These newlyweds paid off $21,000 in credit card debt by following their own rules—here’s exactly how they did it

The Lacys found it difficult to imagine what life would be like if they cut travel, shopping and dining out from their budget while they temporarily pivoted toward paying off their debts. But with $21,000 in debt across six credit cards, they had almost three times more credit card debt than the average American. Plus, they were also paying off two substantial car loans.

It took years for the Lacys to accumulate that much debt, as often happens with “credit creep.”  But Lacy remembers the precise moment when he knew he had to face the problem head on.

“It hit me when we were on our honeymoon,” he tells CNBC Select. “I realized we were marrying our debt. There we were at an oceanfront resort, and I’m starting to panic.”

Lacy tried to downplay his anxiety until after the honeymoon, but it surfaced one afternoon on a snorkeling excursion. “It started raining, and the guide asked if we wanted to reschedule or get a refund.”

He told the guide they wanted a refund, which signaled to his wife that something was on his mind. So right there in the middle of their vacation, they started to plan for their financial future.

“My wife was not really on board with the budget I presented her,” Lacy recalls. “She was sad to get rid of all the fun stuff. So that was when we had an honest conversation.”

The couple added up the monthly minimum payments across all of their credit card accounts and car loans, and they were startled to find that, combined, their minimum payments alone cost them $2,000 each month.

“I asked my wife: If we didn’t have to spend $2,000 per month on minimum payments what could we do instead?”

Upon reflection, the couple realized they cared most about travel. The other expenses (dining out and shopping) were simply not as important once they realized what they could gain in the long run, and it made short-term sacrifices a lot easier.