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Eliminate Credit Card Debt Through a Debt Pay Off Chart for Married Female Entrepreneurs

When couples work with me often one of the first things they want to tackle is getting rid of debt. As married women entrepreneurs we often have some form of debt from investing in our businesses. Usually we carry that debt in the form of credit card debt. I want to give you some tips that you want to keep in mind for creating a debt pay off plan.
I’ve noticed that debt is like dirty laundry that we move from room to room in our house – as we constantly shuffle our debt to the next lowest interest rate credit card. Or we carry our debt around with us for what seems like forever and that burden begins to weigh heavily on us.
Here are some essential components that you want to include when creating a debt payoff chart. For starters, you need a clear debt pay off plan. I call my debt pay off charts, “Eat That Elephant Debt Pay Off Success ChartA�.” There is that old saying, “How do you eat an elephant? One bite at a time.” The same applies for getting rid of debt. The way you get rid of debt is one bite at a time.
For starters you want to lump all of your debt into specific categories. If you have several different credit cards, you want to list each one under the category of Credit Card Debt. For example, if you have three different credit cards list each credit card under the category of Credit Card Debt and then total that up. If you have a couple of different personal loans, itemize each loan under the category of Personal Loans.
You don’t want to include your mortgage in your Debt Payoff Chart. Once you get rid of all your other debt then you can begin to tackle your mortgage. Once you’ve lumped all your debt into specific categories, total up all your different categories of debt and come up with your total debt balance and record this under the heading: Original Debt Balance and make sure you include the date.
The next thing that you’ll do is to identify the smallest debt balance. There are lots of ways of getting rid of debt but I prefer to approach paying off debt by selecting the smallest balance first, and making a monthly payment that is above your minimum balance on the smallest debt balance until that particular debt is completely paid off. I prefer this approach because it keeps you motivated. If you can pay off the smallest debt first you will be excited and you will be more likely to stay on track with getting rid of your remaining debt.
Just make sure you are making a payment that is above and beyond your minimum monthly payments for your lowest debt balance (on all other debt you’ll be making minimum payments ONLY). For example if your minimum monthly payment is $150 on your lowest debt balance you want to make sure you are paying more than the minimum each month. I always say, “Start small, grow tall.” If you can only add an additional $10 each month, then start with that and then gradually increase it.
Underneath the category of “Original Debt Balance” add another category called, “Current Month’s Debt Balance” And under that add a category called, “Improvement.” Each month add up your new debt balance (and record that under “Current Month’s Debt Balance” and subtract your new monthly debt balance from your original debt balance and record this total under “Improvement”. If you’re not charging any new debt, you will see an improvement each month.
It’s very important to know how much you’re improving each month so that you can feel excited, keep up your momentum and feel like you are actually getting somewhere.
These debt pay off tips are quite literally the tip of the iceberg. But these are very essential tips to keep in mind. If you follow these tips you’ll begin to wipe off your debt instead of having it be your dirty laundry that you either shuffle from room to room or carry in a bag slung over your back for years and years.…