Attending the FinCon’s Women in Money conference provided a rare opportunity to learn from some of America’s top female finance experts. This year’s conference is particularly significant as it marks 50 years since women were granted the right to obtain credit cards independently through the Equal Credit Opportunity Act.
As someone who writes about credit cards, connecting with financial influencers like Bernadette Joy and Samara Diggs at the conference was enlightening. They shared valuable tips on debt payoff and achieving financial stability.
1. Build a cash flow cushion
Bernadette Joy, known for her expertise in managing credit card balances, emphasizes the importance of maintaining a cash flow cushion. She advises having one month’s worth of expenses saved in your checking account to avoid relying on credit cards for bill payments.
Joy’s approach involves growing this cushion while reducing credit card dependency to handle unexpected expenses effectively.
Before swiping your credit card, remember that having cash on hand is crucial for handling life’s surprises.
2. Turn canceled subscriptions into extra payments
Identifying and repurposing your “money leaks” is a smart way to find extra funds for debt repayment. This includes cutting costs on avoidable fees, unused subscriptions, free trials, and memberships.
Samara Diggs, a personal finance blogger, recommends canceling unused subscriptions and reallocating those funds towards paying off credit card debt.
Reviewing your budget and eliminating unnecessary expenses can free up money to reduce your credit card debt effectively.
3. Choose debit over credit
Avoid using credit cards while paying off debt to prevent further accumulation. Bernadette Joy advises switching to debit cards for recurring expenses until your credit card balance reaches zero.
This strategy not only aids in debt reduction but also helps in improving credit utilization and tracking progress more effectively.
4. Start a side hustle
Increasing income through a side hustle can accelerate debt payoff. Samara Diggs suggests leveraging your skills to earn extra money, which can be directly allocated towards credit card payments.
Many individuals use side hustles to tackle debt, showcasing the effectiveness of this approach.
5. Pay down $27.40 per day
Breaking down large debt into manageable daily payments is an effective strategy. Bernadette Joy recommends setting a daily payment goal, like $27.40, to gradually chip away at your credit card balance.
Consistent small payments can lead to significant debt reduction over time and help in managing large purchases effectively.
The bottom line
Women navigating financial challenges can benefit from focusing on wealth-building and financial literacy. By implementing strategies like budget clarity, expense reduction, and debt repayment plans, tackling credit card debt becomes achievable. Learn from the insights shared by these influential female finance experts to pave your way towards financial stability and success.