Discover how to pay off debt fast without credit cards. Learn practical budgeting tips, cash flow management, and smart daily savings strategies.
The Fall into Debt
A bank called me – a lady, or a bot, I wasn’t sure. But I felt privileged, as they told me that my salary slip qualified me to open a credit card…
My friends called and told me that they had a trip coming up, asking me to join. Yet again, I felt privileged and wanted, so I said yes.
My salary back then was only around 14M VND, yet 5 years later, I had an overdraft of 500M VND. All because of a single thought: “Nah, I am young, I can earn…”
Yes, I could earn, but the only thing I overlooked was my age.
Like in my previous story, before I got pregnant, I felt invincible.
I didn’t see the point of saving. Even worse, I fell for the delusion: “I can only earn more if I know how to spend money.”
I didn’t account for the extra interest I had to pay monthly just to delay my due debts.
I didn’t account for the fact that I would grow up and want to escape the lifestyle of my youth.
All I did was enjoy myself, finding nice cafes and exhibitions to visit during my 20s.
I didn’t understand the value of money…
What’s the Value of Money?
Your youth only lasts 10, maximum 20 years.
If you’re healthy, you can live up to 80 years old. So what happens when you leave your youth behind and reach true adulthood? Your adult life is at least twice as long as your youth, so what will you do without any savings?
Money helps you get through that. Money doesn’t define your life, but it helps you secure a comfortable corner, whether you want to live alone, have a child, or get married later on.
The true value of your youth is your health. With health, you can earn money. Without it, you will have to spend money just to maintain your health.
How to pay off debt fast?
First of all, I had to know my actual net balance.
Savings – Debts = What You Own.
The result can be positive or negative. But what I knew was that I had to handle what I actually owned in my hand, not on an iPhone screen, but in hand.
I cleared all my debt within 6 months. In the end, I was shocked.
I didn’t own anything, as I was holding negative equity. But at least I had no debt left.
Then, I optimized all my income sources. Only 10 to 15% of my earnings went toward my daily expenses.
Luckily, my house is in Hanoi, so I don’t have to pay rent. That felt like one of my last bits of luck.
The time I chose to free myself from debt was when I had the highest income of my life. Your financial life is like a wave. To secure yourself after debt, choose the period when you feel you are making your peak income.
I took advantage of that moment. In 2023–2024, my highest monthly income was around 50M VND. During those few months, I paid off all my debts and lived on only 10% of my income.
That meant I only had 5 to 7M VND to spend each month during that time.
But that was okay. It took me around 4 months afterward to start building savings again.
Fixing the 500M VND Debt Mistake
No Credit Cards
Credit cards seem to offer convenience, but they actually cost you your life. Buying before paying hurts your next month’s income, and you really cannot manage your cash flow with a credit card, or at least, I couldn’t.
Have a Budget Plan
To solve this, I set up a personal spending account with 4M VND per month, which means 1M VND per week. This 1M VND is strictly for me, as I have a separate family account.
Limit Eating Out
Have breakfast and dinner at home, and only eat out for lunch.
Recognize the Value of Daily Cafe Savings
Take Americano as an example: option one is 35k VND per cup, and option two is 55k VND. If I have around 10 cups per month, that’s 350k VND versus 550k VND. By choosing the first option, I save 200k VND a month. Over 12 months, that’s 2.4M VND – a meaningful sum for a new mom without a stable job.
Stop Paying for Duplicate Subscriptions
I used to pay for storage on iCloud, Google One, and OneDrive simultaneously. Once Google One rolled out its AI plan, I canceled the other two and kept only Google One. I did the same with music services, keeping only one platform.
Limit Shopping
Look at it this way: with 4 weeks in a month and around 20 working days, you only need 5–10 outfits. That keeps things simple in the morning, makes laundry easier, and saves space at home. Only refresh your closet once every 1–2 years.
Buy Goods Online
Physical stores usually have higher prices. You can buy the same items for less on Shopee, Lazada, or brand storefronts.
Why Won’t Extra Jobs Get You Out of Debt?
Picking up side hustles or extra jobs alone will never solve a debt crisis if your spending habits remain unchanged.
When your income increases, lifestyle creep quietly takes over, you simply find more expensive ways to spend the extra cash. Extra work also causes physical burnout and mental fatigue, leading to impulse purchases and convenience spending just to cope with stress.
High-interest debt compounds faster than human labor hours can cover. Until you fix the fundamental cash-flow leak and strictly manage what goes out, earning more money just feeds the same cycle.
Practical budgeting tips for moms
Now, I am a mom, basically I will have to spend at least 10M per month on babysitter fees and daily food. Below are a few of my tips to manage a household cash flow.
- Have a spending account separated from household budget: Create a dedicated “Me Account” alongside your main family account. Give yourself a set allowance, for example, 3M VND per month for yourself, that is strictly for your personal coffee, small treats, or individual needs.
- Set up an emergency account for unpredictable baby expenses: Children bring surprise costs, from sudden doctor visits to last-minute diaper runs. This is how to avoid forcing you back onto a credit card.
- Streamline daily routines to reduce convenience spending: Meal planning isn’t just about saving money; it saves decision fatigue. Eating breakfast and dinner at home and reserving eating out for lunch keeps daily food costs under control while giving you structured time at home with your family.
- Focus on small, compound daily Savings: Small choices add up significantly over a year. Opting for a 35k VND coffee instead of a 55k VND coffee 10 times a month saves 2.4M VND annually. As a mother, every million saved directly supports your family’s safety net without impacting your daily quality of life.
