Killing My Credit Card Debt by Paying it off

Credit Card Debt is Radioactive and must be destroyed.

Welcome to the personal finance workbench today i would like to discuss credit card debt credit card debt in my mind is this radioactive debt it’s radioactive because it’s very dangerous and it will take a long time to go away on its own you don’t want to be in credit card debt but if you are i understand your situation i used to have a lot of credit card debt myself

It started small i got this one gold card in the mail and it was wonderful it solved all sorts of problems for the very short-term and then they sent me these checks these paper checks and you could fill out the checks and send money to anywhere you needed to well i filled out the checks and i sent them to the other credit card companies to help pay off those bills

But as i’m sure you’re aware using one credit card to pay off another credit card is really a situation that could lead to financial ruin very quickly i got into credit card debt at the time because i was unemployed and it was a tough time i was in a financial hole and i needed to get out my solution was to create a plan i needed a financial plan now i’m not talking

About some hugely complex financial plan it was basically three phases one i wrote down the current situation two i created a budget and three i focused on my path forward out of the hole it was really pretty straightforward and step one i went back and added in some details how much money do i have right now and the answer was not much what do i owe what bills

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Are overdue and what’s the job situation on a realistic level when addressing the idea of how much i owed i went ahead and put together a calendar and on the calendar i wrote down exactly when the bills would come due in the next month the details for step two the budget were pretty straightforward i would stop adding to my credit card debt i would stop spending

Money essentially i didn’t spend money on things like restaurants or clothes or new electronic toys i just basically stopped spending money where i didn’t have to actually spend it and i looked at what needed to be paid no matter what i needed to buy food i needed to make the car payments i needed to pay for insurance that kind of stuff now that i knew where i was

The key to it all was figuring out how to get out of the hole so step three was to figure out the path forward and to focus on that i got a job not a great job but a job so i had money coming in that meant i had some money to pay the bills if there was any money left over at the end of the month i would take that and i would pile it into the bill for that gold

Card the gold card had the biggest balance of any of my credit cards so i decided to start there first i worked overtime whenever it was possible in order to get extra money then i took that extra money and i would pay it toward the gold card my essential plan here was to make minimum payments on all of the credit cards except the gold card and therefore i would

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Just pay that one off sooner that was the plan and it worked out that way as time went by i continued to control my costs so i didn’t spend money and i kept piling the extra money into the gold card eventually it was paid off so i started to turn my focus to another card and i piled the extra money at the end of each month into that second card and once that one

Was paid off then i did it for a third card and eventually all the cards were paid off i ended up paying a lot of money in interest during this period but it had to be done eventually with all of the cards paid off i had extra money at the end of the month and i started to save it and that allowed me to start doing things like going out to restaurants hanging out

With my friends and buying those cool electronic toys looking back on that period it was very painful but it was also very necessary i needed to create a plan because without a plan there would be no success so in summary i created a financial plan to get myself out of my hole i wrote down the current situation i created a budget and i focused on my path forward

And that really is key from an emotional standpoint i didn’t fall into depression instead i decided to take to get myself out of the hole i destroyed my radioactive debt and i hope that you can – good luck to all of us

Transcribed from video
Killing My Credit Card Debt by Paying it off By Personal Finance Workbench

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