They cut out their credit cards

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The Moment: "My name is Leo, and I'm a recovering creditcardaholic." So goes the confession on Leo Babauta's blog, ZenHabits.net, where he writes about achieving goals - including getting rid of debt. Two years ago Leo, who lives in Guam was $30,000 in debt. He had one maxed-out credit card, car loans, medical bills and personal loans.

Leo found himself struggling from paycheck to paycheck and letting his debts pile up. "That's when I realized that I was digging myself deeper and deeper into a hole, and that something had to change," he says. "So my wife and I made a choice: no more credit cards, and no more debt."

The Method:"I canceled my credit card and worked out a payment plan. Today, I don't have a credit card at all. Not even a debit card and I am completely debt free as of last December," says Leo. He pays his bills online and has an ATM card that doesn't work as a debit card, or he uses cash or checks.

The Glitches: Leo has had problems booking a hotel room but other than that, he says, "for almost everything, cash is perfectly fine."

The New Life: Leo's wife, Eva, 31, was able to quit her teaching job to home-school their six kids. Leo quit his day job to focus on blogging and writing a book. He says his income is more than twice what it was when they were deep in debt.

The best part? "Just the freedom of knowing that what I buy is mine, without owing anyone a thing," he says.

NEXT: Jack Dunstan