How to Pay Off $15k in Credit Card Debt?

Before I decided to take control of my finances, I spent five years drowning in credit card debt. My goal was to pay off my cards and better manage my money, but I had no idea where to start. If I was going to be successful, I knew I had to do some research. So to get started on my credit card debt-free journey, I started reading personal finance books, blogs, and personal development books. Once I started applying the tools I learned, it gave me the confidence I needed. In this post, I will share five things I did that helped me pay off $15K of credit card debt. 

1. Created a Monthly Budget

Once I learned the importance of budgeting, I started creating a monthly budget each month. I wrote down my monthly income and subtracted my bills and monthly expenses. I also calculated how much I could save monthly. Budgeting helped me create a road map to paying off my credit card debt over time; as a result, it was easier to stay on top of my spending.

 There was no surprise at how much money I had left at the end of the month unless I had unexpected expenses. Budgeting taught me that I could spend money on anything I wanted, but setting aside money each month for my long-term goals was important. This mindset gave me more control and helped ensure the extra cash was not wasted on unnecessary expenses. If you want to create a monthly budget and don’t know where to start, or would like a ready-to-use monthly budget template, subscribe to our newsletter and receive free printable monthly budget trackers.

2. Created a Plan 

After creating my first monthly budget and knowing my monthly expenses, I planned to tackle my credit card debt. At the time, my monthly expenses consisted of minimum payments for my eight credit cards, phone bill, groceries, cable, and other miscellaneous expenses. Yes, you read correctly! I had a total of eight credit cards! I used to be embarrassed to say that out loud, but I learned to own up to my mistakes and embraced my personal finance journey.

Part of my plan was to pay off my credit cards within six months. I significantly increased my monthly payments and sacrificed many leisure activities and expenses. This was an ambitious goal; however, I knew it was possible. Unfortunately, as feasible as my goal was, it was short-lived when I spent a lot of money on unexpected expenses. Although I had at least $1k of emergency funds saved, my emergency expenses surpassed that amount. It felt like I took two steps forward and ten steps back. When creating your plan to pay off your debt, be sure to be flexible and account for unexpected expenses or setbacks.

3. Focused on the highest interest rate

Once I decided to Increase my payments, I prioritized paying off the cards with the highest interest rates first. I increased my monthly payments significantly for those two cards. Getting rid of the cards with the highest interest helped me save more money. The longer I took to pay off my balance on those cards, the more money I would have paid as my interest rates accumulated. Over time higher interest rate credit cards can be a financial burden if you only make the minimum payment every month. Although I focused on paying off those two cards first, I still paid more than my minimum payments on my other cards.

4. Had a second job and side hustles

Even though I did not pay off my debt in six months, I still managed to pay it off in just under a year. One thing that helped me pay my debt faster despite financial setbacks was additional income. In addition to my full-time job, I also started working a seasonal part-time job. The paycheck from my second job was solely for my credit card payments.

While the second job was helpful, I knew I had to find ways to make more money. So I started reselling clothes and shoes on Poshmark. With this side hustle, I generated over $1k in just a few months. Reselling on Poshmark was not my only side hustle at the time; I also did people’s hair occasionally. You are probably wondering how did I manage to do all these things. It was certainly not easy, and it required a lot of sacrifices. However, I had my goal and was willing to do whatever it took to accomplish it. 

5. Tracked my progress

Tracking my progress made me realize how far I have come and helped motivate me to keep going. It also helped me to stay organized throughout my journey. Managing credit card debt can sometimes feel overwhelming, especially when juggling other obligations. Tracking and documenting your debt pay-off process can help minimize your stress or anxiety.  

The idea of living without drowning in credit card debt was far-fetched, but once I implemented the right plan and strategies, it became attainable. I hope my story inspires you to start your credit card debt-free journey or encourages you not to give up on your goals even if you are experiencing financial setbacks.

Below are the books that helped me tremendously on my journey:

• Rich Dad Poor Dad by Robert kiyosaki
• Automatic Millionaire by David Bach