Paying Off Credit Card Debt – UNBROKE Financial Literacy Tip

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Getting out of credit card debt is hard. First, we need to change our thought process and behavior; then we need sacrifice and suffer. What I mean by this is to get out of the rat race of constant credit card debt, we need to first learn to stop living our lifestyle by financing it with debt, then we have to cut back on spending and maybe even pick up a second job to pay down the debt we owe if necessary.

To begin this process we need to first be realistic with ourselves and take an inventory of what we owe and what interest rates we are being charged. We must also stop using our credit cards immediately. Making payments will do no good if we just continue to increase the balances we owe.

Next, we need to make a budget and cut it down as much as possible to free up as much cash as possible to go towards our credit card payments. Now we use those funds and make the largest payments we can toward our credit card with the highest interest rate and pay slightly more than the minimum required on the rest of our credit cards.

Once that first card is paid off, we will then move on to the card with the next highest rate and continue this strategy until they are all paid off. For this strategy to work, we again need to not use our charge cards, and we also need to make the monthly payments.

If we don’t currently have the necessary income to pay down our credit card debt, we may need to pick up a part-time job.  In the end being free of credit card debt will be worth any sacrifices we have to make.

If you aren’t currently working with a CERTIFIED FINANCIAL PLANNER™ Practitioner you can learn more about my practice HERE or you can find other CFP® Practitioners HERE.

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You may want to have a nice retirement or pay for your kids’ education, but as Joe Biden reminds us, unless you budget for them those are just words.

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Charles Weeks

Charles Weeks

All stories by: Charles Weeks

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