I am a financial expert and have $10,000 in credit card debt. Here’s how I pay it back

2024 was a big year for my family, and not in a good way. My partner lost his job, our dog was diagnosed with cancer and a member of my family had a stroke.

As a personal finance expert, I pride myself on taking risks into account. I have High-yield savings account I am more aware of the dangers than most Credit card debt trap. So how did I find myself in this situation?

Life is unpredictable, and sometimes we don’t have the resources to deal with what comes our way. As such, 45% of American households have credit card debt, according to recent data from the Foundation Consumer Finance SurveyWhich shows me that I am not alone in my struggles.

I’m used to being slandered Credit cardsBut through my work and lived experiences, I now recognize it as a tool. Although debt is morally neutral, taking on more than you intend can get you into a financial bind. By removing the sting associated with debt and creating a clear plan, we can eliminate our balances sooner.

Here’s what I do to pay off $10,602.27 in credit card debt in six months.

Identify real numbers

The first step to paying off any type of debt is knowing your numbers. What is the total debt owed? What is the minimum monthly payment? What is the interest rate? This helps you know what you’re up against and how you need to prioritize your money.

For example, here is a chart containing the above information on my credit cards. I used this so I could take what my debt looked like.

card	discovers	AMEX	Care credit
Total outstanding debts	$4,494.57	$5,074.82	$1,032.88
Monthly payment	$106.77	$140.00	$62.00
interest rate	29.99%	22.15%	0% until March

The important thing to note is that some of your credit cards may be Introductory rates. For example, the My Care Credit Card has 0% interest through March. The interest rate then rises to 32.99%.

Have an emergency fund

One of the reasons I went into debt was because my emergency fund wasn’t as large as I wanted it to be. Currently, I can pay off my Care Credit Card with the money I have saved in my savings account. I choose not to do this because this amount of savings is the only defense I have between myself and debt.

This is why having an emergency fund is so important. If you don’t have money saved, you may get yourself into more debt that will be difficult to get out of.

Pro tip: If you’re paying off debt and don’t have an emergency fund, prioritize at least saving One month’s worth of expenses As a safety cushion. This will help you avoid indebting yourself further and allow for flexibility when dealing with unforeseen circumstances.

Create a debt repayment plan (and stick to it)

There are many debt repayment plans out there. The best is the one you stick with.

I’m going to use Debt snowball method. The debt snowball method prioritizes paying off the debt with the lowest total amount owed. By paying the minimum on every other debt, you free up more money to allocate to the smallest balance. Once you pay off the debt with the lowest total amount owed, you can apply the amount you were paying toward that debt to the second-lowest debt on your list.

The reason I chose this method is because of the introductory price of the sponsorship credit. Although a 0% interest rate was helpful at the time of my dog’s cancer treatment, I don’t want to be charged a 33% interest rate when I can quickly pay off the remaining balance before that happens. After I pay off my Care Credit card, I’ll move to the Discover card, then finally the Amex card.

Budget extra money toward debt

I sat down and looked at the numbers over the past few months. I sorted spending averages into categories and created a realistic monthly budget. Although this budget is limited, I am committed to following it so that I can pay off as much debt as possible each month.

I also put in any “extra” money, including commission, Side hustle Income, gifted funds and tax returns towards debt. (I’d rather use that money to fix the permanently broken hot tub, but I’ve committed myself to paying off the debt first.)

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Remember to have fun

Paying off high-interest credit card debt is important to my financial journey, but it’s not the only important step. A few years ago I would have told you to only focus on paying off debt if you owed any type of debt. Now I realize that paying off sustainable debt is even more important.

I encourage myself to have a good time while paying off credit card debt. I’m still going on vacation this fall, I’m still ordering DoorDash, and I’m still buying myself gifts here and there. It may seem counterintuitive, but spending money on yourself and practicing financial balance is key to staying motivated while paying off debt.

Your debt repayment journey doesn’t have to be all or nothing

It may take a little longer to pay off debt, but you’ll hate your life a lot less and avoid backsliding or stopping altogether. Sustainability and longevity are what you should aim for in your financial journey.