Are you struggling to pay your bills? Are you denying that you’re barely making it from paycheck to paycheck?
If so, there is a way to pay off credit card debt. It may not be as pretty and fun as a walk in the park – but getting debt-free is a real possibility. Here are X steps to make this your new future reality.
1. Get an Overview
The first step is getting an overview. You can’t make a plan to pay off debt faster
if you don’t know the landscape.
How much debt do you have?
How much do you need to spend each month?
How is your current spending adding to the overall picture?
As you get an overview, you may find that it is either worse than you thought – or not as bad as you’d imagined. Either way, you’ll have done the first, most courageous step. You’ll shine the light on the state of your debt.
Now, there’s one more thing that’s more like shining an inner light on what’s going on.
2. Move Past Denial
What is denial?
“Denial is a coping mechanism that gives you time to adjust to distressing situations – but staying in denial can interfere with treatment or your ability to tackle challenges.”
The Mayo Clinic offers this definition of denial. It applies to how we cope with problems – such as sky-high credit card debt.
Consider these examples of unhealthy denial:
• Sara can’t pay for all her cards. But, she sees a stunning cashmere sweater that’s on sale. Her first thought, “I can’t live without it!” Before she knows it, she’s already in the shop, paying with her final emergency card.
• Sandy and her partner are up to their eyeballs in debt. As a denial response, they take turns, tossing new bills in the trash.
• David made a plan to pay down debt. Yet, his best friend is going on a vacation. In a flash, he pops the ticket on a spare card. “I’ll deal with it when I come back!”
It’s not hard to see that these forms of denial are not helping. They are hurting. While Sara may love that creamy cashmere – is it truly a wise move? Tossing bills and putting luxury trips on spare cards are dangerous and risky moves.
If this sounds familiar, it’s time to face the music.
You’ve just done the first two big steps. This is huge and puts you ahead of the curve for getting a grip on your credit card spending.
The next step is of vital importance.
3. Know What Matters
This is a power move – kind of like getting all your energy going for a single priority. That single, top priority is: paying off your debt.
To do it, you’ll use your budget overview and investigation into denial. Then, you can get laser-focused on how to pay off credit card debt. With this method, you’ll make a single payment and end the torment of juggling which bills to pay when.
The single priority is: becoming debt-free. It may not be instant. It may take some adjustment time. It may feel challenging, odd, or unusual.
However, you will feel the rewards right away. You’ll have the benefit of a single payment, and be freed from tracking all the payments. With this method, you’ll get a full snapshot of your finances – all in one place.
As you watch your balances go down each month, you’ll start to feel less stressed about your financial future.
But, don’t stop there.
4. Go All Cash
While you’re streamlining your finances, there’s one more critical piece of the puzzle. It’s called: spending. A very effective way to do this is to look at your budget and do some serious decision-making. Make a commitment to go all cash.
This is not going to go over big with everyone you know. Some friends might tempt you with spending sprees. Family members may tease you about going old school. But, if you have your priorities in place, this is a critical step.
How does it work? When you’re out of cash – you have to wait until next month for more. It’s like going on a tough, highly effective diet. It’s a credit card diet of sorts.
Sum Up
Wherever you’re starting, it helps to know that getting debt-free is really possible. Follow these steps and you’ll be on the right path for less debt, less stress, and more success.
