3 Credit Card Debt Tips That Put You On The Road To Financial Freedom! (2024)

Last Updated on 08/20/2022 by Nicky

Credit Card Debt Tips

If we want to reach financial freedom, we have to talk about debt and specifically credit card debt (and some tips to get out of it) which is one of the forms of debt that is strangling American’s the most.

Debt was such a dark cloud over my life.

The burden of debt being lifted off of my shoulders is a feeling I can’t truly describe except to say it felt like freedom.

I imagine it’s the same feeling you get when you retire. It’s an incredible experience.

But getting out of debt isn’t easy or fun because if it was everybody would be doing it.

So how do you get there?

Today, I’m going to give you some tips on how to get out of credit card debt, why people get into debt, and how to stay out of credit card debt specifically.

How People Fall Into Credit Card Debt

It’s pretty safe to say that we all know how to get into debt (or do we? I’ll address that in another post). It’s one of the easier vices to fall into.

All you have to do is watch a commercial, see something you don’t need but desperately want, find out you can’t afford that something, and decide to buy it anyway because you “can’t live without it”.

So you pull out your credit card and you wind up paying for that item you don’t need for the next 10 or 15 years.

Can you tell I’ve done this before?

It’s true I have done this…over and over again.

I’ve even lived off of my credit cards.

I am now completely out of credit card debt (I’m completely out of all debt) and I am determined not to ever go back (okay so I got into debt again for a very short period of time recently and got out QUICKLY).

If you’ve recently gotten out credit card debt, you might be asking yourself the same question I did once I made that final payment (and if you haven’t I strongly suggest you do):

How do I make sure this credit card debt nonsense never happens again?

When I asked myself this question I came up with 3 different ways to ensure I never got in this mess again. Thus I present to you…

3 Tips To Stay Out of Credit Card Debt

(These Also Work As “Paying Off Credit Card Debt Tips”)

1) Stop Using Your Credit Cards (For The Most Part)

Yes, it really is that simple and you can do it even if you think you can’t.

I haven’t used my credit card in years.

None of them…except when I bought a refrigerator.

Well, I also used to pay for my Nikon camera.

Okay, if I’m being honest, I’ve probably used it more than I’m letting on but the most important point is that I’ve used it so infrequently that I can almost pinpoint every time I have used it.

It is a far cry from when I used it to buy groceries and clothes and fast food.

Credit cards should not be used unless you’re paying it off that month (and don’t fall into the point and cash back trap…how many people really use those benefits?…Okay I’ve recently started doing this but I pay it off every month and only use it for recurring bills).

Use credit cards strategically and only to build up your credit to show you are trustworthy to lenders and only when you know you won’t be paying on it for the next 5 years.

Why Dave Ramsey Is Almost Right About Credit Cards

Now I am a Dave acolyte but my philosophy on credit cards is not as extreme as his is.

I have found it beneficial to have a good credit score.

Case in point, when you have good credit you can sometimes get fees waived.

The water company waived my activation fee because my credit was so good, which saved me $130.

The key is to use your credit card strategically like I did when I bought my refrigerator with a credit card even though I had the cash on hand.

Why did I finance it?

Using a credit card extended my refrigerator’s warranty which saved me money on the warranty and money on repairs down the road.

You don’t have to just throw the baby out with the bathwater.

Credit cards are not the root of all evil.

Abusing credit cards is what gets us into trouble.

You don’t have to just throw the baby out with the bathwater. Credit cards are not the root of all evil. Abusing credits cards is what gets us into trouble. Click To Tweet

Keep in mind that I paid off the balance for the refrigerator immediately.

That’s because I am against using credit cards to buy things I don’t need and can’t pay off within a month or two.

So what I’m saying with this technique is to make credit cards work for you.

If you see a way to make a credit card work in your financial favor, why not use it?

However, if you know it’s too big of a temptation and that you won’t be able to just buy one thing and pay it off, then completely ignore everything I just said.

You have to be aware of where you are in your financial journey and see if you’re emotionally ready for this technique.

If not, then go ahead and cut up the credit cards like Dave says.

This strategy works for me because, overall, I have disdain for credit cards and debt which, by default, prevents me from abusing this method.

2)Avoid Impulse Buys By Doing a TV Detox

Remember in my first paragraph when I talked about wanting to buy stuff we don’t need as a way to get into debt?

Well, the adverse is true about staying out of debt.

If we want to stay out of debt then we need to stop buying unnecessary things.

And one of the best ways to do that is to go on a TV fast because TV is one of the best ways for us to get suckered into buying something we don’t need.

Of course, there are many benefits to doing a TV detox and this reason would be in my top 3.

I can get drawn in so easily into a commercial or infomercial because I’m just certain that this product is going to make my life better.

Better how I’m not sure but it will just be better.

However, the more stuff I buy, the more certain I am that the only lives bettered by the products I buy are the ones whose pockets I’ve just lined.

Sometimes a product lives up to its claim but more often than not, that item gets regulated to my junk drawer or the back of my closet.

When you look into the future and think “Okay, 6 months down the road, will I still be using this?”

If the answer is no, then you have your answer as to whether or not you should buy it.

Make a list of all the things that you want.

You can do this on your computer, phone or on paper.

Write down how much those items cost and add those prices together.

If the total is astronomical enough to make you reconsider, then you can stop here.

However, if it is not, take this list and put it away somewhere and don’t look at it for the next week.

If you still remember that you even wrote the list, you can take it out after a week and look over the list and see if you still want everything on the list.

What I often find when I do this is that I don’t even remember I wrote the list.

On the rare occasions I do remember, when I look over that list again, I’m thinking “For real? I wanted that?” and at that point, I laugh at myself and move on.

I never needed it anyway and apparently, I didn’t really want it all that badly anyway.

You can save a lot of money that way.

3) Have A Financial Goal

This to me is the most important way to stay out of debt.

When you have a financial goal in mind after you you’ve gotten out of debt, you are not going to spend your money on frivolous things.

You will start putting your money towards that goal and you won’t have an interest in buying things that don’t move you closer to that goal.

The best way I’ve found to form a financial goal is to pray about it and see what God is wanting me to do with my money.

He gave me the money and I need to consult him so I use it in a way that is pleasing to him.

I believe that God is leading me to save money towards buying a house.

That way I could open my house to bible studies and any other ministry.

Whatever the reason, now that I have that goal, I funnel many of my money decisions through goal to see if this purchase will help or hurt me in the accomplishing of that goal.

What Should You Do Next To Stay Out of Credit Card Debt?

My suggestions on what to do next would be to do the following:

1) Assess your credit card debt if you have any and determine how you can get out of it as quickly as possible.

2) Make a list of the things you want to buy and then forget about those things for a week. After the week is over, check that list again (if you must).

Any item on that list that you had forgotten about is something you can do without so do without it.

Anything on the list that you do remember, shop around for the best price, and anything that you can’t pay cash or pay off in a month, don’t get it.

3) Pray to God for guidance on what your next major financial goal should be. Ask him to lead you to the answer and then (as scary as I know it can be) be willing to follow Him wherever He leads.

What about you: What are your suggestions to stay out of debt? How has God guided your financial decisions?

Can You Please Do Me A Favor?

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3 Credit Card Debt Tips That Put You On The Road To Financial Freedom!