Written by Eugenie O.

I understand this all too well because I was a long-time player in the credit card catch-up game. 

My credit card was always my only option when it came to buying groceries or getting a haircut because I didn’t have the funds in my account. And, my credit card bills were constantly increasing, until I felt that my finances had almost spiraled out of control.  The final straw came when I realized I had no money to pay for a vet visit for my beloved pet. 

Even though they offered me perks and bonuses, my credit cards cost me far more than they ever provided in rewards.

With the help of a few badass financial mentors and invaluable advice (Vanessa and Mint Worthy being amongst my favourite), I was able to gain complete control over my spending and get off the hamster wheel of credit card debt.

Here's how you can achieve your financial goals by no longer living from credit card payment to credit card payment. 

I know you’re ready to get started, but here’s an important lesson I learned before jumping into the actual work: 

You must start by creating and defining your heart-centered financial goals before embarking on this financial transformation. Having a clear purpose and vision for your money will enable you to take it where you want it to go. Only by changing any negative thoughts and beliefs will you actually be able to achieve all your money goals.

Step 1 - Stop Using your Credit Card

This is the first step towards controlling your spending and knowing that you have enough money sitting in the bank to cover your everyday expenses. Spending far below your credit card limit could increase your credit score over time since credit utilization does affect this number. 

Step 2 - Identify and Analyze Recent Spending

Identify how much to put into each category of spending by analyzing your recent expenses. Often, when setting up a budget, we tend to underestimate how much things cost. Or we forget about unexpected expenses such as winter tires, medical bills, and household items that need repairs or replacement.

Step 3 - Establish Savings Opportunities

This can be done through creating mini savings envelopes or opening savings accounts for recurring expenses, as well as unanticipated expenses. Many banks will let you open various savings accounts for free so that you can set money aside directly from your paycheck instead of withdrawing cash.  To simplify the process, I have nicknamed each account and deposited the appropriate amounts directly into them from each paycheque. 

Another tip is to make a savings account dedicated solely to paying off your credit cards. By reducing your spending (Step 1) and dedicating a savings account or fund for credit card repayment, your cards will get paid off in record time. Ensure that these payments are always over the minimum and contribute as much as you can with what you have left after your essential expenses. 

In order to finally break the cycle of credit card debt, it's necessary to not deprive yourself, but to also be really intentional about your goals around financial freedom and getting out of debt. 

Step 4 - Keep track of your automatic withdrawals

Keep track of when your automatic payments are taken out of your chequing account, and make sure you transfer enough to your chequing account before the payment date. I always keep a floating balance of at least $200 in my chequing account just in case I don't transfer enough to cover the payment. Banks do offer overdraft protection but often at an unnecessary monthly fee. 

Pro tip: Set a calendar reminder of when each monthly payment comes!

Final Step - Use extra funds towards other goals

Having now paid off your credit cards in full, and having a better understanding and plan to keep them at a minimum, you can now contribute all the extra money you have left over to your personal savings goals.

Following the steps in this process will help you to take control of your finances and as a result attract more abundance. Taking control of your financial wealth is not a singular process. It involves addressing and improving your thoughts and habits around money. 

Every single thought we have about money is tied to energy. Money is also energy. Here's to no longer sacrificing your dreams for the sake of credit card debt! 

Eugenie is a marketing professional who moved from Montreal to Saskatchewan, Canada (talk about a change). She is passionate about horses, and spends most of her free time at the barn.   Feel free to follow her journey on Instagram @eugenieofficer13

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