Step 1: Identify your debt. Make a spreadsheet of credit card, total debt, APR, minimum payment, and phone number.
Step 2: Look at the highest APR and also look at the smallest debt. There are two schools of thought here:
a. Tackle the highest APR
b. Tackle the smallest debt and knock it out.
You decide what is best for you.
Step 3: Those phone numbers you wrote down: those numbers you need to call and ask for lowered rates…when they say no, ask for a supervisor and also inquire about 12 months no interest. Remember whatever you transfer will need to be paid off in 12 months or face high interest.
Step 4: Freeze your credit card. No Really. If you find that you spend…switch to cash or do a prepaid card. I am not a huge proponent of paying fees for prepaid but if you spend, you need to be held to limits….
Things to remember:
There are people who have more debt than you. Clearly you want to fix this or would not be reading this. Budget things but also be realistic- sometimes this involves moving to an apartment or lifestyle switch…its okay. Don’t be house poor or debt ridden because people might talk.
People will talk no matter but if you live in an apartment, don’t pay taxes, but lower your debt and become debt free in a couple of years- you are winning! Another point is emergency funds…start setting monies to the side in an account in case something happens. Have your workplace send the money to another bank (open a new account at the start of the fiscal year or new year) and don’t touch the money…just leave it be but you won’t notice it over time……Also….side hustles – I am a huge proponent of side gigs- babysitting, tutoring, lawn mowing, painting, cleaning, etc. to help out.
A typical millionaire has 7 streams of income…side hustles count 💕
Coming soon…..retirement talk.