Well I saw a segment on GMA this morning how a lady paid off her credit card debt in 15 months. They didn’t go into it a whole lot but they explained how she did her reverse debt. I sort of understand how she did it, I think. It is all so confusing.. lol. Her way was a bit extreme as she paid off $24000 in debt in 15 months.. Now being retired I would love to say that I actually earned $24000 for a year…hahahaha.. so she and her husband are making decent money to be able to rethink her finances and start dumping money onto her card to be able to do that. That is not an option for me so I plan to at least start somewhere. Every little bit will help.
Here is how I see her doing it.. it is like when I am out and I am doing my errands and I think.. geeze.. I am hungry.. maybe a short trip to McDonalds?.. Now last year that would not have been an issue.. I would have gone through the drive through and spent over $10 for a meal that firstly was not good for me but totally unnecessary at the time. This year I think twice because my eating habits have changed mostly from necessity. Meaning, my stomach cannot handle fast food anymore so the decision to go through the drive through makes me gag. But.. had I been able to, it would have been $10 out of my pocket and I wouldn’t think twice about it. So.. what the lady was saying,,, is… don’t do the fast food, keep track of what you would have spent on the trip out that day and put that money on your credit card debt. Ok.. I see what she is saying! I think that can be done.. so instead of swiping the debit card for that drive through meal, go home and take that $10 and put it on your credit card.. right? is that was she is suggesting?
That will take a bit of a life style change and that also should not be a problem for me. I will just come home.. and transfer the money directly on the credit card. I plan to do it right away because knowing me I will leave it in the account and then find something else insignificant to spend it on.. “oh lookie I have extra money in my account”!.. right?.. you see what I am getting at?
So to explain how I will be doing it,,, here goes… I am a seller on Etsy.. digital downloads.. so there is no expense to me except the listing minimal renewal costs once every three months.. I have my account set up that my sales get deposited into my bank account once a week.. SO!!!!.. every week when that direct deposit comes in, I will put that money received onto my credit card. ( I will actually be rounding up the money) On top of that I will pay the monthly payment requirement. That way I am dumping extra money every month onto my card. Paying down the principal. All the money from my Etsy account will be paying down the card each month!… I can certainly see how this will benefit me. I am going to see how long this will take. I know I don’t owe much on my credit card, not as much as some people are dealing with, but being retired does not allow me a lot of extra cash flow and I really hate credit card companies making money on the fact that I am just paying the required amount, therefore extending the length of my payments to their company. What can it hurt?..
So today is the first day that I took my weekly sales and payed that amount on my credit card.. Let’s see how this will work . After all, how can it hurt. I plan to set up a reminder on my calendar to check my account for the etsy deposits and take time to immediately pay the credit card with that amount deposited. As well I plan to get an excel sheet started for a reference to see how the new plan is working. If I have no deposits for a particular week (yes I do have weeks that I don’t sell or the money goes into paypal for the payments) I still plan to put a minimum amount of $10 on the card that week. You really don’t miss $10.
Time to take control!!!!!!!! It’s a new day.