Before I decided to take control of my finances, I spent five years drowning in credit card debt. I aimed 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. 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 I could spend money on anything I wanted, but setting aside monthly money 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 bills, 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.
I planned 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 saved at least $1k of emergency funds, 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 flexible and account for unexpected expenses or setbacks.
3. Focused on the highest interest rate
Once I decided to Increase my payments, I first prioritized paying off the cards with the highest interest rates. 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 rates on 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 I managed 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.
You can do it too!
Living without drowning in credit card debt once felt like an impossible dream—an overwhelming challenge that seemed out of reach. The weight of accumulating interest, the stress of minimum payments, and the fear of never breaking free from the cycle of debt made financial freedom feel unattainable. However, everything changed when I committed to beginning that journey. What once seemed like a distant goal became a reality, proving that anyone can regain control of their finances with the proper knowledge and commitment. I hope my story reminds you that no matter how deeply you feel stuck in debt, there is always a way forward. Don’t give up if you’re starting your credit card debt-free journey or struggling to stay motivated. Small, consistent steps can lead to life-changing results.
Below are the books that played a pivotal role in transforming my financial mindset and habits:
