Debt tackling and my reviews

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Hey,

It’s not new to you that I have been trying to tackle my credit card debt for about 2 years now. Today is the first time I have seen my debt at 3 figures in a long while. However, I am 1 small purchase or interest charge away, from going back into 4 figures. So here are methods I have tried to tackle this debt with and how I rate them out of 5.

Things to note:

• I only have 1 credit card and 1 form if income. So I do rely on my credit card to supplement any payments that couldn’t fit in my monthly pay. And since it ain’t cheap staying alive on a budget, I do find myself using my credit card in the last week before my next pay.

• I have not tried every method on the planet, as I have limitations from my own personal fears about taking risks with my finances (never done a balance transfer), and just generally I won’t always fit the eligibility criteria to be able to get something (debt consolidation).

• I naturally overpay my credit card with my direct debit, so when I talk about overpaying here, I am talking about paying more than my direct debit.

• These ratings are on MY experience. If you have tried the methods, and would rate them differently, that is perfectly fine.

• Lastly, I am tackling my credit card debt on the basis that I know I can live off my salary without relying on my credit card (but the debt on it, needs to be paid first so I can achieve that). Also, the lower my credit card debt, the better my score and both of those have an effect on the mortgage and house I will be able to buy in the future.

Automate

2/5 ⭐⭐

For me it’s not a debt tackling technique, since I am the type of person who actively utilises automations anywhere I can, so this didn’t feel like a benefit to me. But I can see the perk of it if I was someone who didn’t have automations, and constantly struggled to leave money in my account to make the minimum payment on the card. It’s very easy to set up, and my bank gives me a 7 day warning to have the funds available to pay the direct debit.

Create a budget plan

5/5 ⭐⭐⭐⭐⭐

I love a budget, I created my own simple spreadsheet to keep an eye on my expenses. Instead of placing the same amount into my credit card payment, I would see the expenses I was expecting that month, and if I had spare cash, I would put that ON TOP of my existing direct debit. If I had less that month, I would ONLY pay my existing direct debit. This allows me to still make the most of my adulting life, but with healthier financial habits, and less financial stress.

Aggressive Overpaying

0.5 /5 ⭐

I was putting in 4 figures each month to my credit card. The cost? I couldn’t do anything. I limited myself to barely even the necessities to find some semblance of joy in my life. My health was definitely compromised for most of winter, and I wasn’t enjoying the limited time I have of existing. This sort of method works in the short term, and for me short term is 1-2 months (2 pay slips). I’d give it 2.5 stars for the short term though, as you really have to know what your finances will be like across those 2 months before you start, and adulting is very unpredictable.

Well…

Safe to say, I still have a bit to go before I am credit card free. My budget plan is to be credit card free by the end of this year. So, here is to progress in this second half of the year, and hope my experiences with these methods helps you on your debt clearing journey.

Thanks for reading and I hope you have a great week.

Speak soon,

Rue

Adulting For Life