Credit card debt, yay! No, credit-card debt is bad and I don’t care what you’re telling yourself like oh it’s fine I’ll deal with it next month or I’ll wait until I get paid, raise or a tax refund or a bonus, you need to get out of credit card debt today if not, yesterday. Now, not only is credit card debt, is just financially stupid, it’s actually energetically toxic. Most of us feel, when we’re in debt, deep down, if you peel back the layers, there are feelings of remorse, feelings of embarrassment, shame and it just drains you of your energy in your resources. So, we need to make a plan to get you out of credit card debt asap and this is exactly what this video is going to be all about and I pretty much guarantee that most people who are in credit card debt can’t even remember half the things that they bought on their card and I’m going to guesstimate if you’re in credit card debt, you’ve actually been in credit card debt for a while you just haven’t had one bad month. You’ve had a bad month and then it’s kind of snowballs into the next month.The next month you never quite got your hand back in control of that did again so let’s stop that. Let’s draw a line in the sand. Let’s get you out of credit card debt asap. and get you out of credit card debt for good. You’re going to feel so much better you’re going to feel this weight off your shoulders and it’s a really valuable lesson for you to learn. Okay, let’s waste no time or get into it immediately. Step one, really easy, cut the card up and if you are in multiple credit card debts, you have to cut all the cards up. Now, by doing that you we’ve trapped the debt. You can’t use the debt, you can’t use the card. I should say and you cannot let the debt get any bigger, assuming that you maintain the interest repayments. So, by cutting those cards up, we’ve trapped it. It cannot get any worse and we can’t use them anymore. So, number one most important step, don’t forget that. Step two, pay for everything in cash. From this point forward. Yes, this is going to be a little bit painful because you’re going to have to say no or say that you can’t afford to do a few things but that’s okay. It’s not the end of the world, you’re not going to die, you’re actually doing something much more powerful and beneficial for yourself and that you’re not getting lending your credit card debt get any bigger. It’s actually going to start getting smaller soon. So, pay everything in cash or if you need to use your atm debit card so there’s no credit at all that you’re using. You’re going to actually feel quite good in paying for things in cash you want to feel a lot lighter and you’re going to feel a lot more in control and you’re only going to buy what you value and what you appreciate. Step three, start a list how are you going to piece a paper and I want you to write down everyone that you owe money to and exactly how much. Start with the person that you owe the least amount of money with first. Work your way down and the last person on the list should be the person you owe the most amount of money to. Take that piece of paper, either put it on your bedside table or your toothbrush or even in your wallet. Basically somewhere, where you’re going to see that piece of paper a couple of times a day. Now, this is really important and I’m going to explain why in a second how this is going to help you keep focus and motivated. Step 4, do a budget. Ugh, most people hate doing budgets.They put them off as long as possible, but i guarantee you, once you sit down and actually write down all your living expenses is actually an incredibly awakening experience because you have a lot more dear, a lot more control over where your money goes and you can see where money’s being wasted and where it’s not. Also about doing a budget you can see what you really value and you can then identify things that could potentially, be cut out to help either save more money or help you get out of credit card debt faster. Now, if you’ve never done a budget before don’t even know where to start, find the whole thing completely overwhelming, don’t worry.I’m here to help make sure you subscribe to my channel. Contact me through my website, www.SugarMammaTV.com . I will then send you a budget template that I use with my other clients and they find really helpful. It’s something I designed myself. It will make it a lot easier and a lot quicker for you to do a budget. So, don’t freak out, I’m here to help. Step 5, cash flow. Okay, so now we have an idea of exactly how much debt you’re in and we also have an Idea of your living expenses. We need to get you into a situation where your cash flow, you have no control of your cash flow and so that if the big month comes through we’ve got lots of expenses, you don’t have to go back to the credit cards to rely on. You actually have cash available to help you stay in control. Now, this is how I want you to run your accounts. I want you to have two accounts. One being your everyday bank account, which is where your salary gets deposited and where you pay for your monthly or fortnightly expenses. That might be things like takeaways, gym memberships, drinks, clothes. Then I want you to have a second account and this is a savings account which I want you to build up with money that you for those larger and months to come through. You know, say Christmas time when you buy a dozen Christmas presents for family and friends and you kind of get financially wiped out for the month. What we’re going to do is stockpile that account. So, when those months come you’ve actually got enough cash set aside to pay for those things and you’re not reaching for the credit cards again to get you through. You pay for that in cash. This will keep you out of debt for good. This is what I want you to do going forward, even when your credit card debt is paid off. Step six, start paying the debt down, the most important and powerful step that you’re going to use. What I want you to do is grab your little piece of paper, go through your budget and I want you to work out some – really look at each individual expense and really question the value of that expense and whether you really need to do that. The more expenses that you can cut out of your budget, the faster you’re going to get out of credit card debt. So, go through the budget. Look at what each one Individually and see which ones you can cut. Even if it’s just only temporarily. Say for example you identify some savings and you can free up, say $300 a month out of your budget. What I want you to do is take out $300 and start using that as lump sum repayments on your debt. Starting with the number one debt at the top of your piece of paper You also need to – which is very Important, make sure that you’ve set up minimum integer repayments on your the credit cards so that if there’s – there’s any late fees you don’t get any sort of additional fees and fines for not focusing on paying those debts down but just set them for the time being so that there’s minimum debt repayment strategies in place. We will get to them, we’re going to start with the debt at the top of the list which is the easiest one. So, go through the budget, analyze what you can cult and try and free up some cash flow which you would then go to channel into reducing that credit card debt. This is really very personal. As I said before the more you can cut, the quicker you’re going to get out of debt and the quicker you can start manifesting savings and building up investments which is really exciting Okay, now a lot of you are probably wondering why I’m recommending this strategy of starting with a smaller step first and the you know going through to the biggest debt last. Especially, when all the banks say, no you know. Consolidate the debt or start with the loan that’s got the highest amount of Interest. What I”ve learned from experience in coaching people out of debt and working with building wealth is credit card debt as I said, it’s very toxic and it’s – it’s actually quite hard to manage when you’ve got numerous debts like juggling a ball. So, if I say you’re juggling seven balls but then i take one ball out of the air and you’re only juggling six, its going to be that little bit easier. So, I need to try and help you get those as many balls out of the air as quickly as possible. So, by starting with the smaller step first and focusing on that we’re quickly removing that we’re reducing the number of debts and making it easier we’re also building momentum and focus for you so that you actually continue to remain on this strategy and on this path of debt deduction which is really important. Also the reason for starting with the the smallest one first is you’re going to build momentum and you – you know it’s the first one the smallest debt is going to be the first one off the list and it will then free up your cash flow. So, for example say I was out $1,000, the person on my list and I’ve been putting $200 in repayments towards that person the moment that person I cross them off The list after I’ve given their final payment I then use that $200 per week that out or per month that I’ve been using to pay down that debt and then channel that to the person second person on my list so and I continue to use that strategy until I work down the list until I’m completely debt free. Now, the other thing is some financial institutions will say consolidate this debt to a low-Interest credit card. Yes, mathematically and financially that makes sense on paper but nine out of ten people from my personal experience. Don’t change their habits system so what happens is they have say three credit card debts to various credit card companies. They then amount of consolidate those credit card debts with a new credit card over here and they have a zero one year interest free credit card payments where they can and they transfer all the debt over to the new card. In the meantime, they kind of wonder – walts around not wondering you know not what not worrying I should say, the yarn I’ve got a year before I start paying interest on that credit card in the meantime. Their habit system hasn’t changed. They continue on shopping on the on the original credit cards and a year’s time but one year later I should say they are in twice as much credit card debt. They haven’t made any repayments over here because I just have parked it and out of their mind and out of their guilt and they’ve now been using the credit cards and they’ve got back up to the same amount of credit card debt but instead of being in $10,000 credit card debt and now in 20 that’s why I just don’t think that this strategy always works. Now, I’m not saying it won’t work for you if you are very very stick with money and you are really determined to get out of credit card debt for good and you are going to cut up the credit cards and you’re going to never get them back get never get back Into debt again. Then that is absolutely fine to go and apply for a low interest rate credit card and consolidate but make sure if you do that you do not have access to any other credit in the meantime and you do as much as you can to pay off that credit card debt. As fast as possible whether it be one month or twelve months do whatever it takes to get that credit card done and dusted for good so that there’s no money owing the moment you’ve paid off that cut that consolidated card cut it up cancel it and never get into credit card debt again and if that means not having a credit card well then that’s fine don’t have it some people just are not meant to have credit in their life because it’s it’s a dangerous tool and I’m not saying that credit cards are bad. They definitely are very very powerful and very very helpful tool and I’ll do a separate video on that at another time but you’ve really got to respect the gestation period. When I have a client that comes to me that’s in heaps of credit card debt and I you know coach them out of the debt. Sometimes it takes a year for them to get out of credit card debt but I always stress you’ve got to respect the gestation period the longer it takes you to get out of credit card debt. The bigger the lesson you needed to learn and for those clients where it’s taken a long time for them to get out of credit card debt. They will swear black and blue that they will never ever use a credit card ever again and they really feel that they’ve learned their lesson because they now realize the amazing feeling of freedom and lightness and just control that comes from not having any debt at all and they really appreciate and value that that new world that I opened up them up to them and they’ve learned a really good lesson and they’ve learned it early in life which is great for you. As, well so if you’re in debt please make a decision now you’re going to get out of credit card debt and you’re going to get out of it starting today draw a line in the sand make some goals and do everything you can for your financial future. So, that’s it for this video. I hope it’s helpful if you have any questions always add the comments in below. Don’t forget you can follow me on Instagram at SugarMammaTV on Twitter and Like Us on Facebook I’ll see you in the next video soon ciao for now