How this mom paid off $50K in debt in 3 years

Chonce Rhea, a 27-year-old mom, used clever saving techniques and moved to a less-expensive home.
4:36 | 01/22/20

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Transcript for How this mom paid off $50K in debt in 3 years
latest debt-free decade. "Gma" viewers, we love you. You've been sharing how you cut debt out of your lives and we want to share it with everyone else so Rebecca Jarvis is here to tell us about a mom who broke her overspending habit and became a super saver, didn't she, Rebecca? Indeed, robin. This is something a lot of people can relate to. Finding yourself deep in debt. This single mom said she hit rock bottom when she couldn't afford to do her family's laundry and then she made a plan. All right. Reporter: Three years ago 27-year-old mom shonsay was drowning in debt. Now she's debt-free. She paid off $50,000 in debt accumulated from years of overspending? Paying off debt, it's not easy. I had to give up a lot of things but I was really motivated. I wanted a better life for myself and my son. Reporter: Her turning point the day in 2015 when she realized she couldn't afford to do her own laundry. That was it and now she's gone from a single mom living in a low-income apartment to a financial guru with her own personal finance blog. I just got to the point where that was it for me. I'm just tired of living like this. I need to get out of debt. Sit, stay. Good girl. Reporter: First she turned into a megasaver cutting costs by moving to less expensive housing and freelance writing on the side. Pour about half. Reporter: She added clever savings techniques like no spending weeks or weekends where her family spends zero on dining out or entertainment. It's just a way to be creative. We cook from our cabinet. Whatever meals we have, I might figure out what ingredients I have and Google that and see what kind of things I can cook. Reporter: Her family orders their toiletries on Amazon subscribe and save and she saves using an app called acorns that automatically rounds up her credit card purchases to the nearest dollar, investing the difference. I don't even really notice the money coming out of my account so it's really cool to see it ad up and make a Reporter: For those feeling overwhelmed by getting started she says, it's easy. Just start with a simple budget and set an attainable goal. Paying off debt and being debt-free is an amazing feeling. I think it just gives you more freedom and more options with your money. Good for her. Good for her. Rebecca, we know the reason why many people are in debt, credit cards. Yes, and this was part of her situation as well. The typical American family now has almost $7,000 in credit card debt and in interest that's costing them over $1,000 in just interest alone, robin. The interest rate. I got to ask you guys something. How many of you know what our apr is? How many of you know what an apr is? Your annual percentage rate. Do you look -- actually look at your credit card statement to see? I'm glad to hear that people are looking so the average apr, the interest rate, that's the cost of having a credit card is about 17% on average for most people. But what most people don't know, in addition to that apr is that you can actually negotiate that amount lower. How do you do that? What do you say? We're going to walk people through exactly how do it. First of all, arm yourself with information. You take a look at that bill. That credit card statement. How much interest have you paid? How long have you been a customer of that credit card company. These are pieces of information you must know before you make a call to the credit card company to negotiate. You can also go out and look at alternate offer, figure out whaha other credit card companies are offering right now. You can look, for example, at sites like credit karma, nerd wallet. Great website that is tell people exactly the type of credit card interest rates that are out there, what comes with which credit card and then flip your credit card over. You're going to flip that card over. There is a phone number on the back. Call up the credit card company. Tell them that information you've gathered, ask to make a deal to decrease that apr on the phone and let them know you are a valuable customer. You're willing to stick around, but in order to do that you need them to lower the apr. That makes a big difference because if you have a high apr it's even hard story get out of debt. So much harder. It adds and adds over time. Thank you so much. You can get more tips to pay off debt on our website. Sunshine all day long.

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

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