Make the pledge to crush your credit down below and celebrate! You’re one step closer to cutting up those credit cards that have caused you so much stress. Before you grab those scissors, though, it’s recommended you leave yourself with access to a strategically-planned buffer of available cash in an interest-earning account - in case of unexpected emergency.
With that protection in place, it’s time to give your credit cards the chop and transition to a new, empowered way of managing your money - debt-free. From that moment on, you’re in control.
Set your intention to pay down the debt. Be realistic, based on a budget of your earnings and outgoings. For example, your intention might be that you will repay $3600 in 14 months. Make a poster and put it in a place you will see every day. Working towards realistic goals in practical ways lets you experience the thrill that comes from genuine results. You can do it. You just need some support and strategy along the way...
Set up your bank accounts for success. Success means 20% profit each month. Talk to your bank about creating a savings account with a high interest return. By locking your money away in short-term, high-yield savings accounts, you can reduce spending temptation and watch your savings grow.
Let’s say your monthly income after tax is $7000...
By doing your budget and documenting all your outgoings, you’ll know, for example, that you need to service these monthly bills:
Use the profit from Step 4 to rapidly pay down debt. If you can make the commitment to save on some discretionary spending, or make even smarter choices at the supermarket, the extra cash you save can go into creating bigger profits that enable you to crush your debt even quicker.
GENERAL ADVICE DISCLAIMER: Play it smart! The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.