Related to Post 3 in the “How to Get Started Managing Your Personal Finances” Series
Why It Matters
Credit card debt can feel overwhelming—like you’re stuck in a cycle you can’t escape. The high interest rates, minimum payments, and constant stress can make it hard to breathe, let alone plan for the future. Credit card debt is its own monster. The interest rates they charge if you do not pay the full balance are predatory.
But you are not powerless. No matter how big the number, you can take control of your debt. The goal isn’t just to pay it off—it’s to regain peace of mind and create a life with more freedom and fewer financial emergencies.
Let’s walk through the steps.
Step 1: Stop Adding to the Debt
If you’re serious about getting out of debt, the first step is to stop using your credit cards.
- Remove them from your wallet
- Delete them from Apple Pay
- Unsubscribe from shopping emails that tempt you to spend
Set yourself up to succeed by removing the daily triggers.
Step 2: Get Clear on the Numbers
Make a list of:
- Each credit card you have
- The current balance
- The interest rate
- The minimum monthly payment
Yes, it might feel scary. But seeing the full picture gives you the power to make a plan.
Step 3: Create a Bare-Bones Budget
This doesn’t have to be forever—but for now, cut your spending down to the essentials:
- Housing
- Groceries
- Transportation
- Utilities
The goal is to free up as much money as possible to start attacking your debt.
Step 4: Pick a Payoff Strategy
There are two popular strategies:
1. Debt Avalanche:
Focus on the card with the highest interest rate first. You’ll pay less in interest over time.
2. Debt Snowball:
Pay off the smallest balance first. This gives you early wins and motivation to keep going.
Neither is “better”—just pick the one that works best for your mindset.
Step 5: Ask for Help (Really)
Call your credit card companies and ask:
- Can you lower my interest rate?
- Do you offer a hardship program?
- Can you waive late fees?
You might be surprised—many companies are willing to work with you if you’re honest and proactive.
Step 6: Consider a Balance Transfer or Debt Consolidation
If you have decent credit, a 0% APR balance transfer card could give you time to pay down your debt without interest.
Or look into a debt consolidation loan to combine all your credit card balances into one monthly payment at a lower rate.
But be cautious: these only work if you’re committed to paying them off before the promotional period ends!
Step 7: Increase Your Income (Even Temporarily)
Even an extra $100 a month can make a difference. Consider:
- Freelance or gig work like pet sitting, babysitting, or Instacart
- Selling unused items around the house
- Asking for extra hours at work
Every dollar helps build momentum.
Step 8: Stay Consistent—and Be Kind to Yourself
Getting out of credit card debt isn’t just a math problem—it’s an emotional journey.
You might mess up. You might feel discouraged. That’s okay.
What matters is that you keep going. And don’t forget to reward yourself along the way.
If you have multiple debts, celebrate each time you knock one off your list! It takes time and dedication, but the faster you address your debt, the better.
Keep your long-term goals in front of you to stay motivated (remember those goals I asked you to think about in Post 1?)
You deserve to feel free from the weight of debt.
This isn’t about being perfect—it’s about progress. And every single payment is a step toward the life you really want.
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