I said that I would do it this year. It’s done. I made my final payment on what started out as $37,000 in credit card debt.
I’ve told my money story many times on this site, so there is no need to relive how I got into this mess. All that matters is that I got out.
This is the time of year when people are considering goals and resolutions for next year. If you have debt that feels like it is insurmountable, I want you to know that you can succeed in paying it off.
Earlier this year, I wrote Ten Ways that I Paid off $30,000 of Credit Card Debt in Two Years. Here are five more tips for paying off your debt:
1. Stop Using Your Credit Cards.
This seems like ridiculous advice, right? However, it’s a lot easier to overspend when you pull a card out of your wallet. Use cash. Get freaky old fashioned and use a check. Or, if you refuse to give up points, get a charge card. I got an American Express Zync account. I use that card for everything and I have to pay it off every month.
Don’t keep an emergency card and then sneak non-emergency items onto it. The only person you are lying to is yourself. New shoes aren’t an emergency. I don’t care about the sale. How do you think I got to be $37,000 in debt? Go back and read my money story.
2. Stop Buying Stuff.
If you need to put more money toward your bills in order to reduce your balance, you are going to need some budgeting wizardry. That will require spending less money. That is easily achieved when you stop buying stuff. Especially stuff that you used to put on credit cards. So the balances stop going up, which helps and you can get your budget under control.
3. Be Patient.
I wanted those credit cards to disappear immediately. I was ashamed of the mess that I’d made. I was a lawyer earning a good salary who couldn’t pay her bills. I was a compulsive shopping addict and that debt was proof of what I had done. I wanted to erase it all to make that pain go away. I couldn’t. And neither can you.
It won’t disappear. Face it. Accept it. Embrace it. Kill it.
4. Don’t Get Discouraged.
About six months into the time when I was KILLING DISCOVER (click that for an awesome video), I felt like it was never going to get there. The balance was still so high. I just wanted it to be done.
Too bad. You did this. Own it. Make it a game and turn it into prizes. Like I said, click that link and see what I gave myself for KILLING DISCOVER (if you haven’t watched it before).
5. Stop Making Excuses.
“I didn’t accumulate this debt for shopping. It was for medical expenses.”
“I don’t make enough money to pay my debt.”
“It is going to take too long.”
Enough. Stop. At some point, you have to start living within your means. At some point, you have to pay off your debt. I’m sure that I’ll get the usual round of commenters that say, you were able to do it because you make that a lot money. Okay… The government also owns me because of student loans, I make crazy large payments to my grandfather for money that I owe him and my mortgage is huge. I’ve been living paycheck to paycheck this whole time. It’s not like I had this cash sitting in my giant money pile next to the bed. Saying that I was only able to pay off my debt because I’m a lawyer is yet another excuse that you are making. (Sorry, but it’s time for the tough love.)
If you want to make it happen, you will. It’s time.
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Thank you for the great tips! I so need to get rid of my debt!
You’re an inspiration to John and I. In the next month we’re going to sit down and really hash out what needs to be dealt with. Our common excuses involve our single income household, less than $35k annual salary, and his employer. It’s time for the excuses to end and start handling our priorities. Our goals are to have money in savings, get a second car again, and try buying a house within 5 years. It won’t happen with all the excuses we’ve been making.
Congrats on your success with paying it all off. And thank you for sharing your story and showing it can be done.
Congrats!
Very inspiring!! I keep throwing in the towel at #3 – like, if I’m not going to see a huge change in my debt, why not buy something cute? I need to make some little goals and reward myself a la you.
You’re such an inspiration! Tough love is exactly what people like me needed to get my financial life in order. I’ll be debt-free (other than mortgage) in 3 months. Help me think of something great to celebrate!
Such a great story! I am in the beginning phases of getting rid of the debt. It feels good to kind of have things under control although I have a little ways to go before it is paid off. Congratulations!
Of course it seems like those with higher incomes have it easier, but they tend to have higher amounts of debt as well. My attorney told me once that, after her student loan and credit card payments, she was making just a little more than I was at the time (which wasn’t impressive by any means). It blew my mind.
Congratulations on an amazing achievement – I look forward to reading what comes next!
WOW! Good for you, that is very impressive. You will certainly serve as an inspiration for many. While I don’t have cc debt, my graduate school loans are a bit daunting sometimes. Thanks for the tips!
Congrats not only for achieving your goals to get out of debt, but for making that video. When we move out of the cabin and into our new house, will you make the “good-bye cabin” video? Flame and water can also be involved for sure! No hairless cats though.
Great insite
Congrats, being patient is really important when trying to get out of debt. Getting out of debt is 80% mental and 20% knowledge.
It would be patronizing of me to say I’m proud of you, but since as Len Penzo says “Dr Dean marches to a different drummer” here goes:
I’M PROUD OF YOU!
did you hear me shout? Take care!
Rock on! Debt Reduction rocks – and you killed it. Thanks for sharing your story. -NCN