How To STAY Out of Credit Card Debt!

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Here’s the Video Transcript:

hi guys so you watch my video on how to get out of credit card debt you’ve followed all the steps you did all the hard work and you learnt your lesson and you are now credit card debt free I am so proud of you I bet you feel great I bet you feel happier I bet you feel more in control of your finances and I bet you feel freer when it comes to making that final payment on your credit card life gets exciting because when you are debt-free this means that if you want to you can move on to achieving more meaningful and fulfilling financial goals more opportunities and tools exist within you to further your financial situation to create more financial security to create a better financial future and potentially just give you more choice and time and who doesn’t want that but now that you’re out of credit card debt and you’ve done all the hard work I hate to be the bearer of bad news but it also takes a lot of work to stay out of credit card debt you have come so far and the last thing you want to do is repeat history and sabotage all your hard work by getting back into debt again you need to commit to the journey of staying out of credit card debt so this video that I’ve made for you is how to stay out of credit card debt for good so my first suggestion is to ask yourself honestly do you really need a credit card does having a credit card add value to your situation I’m not saying that credit cards are bad there are some amazing credit cards out there with incredible rewards programs things like frequent flyer programs discounts on car rentals complimentary travel insurance but if you find that having a credit card is creating more trouble than good you may be better off just simplifying your finances and not actually having a credit card in the first place you need to be honest with yourself and ask yourself if you have that self-control to stay out of credit card debt if your answer is no do not make yourself accessible to debt and if your answer is yes because you just need a credit card for emergencies that’s not really the best answer because really you should have cash savings for emergencies my second recommendation if you need to keep your credit card out of your wallet now I know people that actually keep their credit cards frozen in blocks of ice in their freezer and I know this sounds absolutely crazy but it works for them because it keeps them on the straight and narrow and by they’re not having their credit cards in their wallet when temptation arises which it always does because of social media marketing and advertising that we are constantly exposed to when in that urge hits them if they don’t have that credit card they can’t use it so if they really want that particular item they have to pay for it in cash or with their debit card you use cash as in physical cash or a debit card you tend to be a lot more present and in the moment you’re actually questioning the value and the exchange so you understand in handing over those notes what you’re actually buying it is it really worth it and also seeing your savings dropped by that particular amount of money again are you prepared to see your savings drop for that particular item if the answer is yes obviously the exchange continues but if you don’t you’ll stop and realize and you won’t be attracting junk and crap in your life that you simply don’t need and the temptation will pass my third recommendation is have a low limit on your card that means if you do get into trouble at least it’s quarantined to a small amount and it’s easier and quicker to pay off if you find this happening repeatedly you need to have a look at your budget and work out where your money’s going and if you are earning as much as your lifestyle demands and you may need to say goodbye to credit cards for good or just for a little while my fourth recommendation which i think is probably my most helpful recommendation in this video is check your credit card transactions regularly do not wait until the end of the month when you get your credit card statement because when the statement arrives during the month we conveniently forget about all those little purchases and things that we bought and ordered online and put on our card and then we get a bit of a rude shock when it comes at the end of the month and initially you think honor that can’t be right how does this all add up you may even think oh there might even be some fraudulent incorrect charges to my card but as you go through a transaction go oh that’s right I did buy that oh yes I did order that yes we do go to that restaurant you realize how little things quickly add up you check your transactions on a regular basis and when I say regular I try and do this every day or every couple of days at least I can see exactly where my money’s going I can budget for the remainder of the month if I catch myself having expensive a week I know that ease off for the rest of the month I’m a lot more in control I know where my money’s going and I don’t get in credit card debt fifth recommendation which is probably one of the most obvious recommendations is pay your credit card in full every month do not waste precious money on paying interest that money could be used for so many better things it could be used for building up savings it could be used for paying down other debt like your home loan it could be used for investing it could be used to help bring your retirement sooner your money and it’s being wasted by giving it to the bank because you’re not being responsible with your money change this habit my sixth recommendation and this is not just limited to this particular video but have a budget now if you have a budget you’ll know exactly how much you earn and exactly how much it costs to live and the cost of your lifestyle and when you understand your living expenses you’ll make better decisions and the way that you use money and when you use your credit card my seventh recommendation and this is probably one of my favorite recommendations is transfer cash so say for example you go to a shop and you buy a new outfit and say the outfit costs $300 when you are paying for that and you’re putting on your credit card because you know that you use your credit card responsibly make sure you transfer $300 to your credit card to pay for that transaction in full that will mean that you are constantly debt free you are still getting the benefits of your credit card my final recommendation is understand the fees and charges that come with your credit card some credit cards have a very high annual charge and that charge can immediately put you back in the red even if you’re being responsible with your card so by knowing what the fees are knowing what the interest rate charges you can plan and prepare your cash flow and make sure that you are always out of the red in debt free isn’t about living a mean stingy life with money or denying yourself any luxuries it’s actually about respecting and understanding your financial situation and where you want to go you will realize the potential exciting opportunity that exists within you to create a better financial future for yourself a financial future that’s gonna give you a lot more choice a lot more flexibility and a lot more time who doesn’t want that you want to remain out of credit card debt for good make sure you use this as an opportunity to your advantage use your newfound healthy financial habits and channel them into achieving bigger and better goals for yourself whether that be building up a savings account whether that be investing or whether that be towards your retirement planning so that you can bring on your retirement date sooner or with more money it doesn’t matter the choice is yours so that’s it for this video I will see you later in the week for lifestyle love and if you haven’t already please make sure you subscribe I always appreciate your feedback and if you’re interested you can follow me on instagram at sugar mama TV and you can like us on facebook or you can head to the official sugar mama website for more information I will see in a few days ciao for now bye

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