Over the last few years U.S. household debt has increase, in the last decade this is by 11%. Many families are getting by, by spending on credit cards and personal loans. A lot of the debt for many families in the U.S. is on mortgages at $172,806, with general household debt totalling up to $132,529, with the total pool of debt at $1.1 trillion.

For those perusing college education, you could come out with an average student loan debt of $49,042, so it’s no surprise to see that many American families, are sacrificing meals out, new gadgets and new clothes to pay for their children’s education as well as spiralling healthcare costs. The study by Coupon Dash found that majority of families, 52%, have cut out going out for meals, whilst 49% of families do not spend money on the latest gadgets. With many families giving up a lot of things to keep afloat.

One way to keep on top of debt, is to follow our quit, cut and keep plan.

Quit

1. Smoking – If you have this bad habit, now is the time to quit, to save your health and your finances.
2. Gym membership – Yes it’s great to keep on top of your fitness and its good for your health, but gym memberships are costly. Keep up with your fitness just at home, using everyday items as the equipment or go for a free run outside.
3. Gadgets – It is tempting to keep up buying the latest cell phones, but really unless the one you are using is broken, do you really need to upgrade and spend the extra dollars? Keep the tech to the minimum only buying if something is an necessity and check for offers then before you buy.

Cut down

1. Holidays – It is a big expense going on holiday, we don’t want to cut it out though, we all need a break some of the time. Just look at where you go and what type of holiday you book. Instead of going away every year, go once every two. Book during sale periods and look to travel at cheaper times of the year.
2. Gifts – As a family it’s nice to get gifts, but as parents you need to make decision on what gifts you give if you’re looking to cut down. Talk to family and friends make sure you buy them something they want or if they are happy to stick to a budget.
3. Nights out – It’s great to let your hear down and let off some steam, so don’t stop going out altogether, instead make those nights out count. Don’t forget to keep an eye out for local deals and coupon codes for money off events or meals out.

Keep

1. Food – Obviously you can’t cut out food, you could cut down how much you buy to avoid waste, but really you have no choice but to keep. However always make sure you get the best deals. Either buying in bulk using coupons and waiting till the end of the day when food is reduced.
2. Clothing – Clothing is an essential, in as much as you have enough to keep you covered and warm and dry. Still keep buying clothing as you need it, essentials or something for a special occasion. Just stop buying clothes for the sake of it, so always ask yourself if you really need it before buying.
3. Night in – If your cutting down your nights out, make your nights in count. Cook a nice homemade restaurant style meal, cuddle up as a family on the sofa and watch your favourite films. Make a day of it every week or every month so it feels special. You won’t notice you’re not going out as much.