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What’s your number? That’s not a pickup line; it’s the digits a mortgage lender will want to know. In the range of 300 to 850, a score as low as 500 may open the door to a home.

But the credit score needed to buy a house is at least 620 for most types of mortgage loans. The lowest rates usually go to borrowers with scores of 740 and above whose finances are in good order.

Why Does a Credit Score Matter?

Just as you need a résumé listing your work history to interview for a job, lenders want to see your borrowing history, through credit reports, and a snapshot of it, expressed as a score on the credit rating scale, to help predict your ability to repay a debt.

A great credit score vs. a bad credit score can translate to money in your pocket: Even a small reduction in interest rate can save a borrower thousands of dollars over time.

Do I Have One Credit Score?

You have many different credit scores based on information collected by Experian, Transunion, and Equifax, the three main credit bureaus, and calculated using scoring models usually designed by FICO® or a competitor, VantageScore®.

To complicate things, there are often multiple versions of each scoring model available from its developer at any given time, but most credit scores fall within the 300 to 850 range.

Mortgage lenders predominantly consider FICO scores. Here are the categories:

•   Exceptional: 800-850

•   Very good: 740-799

•   Good: 670-739

•   Fair: 580-669

•   Poor: 300-579

Here’s how FICO weighs the information:

•   Payment history: 35%

•   Amounts owed: 30%

•   Length of credit history: 15%

•   New credit: 10%

•   Credit mix: 10%

Mortgage lenders will pull an applicant’s credit score from all three credit bureaus. If the scores differ, they will use the middle number when making a decision.

If you’re buying a home with a non-spouse or a marriage partner, each borrower’s credit scores will be pulled. The lender will home in on the middle score for both and use the lower of the final two scores (except for a Fannie Mae loan, when a lender will average the middle credit scores of the applicants).

💡 Recommended: 8 Reasons Why Good Credit Is So Important

A Look at the Numbers

What credit score do you need to buy a house? If you are trying to acquire a conventional mortgage loan, a loan not insured by a government agency, you’ll likely need a credit score of at least 620.

With an FHA loan, 580 is the minimum credit score to qualify for the 3.5% down payment advantage. Applicants with a score as low as 500 will have to put down 10%.

Lenders like to see a minimum credit score of 620 for a VA loan.

A score of at least 640 is usually required for a USDA loan.

A first-time homebuyer with good credit will likely qualify for an FHA loan, but a conventional mortgage will probably save them money over time. One reason is that an FHA loan requires upfront and ongoing mortgage insurance that lasts for the life of the loan if the down payment is less than 10%.

💡Recommended: How to Check Credit Scores Without Paying

Credit Scores Are Just Part of the Pie

Credit scores aren’t the only factor that lenders consider when reviewing a mortgage application. They will also require information on your employment, income, and bank accounts.

A lender facing someone with a lower credit score may increase expectations in other areas like down payment size or income requirements.

Other typical conventional loan requirements a lender will consider include:

Your down payment. Putting 20% down is desirable since it often means you can avoid paying PMI, private mortgage insurance that covers the lender in case of loan default.

Debt-to-income ratio. Your debt-to-income ratio is a percentage that compares your ongoing monthly debts to your monthly gross income.

Most lenders require a DTI of 43% or lower to qualify for a conforming loan.

How to Increase Your Credit Scores Before Buying a House

Working to improve or build credit over time before applying for a home loan could save a borrower a lot of money in interest. A lower rate will keep monthly payments lower or even provide the ability to pay back the loan faster.

Working on your credit scores may take weeks or longer, but it can be done. Here are some ideas to try:

1. Pay all of your bills on time. If you haven’t been doing so, it could take up to six months of on-time payments to see a significant improvement.

2. Check for errors on credit reports. Be sure that your credit history doesn’t report a missed payment in error or show a debt that’s not yours. You can get free credit reports from the three main reporting agencies.

To dispute a credit report, start by contacting the credit bureau whose report shows the error. The bureau has 30 days to investigate and respond.

3. Pay down debt. Installment loans (student loans and auto loans, for instance) affect your DTI ratio, and revolving debt (think: credit cards and lines of credit) plays a starring role in your credit utilization ratio. Credit utilization falls under FICO’s heavily weighted “amounts owed” category. A general rule of thumb is to keep your credit utilization below 30%.

4. Ask to increase the credit limit on one or all of your credit cards. This may improve your credit utilization ratio by showing that you have lots of available credit that you don’t use.

5. Don’t close credit cards once you’ve paid them off. You might want to keep them open by charging a few items to the cards every month (and paying the balance). If you have two credit cards, each has a credit limit of $5,000, and you have a $2,000 balance on each, you currently have a 40% credit utilization ratio. If you were to pay one of the two cards off and keep it open, your credit utilization would drop to 20%.

6. Add to your credit mix. An additional account may help your credit, especially if it is a kind of credit you don’t currently have. If you have only credit cards, you might consider applying for a personal loan.

💡Recommended: 31 Ways to Save for a House

The Takeaway

What credit score is needed to buy a house? The number depends on the lender and type of loan. An awesome credit score is not always necessary to buy a house, but it helps in securing a lower rate.

Ready to shop for a home? SoFi offers fixed-rate mortgage loans with competitive rates and perks.

Find your rate on a SoFi Mortgage in minutes.

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Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Your mom wants something surprising for the holidays this year. And so does your dad. In our holiday gift survey, we asked parents and grandparents to reveal the number-one present they hope to find under the tree this season. What they told us is going to make your holiday shopping very merry and bright.

In past years, you probably spent a lot of time searching online and in stores for the perfect Christmas gift ideas for parents and Christmas gift ideas for grandparents. This year, there’s no need to stress out about it because you’ll know exactly what to buy.

So what do mom and dad want you to get them? And what do grandparents want for Christmas? In our survey, we asked 1,000 of them (250 of each — moms, dads, grandmothers, and grandfathers) to share the holiday present they really want this season — and what they don’t want. Here’s what they told us; consider these survey findings our gift to you.

Source: Based on a What People Actually Want This Holiday Season survey of 1,000 U.S. adults from October 26, 2022 to October 27, 2022.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score?

Gift Cards Are the Favorite Gift by Far

The number-one gift requested by moms, dads, grandmothers, and grandfathers is … a gift card! And it wasn’t even close. Gift cards were the most-requested gift across the board.

Almost 33% of respondents picked gift cards as their most-wanted holiday gift. Here’s how it breaks down across the generations:

•   Moms: 39%

•   Dads: 31%

•   Grandmothers: 34%

•   Grandfathers: 27%

The Type of Gift Card You Give Makes a Difference

There are all kinds of gift cards to choose from, including gift cards for restaurants, stores, and airlines, to name just a few. So, as you get ready to shop and celebrate the holidays without blowing your budget, which type should you get for your parents and grandparents?

A gift card that can be used anywhere, like a Visa gift card, was the top choice, selected by:

•   45% of moms

•   44% of grandmothers

•   40% of grandfathers

•   38% of dads

The one group that wants a different kind of gift card? Moms ages 35 and up. They preferred a gift card to a retailer like Target, Amazon, or Walmart.

The way gift cards function is similar to how credit cards work, since your parents and grandparents can use them to buy whatever they like. Perhaps that’s why they were so popular in our survey: Your relatives can pick out exactly what they want.

Skip the Fancy Jewelry

You might think mom would be thrilled with luxury goods like an expensive necklace, bracelet, or earrings, but jewelry is actually at the very bottom of her list. When asked the gift they wanted least, most moms (22%) said fine jewelry. Dads agreed — 21 percent chose fine jewelry, such as a watch, as their least favorite holiday gift.

Grandparents also said no thanks to fine jewelry:

•   26% of grandmothers picked it as their least favorite gift

•   21% grandfathers chose at gift they wanted least

Recommended: Secrets to Not Paying Full Price

Holiday Gift Ideas for Mom

Here’s what Mom wants most:

•   A gift card: 39%

•   No gift at all — she just wants to spend time with family: 14%

•   An experience (like a concert or vacation): 10%

•   Clothes or shoes: 9%

•   A homemade gift like a photo collage: 7%

•   Electronics: 6%

•   Jewelry: 6%

•   Home goods: 5%

•   Donation to a charitable organization: 3%

•   Beauty/Health products: 2%

Holiday Gift Ideas for Dad

Here’s what dad wants most:

•   A gift card: 31%

•   Electronics: 14%

•   No gift at all — he just wants to spend time with family: 12%

•   An experience (like a concert or vacation): 12%

•   Clothes or shoes: 10%

•   Jewelry: 9%

•   A homemade gift like artwork: 5%

•   Donation to a charitable organization: 4%

•   Home goods: 2%

•   Beauty/Health products: 2%

If you’re thinking about getting dad the electronics he wants, but you don’t have the cash to pay for the gift upfront, applying for a credit card, and charging the electronics to it, is an option you may want to consider.

Holiday Gift Ideas for Grandmothers

•   A gift card: 34%

•   No gift at all — she just wants to spend time with family: 22%

•   An experience (like a concert or vacation): 12%

•   Clothes or shoes: 8%

•   A homemade gift like artwork: 6%

•   Electronics: 5%

•   Jewelry: 4%

•   Donation to a charitable organization: 3%

•   Home goods: 3%

•   Beauty/Health products: 2%

Holiday Gift Ideas for Grandfathers

•   A gift card: 27%

•   No gift at all — he just wants to spend time with family:14%

•   Electronics: 12%

•   An experience (like a concert or vacation): 10%

•   A homemade gift like artwork: 10%

•   Clothes or shoes: 8%

•   Donation to a charitable organization: 8%

•   Home goods: 5%

•   Jewelry: 4%

•   Beauty/Health products: 2%

Recommended: 41 Charities to Support This Year

Who Buys the Best Gifts?

It’s unanimous: Moms, dads, grandmothers, and grandfathers all agree that their spouse or partner is tops when it comes to choosing holidays gifts. No other person even comes close.

Who Gives the Best Gifts?

•   Spouse/partner: 37%

•   Parents: 18%

•   Friends: 10%

•   Siblings: 9%

•   Other relatives: 9%

Whose Gifts Rate the Worst?

Ranking at the bottom of the best gift-giver list: In laws and bosses. Only 4% of respondents said their mother-in-law and father-in-law give good gifts, and just 1% said their boss does.

Regifting is Real — and It Can Be Pretty Awkward

There’s a lot of regifting going on: 41% of our respondents admitted they’ve done it. But when the tables are turned on them, things can get a little uncomfortable. Fortunately, many have a sense of humor about it.

Almost 1/3 of Moms Have Been Regifted a Gift They Gave First

•   68% thought it was funny

•   32% were hurt, annoyed, or mad

Yet this didn’t deter them from doing it themselves: 38% of moms have regifted what they didn’t want. Most of these unwanted gifts were from friends.

Almost Half of Dads Have Been Regifted a Gift They Gave

•   71% thought it was funny

•   28% were hurt, annoyed, or mad

Dads are even more likely than moms to regift: 47% of them have done it — mainly with presents from distant relatives.

Lots of Unwanted Gifts Are Sitting in a Closet Someplace

When they get a Christmas present they don’t want or need, the overwhelming majority of respondents said they hang onto them, rather than exchange them. This was the answer chosen by:

•   80% of grandmothers

•   79% of moms

•   74% of grandfathers

•   70% of dads

So Whose Gifts Do They Take Back?

Of those parents and grandparents who return or exchange gifts:

•   Moms are most likely to return gifts from friends

•   Dads are most likely to return gifts from parents or other relatives

•   Grandmothers are most likely return gifts from distant relatives

•   Grandfathers are most likely to do return gifts from distant relatives or coworkers

Recommended: Tips for Using a Credit Card Responsibly

Plenty of Moms and Dads Are Wishing for a Vacation

If you splurge and get your parents a trip as their holiday gift, expect them to waste no time in packing their bags. Of the moms and dads who chose an experience as the gift they most want for the holidays, a vacation was at the very top of the list.

While paying for a vacation can be expensive, you might want to think about splitting the cost with your siblings or putting it on your credit card to help cover the cost. This is one reason why getting a credit card can be helpful when you’re buying holiday gifts.

Time Together Might Be the Greatest Gift of All

You may not need to get your parents a lot of presents (besides a gift card, that is!). A number of moms and dads who took our survey said they wanted family time over the holidays more than anything. In fact, for moms, spending time with family is their second most-wanted gift.

For dads, family time came in third. Electronics like gaming systems edged it out slightly.

Grandmothers and grandfathers want to spend time with family most of all. Each of them chose it as their second favorite gift option.

The Takeaway

One specific holiday gift will please your parents and your grandparents this year: a gift card. Not only does this make your shopping easier, but it gives your loved ones exactly what they want. A gift card that can be used anywhere, like a Visa gift card, is what the respondents to our survey wanted most.

If you’re looking for other gift options, dads are partial to electronics, like gaming equipment, and both moms and dads would be happy to find airline tickets for a vacation in their stocking.

As you’re doing holiday shopping for your family, you can get a gift for yourself at the same time. With a credit card from SoFi, you can earn generous cash-back rewards on all purchases.

The SoFi Credit Card offers unlimited 2% cash back on all eligible purchases. There are no spending categories or reward caps to worry about.¹

Take advantage of this offer by applying for a SoFi credit card today.

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Photo credit: iStock/seb_ra

¹Members earn 2 rewards points for every dollar spent on purchases. No rewards points will be earned with respect to reversed transactions, returned purchases, or other similar transactions. When you elect to redeem rewards points into your SoFi Checking or Savings account, SoFi Money® account, SoFi Active Invest account, SoFi Credit Card account, or SoFi Personal, Private Student, or Student Loan Refinance, your rewards points will redeem at a rate of 1 cent per every point. For more details please visit the Rewards page. Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA/SIPC. SoFi Securities LLC is an affiliate of SoFi Bank, N.A.

¹See Rewards Details at SoFi.com/card/rewards.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

The SoFi Credit Card is issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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For many people, clothing is a favorite purchase, and shopping for new looks is practically a hobby. Fashion is a way to express your personal style; a new pair of jeans or boots can be a major mood-lifter.

But let’s face it, clothes can be expensive. If fashion is your weakness, it can take a big bite out of your budget. According to the Bureau of Labor Statistics, the average American household spends $1,754 a year on apparel and related services. A survey by Credit Donkey found women spend an average of $571 per year on clothing, compared to men who spend an average of $323 per year.

But some people spend considerably more, ringing up bigger bills by buying the latest handbag or designer clothes that can add the equivalent of a student loan payment to your monthly bills.

These purchases can add up over time and feel like a waste of money of your hard-earned cash. So here, learn some ways to reduce the amount you spend on garments, including:

•   How to save money on clothes

•   How to know when to shop to get the best deals

•   How to trade what you own (but are tired of) for new gear

•   How to care for your clothing so it lasts longer.

Money-Saving Tips for Buying Clothes

There are ways you can cut down on your clothing expenses but still score some pieces you can’t wait to wear. Here’s 15 suggestions on how you can save money on clothes without feeling deprived or out of sync with the latest styles.

1. Shop the End-of-Season Sales

Ever notice how spring and summer clothing seems to go on sale in June or July? Or fall and winter clothes in January? The reason is because stores need to sell that merchandise so they can make room for next season’s items. Time it right, and you can scoop up current seasonal clothing at steep discounts. Just don’t go shopping the second that next season’s looks hit the racks.

2. Host a Clothing Swap

You know the saying, someone else’s trash might be your treasure. A cost-free way to get some new pieces is by arranging a clothing swap. The ground rules: Everyone brings clean, gently used clothes they’re looking to unload, and attendees get to sift through other’s clothing and add to their wardrobe for free.

A clothing swap is a great way to combine socializing and “shopping.” If you want to host one, heed this advice:
Make sure you’ve got a big enough space where everyone can comfortably peruse and try on items.

•   Invite people who are roughly the same clothing size.

•   Set a minimum number of pieces they need to bring.

•   Don’t feel like being the coordinator? Check out Meetup.com and Eventbrite.com to find swaps near you.

3. Ask for a Discount on Damaged Clothing

Here’s how to save money when shopping for clothes: If you find something you love but notice slight imperfections such as a small tear, loose thread, or a flaw in the fabric, bring it to the attention of a store employee. You might be able to get some dollars knocked off the retail price. If the salesperson doesn’t offer this, you can politely ask if the price can be lowered to reflect the garment’s condition.

Think it’s not worth the trouble? Remember why saving money is important. Every little bit of extra cash you sock away can be used to pay down debts or go towards a goal like funding a summer vacation.

4. Look for Coupon or Promo Codes

Before making a purchase, search the internet to see if the retailer offers a store coupon or promo code you can use when shopping online. You can find available coupon or discount codes at sites such as Retailmenot.com, Rakuten.com and BeFrugal.com, which all offer cash back for purchases made. Many times, if you are a first-time customer, you can snag a discount and/or free shipping by signing up for email announcements.

Quick Money Tip:Typically, checking accounts don’t earn interest. However, some accounts will pay you a bit and help your money grow. An online bank account is more likely than brick-and-mortar to offer you the best rates.

5. Mend Your Clothes

Are there things hanging in your closet you’re not wearing simply because a button is missing or the garment has a small hole? Instead of taking it to a tailor, buying something new, or avoiding it altogether because it needs repair, try fixing it on your own. Basic mending doesn’t require a lot of tools and is pretty easy.

As long as you’ve got the basics such as a needle, thread, scissors, or buttons if needed, you’re good to go. If you’re not sure about your hand sewing skills, you can find a slew of how-to videos on YouTube.com. Also check out Japanese mending, which elevates visible mending into an art form.

5. Buy Generic Brands for the Basics

When it comes to certain articles of clothing, purchasing a generic brand over a name or designer one can save you money without jeopardizing your style. Any item you wear under something, like a tank top or a tee shirt, doesn’t need a fancy label to serve the purpose. Why buy a white tee at a high-priced store for $50 or $90 when a similar one at a national chain retailer costs only $5?

Recommended: Tips for Overcoming Bad Financial Decisions

6. Create a Capsule Wardrobe

Having a capsule wardrobe means you’ve created a streamlined clothing collection that features well-made, non-trendy pieces that can all be mixed and matched. The idea is to spend a little more on the items initially. In the long run, however, you save money because these higher quality garments will last longer and not have to be replaced every few months.

A capsule wardrobe also offers timeless, versatile clothing choices instead of a closet full of flash-in-the-pan styles. Not having a large wardrobe may also benefit your overall wellness. One study found 37% of people said minimizing their wardrobe would reduce the stress of getting ready every day.

7. Wash Your Clothes Properly

Laundry mistakes can damage your clothes. For instance, washing certain fabrics in hot water can cause shrinkage, fading, and wrinkling, as well as can trigger dye to run. However, using cold water is much more clothing-friendly so you won’t be in danger of destroying a garment. You can also save on your gas or electric bill since an estimated 75% to 90% of all of the energy used in your washer goes to heating up the water.

Another way to extend the life of your clothes is by not washing every single item after one wear, with the exception of course, of underwear and socks. Why? Each time you wash your clothes, you’re putting stress on the fabric. By wearing your clothes a few times before washing, you can minimize any damage. Doing so will not only save your clothes, but you’ll also spend less on laundry detergent.

8. Borrow from a Friend

Going to a gala event or attending a wedding but can’t afford to buy anything? Consider asking that generous, stylish friend if you might be able to borrow from their closet. This can spare your bank account and allow you to get dressed up in something new and fresh to you. The only cost you might incur is taking the garment to the dry cleaners after.

Don’t have a friend with a fab wardrobe? Consider renting an outfit for your big night out.

Recommended: 18 Common Misconceptions About Money

9. Figure Out Cost Per Wear

Looking for more ideas for how to save money on clothes? Maybe it’s time for a bit of easy math. Since you likely want to feel as if you’re getting your money’s worth when you buy an article of clothing, pay attention to how often things get worn. If a piece is costly and you’ve only worn it once, you’re not reaping its full value.

You can figure out if your money was well spent by calculating the cost-per-wear ratio. Just divide the item’s cost by how many times you wear it. For example, if you buy a coat for $100 and wear it 100 times, your cost per wear is $1. On the flip side, if you’ve only worn it five times, each wear is equivalent to $20 which probably hasn’t given you the most bang for your buck. Before you buy the clothing, take time to do the math to assess how many times you realistically expect to wear it.

10. Upcycle Your Clothes

Upcycling clothing is taking something old, recycling it, and making it into something new to wear. Repurposing clothing is one of the many interesting ways you can save money.

Upcycling clothes can include sewing, cutting, dyeing, or even updating a cardigan with new buttons. Fun examples of upcycling include hand-painting a jean jacket, cutting a pair of jeans into shorts, creating a tote bag from a sweatshirt, or transforming a wool blanket into an autumn coat or cape.

Upcycling is also eco-friendly. According to the Council for Textile Recycling, the average American throws away 70 pounds of clothing and other textiles every year. Not only does upcycling help you buy less and keep excess fabric out of landfills, it’s a way to save money and live sustainably.

11. Retool Your Clothing Budget

One way to stop overspending on clothing is to figure out how much you’re actually shelling out each month and then set a limit. There are several different budgeting techniques, such as the 50-30-20 rule. This divides your take home money into three categories: needs (50%), wants (30%) and savings and debt repayment (20%). ****

The needs category encompasses expenses you can’t avoid like groceries, housing, and utilities. Generally clothes fall into the discretionary wants group along with entertainment, dining out, monthly subscription expenses. Some financial experts suggest limiting clothing spending to 2 to 2.5% of your take-home pay which equals between 6 to 8% of the 30% of non-essential purchases. If you make $4,000 a month, 30% of that amount equals $1,200. 6 to 8% of that figure equals an allotment of $72 to $96 a month for apparel. If that doesn’t sound like enough, you’ll want to see what other non-essentials in the wants category you can scale back.

Recommended: Guide to Practicing Financial Self-Care

12. Go Shopping in Your Own Closet

Do you really know what’s in your closet or tucked into all your dresser drawers? Go through your entire wardrobe, and you might find things you forgot you had or thought you got rid of years ago. Unearthing items you haven’t seen or worn in awhile can spark creativity with clothing combinations and stretch your wardrobe.

On the other hand, you may realize some pieces lingering in the corners of your closet hold no interest. If that’s the case, keep reading for details on how you might get some money for it.

13. Buy and Sell Used Clothing

There’s no question you can save money by shopping for second-hand clothing. You can find bargains at a variety of places including thrift stores, consignment shops, garage, yard, or stoop sales, and even for free through community groups such as Buy Nothing. Two sites, among others, where you can sell your old stuff are Poshmark.com and Depop.com. Both are great for finding brand-name and designer garb for cheap.

And, the pickings are plentiful since secondhand shopping is at an all time-high with 82% of Americans buying or selling used goods, according to OfferUp’s Recommerce Report.

What’s more, some vintage and used clothing shops also buy from people like you. Check out Buffalo Exchange and Crossroads Trading; you might get cash for your gear or be able to swap it for pieces you love.

Recommended: Tips for Using a Credit Card Responsibly

14. Don’t Give into Temptation

One way to curb clothes spending is to put a temporary kibosh on shopping for these items. Try not to put yourself in situations where you may feel the urge to buy clothing. For instance, many people spend money when bored. Instead of going shopping when you have an unplanned afternoon, perhaps you could explore new hobbies.

Also, when you find yourself with the urge to shop, stop and ask yourself, “Do I truly need this or do I simply want it?”

You can also commit to a 30-day no-spending challenge on shopping for anything to wear. You may notice you have more money, less credit card debt, and don’t feel the need to buy unnecessary clothing items after you see the rewards of this month of not buying.

Recommended: Questions You Should Ask Before Making an Impulse Buy

15. Learn When Retailers Have Their Biggest Sales

Start paying attention and you’ll see a pattern as to when major retailers host their big sales. Holiday weekends such as Martin Luther King Jr.’ Day, Memorial Day, Labor Day, and the Fourth of July are popular times for stores to feature great buys along with Black Friday. For online shopping, check out deals on Cyber Monday (the Monday right after Thanksgiving) and Amazon Prime Day.

You can also ask a salesperson at your favorite stores to give you the inside scoop on when certain items might be going on sale.

The Takeaway

Clothes shopping can be fun and an ego boost, but if you’re not mindful, it’s easy to rack up the bills and possibly find yourself mired in unnecessary debt. Many times, there are ways to cut back on buying clothes, make the pieces you have last longer, and breathe new life into your wardrobe without going broke. With creativity, knowledge, and some smart moves, you can still feel good about what you wear without spending as much.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQ

How can I stop spending money on clothes?

One of the best ways is to simply remove the temptation, especially if you’re prone to impulse spending. If you like to shop online, unsubscribe from retailer emails so you won’t be alerted to new items and sales. Feel the itch while scrolling your phone? Put it down; pick up a book, or watch a movie instead. When you’re out and about, resist going into your favorite stores. Vow to commit to a 30-day shopping sabbatical and see how much money you’re able to save as a result.

Are there ways I can take better care of my clothing so they’ll last longer?

Yes. Follow the washing instructions carefully, let items air-dry when possible (instead of exposing them to a hot dryer), and store them in a cool, clean, and dry environment out of the sunlight, which can cause fading. Also fold heavy sweaters instead of hanging them to prevent the fabric from stretching.

Should I only buy cheaper clothes?

No. Sometimes spending more means you’ll get a well-made, high-quality garment that will last for years. Look for these pieces on sale at major department stores and at discount retailers such as T.J. Maxx and Marshalls.

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Photo credit: iStock/Phiwath Jittamas

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

SOBK1022006

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Having the newest iPhone and a 60-inch TV in every room of your house might sound like a dream worth aspiring to, but hold that thought. If you are trying to grow your savings, start investing, or get out of debt, it’s important to scale back all kinds of spending, including on electronics.

In today’s digital world, having access to a smartphone and laptop — not to mention things like Bluetooth headphones, a smart TV, and maybe even a smartwatch — can be crucial for our remote jobs, connecting with friends and family, and staying informed about the world around us.

So how can you buy the electronics you need for daily life without going broke? In this article, we’ll explore, among other topics, the following:

•   How to save money on electronics

•   How to shop at the right time

•   How to sell old electronics

•   How to get the best discounts.

1. Buying Older Models Instead of the Newest Models

The joke goes that you could buy the newest smartphone today, and it’ll probably be replaced by a newer model within a week. While technology cycles aren’t quite that fast, companies like Apple, Google, and Microsoft do release “newer, better” phones, tablets, computers, and other tech regularly.

Just remember: You don’t always need the newest tablet. You don’t always have to upgrade your phone. If your technology still operates efficiently — allowing you to take decent photos, reply to work emails, and stay connected via social media or phone calls, all without issue — hold onto it longer. With a little money discipline, you could instead use those funds to build your emergency savings, pay down your debt, or start investing.

And when it does come time to buy a new device, consider buying the second-newest generation. Features are likely similar to the newer device, but prices will be lower. This is particularly true right around the launch of the new generation.

2. Avoiding Consumerism

An easy way to save on electronics is to reject the idea of consumerism. Consumerism is the belief that your well-being, happiness, and even sense of self-worth will increase the more that you spend money on goods and services.

But according to the American Psychological Association, the reverse seems to be true. While it’s not fair to generalize, studies typically show that the least materialistic people report the greatest life satisfaction.

Thus, what might feel like an irresistible craving for the latest technology could actually be detrimental to one’s mental health. Consume your technology in moderation — treat yourself to nice things, but remember that spending won’t always lead to fulfillment. In fact, you may find that committing to how much money to save each month brings greater satisfaction.

3. Trading In and Selling Unwanted Electronics

If you have a junk drawer with old smartphones or a storage container with old laptops, you might be leaving money on the table (or in the junk drawer, as it were).

For example, many second-hand stores buy electronics like video game consoles — and they’ll pay you for the controllers and games too. Some smartphone vendors will allow you to trade in an older-model phone when you purchase a new one.

And there’s always the internet. Amazon, eBay, Facebook Marketplace, and other online retailers allow you to easily sell old electronics, including phones, TVs, and even appliances. You can then use that money when it’s time to upgrade to a new electronic device or add it to your emergency fund.

The resale market is soaring; it’s expected to grow to $53 billion a year in 2023. Now is a great time to start selling your old tech.

4. Considering Needs Over Wants

If you are struggling to decide whether you should buy a new phone or computer, assess your needs. Beyond determining if your current phone or computer works well enough for you to do your job and live conveniently, take some time to look at your budget.

Do you have enough money to cover actual needs like housing, food, and utilities? Are you able to pay off your credit card each month and make student loan payments? Can you cover an unexpected hospital bill or emergency car repair and meet other money-saving goals?

If you’re confident that you can successfully meet your needs without too much of a struggle, it can be easier to justify splurging on a want.

5. Unplugging Devices That Are Not in Use

Have you heard of phantom or vampire energy use? That’s when you leave something plugged in when not in use and it continues to draw electrical power, which you wind up paying for.

The U.S. Department of Energy recommends unplugging certain appliances when not in use to decrease your standby power loads and thus reduce your monthly electric bill.

The daily savings are hardly noticeable, but over time, unplugging certain devices when not in use, like a toaster oven or a laptop in sleep mode, can lead to significant savings — about $100 a year for the average household.

Recommended: Learn the Difference Between Impulsive and Compulsive Shopping

6. Researching and Buying Refurbished Electronics

Refurbished electronics are a great way to get a like-new electronic without digging deep into your pocket. Such electronics don’t always have the luxury of an extended warranty, but many are available with some type of warranty (and maybe even a money-back guarantee).

And you can get a deal on more than just refurbished smartphones. According to Consumer Reports, you can find great deals on speakers, tablets, headphones, and smartwatches.

Just make sure you’re buying a refurbished electronic directly from the manufacturer or from an organization that complies with ISO (International Organization for Standardization) or R2 (Responsible Recycling).

7. Buying at the Right Time

Here’s another way to save on electronics: Sync up with sales. You might find better deals if you are strategic about when you purchase TVs, laptops, and video game consoles. Typically, you can find Black Friday and Cyber Monday sales, and the week after Christmas can also be an excellent time of the year to buy electronics.

You can also watch for deals around Tax Day, Memorial Day, and Labor Day. And if you’re buying an older-generation model, try timing it with the release of the newer version for greater discounts.

Recommended: Why You Should Save Money

8. Utilizing Price Matching

It might be challenging to get cell phone providers to match prices of competitors, but when shopping for other electronics, like computers, video game consoles, TVs, and appliances, you might have luck getting big-box retailers to price match.

In fact, some popular stores have official price-matching programs — and may even price-match the deals you find on Amazon. Try price matching when shopping for electronics at stores like Walmart, Target, and Best Buy.

9. Shopping Around and Being Patient

Shopping is usually not a good time to be lazy. While it can be tempting to buy your coveted electronic at the first place you see it, it can be important to do some research. Comparison-shop online, research upcoming sales, and utilize coupons and store discounts to get the best deal at the right time.

10. Taking Advantage of Savings Codes

You won’t always be successful, but it’s worth browsing online for savings codes before any major purchase. Sites like GroupOn, RetailMeNot, and Savings.com all offer discount codes that you may be able to apply to your purchase.

You can also look for promotional codes in circulars that arrive in the mail, during podcasts, or from influencers on social media.

Recommended: How Bill Pay Works

11. Utilizing Student Discounts

If you are a student, it can be a good idea before any purchase to ask if the company offers a student discount. The worst they can say is no. Just keep your student ID in your wallet for verification.

You can also ask about other common discounts you might qualify for, like a military discount or senior discount.

12. Not Always Going for Brand-Name or High-End Products

A brand-new iPhone and Samsung TV may sound like the height of luxury, but if you’re trying to be smart about how you spend your money on electronics, consider skipping the most popular brand name or top-of-the-line product options.

A lesser-known brand may perform well and save you money. Before purchasing an unfamiliar brand, however, it is a good idea to read product reviews on third-party websites.

Recommended: How to Force Yourself to Save Money

Saving Money With SoFi

A savings account with a high APY is a good way to save toward all of life’s goals, including electronics. And having a no-fee checking account makes it easier to spend when you’re ready. SoFi’s online bank account delivers the best of both worlds. Sign up for our Checking and Savings with direct deposit to earn a competitive APY, get cash back on local purchases, and pay no fees.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQ

Can you live without electronics?

Technically speaking, it is possible to live without electronics, just as our ancestors did before us. However, technology is now often essential to how we work, how we communicate, how we find information, how we shop, how we find entertainment, and even how we bank and access healthcare. Staying connected and spending money on electronics is fine — everything in moderation.

Can you live while being an electronics minimalist?

Living as an electronics minimalist is possible. You may still need access to a computer for work or online bill pay and a phone to communicate with your family, but you can take specific, impactful steps to otherwise reduce your electronics. For instance, you can sell your TV, downgrade to a basic phone, delete your social media, etc. Then, seek out other experiences, like hiking, attending live theater, and reading.

How much technology should I use per day?

Experts recommend limiting screen time to two hours a day max (outside of work). This includes time spent on your phone or tablet, watching TV, and playing video games. That said, estimates of how much total screen time most Americans invest has been estimated at almost eight hours a day.

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Photo credit: iStock/LightFieldStudios

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

SOBK0722024

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Debt: It’s something many of us live with, but it can really bog down our finances and prevent us from meeting our money goals.

Paying off debt is a long-term commitment that requires discipline, and staying motivated until your debts are paid off can be a major challenge. Consider these examples:

•   If you have a student loan of around $43,000, it can take almost eight years to pay off with monthly payments of around $450, according to the Education Data Initiative.

•   If you have $10,000 of credit card debt at an 18% interest rate and want to pay it off in three years, you’ll have to pay $362 every month.

It may sound daunting, but here’s a pep talk: The advantages of paying off debt are well worth the effort. You will have a higher credit rating and qualify for better loans in the future. And with more money to spend each month, you can invest and build a nest egg toward retirement or simply save for luxuries like vacations.

To help you buckle down and say goodbye to your debt, read on to learn how to stay motivated while paying off your debt.

Why It’s Hard to Stay Motivated When Paying Off Debt

How to stay motivated while paying off debt can be tough. It can seem like an uphill, almost endless battle. Depending on how much you have to pay off, the process may seem as if it requires some uncomfortable (and even unfair) sacrifices you’d rather not make.

However, with some smart strategies to change your money mindset, you’ll find that paying down debt becomes easier as you learn better money management.

If you are ready to get rid of debt, read on to learn 15 ways to stay motivated.

15 Ways to Help You Stay Motivated When Paying Off Debt

Here are 15 tips to help setting yourself up for success. They’ll give you a boost as you consider how to stay motivated while paying off debt.

1. Remember the “Why”

Why have you decided to pay off your debt? Are you tired of never having as much spending money as you’d like and watching the debt pile up? Do you hate the idea of dollars flying out of your bank account to pay for interest?
Do you have financial goals that are falling ever further out of reach?

Whatever your reasons, remind yourself regularly why you are working so hard and monitor your progress so that you can see the results.

2. Get Organized

Achieving a goal is easier if you have a plan. Your strategies to become debt free might include consolidating your debt with a lower-interest loan, or you might decide to get a roommate and save on rent.

Whatever your method, plan a budget that you can live with and set up automatic payments each month so that you don’t have to think about your bills daily. (This will also help you avoid late fees.) Then, be disciplined, stick to your budget, and watch your debt diminish.

Quick Money Tip:Typically, checking accounts don’t earn interest. However, some accounts will pay you a bit and help your money grow. An online bank account is more likely than brick-and-mortar to offer you the best rates.

3. Have an Accountability Partner

Telling someone you are working on paying down debt can help motivate you. Called an accountability partner, this person could be your spouse, a friend, or a financial advisor. If you worry about telling your accountability partner that you fell off the proverbial wagon, remember that nobody’s perfect. Don’t beat yourself up. Just get right back on track with some encouraging words from your partner.

4. Put Yourself in an Uncomfortable Situation

Achieving a goal often takes acknowledging the difficulty saving money can present and then pushing through it. Paying down debt will require making changes to your lifestyle so that you can live more economically.

That might mean going out less with friends, not spending so much on clothes, or moving in with parents temporarily. Feeling uncomfortable is not a bad thing; it can be a powerful motivator. You will power through any feelings of deprivation to get on better financial footing going forward.

5. Track Your Progress

When you initially decide to tackle accumulated debt, it can seem overwhelming. By tracking your payments and your diminishing debt, you will see progress. This in turn can give you confidence and enhance your saving motivation as you stick with your plan.

6. Have a Vision Board

How to stay motivated while paying off debt can involve having a vision of what you will do once you are debt free. Use that as a motivator, not just in your mind but in your home. Perhaps you want to take a vacation to London once you better understand your credit score and then boost it by cutting down your debt. (As you lower your debt ratio versus your credit limit, for instance, your score will likely rise.)

If you want to reward yourself with travel, post your goal where you can see it so you are reminded each day of your intention. You might want to create a vision board with photos of your goal to help spur you on. Whether it’s photos of the West End theaters or teatime at a posh hotel, those photos can be motivating.

7. Celebrate the Small Wins

Find ways to reward yourself as you gradually pay down your debt. These special treats should be inexpensive (so as not to blow your budget) but meaningful. It could be reading the latest book by your favorite author, a meal out with friends, or buying yourself new running shoes. Build room into your budget for rewards.

8. Have Like-Minded Friends

Surround yourself with people who will encourage you to spend less rather than overspend. Friends who like going out to expensive restaurants or shopping at expensive stores are not going to help your cause. There are lots of ways to socialize that do not require spending a boatload of cash. For example, grab a coffee with a friend, or go for a hike. Don’t let keeping up with the Joneses (when the Joneses are big spenders) foil your efforts.

9. Reach out to Others

Knowing that you are not the only one fighting debt is comforting, and hearing success stories will encourage you to continue. Seek support by listening to others.

Podcasts on personal finances and online discussion platforms can provide community and give you ideas on how to manage your debt.

10. Focus on the End Date or End Goal

Have an end date or a final goal, and mark it on your calendar. Plan to reward yourself for your hard work when you reach it. It might be a weekend away or finding a new apartment now that you have freed up some cash in your budget. Looking forward to something will keep you motivated.

11. Listen to Sound Financial Advice

How to stay motivated to pay off debt comes down to making informed decisions that hasten the process. It’s important to make sure the financial advice you listen to comes from reliable sources. Many finance “gurus’ on YouTube and social media platforms may not give out the best advice. Find a financial advisor via recommendations if you are unsure of the steps to take to pay down your debt or need additional guidance.

12. Choose a Repayment Method that Makes Sense

There is more than one way to pay off what you owe, and the debt repayment strategies you choose should suit your particular situation and financial goals. You might choose the debt snowball method, where you pay off your smallest debts first, or you might pay off the debts with the highest interest rates first.

Feel as if you are in too deep of a debt hole? Consulting with a financial advisor or a credit counselor at a nonprofit can help you find the best ways to pay off debt faster.

13. Break Repayment Down to Smaller Goals

It helps to break down your task into smaller goals. For example, the first step might be to meet with a financial advisor for advice on debt consolidation or do your own research on the topic. This can help you lower the interest rate on the money you owe, making it easier to pay off.

The next step might be to arrange a loan with the bank and set up payments. Then, set goals to achieve after six months, 12 months, 18 months, and so on. It can help motivate you to pay off debt to see the individual steps that will get you there.

14. Earn Extra Money

You’ll pay off debt quicker if you can earn extra money. Think of ways to increase your income. Can you do overtime, gig work, or part-time work? You might meet new people and expose yourself to a whole new industry that interests you. Who knows? It could be the start of an entirely new career.

Recommended: 11 Benefits of Having a Side Hustle

15. Gamify Your Debt Repayment

Setting yourself a challenge can add a sense of fun to paying off debt, and it can boost your confidence. For example, set a goal of making an additional $1,000 this month from a side hustle. Or each month vow to briefly give up a typical bit of discretionary spending, such as no take-out coffee for one month. The money saved goes towards debt. Gamifying can help you reach your goals quicker, just make sure your challenge is achievable.

The Takeaway

Paying down debt is a long process, and it is not easy to stay motivated. Some of the ways to stay motivated when paying off debt are to acknowledge exactly how much you owe and then develop a plan, with clear benchmarks, to whittle it down. Reach out to others to learn their experiences, set achievable milestones, and reward yourself when you reach them. These steps will keep you going till you reach that debt free finish line.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQ

Does paying off debt make you happier?

Paying off debt may be difficult to start with as you adjust to changes in your lifestyle and budget. However, ultimately, being debt free is a huge relief. It can reduce your financial stress, and it frees you to do so much more with your money.

What are the benefits of paying off debt?

When you are debt free, a weight may well be lifted from your shoulders. Paying off debt can teach you to live within your means and not overspend. The money you were paying in interest on your debt can now be invested in a nest egg toward retirement or used for discretionary spending, like vacations. Lastly, taking control of your finances and paying off debt are huge accomplishments that can boost your confidence to tackle other challenges.

Is it worth it to pay off your debt?

Paying down debt avoids paying unnecessary interest over the long term. There are short-term benefits too. If you are actively reducing your debt, your credit score will likely improve. That can improve your ability to qualify for loans with lower interest and fewer fees in the future. You can also free yourself of the mental burden of debt.

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Photo credit: iStock/BartekSzewczyk

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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