Credit Card To Pay Debt – When I was young, the prospect of getting any kind of credit was terrifying. In high school, my microeconomics teacher, Mrs. Bennett, warned us about the dangers of credit card debt. He said it was the worst that could happen to us.
Fast forward to college, a cross-country trip, settled in one of the most expensive cities, and managed to rack up $5,500 worth of credit card debt. Before you judge, let me make it clear: I am not a compulsive shopper and I do not hold negative views about money.
Credit Card To Pay Debt
For me, the balance is the result of working a low-paying job in an expensive city while trying to maintain the adventurous, brunch-filled lifestyle that is inherent to anyone living in New York City.
How To Get Out Of Debt
Even though I made a small monthly payment, there wasn’t much money left after rent and groceries to pay off my debt.
FWIW, my personal debt is actually pretty high when you include my $30,000 student loan balance. This $35,500 debt led to deep anxiety and growing helplessness.
Enter 2020. I promised that this would be my chance to renew myself and start over. This was the year I got closer to living a life I felt honest about – being financially empowered was a big step towards that. Every financial expert will tell you to get out of high interest debt as soon as possible. So I decided my first goal was to eliminate my credit card debt. Unfortunately, 2020 turned out to be a good time. This is how I did it.
A balance transfer card allows you to move high-interest debt from one credit card to another without incurring interest over a period of time, allowing you to pay off the balance without incurring additional interest. After this period, the higher interest rate on the new card will begin.
Trap Of Credit Card Debt Concept. Young Man Happy After Paying Off Credit Card Debt. Illustration Png 14435721 Png
I decided that getting a balance transfer card was the best option to reach my goal. I set up BankAmericard through Bank of America. I already had a relationship with this bank and had 15 months of interest free finance on my subscription contract. I applied and was approved to transfer my credit from two old cards to BankAmericard starting in January.
With my pre-pandemic income ($1,650-$1,750 a month), which made it difficult to pay off my debt, I started selling locally made goat cheese every Saturday at the Union Square Farmers Market. At the beginning of March, I paid off $900 from my market job and $100 of my principal on my credit card debt, bringing my debt to $4,500. I thought it was great!
A few weeks later, the pandemic hit hard and New York went into lockdown to slow the spread of COVID-19. Unfortunately, that means my marketing career is gone. Also, my primary employer has significantly reduced my hours.
At the time, it looked like I would have to wait on my financial plans for this year. But a friend said he might be eligible for unemployment benefits. The CARES Act, signed into law later this month, means I can get an extra $600 a week. I filed a claim and my monthly income went from about $1,700 a month (excluding the farmers market gig) to about $3,400.
A Growing Number Of Americans Face Potentially Crippling Credit Card Debt
When I got my balance transfer card in January, I completely stopped using my credit cards to rely solely on cash. With this trend and restaurants and bars closing due to COVID-19, I was able to save a lot of money.
Then in May I moved to Georgia to live with my parents until the end of June. When I lived alone, I spent about $400 a month on groceries and shopping. This means that in addition to doubling my income, I save another $800 every two months on food. Shout out to the parents! you are the best!
Of course, I still had to pay my Brooklyn apartment and the bills, which were less than $1,000 a month.
At the end of May, my credit card debt was paid off in full. I was very proud of myself and my mother was moved to tears to know that my debt had been with me for so long. I’m a big believer in rewarding yourself for doing well in all areas of life, so I’ve done a little retail therapy. I got Converse, Doc Marten 1461, a cool swimsuit, Madewell swag, and a jumpsuit from Warp + Weft. In total, I spent less than $500.
How To Get Out Of Credit Card Debt
My hours were running out, so I continued to get help from the CARES Act. That means I still have money. So I decided that building an emergency fund was a good next step in my financial journey. [Editor’s note: Many experts recommend saving up to eight months of salary or expenses to cover a job loss or financial emergency.] I didn’t have a specific savings goal in mind, so I saved the extra money that had after hiring. , public services and other savings needs.
Also, because of my salary, I took a $1,200 drug test in May. But I never used it for my savings strategy and unemployment income. By July 15th, I had saved $5,500 in my emergency fund.
I fully admit that it would have taken me a lot longer to pay off my credit card debt if the pandemic had never happened. It seems rare to have a silver lining at such a bad time, but luckily it worked for me. Also, without my financial situation you cannot have my sudden success. I have no dependents and I have family that I rely on for extra support (like buying me food and letting me stay with them).
On July 31, another $600 a week in unemployment benefits expired. While another stimulus bill is stalled in Congress, those benefits are likely to be extended. However, its future is bleak.
Strategies To Pay Off Credit Card Debt Fast
Fortunately, my first work schedule was restored at the end of July. Since we’re still working remotely (another plus, of course), I’ve decided to move back to Georgia to live with my parents when my lease ends in August. I planned to pay off my student loans while living rent-free, adding more to my emergency fund and saving for my next move.
I know how fun it is to reach my financial goals and I live paycheck to paycheck.
Chinazor “Chichi” Offor is a writer, model and content scholar. Catch her on IG and Twitter breaking down toxic, Eurocentric beauty standards or making really hard cheese.
Hooking up on Kristen Sunday vs. Elise Smith’s Arrogance Creates a Tech-Proof Skillset @YourRichBFF Makes You Want to Stop Making Money and Be Guilty Read an exclusive quote from Vivian Tuan’s book $$
Credit Card Payoff Calculator
The New C-Suite in 2023 Is Here to Shake Things Up Isoken Igbinedion, Big Shante Elliott on the Benefits of Failure Farrah Allen Has the Cure for Impostor Syndrome: Choose Your Advisors Wisely.
Best Divorce Money Tricks By Brittney’s Lawyer Interview: General Motors CEO Mary Barra Why Office Bragging Is Really Good Linking Movie Sex Scene Is Really Like our mission here at Credible Operations, Inc., NMLS No. 1681276 “Believable” below , your Provides tools and confidence to improve finances. Although we promote products from our partner providers who receive compensation for our services, all opinions are our own.
Consolidating credit card debt can help you get a lower interest rate and pay off your debt faster. Learn how to consolidate credit card debt here. (Stock)
In theory, credit card debt consolidation sounds like a good idea. Replacing high-interest credit card debt with a low-interest credit product can help reduce the amount of interest you end up paying on your debt.
Should I Use A Loan To Pay Off Credit Card Debt?
There are many ways to consolidate credit card debt, all with their pros and cons. Some options are better than others. But your overall goal is the same: to consolidate your high-interest debt, giving you a reasonable monthly payment.
If you are thinking about consolidating your debt, it is important that you find the right option for you and that offers the lowest cost to get out of debt.
If you have multiple credit cards with high interest rates and large balances, you may want to consider consolidating your credit. This means taking out a new credit product, such as a personal loan, to pay off your existing credit card balance and make a monthly payment.
Don’t get caught up in past accounts. By consolidating debt, you can pay off previous debts, which can help improve your credit score. Remember that qualifying for debt consolidation can be very difficult
Reasons Credit Card Debt Consolidation Fails
Pay credit card debt fast, options to pay off credit card debt, need to pay off credit card debt, loan to pay off credit card debt, help pay credit card debt, pay credit card debt, best credit card to pay off debt, loans to pay off credit card debt, pay off credit card debt, loans to pay credit card debt, programs to pay off credit card debt, loan to pay credit card debt