Student loan debt in the United States has ballooned to an unprecedented $ 1.77 trillion as of 2025, affecting over 42.7 million borrowers nationwide. With the average federal student loan balance reaching $38,375 and the total average debt, including private loans, climbing to $41,618, many Americans face a daunting financial burden that often extends well beyond graduation.
It is projected that members of the class of 2025 could graduate with a student debt of $40,000, highlighting the increasing cost of college.
Therefore, people are considering making significant savings by avoiding unnecessary expenses to clear their student debts and recover financially more quickly. Here are 12 expert-backed expenses you should cut to pay off your student loans faster.
Stop Dining Out
Going out for meals or ordering food online can eat up your savings and mess up your budget. According to John Bunzel from TD Bank, treating dining out as an occasional luxury rather than a routine habit can make a significant difference. When meals are prepared at home, you can spend less money, eat healthier, and feel better.
Planning your meals, making smart purchases, and preparing your food at home can help you save $100 or more per month. Plus, you’ll likely reduce food waste and improve your cooking skills while you’re at it.
Say Goodbye to the Daily Coffee Run
That daily $3 latte might seem like a small treat, but over time, it adds up to over $900 annually, according to insights from GoBankingRates. Making coffee at home can help you save a significant amount of money and still provide you with the energy you need.
With a bit of practice, you can even replicate your favorite café drinks with affordable at-home tools like milk frothers or French presses. You won’t waste money, and you also won’t have to wait in line to have your coffee made just how you want it.
Streamline Subscriptions
Subscriptions can be convenient, but they are often high-priced, so they can easily strain your budget. The average American spends $ 77 per month on streaming services alone, as reported by Forbes. All of these things together can mean a significant amount of money is being charged to your card every month.
Check through your subscriptions and see if you use everything you pay for. Stop services you don’t need, adjust plans on those you keep, and look for other ways to save money on services.
Skip Unnecessary Impulse Buys
Impulse buying can lead to increased spending without being noticed. Things like impulsive electronics, cool new clothing, or random items rarely bring you joy, but will reduce your financial resources. To cut back, try creating a “cooling-off” period for any non-essential purchases and wait 24 to 48 hours before deciding to buy.
Most of the time, your want-to-spend increases will fade away. You can focus on acquiring things that bring real value or help you achieve your financial objectives, such as paying off debt or saving for the future.
Switch to Store Brands
Using store-brand products can save you a lot without lowering the quality you need. Store-brand grocery items, household things, and over-the-counter medicines are usually cheaper than their famous brand names. Some of the same manufacturers produce the store brands and their more expensive versions.
Nancy Butler, a financial expert, advises, “Even saving just a few dollars per item can accumulate quickly over time.” You can also use this idea for shopping for clothes or personal hygiene items to make your money go further.
Delay Tech and Vehicle Upgrades
While buying a new smartphone, tablet, or car is tempting, it’s frequently enough to keep using your existing device or vehicle if they are still doing their job well. Sticking with your current tech for another year can easily save you hundreds, or even thousands, of dollars.
Regular car maintenance will keep your car running longer and cost less than buying another one soon. Nancy Butler suggests that delaying upgrades frees up more room in your budget, allowing you to allocate extra funds toward loan repayments or an emergency fund.
Do It Yourself for Home Services
Using house cleaners, landscapers, or anyone else who repairs is very convenient, but can be expensive. If you pick up some essential DIY skills, you can save many thousands each year. Many people can manage simple tasks like repainting, cleaning gutters, or mowing the lawn, which can help reduce your home expenses.
Besides saving cash, you will learn key skills and feel a sense of accomplishment for fixing things yourself. Plus, online tutorials make it easier than ever to tackle these tasks.
Cut Down on Energy Bills
Energy bills are a significant expense, but you can reduce them. Simple changes, such as weatherproofing windows, unplugging electronics when not in use, and switching to energy-efficient appliances, can lead to noticeable savings.
Reducing (in winter) or increasing (in summer) your thermostat by a little makes a noticeable difference. Practicing these habits can save you a significant amount on utilities, which you can then use for other essential things.
Rely Less on Ride-Sharing Apps
A daily habit of using Uber or Lyft can add up to a lot of costs. For instance, a 2017 analysis reported that the average price of an Uber ride was $25.73, and a Lyft ride was $19.20. Assuming an average of $22.47 per ride and two rides per day, this amounts to approximately $1,348 per month, or over $16,000 annually.
A good alternative is to choose public transportation, biking, carpooling, or even walking instead of relying on these services. You will save your money, work on your fitness, and minimize harm to the environment. Since gas prices and surges fluctuate, reducing your ride-sharing can cut your spending by hundreds of dollars every year.
Slash Credit Card Interest
Most people find that high-interest credit card debt causes significant financial issues. As of May 2025, the average credit card APR is approximately 20.12%, while the average APR for personal loans is around 12.58%.
Moving your balances to a credit card with a low interest rate can help reduce your expenses, and you can consolidate your debt using a personal loan.
This allows you to make more manageable payments while reducing the overall interest you owe. Getting rid of your debt faster makes it possible to save for emergencies or future financial needs.
Audit Software and Other Subscriptions
Subscriptions you are not using for productivity, online training, or mobile apps might secretly take away your money. According to a CNET report, the average American spends nearly $1,100 per year on various subscription products, with approximately $200 of that going toward services they rarely or never use.
Often, check your monthly recurring bills to find services you can cancel. Canceling or making these services less costly can help you save money every month, which you can use for other important things or savings.
Ditch Lottery Tickets
Buying lottery tickets can be tempting, offering the dream of a big payout. About 40 million U.S. households are habitual lottery players, each spending around $2,500 annually. Notably, these households are predominantly in the lowest income quartile, meaning a significant portion of their discretionary income is spent on lottery tickets.
The likelihood of winning is so low that most people don’t feel these purchases are worth what they spend. If you stop buying lottery tickets, you can save the money and use it to pay off debt, make an emergency fund, or grow your investments.
Changing how you use these assets can give you much stronger yields in the future. Sure, dreaming big feels good, but handling your finances provides greater satisfaction.
Build Your Road to Debt Freedom
Cutting these 12 expenses might seem small individually, but together, they could free up hundreds or even thousands of dollars annually. That’s money you can use to pay down your principal faster, reducing the interest you owe. By implementing these adjustments and remaining consistent, you’ll find yourself inching closer to a debt-free life.
Disclaimer – The Finance key does not provide and does not intend to provide financial, investment, tax, or legal advice. Information contained in this article is for informational and educational purposes only. This list is solely the author’s opinion based on research and publicly available information. The inclusion of links to third-party content is not an endorsement by The Finance Key of such content or services. Please do your due diligence and use your discretion.
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