How to get the fu*k out of credit card debt.
It’s not easy but I’ve seen dozens of my dumb clients pull it off.
The average interest rate on credit card debt is 20%. If you owe $6,000, you’ll be paying $1,200 this year in interest alone. This debt will continue to grow at an alarming rate if you don’t put it in check.
Think of credit card debt as a growing tumor that needs to be removed asap. The path to getting out of credit card debt is very hard but also relatively straightforward. If you have the will and perseverance, here’s how you can break the shackles of credit card debt.
1.BECOME EDWARD SCISSOR HANDS
Cut up all your credit cards. This will prevent you from going even further into debt. Do not even think about using a credit to buy something for the next several years. You fu*ked up. You’ve proven that you’re not responsible enough to handle credit cards. You‘re on timeout. From here on out, ONLY USE YOUR DEBIT CARD.
2. IT’S TIME TO GO ON A DIET
Instead of cutting down on carbs, you’ll be cutting down on your spending:
- No travel (Covid will help with this)
- No new clothes
- Pause your 401k contributions
- Don’t save money for a house
- No ordering-in
- No restaurants (Covid will help with this)
- No drinks
- Lower your student loan payments if you can
Whatever you need to do to get your spending down, do it. Even if it means you subletting your apartment to move back in with your annoying Boomer parents.
3. ZERO % CREDIT CARDS
While you’re paying down your credit card debt, transfer your debt to 0% credit cards. These are special credit cards that won’t charge you any interest for apx. 12 months. This will allow you to pay off your credit card debt even faster and it’ll save you thousands of dollars. Here are some 0% credit cards that I like. If you don’t qualify for any of these 0% credit cards, that’s OK. Just keep paying down your debt anyway.
4. FILE FOR BANKRUPTCY
If Thomas Jefferson and MC Hammer did it, why can’t you? If you owe more than $20,000 in card debt, reach out to a bankruptcy attorney to see if you’re a good candidate for personal bankruptcy. Bankruptcy is a scary word. It shouldn’t be. Lots of people file for bankruptcy but no one ever talks about it. Bankruptcy is a magical tool that gives you a 2nd chance at life. Here’s a list of celebrities that have filed for bankruptcy.
Filing for bankruptcy will mess with your credit score but it’s way better to have bad credit and no debt than good credit and lots of debt.
SUMMARY:
- Stop using credit cards. Only use your debit card.
- Spend less money by any means necessary.
- Try to transfer your debt to 0% credit cards.
- If you owe a large amount of credit card debt, reach out to a bankruptcy attorney.
