements, but many small things such as house care, repair, etc cost money. Cooking your food at home is a DIY thing too. Washing your car, bike, and preparing your daily commute as a DIY task can also add some bucks. Self-care is a prime example where trimming your beard, styling, and stuff can help you save a further hundred bucks as well. In all, there are tons of ideas where you can use the DIY methodology to collect money. All these small things can easily arrange upwards of $200 per month that can go towards clearing your debts.


As an end argument, debt clearing is a responsible task, and the best ways ensure you are not harassed. The above ideas can help modify your habits for good, and even after the debts are over, you can use them to make savings. Savings are always handy for emergencies and situations when you might need a loan.