How To Get Out of Credit Card Debt Fast
It’s a growing national problem. It’s a growing personal problem.
It’s not just debt… It’s the worst kind of debt.
It’s the highly accessible, seemingly innocent, seemingly necessary credit card debt.
You’re told that you need one to build credit.
You know you need one when you travel.
And that as long as you pay it off each month, it’ll be fine.
And in theory, all of these things are true.
In practice though in our culture of overspending and North American consumerism, very few use their credit cards responsibly.
Recently, Forbes reported that “The amount Americans owe on their credit cards has hit a new high at just over $1 trillion.”
For those that carry a balance – the average balance owing per household is now $9,600 pr 17% of the average U.S. household income.
With high interest rates that debt grows to over $2,000 a year.
60% of credit card users don’t pay off their balances each month either, so while their debt keeps climbing, those payments become more difficult to make.
Are You Living A Life You Can’t Afford?
On top of that, most people aren’t following a money system that makes their money work for them.
So they aren’t spending responsibly, they don’t have savings buckets (which I teach in my Mindful Money course), and they’re living a life they can’t afford.
This means there are no cash savings to cover the things you want… and sometimes the things you need.
So the furnace or water heater goes and you use your credit card.Your transmission blows and you use your credit card.
You need a new roof, there’s a dental emergency, or you didn’t save for vacation – and you use your credit card.
With the best intentions of paying it off – but you just never can because you’re chasing your balance with minimum payments that are designed to make banks money and keep you in debt for years… decades.
In true form, “the borrower is servant to the lender.”
Credit Card Debt Keeps the Banks Rich… and Keeps You from Getting Rich.
Keeping a balance on your cards keeps big banks in the business of owning you.
One of my cardinal rules that I talk about in my book and my money courses is, “Don’t borrow a life you can’t afford.”
The huge amount of American credit card debt is the most apparent indication that we are accustomed to “borrowing” a life we can’t afford.
And the money you pay towards your credit card debt each month is robbing from your future self because you could be investing that amount each month to fund the life you really want.
And while these are the facts about credit card debt that you are probably already well aware of, it doesn’t even touch on the restriction of quality of life or emotional stress that sinking in debt creates in your life.
Stress that is ongoing and impacts your overall health and wellbeing.
In every way, credit card debt is toxic.
But there is a solution.
And it’s not in making the minimum payments.
That’s the slowest and most expensive way to pay off your debt.
I share my debt pay off method in this video to show you how to pay off your credit card debts faster. So you can get on with your life.
If you follow this strategy, you’ll make real headway on your credit card debt and then be able to apply a wealth building money system to start creating the life you deserve.
Start by listing all of your credit card balances in order of LOWEST to HIGHEST
List the minimum payments for each card
Pay one extra payment on your LOWEST balance owing (by cutting an unnecessary expense (like Spotify, Cable, or other luxury expenses) or extra money from a side job. Set this up on auto-payment once a month.
In a matter of months, that lowest debt will be paid off and you’ll apply the same method to the remaining credit cards in sequence until you are debt free.
Once you have conquered your credit card debt, make a commitment to yourself to never get into debt again.
You can apply this approach to any of your debts, but with credit card debt often having the highest interest rates, it’s important to tackle this first.
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