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TOM@RICHHABITS.NET
America’s debt crisis is staggering: $1.7 trillion in student loans and $1 trillion in credit card debt burden adults in 2025 (Federal Reserve). Yet, my Rich Habits research, tracking 233 self-made millionaires and 128 low-income individuals, reveals a clear escape route. The wealthy don’t just avoid debt—they crush it with disciplined habits. Here’s how to apply their strategies to conquer your loans and credit traps.
Habit 1: Live Below Your Means
My research shows 67% of millionaires live frugally, spending far less than they earn, compared to 0% of the poor who avoid pro-rata debt payments (Rich Habits). A 2023 NerdWallet study supports this, noting that households with no credit card debt save 20% of income.
Action: Audit your expenses—cut subscriptions by 10% and redirect savings to debt. For student loans, automate payments above the minimum to shave years off repayment.
Habit 2: Automate Wealth-Building
Millionaires automate savings and debt payments (64% in my study), ensuring consistency (Rich Habits). The Consumer Financial Protection Bureau (2024) confirms automation reduces missed payments by 30%.
Action: Set up auto-transfers of 10% of your income to a debt-focused account. For example, paying $100 extra monthly on a $30,000 student loan at 5% can save $3,000 in interest over a decade (Bankrate calculator).
Habit 3: Daily Goal Reviews
My data shows 76% of millionaires review goals daily, including financial ones, versus 7% of the poor (Rich Habits). A 2024 Charles Schwab survey found goal-setters pay off debt 25% faster.
Action: Write a specific debt goal (e.g., “Pay off $10,000 credit card by 2026”) and review it each morning. Break it into monthly targets—$833 in this case—tracking progress to stay motivated.
Habit 4: Side Hustle for Debt Destruction
Millionaires diversify income (65% have multiple streams, Rich Habits), a tactic echoed by a 2025 Upwork study showing 40% of adults gig to tackle debt.
Action: Start a low-cost side hustle—tutoring, freelancing, or selling digital products. Allocate 100% of earnings to high-interest debt (credit cards often hit 20%+ APR). A $500 monthly gig could clear a $6,000 card in a year.
Rich vs. Poor Mindset
The poor often rely on minimum payments, prolonging debt slavery (Rich Habits). Millionaires attack debt aggressively, prioritizing high-interest balances. A 2023 Ramsey Solutions report notes 70% of debt-free individuals used this “snowball” method—paying smallest debts first for momentum or highest-interest debts for savings.
Your Debt Escape Plan
Start today: Cut one expense, automate a payment, set a debt-free date, and explore a side gig. As my research and third-party data confirm, these habits don’t just erase debt—they build lasting wealth.
Tom Corley is an accountant, financial planner and author of “Rich Kids: How to Raise Our Children to Be Happy and Successful in Life”, Effort-Less Wealth, Change Your Habits Change Your Life, Rich Habits Poor Habits and “Rich Habits: The Daily Success Habits of Wealthy Individuals.”
