Is credit card debt keeping you awake at night?
You CAN pay it down… and eventually pay it off.
It “just” needs to be a priority.
But, you also need to figure out WHY you ended up so far in debt to begin with.
There are a number of ways to pay down credit card debt, and all of them work. Choose the one that works best for you. Personally, I prefer the scoring system where you divide your total balance by the minimum monthly payment, but you can also go with the highest balance, lowest balance, highest APR, the one with the worst customer service, or whatever you choose.
The important thing is that as you pay off one card you take that amount and add it to whatever you were paying on the second card you choose to pay off.
When you pay off the second card, take the money you were paying on it and add it to the payment of the third card.
The amount you pay each month does not change, but the credit card balances will.
While you are paying off your cards, make sure you do not charge anything unless you have the money in your account to pay it off before the statement closing date.
Be hyper-aware of what you are purchasing. You may find it is easier to avoid the temptation of overspending by paying for things with cash.
While you are paying off your credit cards, take a good hard look at why you ended up in debt to begin with.
The obvious answer will be that you spent more than you had.
But, that is not the real reason.
WHY did you spend more than you had?
It may be because you were not paying attention to what you were buying.
It may be because you were using shopping therapy as a way to avoid addressing other things going on in your life (like sadness, loneliness, or boredom).
It may be because you were trying to buy someone’s affection.
It may be because you felt guilty for not always being available or feeling like you let someone down.
It may be because you were trying to fit in.
It may be because you had an emergency expense and did not have enough in savings to cover it.
It may be because you wanted to the fun person.
It may be something completely different. Only you can figure out why you ended up in credit card debt.
And you need to figure it out before you pay your cards off. Or you will soon find yourself in debt again.
It is like yo yo dieting, except with money.
If you need help trying to figure this out, please let me know. I have free First Steps financial strategy calls available where we can discuss where you are, where you want to be, and your best first steps down the path to financial success.
And, if you want to completely change your financial future, ask me about my 8-module program that can take you from wherever you are to being to go-to money person in your circle. It includes tons of 1:1 and group support, and covers everything- including the history of money, finding income, reducing expenses, investing, planning for your future, and creating generational wealth.