From Lindsey Hough, managing editor, the Wealth Builders Club: Americans had $886 billion in outstanding auto loans in the fourth quarter of 2014. That’s up nearly 23% from the same period two years ago, according to recent data from credit agency Experian.

We all need a place to live, and most people need a car for their commute and errands. But some families who currently have two cars—and two car loans—could get by with just one car.

Not sure if you can get by with a single car? Ask yourself these questions:

  • Do you live in an urban or suburban area with dedicated bike paths and bike lanes?

  • Do you currently work from home—or could you negotiate a work-from-home situation with your boss?

  • Do you live within five miles of your work?

  • Do you live close to the grocery store—within one to three miles?

If you answered yes to two or more of these questions, there’s a good chance you’d be just fine with one car and a bicycle.

If you do need two cars, consider selling both and replacing them with less expensive models. You might be able to cut your auto debt in half just by “downsizing” your vehicles.

PRO TIP: Even if you have a second car that is already 100% paid, consider selling it anyway… you can use the cash from the sale to pay off the other car’s loan or a high-interest credit card balance. This will really help you accelerate your debt paydown plan.