Ready to learn how to stop using your credit card? We recently put together a report of the DFM FB Group on what their biggest struggle is financially. 26% of polled said that credit card debt was their biggest concern. In fact, it was the number one biggest struggle more than student loan debt.
There are millennials inside of the group who have actually made great strides in their debt free journey by not using their credit card. I asked the group on how exactly they stopped using their credit cards and I wanted to share some really amazing answers to help you learn how to stop using your credit card to pay off debt.
Use a spreadsheet
Rebecca said she copy/pasted her credit card statement into an Excel document. Every time she made a payment, she greyed out what that payment was paying off. It had a motivating effect! She saw how her debt payments paid off a TV or watching smaller ones add up. Now she equates working her four side hustles to purchases. Even a $12 trip to the movies requires at least two hours of work on minimum wage.
Cut up your credit card
Maggie, on the other hand, broke up with her credit card, then got back together when she could handle the relationship. It wasn’t until she realized she was putting herself into more debt that she started to change. Now she has a healthy relationship paying off her balance in full every month and getting the points/miles/rewards! Her best tip: be honest! Cut the card and DO NOT USE IT. Understand interest rates and know what will work best for you when you know how to hanle a card.
Have an emergency fund
Aaron straight up cut them up! He also discussed how other people drop credit cards in Tupperware, fill with water, and freeze it, so that you have to literally unthaw it before using. That should be long enough to think hard about how bad you need to do that. He says he avoids needing it as a safety net and instead plans with his wife and have an emergency fund to fall back on.
Awesome job, guys. These are inspiring tips on how to stop using your credit card and focus on debt pay off.
If you want to learn step-by-step strategies on how to pay off debt for good and stay in control with your money, consider checking out my online program, the Freedom Project!