Reduce debt fast – How I paid off one credit card debt in just 10 days!!
Have you got one too many debts? Or a large one and you’re looking for ways to reduce debt fast?
Do you feel disheartened when you realise that it’s going to take you three years to pay off your credit card debt and possibly thousands of dollars in interest? The best way to save yourself paying out all those interest charges is to reduce debt fast!
After realising the terrible credit card debt situation that we had got ourselves into, I knew that I had to do something! I had to take back control of our finances and reduce debt fast. It was going to be a family effort and it felt so good!
After working out how to reduce the interest charges to $0 on one of my credit card debt, my next focus was to pay one credit card off completely – and as fast as possible. So, I set myself a little challenge.
To pay off one credit card debt from selling stuff from around the house within 4 weeks!
We owed $5,000 on one credit card and I thought that it was going to be a bit of a challenge to find enough stuff around the house to pay this much off. But it was easier than I thought!
Rule #1 – Stop using the credit card – leave it at home, or better still cut it up!
Rule # 2 – Every dollar you earn in selling stuff from the house goes onto the credit card debt.
SELL SELL SELL!
I started with the bigger and more obvious items around the house. I listed them on the local Facebook Buy and Sell pages first as there were no fees for selling items this way and things generally sold pretty quickly if you price them well. So that is more money in your pocket – or should I say on your credit card debt!
Only if items weren’t moving or showed little interest on the Facebook pages I would then list them on Trade Me, where they charge a small percentage of the sale price once the item is sold. This cuts into your sales and takes longer as the auctions run for 7 days.
Once we made a dent with the bigger and more obvious items, we then walked around the house, from room to room, cupboard to cupboard. You will be surprised at how much you will actually find that you can sell. I mean, let’s face it, we spent that money on stuff in the first place, so there is stuff there in your house to sell back again. At the same time, you can have a darn good clean out.
I walked around my house, room by room, cupboard by cupboard. If something could sell for $10 I would list it. Every $10 count!
I asked all the kids for any games, books or toys that they no longer wanted or played with. They weren’t exactly forthcoming but with a bit of prodding and some extra encouragement (or reminders of when they last played with something?) they came up with some Xbox games they didn’t play anymore, my daughter hardly ever plays with the dolls house and she really was getting too big for the cute little butterfly table and chair still in her room. My son had a wooden easel under his bed. Been there for years and never once used it. Got $10 for it on the local buy and sell.
I sold off a craft hobby that I wasn’t really enjoying anymore. I went thru the linen cupboard and storage cupboards and found things and items that we no longer needed or used. We don’t even use tablecloths and I had six of them!
My sons had outgrown the Dinosaur and Thomas the Tank Engine duvet covers years ago! New printer inks that were for our old printers still in the cupboard!
It was just amazing at how much stuff was floating around that had some value.
Clean out the garage
I asked hubby to check the garage and bring in anything and everything that we no longer use or need, and there was quite a bit in there. I mean – come on – does one man really need NINE fishing rods? Why have we got two cat cages when we only have one cat?
Could you sell a car, or downgrade a vehicle
And do you really need that second (or in our case a third) car? Back in the old days it only ever was one car per family. They managed then and usually had more kids than our generation! Could you do without a second car for 12 months? Perhaps you could share a car and rely on your local public transport, or better still…get on your bike!
Perhaps downgrading your vehicle is an option? If you have bought a high priced car, perhaps you could consider selling it and buying something of lesser value to clear outstanding debt.
Look for other ways to bring in money
Looking for a little bit of extra money to pay on that credit card debt? Are you owed a tax refund? Does anyone owe you any money – if so follow up? If you own a rental property – when was the last time you reviewed their rent? Pool all your money together if you have it spread over several accounts.
Earn some extra cash by babysitting, housesitting, helping out a local farmer in your spare time, housecleaning services, put the word out that you are looking for some casual or extra work for a while.
Sometimes you can ask your employer to pay out some of your Annual Leave instead of taking the days off. This could be an option for you and could be one week’s worth of your salary! That’ll be a nice chunk off your credit card debt.
Remember, every item you sell or dollar you earn goes into this challenge! Every penny you can save, for example perhaps you could take pack lunches instead of buying lunch, or cut your sanity money in half for that four weeks, or budget a couple of extra cheap meals – these savings then get transferred to your credit card debt. It’s only a four-week challenge!
Ways to sell your stuff
As mentioned above, list your items on local Facebook Buy and Sell pages or other media outlets. Share the sales pages with all of your friends. Hold a garage sale, or attend a local car boot sale or school fair. List your items on eBay, Amazon, Craigslist, Trade Me, Post a Note, depending on what country you are in.
There are so many ways to sell your items. Our Community holds an Annual Garage Sale and for those who live out of town can have a car boot sale. They get anywhere around 30-50 participants in one day and attracts thousands of people from all around. So I know that once a year I can go and have a car boot sale and sell all those items that aren’t worth selling online.
Check your last months’ statement and pay back what you have spent
I also checked my recent activity on my last credit card statement and any groceries, gas or sanity spending came out of the next weeks budget and we just made do. That was another couple of hundred paid off it!
Stick to your budget and your goal – Stay focused
I didn’t use the credit card again! If you can’t afford it out of the weekly budget you have set – then you simply just don’t get it. Remember – this isn’t for life. This is just while you are focused on clearing that one credit card debt.
You might think the temptation will get the better of you but if you tell yourself “I don’t need that today, perhaps I can get that later in the year once we have cleared our debt and I can set a budget for it”.
It’s just like when we deal with our kids. The experts tell us not to say “No” to our kids. Instead, we should say “Yes you can have that, but not right now” and they’re happy with that! (Yes – this does actually work and avoids those meltdowns in public places, I’ve tried it!) It’s exactly the same mindset – thus saving you a meltdown!
- They sold everything they owned to travel the world – Find out how Kashlee paid off all their debt
- Which debt should I pay off first? Get your FREE step-by-step guide & worksheet to pay your debt off fast!
- Avoid paying credit card interest – Learn how I went from paying $260 per month to $0 in just 4 weeks
I challenge you
I challenge you to a four-week challenge and one credit card debt to reduce debt fast! See how you go and share your stories in the comments box below.
Help to inspire others
I would love the opportunity to showcase some inspiring debt pay off stories. If you have a goodie contact me! Let’s see if we can inspire others to accept the four-week challenge or something similar and let’s help others onto the road of personal financial freedom.
If you have any comments or questions you would like to share, please do so in the comments box below.