How’s it going paying off your credit card debt?
Do you pay it down, only to have it creep back up?
If you feel like you’re fighting a battle you’ll never win, then guess what?
You’re doing it wrong.
I’m guessing you’re using your credit cards for all of your everyday spending. After all, you get cash back for every purchase.
Try this instead:
1) Stop using your credit cards for everyday spending (gas, groceries, eating out, Door Dash, even Amazon).
2) Only use your credit cards for fixed bills (cell phone, Netflix, internet, Spotify, etc.). If your expense is the same amount every month, use a credit card to pay for it. WHY? This will make your credit card bill a fixed amount every month. Fixed bills = WAY easier to plan for.
3) Turn your everyday spending into a fixed expense. Add up how much you spend every pay period on gas, groceries, eating out, Amazon, etc. Transfer that amount to a second checking account and call it your “Spending Account.” ONLY use that account for everyday spending.
4) Make two payments to each of your credit cards every month. Payment #1 is the total of all of your fixed bills on that card. Payment #2 is the payment to lower the balance on your card. Even if it’s just the minimum monthly payment, your balance will start to go down. This time for REAL.
5) Don’t pay extra toward your credit card debt. I know you want to, but don’t. Build up your savings first before paying anything additional toward your credit card debt. Your savings is your line of defense from having to use your credit cards. Make it strong!!
6) Only attack your debt when your savings feels strong and secure.
7) Don’t round up your debt payments. Don’t pay a little extra toward every credit card payment. I know that feels good, but you’re dividing your efforts. Don’t do that. Attack one debt at a time and go all in on paying it off ASAP. Once it’s paid off, switch to the next debt.
If you want further support in getting out of debt for the last time, schedule a discovery call with me today.
In partnership,
~Amy