3 Budgeting Hacks for Paying Off $1,000 of Credit Card Debt in 30 Days
We paid off $200,000 in debt in three years, but it wasn't an easy process. We frequently hit a wall and were prepared to give up. Here are three quick ideas to get you started on the path to debt freedom.
Decide on a card you can pay off $1,000 in 30 days.
If you have a lot of debt and feel overwhelmed, this is a great way to start paying it off slowly. This is a challenge that was issued to the Crush Crew, which is a group of friends working toward financial independence. They are each tasked with paying off $1,000 of debt in their first month. The first debt to pay off is Credit card debt especially since interest rates currently at around 24%.
Paying off $1,000 of debt with that money is a bit like shock treatment. It’s not enough to make you forget about your financial worries, but just enough to get them out of their normal routine.
Cash hoarders who have enough cash to pay off their debt, but are afraid to do so because they are instructed to keep money in their bank account, even when they are paying interest on debt.
You are Smart Enough To Find $33 Daily.
If a person doesn't have $1,000 of cash immediately available, we break down that amount so that they can pay it off weekly or daily. it would be $250 a week or, in 30 days, about $33 a day.
We have come up with creative ways to save the $33 a day:
We don't go out to eat or shop as often.
You can Sell clothes, jewellery, collectables or furniture.
Talk to the credit card companies about their balances.
Shop around for car and home insurance.
Stop using streaming services that weren't used as much.
Having Thirty-three dollars feels a lot more doable than $1,000.
Jump-Start Your Planning With A 7-Day Money Cleanse
Think of it like a cleanse, or maybe for your spending habits instead of your gut health.
People who need to get out of debt sometimes call this a "no spend week," but the terminology makes it feel more like a punishment than a way to relax. So instead, set a budget for necessities and give yourself permission to buy what you think is important.eIf you need to buy groceries, you can do so, but only up to a certain amount. Then during the week, if you want to buy something that isn't necessary, write it down with the price.
After the week is over, go back to your list. If you still want to buy these things, feel free to go ahead! But chances are, you won't want those things as much, and you've saved yourself money that week.
Add up how much you would have spent on the items you didn't buy and use that money to pay off your debts instead.
You can close The Payoff Gap With My ‘Declutter The Date’ Game
During the challenge, you give away or throw away the number of items on the date for every day of the month. Pay a dollar towards your debt for every item you get rid of.
On April 1, you might give away or throw away something you no longer need. For that 1 item, pay $1 towards your debt.
On April 3, you get rid of two things and pay $2 toward your debt. This continues until the end of the month.
It doesn’t have to be something big or expensive. It could be papers you’ve been wanted to shred, packets of fast-food sauces, or things around the house that are gathering dust.
Put a box by your door and take it with you when you leave to donate things. By mid-month, it gets harder to find 15 to 17 things to give up. But that's the fun of it
The declutter game helps me remember that a lot of things I buy lose their value over time. It will help you to stick to buying things that will last longer periods of time or not take up space in the future. It will also help you connect your past spending to paying off your debt.
If you play this game for a month, you will be able to pay off $465 and get rid of 465 items!
When you start to think of ways to save or make an extra $33 per day instead of how to come up with a $1000 goal seems more doable.
We were able to pay off our debt quick and stay on track for the three years it took to get out of debt by rethinking it as a series of smaller, shorter-term tasks instead of a huge, long-term burden.
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