Ms. Harris suggests that her clients try “Frugal February” — avoiding discretionary spending and impulse purchases, and putting the money toward debt reduction or savings — because it’s a short month, and people often stay home anyway because of cold weather. The steps can be small, she said, like watching a movie on a streaming service you already pay for instead of going out to a theater. Since it’s now tax season, she said, filers expecting a refund can consider using it to pay down debt and set aside cash for unplanned expenses.
Another option, popularized on TikTok, is a “no spend” challenge, which involves paying only for necessities for a set period of time, whether a weekend, a week or longer. Mr. Yerger said that approach can be a helpful short-term experiment to gain insight into spending habits. But he cautioned that relying on willpower alone to stop overspending is difficult. “It takes more effort than they might expect.” Psychologically, he said, making a more substantial, one-time change is likely to be more sustainable than having to make the same decision — say, to skip buying a latte — 30 times a month.
If you have good credit, looking for a credit card offering a zero percent balance transfer may be an option if you think you can pay off the debt during the promotional period. Some available offers give consumers up to 21 months to pay off the transferred balance with no interest, said Ted Rossman, senior industry analyst at the financial website Bankrate. Typically, the offers require a fee of 3 to 5 percent of the balance transferred. (On a $1,000 balance, that adds $30 to $50.)
Another option, if you are a homeowner, is to borrow against the equity in your house — the difference between the home’s value and your mortgage. Many Americans have high home equity because housing values have risen. Rates on home equity loans and lines of credit are typically far lower than rates on credit cards because they are secured by your house. That means, however, that if you can’t pay back the debt, you may risk losing your home through foreclosure. So tapping home equity is advisable only if you’re confident you can repay the loan.
If you are struggling with repaying card debt, Mr. Rossman suggested talking to a nonprofit credit counseling agency, which can help negotiate much lower rates on card debt in exchange for an agreement to pay it off over a period of several years. Kristen Holt, chief executive of GreenPath Financial Wellness, a nonprofit counseling group based in Farmington Hills, Mich., said the average debt of people enrolling in its debt management plans was about $21,000.