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Last Updated on June 22, 2018

How to Nix Your Credit Card Debt in Less Than 3 Years

How to Nix Your Credit Card Debt in Less Than 3 Years

Debt is never a fun thing to be in. But, there are many actions that you can take that will help you rid yourself of the burden of debt once and for all.

By coming up with a set plan, eliminating your debt can feel much easier than constantly thinking about it.

This post will provide some tips on how you can do this to help you nix your credit card debt in less than 3 years.

Hint: there are ways that are easier than you think.

1. Consider consolidating multiple credit cards if possible

This may not be applicable to you, but if you have multiple cards – it is something to consider. Keeping up with multiple bills is time consuming.

It will depend on the balance you have on each. Consolidate ones you can but do not do it to the point that you get too close to the maximum limit. Also, it is ideal to pick the card with the lower interest rate.

Consider if there are any fees or alternatively, rewards, with transferring a balance to another card. Watch out for fees. Note that some cards offer rewards for transferring a balance to them. This is extra cash that can help go towards paying off your debt.

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Having one or two cards can make nixing your debt much simpler than keeping up with the balance of a bunch of cards. Keeping track of paying the minimum towards a bunch of cards is time consuming. Spend the time to consolidate instead to make the overall process simpler going forward.

My tip: Have one main credit card. Have a second one that you use for necessities – such as groceries or gas – that offers rewards for those purchases (a lot of cards do) and set the second one on auto-pay. You should be able to pay off a smaller amount on auto-pay if it is a necessity. If you think you cannot, then you may need to cut down a lot on expenses.

Why do I suggest doing this? Having one thing set to auto-pay is one less thing to think about. One less thing to waste time on. Same idea with consolidating to one main card. Tracking down too many is a hassle.

2. Try to pay the full balance you spent each month at the very least

You need to pay off the amount you are spending each month when that bill comes in. This is the amount you spent THAT month.

Do not let the debt keep accruing while you work on paying any unpaid debt that has accrued. It will become a never-ending battle. Try as best as you can to be current on paying for each month’s expenses when that month’s bill comes out.

If this is a strain, consider why. You may need to cut expenses. Or you may need to consider other cards. Or look at where this money is going.

3. Pay extra when you can – every small amount counts

This cannot be emphasized enough. If you are looking at a lot of credit card debt, it can look daunting, but each extra amount that you can put towards the debt will really add up – no matter how small it is.

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It does not just reduce the principal amount that you have left to pay off, but it reduces the amount that is collecting interest. You will always save money with that reduced interest.

4. Create a plan on how to pay extra

Back to the main point, having this plan is giving you one less thing to think about.

This plan should be a plan that works for you. If it does not work for you, your spending habits, and your views on debt, then it will not be an effective plan.

For instance, if a set plan of an extra $50 (or another amount that you know you can afford) works for you, then do that. Set that aside every month and pay that extra amount. Treat it like a bill. Choose an amount that works for you and pay it like clockwork as though it was a bill you had to pay each month.

Little amounts will not nix it entirely, but they will help tackle it and having a set plan can make it less of a chore. Creating a new plan of how much to put towards it each month is an unnecessary added stress.

5. Cut out costs for services you do not use

If you are signed up for subscriptions that you do not use because of some free trial or for some other reason, cut it out. Your overall financial position will look better.

In turn, that will make cutting your credit card debt easier. Look at your statements to find these expenses. If you do not use them, you may forget you are paying some unnecessary amount each month. Cutting it out can really add up in savings that you can put towards other needed expenses.

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6. Get aggressive about it

Consider these points:

Depending on the interest and the level of debt, you may need to give up a few indulgences. For example, instead of ordering delivery or going out to eat, cook at home. Everything adds up.

Other things may be more of a sacrifice. It may be a trip you wanted to go on, or a daily latte habit you’ve picked up. In these instances, consider how important it is to you and if it’s worth the sacrifice. And if it is a costly expense, think whether you can wait to indulge.

Cutting an extravagant expense can really help make a dent in your overall debt. Try not to add to debt when you are trying to pay it off. It will be a never-ending battle. Make it less of a battle with these tips and it will feel easier.

Bottom line: Do what you can to make this process easier for you. Implement steps that do this. It takes time now, but will help overall. Also, keep track of your spending and paying down of your debts. Which is the next point.

7. Reevaluate your progress at set intervals

Doing a regular check-in can help you see your efforts pay off or maybe indicate that you need to give this a bit more effort. If you check every 3-6 months, it will not feel so much like a chore or feel so daunting.

By doing this, you will be able to better understand your progress and perhaps readjust your plan. Bonus: if you see it pay off, it will feel great to do this check-in. You will get there.

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Finally (and most importantly)…

8. Keep trying

Do not get discouraged. Pushing it off will make it worse. Just keep trying.

Once your debt becomes lower, each monthly payment will reduce the balance more. Why? You are paying less towards interest. It will be a snowball effect eventually and it will become much easier to manage. Just get to that point. And know once you do, it will feel easier and motivating.

Start knocking out your debt today

The best way to eliminate debt is to get started right away. Begin by implementing the above steps and watch your debt just melt away. Try out some of the above strategies and see what works best for you. Soon you’ll be on your way to a debt free life.

Featured photo credit: Pexels via pexels.com

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Charlotte L.

Blogger on https://wanderingformoney.com and Explorer of Ways to Make and Save Money

How to Nix Your Credit Card Debt in Less Than 3 Years

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Last Updated on February 18, 2019

How to Motivate Employees and Boost Team Productivity

How to Motivate Employees and Boost Team Productivity

These days, in a world with cognitive, AI, and extraordinary advances, we have failed at the most basic stimulus: motivation. Why do I say so? Just take a look at these statistics:

58 percent of managers said they didn’t receive any management training as per a CareerBuilder.com survey. Only 12% of employees leave their jobs because of more money. Research indicates that around 80% of employees leave their jobs due to “lack of appreciation”. Due to fear of failing, more than half of American workers don’t take their paid vacations. 53% of Americans are unhappy at work (not engaged). And 1 in 3 are working in a field they don’t like.[1]

Archaic people management and HR structures are the root cause.

“If you want to build a ship, don’t drum up the men to gather wood, divide the work, and give orders. Instead, teach them to yearn for the vast and endless sea.” – Antoine de Saint-Exupery

So how to motivate employees and boost team productivity?

Here are 3 key things that you can do to motivate your employees and boost team productivity:

1. Run Your Team/Group/Company like a Lean Startup

The Lean Startup phenomena by Eric Ries has been socialized across millions all over the globe. In a nutshell, it is a methodology for developing businesses and products, which aims to shorten product development cycles and rapidly discover if a proposed business model is viable; this is achieved by adopting a combination of business-hypothesis-driven experimentation, iterative product releases, and validated learning.[2]

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Encourage Your Employees

When you empower your employees (or family members) to do what they deem to be best for a particular roadblock, idea, or improvement, you create magic. You create genuine trust. You enable innovation. The result is happy, inspired employees who feel they have a say in the grand cosmic stage at work.

Note that increasing the competency level of employees and coaching and mentoring them along the way is key. You yourself, need to do the same. Nourish your brain – and get a mentor that will keep you at the edge of your game.

Offer Rewards

Motivation is also intrinsic. The startups I have worked at offered instant rewards — not just fat checks or equity increments, but Oscar-style nominations.

The non-monetary rewards were actually more coveted, and grandiose: lunch with the CEO, tickets to an Obama fund-raiser, horse-back riding with a world-class equestrian.

Compare this to a dodgy, corporate, white-cubicle dinosaur that had a “yearly performance review” where both parties dread the conversation. In a world of instant WhatsApp messages, having a conversation about performance, likes and dislikes cannot just happen annually in 60 minutes. Employees need to be rooted in the belief that their manager genuinely cares about them.

Give Autonomy

Another key attribute is autonomy. Most employees start brushing their resumes and cruising LinkedIn when their hands are tied in their current positions: approval forms, long meetings, escalations, and more meetings. In the world of agile and scrum masters, deliberating for the sake of deliberating is poison. You will choke the very employees that giddily accepted the job initially to “change the world”.

Within a reasonable realm of assessment and deep-dives, trust your employees to do the heavy lifting. Give them access to the knowledge, people and resources that help them directly make the choices that will shape the future of your team, and your company.

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Eliminate yourself as the bottleneck – and interject yourself as a benevolent, servant leader that is the symbol of high-performing organizations.

2. Apply the 90/90/1 Rule

I recently saw a video by Deepak Sharma (a leadership adviser) about productivity and this principle stuck with me. Here’s what it’s about:

Devote the First 90 Minutes of Your Day to Important Project

For the next 90 days, devote the first 90 minutes of your day to your most important project—nothing else. Do this for yourself and your employees.

We usually get sucked into the most wasteful, operational activities in the morning which robs our focus, and steers us into an unwanted rabbit hole. So mute your notifications, avoid the temptation to check your exploding inbox, and scroll your Instagram feed later. Instead, focus on that ONE thing that will provide real value to you, your team, or your business/company/home.

Apply this rule to yourself – and your team. Your team will thank you. Note: If you’re feeling really stretched for time, you can always hack the rule by testing out a “45/45/1” version.

A To Do Scheduling System

Another version of this is to use the Kanban concept, developed by Taiichi Ohno, an industrial engineer at Toyota. Kanban is a scheduling system employing boards and cards.

The most basic version is a canvas with “To-do”, “Doing”, and “Done” boards (or columns). Each activity or task is a “card” that moves from one column to the other. I use Trello (a Kanban-inspired app) that is a key system for my personal and professional life. It allows me to understand my workload, their priority, and due dates.

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I use importance and effort metrics (scores) for each task to understand what is truly necessary in my life to work on. It negates the FIFO (first-in, first out) paradox that has plagued millions of people. Instead, it allows me to take stock of what is on my plate, and then bite on what truly will move the needle for me, my team, my life, and my company.

With a limited appetite (at least for some), would you eat the veggies, fries, mashed potatoes and leave the sizzling steak? No, you wouldn’t (unless you are a vegan and ended up in the wrong restaurant).

Approach your work with a weighted vengeance – and encourage your team to do the same.

3. Align Passion and Skills to Purpose

The heart of human excellence often begins to beat when you discover a pursuit that absorbs you, frees you, challenges you, and gives you a sense of meaning, joy and passion.

“The most fortunate people on earth are those who have found a calling that’s bigger than they are—that moves them and fills their lives with constant passion, aliveness, and growth.” — Richard Leider

An ace team-member once told me that while she enjoys working for the company we both used to work at, she really hated anything to do with technology. She was more of a “people” person, and did not want to sit behind a desk sifting through lines of code.

What struck me was that she was in that role for more than a decade and had just spoken up. The good thing is she spoke up. She expressed her desire and interests. And it allowed her to get into a role of her liking within 30 days.

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Ask If They like What They’re Doing

If you, or a team member is frustrated, demotivated, or not performing at their best – one of the questions you should ask is whether they like what they are doing. Then genuinely try to help them get to the role they should be in (whether in the same team/company or not).

There’s a reason why 53% of Americans (and perhaps more or same across the globe) are unhappy at work. A butcher cannot be an ace salad maker. Pursue your passion – and help pave the way for your team. Unlock your potential and theirs. You will command and lead a supercharged team.

“Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma – which is living with the results of other people’s thinking. Don’t let the noise of other’s opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.” – Steve Jobs

The Bottom Line

Sometimes, passion has to be ignited. It is dormant, clouded by busy-ness, buried by wrong career choices, and plagued by non-supportive eco-systems. Some will climb out of it, but we as society — and in the case of business teams — incumbent upon the manager/CEO/leader to foster, grow, and nurture the employee.

Teach her the ropes. Show her the path. Advise him as you would yourself. Let them lead, and make mistakes. Do not fear them, rather make them the leader you would want to become.

For your not-so-great team members, understand that it is not personal, it is just not a good fit. Help them move on to the pastures they would be fit to graze on. Hence, hire slow (and fire fast).

Your team is a reflection of you. Boosting their confidence and helping them achieve the impossible is motivation. Focus on that, and you will have a productive team that you and your company will be proud of.

More Resources About Team Management

Featured photo credit: rawpixel via unsplash.com

Reference

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