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So when did birthday parties get so expensive? I’m okay with paying $100 or even $150 for a birthday party but when the quotes are more like $300, then that turns into a No, real fast. To frame this, our daughter is 3 so $300 for a party is a bit much, in our opinion. While planning our daughter’s party we re-discovered an awesome alternative to pricey kid’s birthday parties.

The going rate in my area is $300 to host a children’s birthday party at a local event place. With our daughter, Lauren turning 3 we almost hosted a party at Chuck E Cheese. Key word being almost! I also looked into a gymnastics’ studio and a trampoline place. All 3 of their party packages are in the range of $200 – $300 for a 2 hour party. Then add on extra’s like invitations and goodie bags, and you are definitely in over $300!

The thought ran through my mind that all the little kids in her class are having birthday parties so she should have a party too. Ultimately, we decided to forgo the big hosted party at an event center and instead have the party at this great location which was free, OUR HOUSE! You know that dwelling that we pay a monthly mortgage payment on, that can comfortably fit our family, yes that place.

This isn’t the first time, we held a party there or even her birthday party there. Her 2nd’s birthday party was at home. However, I will admit that for her first birthday, we did have it at an event space and it did cost a pretty penny – admittedly near $500 when you factor in space rental, invites, food for close to 50 people, decor, goodie bags, and custom birthday cake. (However, I am am thankful for growth and not going that route again anytime soon) Also, we don’t regret spending the money because there is just something special about the 1st birthday so it was a big celebration and we enjoyed it.

However, For Lauren’s 3rd birthday, I was reminded of how most of my birthday parties went when I grew up – they were held at our house with immediate family and close cousins invited. Those parties was filled with hotdogs, neapolitan ice cream, cake, and lots of memories captured on my mom’s 35mm camera. Those were great times and we had a good time in that same house and same kitchen year after year.

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Lauren’s 3rd Birthday Party Picture

This year we decided to do the same for our little one by cooking at home for our immediate family, enjoying cake, ice cream and unwrapping her presents together. Lauren enjoyed it and so did everyone else and it definitely didn’t cost $300. In total we spent a little over $100 for food and cake for 8 adults and 1 kid. To add to her birthday celebration, I also took her and one of her friends to jump for one hour on the trampolines at a local indoor trampoline park for $18 total. Then we took advantage of Build-A- Bear’s promotion of a child paying their age for the birthday bear during their birthday month. For Lauren that was $3 but she picked out an $18 Frozen dress for her bear (trust me, I tried to get a cheaper outfit but she loves Frozen, LOVES!) so that brought our total to around $22. All in all for us to have a little party at home and 2 birthday related activities for her, we spent around $140. Definitely a win in my checkbook.

I also asked 2 other personal finance mom’s on their opinion on children’s birthday parties and ways to save.

First, I spoke to A’Shira Nelson, better known as Savvy Girl Money. She has one child, a daughter named Skylar Nelson who is 5 years old. She turns 6 this summer.

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A’Shira from Savvy Girl Money and Her Mini Me

A’Shira’s top financial goal currently is paying off her student loan debt which will be done in March of this year. Afterwards, her only debt remaining will be her car loan and mortgage.

So let’s dive into her thoughts around children’s birthday parties and the associated costs.

A’Shira’s Thoughts on Birthday Parties

A’Shira: Honestly, in the past, I was always HORRIBLE at saving money on my daughter’s parties. This year I’m going to take the challenge of spending under $300. In the past my husband and I spent $600 on average for her parties. One way I’m going to save is by having her parties at home. I have a big backyard with a swing set. I’m not going to hire entertainment, I’m going to have the kids play outdoor games. For food, I’m going to bbq and make treats at home. 

SugarandMoney: Sounds like you are taking the route that I took this year and trust me, your daughter will love it and your pockets will thank you! Another bonus of having parties at home, you don’t have to transport anything to a location, everything is at your house.

You can find A’Shira at the following locations because she has a YouTube channel and is also very active on Instagram.

Website: www.savvygirlmoney.com

Find Savvy Girl Money on Instagram: @SavvyGirlMoney

Then, I spoke to Shatoria Smith of Coincountinmama.com she is the mother of one son, Brayden, who is 1.

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Shatoria from Coin Countin Mama

Shatoria’s eyes are on becoming debt free which she is working on achieving within the next 5 years.

So let’s dive into her thoughts around children’s birthday parties and the associated costs.

Shatoria’s Thoughts on Birthday Parties

Shatoria: In 2018, my son turned 1. I was strapped for cash but I wanted to throw a nice celebratory party for us (let’s face it – my son had no idea he was turning 1 – LOL). 

We spent a ton of money on the baby shower the year prior, so I decided to scale back and have his party at our home. The theme of his party was Baby Shark, so I decided to incorporate bubbles and other beachy/summer supplies.  His birthday is the week before the 4th of July, I was able to purchase beach buckets shovels, bubbles and other summer themed items at 75% from Michaels. I took advantage of using my in-store coupons so I saved an additional 30%! I purchased 30 cupcakes (as opposed to a sheet cake from Publix). I spent $24.99 and we received a smash cake for free! For the adults, we purchased 4 large Pizzas from Costco and asked them to cut the slices in half. We provided water, lemonade as beverages. In the end we spent no more than $100.00 on EVERYTHING! 

SugarandMoney: Wow, less than $100 is awesome and definitely a great idea to have the party at home. Both are a win-win in my book.

A little about Shatoria:

I’m a millennial mama with six-figure student loan debt (eeeeeeekkkkkkk!!!!). Although I have not paid off my all of my debt, I’m actively working towards it! After having my son in 2017 and being sick and tired of being broke, I decided that I am ready to become debt-free.

You can find Shatoria at: www.coincountinmama.com

Sharoria is also active on Instagram at: @Coincountinmama

Recap:

  1. Brainstorm out all of the ways that you can celebrate your child’s birthday and how much each will cost. This will show that there are ways to have a party that cost a little or that cost a lot.
  2. Decide that you aren’t paying an outrageous price for a birthday party just because everyone else is having a birthday party.
  3. Realize that you don’t have to pay $300 – $600 for a birthday party at various event centers. Especially if you have large financial goals like paying off debt, saving for a home, saving a fully funded emergency fund, etc – really consider your priorities before opting into these expensive birthday parties especially if you have small children that will not remember the party.
  4. Remember that your home is the perfect place to host an intimate but fun birthday party. Your child will just enjoy being surrounded by family and friends (if you choose) while opening presents and of course eating cake and ice cream.
  5. Take advantage of birthday specials like Build A Bear has to still give your child a great experience but at a discount.
  6. Consider taking your child and a close friend(s) to an event space to enjoy for an hour or two. This is much cheaper than paying for a big birthday party for 10 kids (and parents) when they’ll have just as much fun with their close friend(s).
  7. If you don’t feel like your home will be suitable, consider a local park and have an outdoor party there. 
  8. Don’t hesitate to use coupons for the things you’ll spend on at places like Michaels, Party City etc.
  9. Also, consider having the party at an off time that may offer a cheaper price if you decide to do it at an event center. For example a Sunday or a weekday could be cheaper than the high demand Saturday option.
  10. Ultimately, a birthday party is a celebration and it should come without the regret of overspending.  Don’t fall into the trap of “Keeping up with the Joneses” with an expensive party unless you can truly afford it.

There are many options to have an affordable birthday party, it may just take some creativity  but in the end, you will save money and your child will still have an awesome birthday party.

I would love to hear from you!

Let me know, what creative ways you can think of to celebrate a child’s birthday without breaking the bank? What’s the average price that you spend on your child’s birthday party?

 

PS: Check out this post that give 5 Awesome Financial Gifts for Kids: Click Here.

And of course my favorite post about giving yourself permission with your personal finances: Click Here.

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5 Financial Tips to Take Action On

 

The clock struck midnight, the calendar turned to a new year and you may have even toasted with a glass of champagne. All of these are signals of the new year and most people rejoice because it’s time for some changes.

As we begin to fill the calendar pages of the year, think about what are your financial resolutions or financial goals? If you are struggling, don’t worry I have complied 5 financial tips to act on that will help with your personal finances every year.

Tip 1: Determine your Numbers, aka Calculate your Net Worth

When it comes to your personal finances, you need to know where you stand financially. If you are running a race, you need to know where the starting line is to get started so it is the same with your finances. Net worth can sound a little intimidating but it really isn’t. Basically, it’s a list of your assets (what you own) minus a list of your liabilities (what you owe). It is very important to know this number and at least review it yearly but I would go a step further and review it on a quarterly basis.  Examples of assets are your home, your car’s value, bank accounts balances, retirement accounts balance and stock values, etc. Liabilities are what you owe (simply put: all of your debt) to include: amount owed on mortgage, credit card debt, car loan debt, student loan debt, medical debt, etc. In the end, everyone aims to have a positive net worth.

Remember: Assets (what you own) – Liabilities (what you owe) = Net Worth

Tip 2: Check Your Credit Reports for Free and Review it in Detail.

There are 3 credit reporting bureaus: Experian, Equifax and Transunion. You are able to get a free credit report from all 3 by visiting: www.annualcreditreport.com. Your credit report will be free but if you want your credit score then you will have to pay additional for it. If you haven’t pulled your credit report in over a year, I would suggest pulling all 3 at once to comb over it for any errors or incorrect inaccurate information. Another option is to pull them periodically throughout the year. That would look like pulling one now (example: Experian), then 4 months later pull another (example: Equifax), then pull the final credit bureau report 4 months later (example: Transunion). This will allow you to view your credit reports throughout the year. If you choose to do this, please make a note on your calendar or in your phone to alert you when to pull them. Once you have your credit report there are 3 Things to look out for:

Fraudulent accounts

Incorrect account information

Incorrect personal information

If any of these are found – immediately follow the steps to contact the credit bureau and dispute the incorrect information.

Tip 3: Create S.M.A.R.T Financial Goals

With the information gathered from your net worth statement and credit report(s) its time to make some goals. Not just goals that sound good but actual goals that you plan to work to achieve. Achieving your financial goals could range from increasing your credit score to paying off debt or saving more money. Setting S.M.A.R.T goals is a popular practice that works like this:

S is for Specific – Make your goal specific. Be as specific as possible.

M is for Measurable – How will you measure and evaluate your goals?

A is for Achievable – Can you actually achieve this goal?

R is for Relevant – How is this goal relevant to you?

T – is for Time Bound – Tie this goal to a certain time. Example: 3 Months, 6 months, etc.

For example saving $1000 for a beginner emergency fund:

Specific: I will save $1000 by April 31st.

Measurable: I will save $350 in February, $350 in March and $300 in April.

Achievable: I will achieve this goal by creating a realistic budget and sticking to it, working overtime and minimizing my expenses in the areas of eating out and excess clothing shopping. All of my extra money will go towards my emergency savings account goal.

Relevant: I need to establish an emergency fund of at least $1000 in case of an emergency, this will prevent me from using my credit card and racking up additional credit card debt.

Time Bound: I will achieve this goal within 3 months.

Tip 4: Get an Accountability Partner

This is something a lot of people probably don’t consider but having an accountability partner is a great addition to your financial goals. You aren’t the only one with financial goals so call in some help with a friend, partner, spouse or even an online friend to hold each other accountable. This person will hold you to your goals and be a support system when you possibly feel like giving up. Lastly, an accountability partner could also push you to do more and achieve more.

Tip 5: Set Monthly Money Dates with Yourself.

At least once a month, have a standing date with yourself to review your finances and set up your budget or spending plan for the following month. Your money date shouldn’t be stressful and doesn’t have to take hours. A money date can be as short as thirty minutes. For example, set aside time on the first Sunday of the month to create your budget, review past spending, comb over bank transactions, view debt progress or review debt accumulated over the past month. Having this information in front of you will help determine what changes you need to make the following month or what you should possibly keep doing. This is also a time where you will review your progress on the S.M.A.R.T goals you set and perhaps a time to check in with your accountability partner to let them know your current successes or struggles.

To recap, Here are 5 financial tips to act on:

  1. Determine your net worth. (Assets – Liabilities = Net Worth)
  2. Check your credit report(s). (Access for free at www.annualcreditreport.com)
  3. Create S.M.A.R.T financial goals for 2019 (Smart, Measurable, Attainable, Relevant, Time Bound)
  4. Get an Accountability Partner (Call in a friend for some support)
  5. Set a Monthly Money Date with Yourself (At least once a month for 30 minutes)

Let me know in the comments, if you are already doing any of these or which one will you take action on first? Feel free to also share a goal with me.

Also, if you need an extra nudge to make your personal finances a priority, check out this post:

Permission Granted

 

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There are numerous articles online that have advice on ways to pay off debt including how to cut back on spending and a multitude of side hustle ideas to make more money while on your journey. You definitely won’t run out of ideas and tips to get you to the mighty goal of being debt free. However, I want to add a helpful aid during your journey which is helping me and has helped others. That one thing that has motivated me during my debt free journey is a visual aid.  Visual aids have been used for as long as I can remember especially in classrooms to help with learning.

A visual aid is used to supplement words with pictures, charts, graphs or other graphics to convey a specific message. 

In this blog post, I will discuss the visual aid that I am currently using to track my progress out of student loan debt and also my discussion with Amanda from DebtfreeinSunnyCA who also believes that using a visual aid while getting out of debt keeps you motivated. Let me add, a visual isn’t restricted to paying off debt, it can also be used to save money. 

I have used a few different visual aids before settling on my current one. Past visual aids include a thermometer that I colored in as I paid off each debt and an excel spreadsheet where I listed all my debts and then highlighted each one as they were paid off. Both are still viable visual aid options. Lastly, I settled with framing a poster sized graphic complete with stenciled in graduation caps where each cap represents $1000 in student loan debt. I created the graphic with a poster board from a local Dollar General Store, a frame from Hobby Lobby, a few Happy Planner stickers from Michael’s stores and a stencil purchased here. My goal was to create something that was very visible but also fun to color in. Once the graphic is fully completed, I will have paid off $64,000 in student loan debt. Here is the final product:

Graduating Out of Debt Tracker

I discovered Amanda from DebtfreeinSunnyCA on Instagram and noticed that she also used a visual aid during her journey out of debt. Amanda made a visual in a bullet journal to track her progress out of $133,763 of debt. Her and her husband paid off this amount of debt in 3 years and 7 months. (Wow!) 

Here is our interview:

Sugar and Money: Amanda, thank you so much for agreeing to share your visual and some of your debt free story with me today. So, let’s dive right in with a few questions. First, tell me a little about yourself and your journey:

Amanda: I’m Amanda Williams and I’m the owner of Debt Free in Sunny CA! I started sharing my debt free journey on Instagram 3 years ago. My goal was to stay motivated and find other like-minded people. Since there weren’t a lot of people sharing their journey back then, I created #debtfreecommunity to make it easier to find people who are getting out of debt. My mission is to show people that living a debt free life is possible by sharing tips and providing motivation. 

Sugar and Money: You knew your goal of debt freedom so what prompted you to create a visual aid while paying off debt:

Amanda: Ya know when you get really into something to where you’re borderline obsessed? That’s how I was at the beginning of my debt free journey. I had a coloring chart that came with the Financial Peace University (FPU) kit, but I didn’t get to color in it often. A small payment was a speck compared to the amount of debt I had. I wanted a way to celebrate each payment, so I looked to Pinterest and Instagram for inspiration on creating my own debt free tracker.

Takeaway: A visual aid can help you in celebrating those small wins to keep you motivated.

Sugar and Money: How did your visual aid motivate you? How did it feel to see the progress?

Amanda: The visual I created was a bullet journal page with lines drawn to create boxes. Each box was worth $240, so every time I made a payment in that amount, I would get to color in a box. Every payday I would get so excited to color in more boxes and see the page fill up. I used a different color of the rainbow for each debt. My favorite part was taking pictures of my tracker and looking back months later to see how far I had come. It’s an amazing feeling to go from being terrified and thinking how you’re going to pay your debt off to putting in the work and seeing your progress.

Takeaway: Take pictures of your progress of your visual aid so you can reflect on the progression of reaching your goal. Also, you have to put in the work to pay off debt.

DebtfreeinSunnyCa Visual Aid for Tracking Debt Payoff

Sugar and Money: Tell me again, how much debt did you and your husband pay off?

Amanda: My husband and I paid off $133,763 in 3 years and 7 months. We also cash flowed our wedding during that time.

Takeaway: That’s a lot of debt to tackle but they did it and so can you! 

Sugar and Money: Would you recommend that other people use a visual aid and why?

Amanda: Yes! Getting out of debt is not an easy task. You need something to look forward to, track your progress, and keep it in your face as a reminder of the goal you set for yourself. Visual aids do exactly that and they are fun! There are so many different ways to track your progress. Coloring, paper chains, and moving coins/marbles over from one jar to another are a few ideas. Plus, you’ll want the memories later on.

Takeaway: Create a visual and don’t be afraid to get creative. Feel free to look to pinterest for ideas also. There are numerous ways to create a visual aid to track your progress.

Sugar and Money: We are wrapping up, anything else that you would like to add about using a visual aid or where you are currently on your financial journey?

Amanda: Once you’ve completed your debt free or savings tracker, laminate it and keep it as a memory. It brings me so much joy looking at mine and all my paid off notices. (Amanda printed out and laminated every paid off letter from her student loan company) I think you’ll feel the same way.   Here’s the debt free tracker I made and used during our debt free journey. I counted up how many boxes were on the page and then did the math to figure out how much each square was worth. I left a row empty for boxes for interest, but it ended up not being enough. Word of advice: only color in principal balance. It makes it a lot easier unless your interest rate is low.

I created a debt free tracker printable that will be available when my online store opens on February 6th, my three year Instagram anniversary. You can sign up for my email list to get a discount and early access here: Debtfreeinsunnyca.com/subscribe.  Thank you for the opportunity to be featured!

DebtfreeinSunnyCa Debt Free Progress Tracker available online on February 6th.

Sugar and Money: And Thank you for chatting with me! I really appreciate it. 

Takeaway: Get on Amanda’s mailing list at www.debtfreeinsunnyca.com/subscribe if you would like to get a discount on the debt tracker pictured above and you can find Amanda via her blog at www.debtfreeinsunnyca.com and she is very active on Instagram @debtfreeinsunnyca so follow her for inspiration.

In Conclusion

In conclusion, I recommend that you use a visual aid to track your progress while paying off debt or even saving up for specific goals. Goals outside of paying off debt can include: 3-6 month emergency fund, vacation fund, house down payment or maybe even buying a house in full. The options are endless but a great visual aid will keep you motivated as you make progress on your journey. You will enjoy seeing the visual progression towards reaching your goal. As you create your visual aid or download one off the internet  here are a few tips in closing: Clearly define your goal and how progress will be tracked, make it colorful and make it fun!

Let me know any thoughts in the comments…Did you like the interview with Amanda? Would you like to see more interviews? Do you plan to create a visual aid to track whatever financial goal you are striving toward? Do you already use a visual? Let me know below and also please share this blog with anyone that it may inspire. Can’t wait to hear from you!

 

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piggy bank

Between birthdays and holidays, it seems like there is always an occasion to buy a gift for a kid in your life. Planning ahead is the key to avoid giving gift cards or a toy that they will discard. Nothing against gift cards or toys if that is what the recipient wants but most cases, you could probably give a more intentional or thoughtful gift. Here are 5 awesome personal finance related gifts for kids.

Goalsetter

Goalsetter is a savings platform (FDIC Insured) where your kid can learn to save for things that matter to them. Or you can give a Goalcard – instead of a giftcard – to another lucky kid on a birthday or holiday and help them start saving toward something they care about.

Goalsetter gives the options to either “Start Saving” or to “Give a Gift”. You can sign up to start saving towards a goal for your child. Goals that jump out to me are: extracurricular activities, a bike, a computer, summer camp fees, high school graduation trip, college savings or college tuition/fees but a goal can be any goal you and your kid want to save for.

Once you finish setting up your kid’s account, you will get a personalized link to share with friends and family so they can give your child a GoalCard – real money to support real dreams.

If you choose “Give a Gift”, you can gift another kid a personalized GoalCard (even if they don’t have a Goalsetter account yet),  to help them achieve one of their goals. Goalsetter is a great option over buying a plastic toy that will likely be tossed away in a month or two.  Click here and here to learn more about Goalsetter.

Amina’s Bracelets: A kidpreneur story

What better gift to give than a book to inspire your child to become a kidprenuer. A kidprenuer is a kid that owns their own business. This book shows how Amina wanted a tablet but her parents wouldn’t buy it for her. Instead her parents empowered her to earn her own money to reach her goal. I think we can all agree that showing your child or any child that they have the ability to make their own money and have their own business is powerful. Consider giving this book as a gift to the special kid in your life. Consider purchasing “Amina’s Bracelets: A Kidpreneur Story” and learn more about the financial literacy company that created “Amina’s Bracelets: A Kidpreneur Story” here.

Moonjar Classic Moneybox: Save, Spend, Share

This twist on the classic piggybank grabbed my attention immediately. We all know that there are more steps to managing money than just earning it and spending it. Beyond earning and spending, you should also give. This moneybox separates the three areas: Save, Spend and Share/Give. If you are anything like me, you learned about money later in life and wish you learned it earlier. The Moonjar Classic Moneybox is a great gift to give to show a child how to divide money into those three areas. This gift will help the special child in your life learn about money.

Cash or Play Money

I think we can all agree that cash is still king. Eventhough it seems that we are moving away from using cash as often, cash is still being used and kids need to know how to count and handle cash and coins. If the child is too young to handle real cash then you can give them play money for them to get used to recognizing money and counting.

Communication

The gift of communication is priceless and can be combined with any of the gifts above. I urge parents, grandparents, aunts, uncles, or any financially empowered person to have a conversation with the children in their life to talk about money. Money is still such a taboo topic but if you know have learned something about money that would help someone else, especially a young person in your life then have that talk. On the flip side, if you have older kids or adult children but need to talk to them about the family finances like retirement, insurance, etc. then have that talk. Any day is a good day to talk about money.

Have you ever given a financial gift to a child? What financial gift do you wish you received as a child?

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pay off credit card debt

In this post, I am going to break down exactly how I paid off thousands of dollars in credit card debt in six easy steps. Actually, I paid off $20,000 in credit card debt. Yes, once upon a time, not long ago – I was saddled with $20,000 in credit card debt. The total balance was paid off between the years 2014 – 2016. I had a mix of credit cards including store cards with balances of a few hundred dollars up to thousands of dollars on my Visa, Mastercard and Discover cards. Ultimately, I took 6 steps to finally get out of credit card debt:

1st Step: Got fed up with making credit card payments.

Simply put, month in and month out I got tired of making numerous payments to the credit card companies. It became exhausting to keep up with who I owed, how much I owed, due dates, etc. So, I made my mind up that I was tired of making those payments and decided to get out of credit card debt once and for all. I wanted the bills and payments to stop so my mindset became set to being just plain tired of being in credit card debt. So, I created a plan to get out of credit card debt for once and for all.

“Do you know what you can do with your money when you don’t have any payments? Anything you want!”

2nd Step: Stopped charging items on my credit cards.

If I didn’t have the cash to purchase something then I simply went without. Afterall, you cannot get out of debt while doing the same thing that got you in debt.

3nd Step: Created a payment plan using the debt snowball.

I had recently read, “Total Money Makeover” by Dave Ramsey and was definitely inspired to get out of debt. Therefore, I listed out all of my credit card accounts from the smallest account balance to the largest account balance with a plan to pay them off using the debt snowball which I had learned about from Dave Ramsey’s book.

“Debt snowball is a method of debt repayment in which the debtor lists each of his/her debts from smallest to largest (not including the mortgage), then devotes extra money each month to paying off the smallest debt first while making only minimum monthly payments on all of the other debts.” – Investopedia

4th Step: Reviewed my income and expenses to determine did I have an income problem or a spending problem with the amount of debt that I had.

At this point, I’ve had credit cards since the age of 18 and honestly couldn’t remember if there was ever a time that they were all 100% paid off at the same time.  I pulled a month of my paystubs from work, 2 months of my most recent bank account statements and a couple of highlighters and starting marking 2 main areas: Food and shopping. Those were the two areas that I figured I could back on first.  What I realized was that there was room to cut back in the areas of food and shopping but I definitely had an income issue. I simply wasn’t making enough money to cover all of my bills and have enough for food, gas, etc.

Check out this post:

How to Create a Budget in 6 Easy Steps

5th  Step: Realized that I needed to make more money.

Since I had an income issue, I picked up a part time job. In fact, it was a retail job and I even created a spreadsheet to track my paychecks from my part time job to make sure that the money was tracked as it came in and then paid toward debt to work my set debt snowball. However, my part time didn’t offer that my many hours which equated to income and I admit, I was shopping at the store so my checks really didn’t make a huge difference since I was spending my paychecks back in the store. (Note: Please don’t work at a place to earn money where you will also be tempted to shop/spend.)

5B: Personally, I still needed to make more money because the part time job wasn’t cutting it so I went after a promotion at work and got it. That is when the snowball really got traction. Getting the promotion, did take some work and even took moving out of state but the increase was worth it. (Let me note, If you have a spending problem, then you will need to cut back on your shopping.)

From there, I was able to work my snowball and pay off each debt one by one from smallest debt balance to highest debt balance.

Step 6: (Optional Step) Completed a balance transfer.

One of my credit cards had an offer for a balance transfer. I used that offer to transfer a higher interest credit card to a very low interest credit card with the plan to pay the card off before the balance transfer rate expired. It proved to be a good way to save on interest while paying off my $20,000 in credit card debt. I know this isn’t a perferred option for some people but if you are committed to not getting back in credit card debt and you are  committed to paying off your credit cards for good, this could be a good tool to use to save on interest fees while paying off your debt.

In conclusion: To pay off your credit debt, it will take a few steps but it can be done. Steps include: Getting fed up with credit card debt, no longer changing items on credit cards, listing out all debt/balances using the snowball method (however, you could also use the avalanche method), determine do you have an income problem or a spending problem and fixing that specified problem, considering a balance transfer option and then lastly, work that payoff plan you created and stick to your plan until all of your credit cards are paid off. Please remember that by believing that you can pay off your credit card debt, you are halfway there!

So let me know of any questions you have? Do you believe that you can pay off your credit card debt? How long do you think it will take to pay off your credit cards in full?

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