Pay off $5000 of Credit Card Debt Every 6 Months

By Friday, May 22, 2020 2 0

The only way to alleviate credit card debt is to pay it off.  Try the Ear-Mark Debt Smasher Formula below and see how it goes for you. 

Credit Card Debt

Most people are woefully in debt. The sad reality is they rarely care because they feel like most people are in the same boat with them. You are are reading this so I know that some part of you wants a way out. I once had debt and didn’t make much money but rather than wallow in those feelings I did some about it. There are two great facets to my story. The first is what I did totally worked for me and the second is I have packed it into a digestible story that you can use immediately. Let’s get to it.

The Ear-Mark Debt Smasher Formula for Credit Card Debt

Let me lay out for you what I call the Ear-Mark Debt Smasher Formula. It will smash your credit card debt. Essentially what I will show you how to do is reorganize your personal finances to find extra money that you can ear-mark as as debt smashing money. There are many ill conceived “plans” to pay off credit card debt. The truth is if owe Mastercard money they are not going to leave you alone until you finally pay them. You need to make a plan to come up with that money and pay. There is no service, or trick that will alleviate this problem other than you paying them. This is where The Ear-Mark Debt Smasher Formula comes into play. The basic anatomy for the formula has 3 simple parts

  • Getting organized and Prioritized
  • Ear-marking
  • living life debt free

Step #1: Credit Card debt; Organized and Prioritized

After talking to a lot of people about their personal financial struggles I have realized that one basic reason that it continues to be a struggle for them is because they are overwhelmed. Why are they overwhelmed? Sometimes it feels like there are just too many bills and the game seems unwinnable. This is where getting organized kicks in.

Get organized digitally

The days of paper chasing are over. If someone wants money from you it’s very likely they have an online portal where you can see your balance and see what kind of dent you can make with payments. Get online, bookmark these sites and start to get organized. Debt is both a horizontal and vertical problem. You might owe money to many people (horizontal) or you might owe a lot to one company (vertical). Figure out your situation and who to pay first. Obviously, you will want to pay the highest interest off debts first. One thing you might want to keep in mind is you can always ask if you can make a payment plan. This is especially true with medical bills. If you present them with a reasonable plan where you will quickly pay off about 50% of your debt quickly they will certainly agree to it and you can avoid interest and penalties.

Step#2 Ear-Marking

If you have a bank account then you likely have both a checking and savings account. If you are in debt I would be willing to bet you do most of your business from the checking account and the savings account has the perfunctory $5 to keep it from going to dormant. In this step you will ear-mark money for debt repayment by stashing it in the savings account and not touching it for any other reason. It’s not what you make, it’s what you save. We have all seen famous people make millions and blow it and useless things that don’t matter. Just to give you a boost here is a short list of celebries that went bankrupt.

  • Pamela Anderson
  • Mickey Rooney
  • Gary Coleman
  • Lindsay Lohan
  • Willie Nelson
  • Donald Trump
  • You can find more!

If you can actually save your money for debt repayment then you are whole lot more likely to pay off your debt.

The question then becomes where are you going to get this extra money to start ear-marking in your savings account to pay of your debts? The answer is The Finger Print Budget Technique. If you read the article in the link I’ll show you how you can re-architect almost any income and spending habits to incur profit every month. All you need to do is ear-mark that profit and then use it to pay off your debts.

Spending your Money

People struggle to save money or ear-mark it like I have described above because once they have it they want to spend it. There is even an adage, “the money is burning a hole in my pocket”. This is just the common reaction to people craving money and then getting it. The way you can use it to your advantage is to spend your money by ear-marking it. This is something that you have to make yourself do. This is why you need to automate it. Schedule a transaction in your account to make a transfer from checking to savings. This will force your to do it. Procrastination is real and a pervasive human behavior. Does the meme below sound familiar?

Procrastination … It’s a real thing.

The Psychology of Wealth

As you pay off your debt you are learning a lesson about money. Being in debt is a form of slavery. Once you have that debt it will grow and be an even bigger problem. This will cause you to ponder how you got in debt in the first place. The likely cause of debt is your spending habits. You need to reconsider how you are spending your money. This is part of growing up. An often said thing is “money won’t buy you happiness”, but neither will random objects you keep trading your money for. There is a deep psychology of money and wealth and people won’t even acknowledge it because it makes them feel bad about themselves. If you can figure out what your real motivations are what really makes you happy you’ll have a very easy time ear-marking your money for debt pay off.

Step #3 Living Debt Free

I feel obligated to give you warning at this point. Once you pay off all your debt alarm bells won’t go off. Nobody will throw you a party. It will just happen and either something will click in your brain about the way you want to live your life or it won’t. It’s up to you. There is even better news. Once you practice ear-marking your money and you are out of debt, everything is just profit. That profit can be your savings when hard times hit. If you grow that profit it can all converge to your financial freedom. Are you serious about getting out of debt? Make your individual calculations of how much you can save each month and post them in the comments below!

It can happen.

2 Comments
  • Philippa Claire
    July 10, 2020

    Some really good tips here. It can be so hard to even know where to start when you find yourself in debt, and it feels easier to just pretend it’s not there but even if you start off small it’s better than nothing!
    Thanks for sharing this 🙂

  • Clarissa Cabbage
    July 11, 2020

    I’ve got to say, I love the tagline of your blog – the education you never got. I’ve said so many times that I wish schools taught basic real life finances. Like taxes, student loans, credit etc. So thanks for filling this gap!

    As for credit card debt, I’ve thankfully never had any. I can thank seeing my parents get into terrible credit card debt for that. My debt is all student loan debt. But I think a lot of these tips work just as well for that. Thanks!

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