How to Get Out of Credit Card Debt Fast – The 11 steps to take when you want to get serious about paying off your credit cards!
It seems like more and more people are wanting to get out of their credit card debt. This is a trend I can get behind 100%! If you’re not on the “debt paying off” train, I want to share with you a helpful tidbit: it’s not as impossible as you might think!
I want to share with your how to get out of credit card debt fast because you want to avoid paying that interest as much as possible! It is possible to pay off debt sooner than you’re expected to.
Recently, I took some reader questions to answer and one of them that kept coming up over and over again was how to get out of credit card debt fast.
Reader question: “I have about $6,000 in credit card debt. What can I do to get out of it?”
Lucky for you, I have an answer to this question!
Here are 11 steps to teach you how to get out of credit card debt fast.
1) Stop using your credit card.
You don’t want to keep adding debt to your already existing debt. Just completely stop using the credit cards altogether.
2) Cut back on your spending.
When you have credit card debt, it means that you are spending more money than you’re making. Which means that you can’t afford the things that you’re buying or spending that money on.
3) Figure out what your take-home income is.
Next, you need to sit down and find out exactly how much money you take home each month. This number will be the number after all of your taxes, retirement savings, health insurance expenses, everything else.
Whatever the dollar amount that hits your bank account or that you get a check for, that’s the number that we’re going to talk about here.
4) Figure out your total living expenses.
You need to figure out exactly how much money that you need to live on each month.
Your groceries are really easy. You should plan to budget $100 per person in your family per month. So if you have a family of four, your monthly grocery budget should be $400.
Average out what you’ve spent in the last 2-3 months.
Bills and utilities:
Same thing. Average out your last 2-3 months worth of bills.
The last thing that you need to factor into your expenses would be anything that you don’t need to survive. This includes things like your clothes or Going out to eat or going to movies. It could even be things like Recreational Sports for your kids or a gym membership. Anything at all that is not necessary for you guys to survive.
Related post: 30+ Real Ways to Earn Money From Home
5) Do the math.
Once you figure out what you make, you need to subtract your living expenses.
6) Eliminate unnecessary expenses!
Everything that you do not need to survive or to keep your house or your car needs to go away basically. I know that sounds harsh but you want to get out of debt as soon as possible and the best way to do that is to eliminate the things that you’re spending money on that you really don’t need. Remember, this is temporary! This is just until you can get yourself and your finances back on track.
Related post: How We Lived Well on $17,000 as a Family of Four
7) Set a “living expenses ONLY budget” and stick with it.
Do whatever it takes for you and your family in order to stick to a just your living expenses budget. You could use cash in order to pay for things or check period but no matter what, do not use your credit cards.
8) Put all of your extra money into paying off debt.
Every cent that you will save in this process should go directly to paying off your debts. You could have a yard sale to make some extra cash to pay off your debt. You could get a side Hustle to start paying off your debts.
Related post: 10 Reasons Why You Need An Emergency Fund
9) Choose the card to pay off first.
I love Dave Ramsey’s snowball method. That is the method in which you pay off the card with the lowest balance first.
Why do you want to do that? Because who doesn’t love a quick win right?!
10) What do you do once the credit cards are paid off?
Once your credit cards are all paid off, you should take the same amount of money that you had been putting toward paying off your credit cards and put it directly toward a savings account. Ideally, you want 12 months of your living expenses in a savings account, but for starters, aim for 3-6 months of expenses.
Related post: Top 10 Things I Did to Pay Off Debt in 2 Years
11) Keep going with your budgeting!
Just because your credit card debt is paid off, don’t give up on your budget! This could lead to back into debt or into bad financial habits in the future. You want to stay on top of your spending habits for at least 6 months before you introduce anything new back into your budget.
I know that this sounds incredibly difficult and it sounds like a lot of sacrifices to make. But just remember the harder that you work at paying off your debt means that it will get paid off quicker. Think of it like ripping off a Band-Aid. The quicker you get it done the quicker through her. And then you never have to think about it again!
And that’s it – I know you can do it!
These are my best tips for how to get out of credit card debt fast. I know that you can make them work for you and for your situation if you just put them into practice.
The 2 biggest things to take away from this are to stop adding more and more debt to your life and to sacrifice and side hustle your way to make more money.
Here are the best ways to earn some extra money:
- 30+ Real Ways to Earn Money From Home
- Make Money Freelance Writing
- Start a Home Daycare
- Side Hustles That Work Challenge!
- 7 Survey Sites that Are Actually Worth It
- Pay for Back to School Watching Videos
- Side Hustles That Work: Make It, Sell It!
- Review Websites, Get Paid
- Secret Shopping from Home
- 5 Side Hustles That Pay For My Groceries (and More!)
Here are some more money saving resources:
- Money Saving Hacks from an Extreme Cheapskate
- Money Saving Websites That Thrifty People Love
- 6 Steps to Drastically Reduce Your Grocery Budget
- 10 Habits of Highly Frugal People
- Best Money Saving Apps You Need
- Money Saving Tips That Helped Us Save $21,972 Every Year!
- How to Save Money When You Don’t Feel Like It
- Save Money Automatically: An Honest Review of Digit
- Save Money When You’re Broke
- The BEST Ways Save the Most Money Shopping Online!
Do you have any tips for paying off credit card debt early?