How young couple paid off $123K in debt

Financial expert Lynn Richardson shares how you can get out of the red and save at the same time.
4:50 | 10/13/21

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Transcript for How young couple paid off $123K in debt
Or do you make cover story in our new series GMA's ways to save. Gotta tell you how people dug themselves out of a Norman debt. Plus will bring a financial experts to help you get out of the red and save everything time Rebecca Jarvis has the story of a young couple who did just that. When NTN arching deciding to get married he knew it was time to cast their finances. Collectively the figure had 123000. Dollars worth of student loan debt. Or rather than panic they decided to get to work. The first thing that we did it of course was budget for that. Prior three months before that we looked at how much we spend in incited to notice some common things. We are able to kind of refocus and re prioritize our spending run they are likely Whitney weekly talking about our budget in our goals and it was just huge for us. Couple reduce their expenses by negotiating their cell phone bill and rent. Canceling unnecessary subscriptions and cutting back on going out in. Upcoming bills or anything that we have who called to say hey if this negotiable and every dollar starts pat they also increase their income by doing site hustles and with an eight year. Were able to knock out their entire debt like simple changes like that that'll pay off in dividends for you. And he's been able to apply their tactics to remaining debt free even around the holidays think recommends saving small amounts throughout the year Alan Keating a specific amount per person shopping sales and making homemade gifts and lastly. You don't always have to buy anything right you know you're in debt like anywhere and they normally he would mark Neely I think that's what the holidays are about. For Good Morning America Rebecca Jarvis ABC news. Now for more tips on paying down debt and fate mean at the same time were joined by financial expert. Living Richards and author of get your money back tax deductions. You never knew Obama and thank you so much enjoyment than there are so many people were struggling we debt right now you have three tips. Who would help people get their financial house in order we're gonna start your 10103050. Rule what is that. Well the first thing I say to everyone is to not beat up when yourself you remember that everybody has that had a money problem is having a money problem. Or will have a money problem at some time in the future. So get in the game in decides who wins. The first 10% of every dollar you get. You tie donate aggregate maybe that's for the holidays or maybe that's for your church or for other personal reasons the next 10% you say. You say for rainy day you save for retirement you say prevent emergency fund. The next 30% is cash on a separate debit card for incidental like groceries gas he air. Nails if it doesn't they get rid of it. Dead right fit your getting rid of it. And the remaining 50% space in your checking account for your bills if there's not enough money for your bills that we have to subtracting. You may have to get cheaper car. A cheaper house you may have to take sick kid out of private schools wish it. So that's how you take a look at that in them what about those people who probably made 101030 feet he route they're still struggling to pay bills. Well if you still struggling that you have to go to the next step the first one is about spending neck at less money. Now it's about getting more money and getting your money back speak to your creditors there is no shame right now so call your creditors tell them what your situation is. Ask for a payment plan a forbearance the temporary suspension of payments look for other ways to get cold it relief we're still in the middle of a pandemic. And then finally run your home lack of business why because there are hundreds of tax deductions when you use your cell phone for personal reasons you don't get your money back. When he used the business you do. Those kids we love our kids when they run around a house eating your food you don't get your money back but if you hire them in your home based business you do so you want to run your home like a business my kid. We've got a job. I. Act. Here we go live if your holiday the coming up money is tied. To usually peoples who get a fair to have side hustle what is the sent to fight off. Well let me just start with fists was the day after Christmas at all through the house every creature was strapped. Even the mouse the toilet I'm Roca that batters would it as senate passed out with finesse it we don't want that to the yes right. So we want to use our profession if you are a nurse. Then maybe you wanna do some home health care if you're a teacher that you want to tutor so you wanna take what you do and turn it into a business you also want to look for. Bomb a part time job you wanna get more work in the field at your end. And then you can also look for seasonal employment so you have to spend less money you have to get more money and we have to get your money back and we can all do this together yes we can win reduced and thank you so much. Precinct.

This transcript has been automatically generated and may not be 100% accurate.

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