The 2026 Money Confidence Roadmap: May Is About Reducing Costs and Your Debts

This post is part five of our 2026 Money Confidence Roadmap, your monthly guide to reducing stress and building confidence with money.

Credit card debt in the United States has reached a record high of just under $1.3 trillion.

The Federal Reserve Bank of New York has tracked Americans’ credit card balances since 1999. A recent survey by Experian found that 1 in 4 Americans say their debt is “unmanageable.”

“Respondents said they consider debt unmanageable if it forces them to choose between debt payments and basic necessities, causes constant stress, or keeps growing even though they’re making payments,” the report says. “The good news: 45% of U.S. adults report having paid off debt that they once considered unmanageable.”

Some people can make progress with budgeting tools, while others may need to increase their income or seek professional help. Debt repayment isn’t one-size-fits-all.

That’s why May’s guide focuses on reducing costs and paying down debt with a range of practical strategies.

💡 Start by reducing your monthly costs

Before attacking debt, free up cash. The more you redirect toward balances, the faster they move.

Start with subscriptions, streaming services, and unused memberships. Those small monthly charges accumulate quietly without most people noticing. Then look at bigger fixed costs like insurance, phone plans, and internet service. Many providers will lower your rate just for asking or threatening to switch.

Everyday spending is often the easiest lever. Groceries, dining out, and convenience purchases can be trimmed without permanent sacrifice. Just be intentional about where the money goes, and you’ll have room to actually make progress.

📊 Choose a debt repayment strategy that fits your situation

With breathing room in your budget, the next step is putting that money to work. Two approaches dominate:

The debt snowball pays off your smallest balances first, building momentum. The debt avalanche targets highest-interest debt first, saving more money over time.

Neither is universally better. What matters is picking one and staying consistent. A good strategy that stalls out beats a perfect one you abandon.

One non-negotiable: stop adding new debt while paying down existing balances. Otherwise you’re bailing out a boat without plugging the hole.

🤝 When to consider nonprofit credit counseling and a debt management program

If budgeting and repayment strategies aren’t moving the needle, it may be time for structured support.

Nonprofit credit counseling agencies can review your full financial picture and build a plan around your actual situation.

If your debt is severe enough, they may recommend a debt management program (DMP) — consolidating unsecured debts into a single monthly payment, often at reduced interest rates. This can be especially valuable when high interest charges are eating your payments before they touch the principal.

🎯 What to do after you’ve paid down your debt

Paying off debt is a milestone. But staying out requires the same discipline that got you there.

Build an emergency fund first. Even a small cushion keeps unexpected expenses from landing back on a credit card.

From there, keep the habits: a realistic budget, intentional spending decisions, and regular check-ins on where you stand. The systems that worked on the way out are the same ones that keep you out.