Healthy Financial Habits: Getting Out of Credit Card Debt
1. Pay off new credit card charges every month
A Rich Woman loves her credit cards, and she knows how to use them to her advantage. A Rich Woman does not cut up her credit cards and she does not put them in the freezer. Instead, she uses them as a convenience, as a record-keeping tool, and as a way to verify to other creditors her ability to be financially responsible.
From this day forward, if you so agree, do not accumulate additional credit card debt. If you charge an item to your credit card then pay that amount off when the statement arrives.
Remember, there is good debt and bad debt. Good debt is debt you use to acquire assets. Bad debt keeps you trapped, pulling you back instead of moving you ahead. In most cases credit card debt is bad debt. If you have credit card debt that is more than thirty days old then pay off all newly acquired debt and put a plan in place to pay off the old credit card debt.
2. Pay off existing credit card debt
Robert and I were in a great amount of bad debt years ago - around $400,000. We discovered a system that allowed us to pay off all of our debt in less than ten years. This includes all debt from credit cards to car loans and home mortgages.
And the beauty of this system is that there is only one thing that you have to do differently – you have to come up with an extra $100 in income per month. That’s all there is to it. Surely if you have your sights set on being a financially independent Rich Woman you can think of ways to generate an additional $100 per month in income.
Robert and I developed a product to help you get out of bad debt based on our experiences. It is called How We Got Out Of Bad Debt. It is an audio program and workbook. I can verify that this system does work because we followed the step-by-step instructions, and we got ourselves out of our overwhelming mounds of bad debt. It works.