Credit card debt sucks, I know that, because I have had large amounts of credit card debt myself. Last year I decided to get rid of all my credit debt. If you have credit card debt or any other type of debt you want to get rid of, I will share some tips and tools that worked for me. These are 5 tips that can give you a better overview and create good habits to get rid of debt.

1: Set $ 100 aside

The first thing I did to get rid of my debt was to set aside $ 100. This was money I wasnt allowed to touch. In actuality it was 1000 Norwegian Kroners, but its approximately the same in value. You can have a $ 100 physically in your room that you can hang up on the wall, or you can have it in a savings account. Why does this help? It helped me because it taught me how to work on my own buying habits. An important part of being able to pay off all my debt was that I learned to stop buying. try not to buy buy buy …. Work on resisting and look at the $ 100 note. It doesnt define you. its not something you should be addicted to. Just let it be visible in the room to tempt you. So this is tip # 1. Get out of the buying habit by putting $ 100 aside! Never use it, let it tempt you and resist.

Bilderesultater for $ 100 dollar

2: Spread your money in different accounts

For far too long, I had one account for absolutely everything. In that account I paid bills, bought all the goods I needed, etc. This was gave me no overview of my own money. I wish I had learned how to spread my money across different accounts earlier. It wasn’t until I created a couple of accounts that I got an overview of what my money was going towards.
Before, I had:

  • 1 Debit account
  • 1 Savings account

Nå har jeg:

  • 1 Account for paying bills (Main-Account)
  • 1 Household account (all necessary items such as food, laundry items, etc.)
  • 1 Service account (an account with all digital subscriptions, spotify, hbo, netflix etc.)
  • 1 Savings Account
  • 1 Buffer account (a security account that covers unexpected bills and such)

I also have different stock accounts, individual pension savings and a pension capital certificate. I can come back to that in another post.

Why spread your money on different accounts? This means that you have to actively check your finances more often, and it gives you a “mental archive” so you start categorizing and systematizing your money in a whole new way.

3: Motta lønna di på en egen regningskonto:

Tip 3 is dependent on setting up a separate account for your bills. For me, it was important that I contacted my employer and change which account I received my money. Why does this work? When the money does not come directly into your household account, you must actively consider how much money will be spent on bills. This in turn leads to better overview. then you must actively consider:

  • How much money do I have for food this month?
  • How much can I repay on my debt this month?

The important thing here is once again, give yourself time to look into your finances. The better overview you get, the better financial choices you can make.

4: Archive your household expenses once a month.

for the next tip you need 3 highlighters.

Bilderesultater for 3 highlighters

Print a physical sheet of your household account from last month. It is good to do this the first of every month (Jan 1, Feb 1, Mar 1, etc.) If you do not have access to a printer, you can create a word document and mark with different colors digitally.

Read through your expenses. What did you spend money on? Here is a suggestion for the meaning of colors:

  • Grønn Green = This is 100% necessary
    •      items: washing powder, everyday necesary groceries etc.
  • Yellow = This makes my everyday life / weekend better, but I might consider cutting back
    •      items: chocolate, beer, wine
  • Red = This is a unnecessary, should be cut down, or completely get rid of.
    •      items: gambling, micro-payments for gaming, smoking, excessive drinking etc.

If you want to go into further detail, you can take care of receipts as you shop and review them as well. If the goal is to get rid of as much debt as quickly as possible, this is a systematic way of studying your own expenses. if you make a habit of it, it will surely help in the long term.

5: make your debt more visible

Write down how much your debt is. You need to know exactly how much debt you have. It may be embarrassing to begin with, but the more often you physically see the amount you owe in debt, the sooner you will have ownership over your own debt to do something about it! Hang this amount on a note on your bedroom-door, or a place where you can’t avoid it. For every month that goes by, update and see that the amount has been lowered. I remember very well when I had $5,000 to pay off for then I had paid of over 50% of my own debt. Finally, at one point, you will get to the magical number $ 0 in debt

these were the tips I had. If you have a debt you want to get rid of, I hope that at least one of these tips can help you. Thank you for taking the time to read.

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