Several months ago, I paid off my unsecured consumer debt. Other than my car payment, I don’t owe anyone a dime. It’s a great feeling! When I read stories of people who owe lots of money to creditors, it makes me so sad. It’s not easy, but getting out of debt is one of the best things I’ve ever done. I’m determined to never have credit card debt again. Basically, this is what I did to pay off my credit card debt. Maybe it will give you some ideas in your journey to become debt free.

1. I stopped using the cards – You can’t get out of a hole unless you stop digging! Cutting up my credit cards and not keeping one “just in case” was essential.
2. I paid off the smallest card first – I did this for the psychological boost it gave me. It had a small balance and getting it over with made me happy.
3. I created a large visual – I put a large chart on my office wall with my debt, income and savings. It was exciting to see my savings and income grow each month while my debt got smaller!
4. I sold stuff of value – I got rid of things that didn’t mean a lot to me but that could be turned into cash. And I disciplined myself to use that money towards the debt.
5. I started an emergency fund first – While this seems backwards to some, it helped me feel safer and in control to have savings in the bank. I thought it would be awful to get out of debt and then have all 4 tires fall off my car or have some other emergency and have to get back in! So having that “baby contingency fund” gave me real peace of mind and made me feel proactive instead of reactive. It was a huge confidence booster that helped me operate from a place of strength and not fear.
6. I ramped up my income – I worked hard in my business to step up my earnings so that I could make large payments on the debts.
7. I tracked my spending – I kept a small notebook in my purse and wrote down EVERY penny I spent. Just the act of doing that curbed my spending! Plus it pointed out weak spots (coffee and books) that I could work on.
8. I rewarded myself for being frugal – I budgeted a small amount (less than before but still something) on little treats for myself so I wouldn’t feel totally deprived.
9. I transferred balances – I transferred balances on two cards to one that offered zero interest for 6 months. And I paid it off in 6 months then closed the card. Teehee! I beat the evil credit card companies at their own game!
10. I read a lot about personal finance – I read a lot of books during that time about debt, personal finance and emotions around money. I discovered some great blogs! Keeping my mind full of great info about money kept me going and motivated when it got hard.
11. I made sacrifices – I temporarily stopped paying my kids an allowance. I talked to them about my goals, about debt and about what we would do when the debt was paid. One of the things I did when the cards were paid was buy my oldest a guitar. I also didn’t buy myself new clothing for a few months. I just kept focusing on what I wanted, which was to not be beholden to anyone, and did whatever I could to meet that goal, which meant sacrificing things that weren’t as important to me.
12. 12. I spoke my goal out loud – I shared my goal with others who were close to me, and because of that, opportunities came my way because I had declared my intention. People like to help people who are going somewhere. If you share your goals with people you love, they will help you meet that goal.

About the Author: Carrie Lauth is an internet marketing mom of 4 who blogs and who loves to share tips on how other moms can earn money from home. So stop by and see what she’s talking about now.