Dear Nice Person with Credit Card Debt

Yesterday, the Feds increased interest rates — AGAIN! This means credit card companies will be charging even higher rates, so it’s important that you DON’T CARRY A BALANCE from month to month on your credit cards.

That item you got on sale is no longer any kind of a good deal when you pay 20% to 26% on credit.

The proper way to use a credit card is to pay off the entire balance each month when the bill is due. That way, you don’t waste your precious hard work on interest.

If you are currently carry a balance on your credit card, do everything in your power to pay it down ASAP. Here are some ideas:

  • Ask for overtime and use all that extra money to pay off credit card debt. (But leave the card open.)
  • Work a side gig, such as yard work, dog walking, hair cutting, child care, baking, painting, or whatever skills you have.
  • Create something to sell during holiday gift-giving season.
  • Set up a gift shopping service and post fliers in business offices. (Those busy people need help.)
  • Set up a mobile service to offices where busy executives could use some extra help, such as gift wrapping, car detailing.
  • Get your mental wheels turning and I expect you will come up with a doable idea!

Going forward, don’t charge more on your credit card if you are struggling to pay off the balance. Put a self-imposed freeze on credit spending.

DO NOT CLOSE your credit card — even if it has a $0 balance! Keep the card open, because that’s good for your credit profile and credit score.

BEWARE of overspending for gifts. In my new Journal book, Credit Repair Mindset Journal, I tell about a time when I overspent on gifts for my kids during Christmas. I was carrying that debt for the next 9 months, and I hated paying interest, especially because I was a struggling single mom. I learned a big Life Lesson from that experience.

I learned that the best gift we can give our children is our time, attention, and love. Kids don’t need a zillion presents on Christmas Day. Set the expectation and your kiddos will be just fine.

Did you know that Alfred Kelly, CEO of Visa, made $30.94 Million last year? Do you really want to add to his big bonus by paying high interest on your Visa card? I hope that fires you up to cut spending and your balance.

IF YOU ARE IN FINANCIAL TROUBLE and can’t pay off your credit card debt. I understand what it means to live at the poverty level and qualify for the food bank. I’ve been there, as I tell in Credit Repair Mindset Journal. This post is not to judge you. Just do the best you can to survive, and know that better days are ahead.

God bless you and keep smart and savvy about your money and credit! (The Journal tells a lot of my personal story, including how I went from a broke single mom on food stamps to a licensed mortgage broker. Only $6.99 on Amazon.)

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