PART 3: How to Eliminate Credit Card Debt
Feb 05, 2020
Start by looking at that credit card total, whether it’s $5000 or $20,000 (or more, who cares?!) and deciding what’s a manageable monthly payment for you. This number cannot cripple your cash flow in your business. You NEED actual CASH on your debit card to purchase inventory and pay for your expenses moving forward.
If you decide to pay your credit card in huge chunks because that anxiety or shame is running the game, then you CRIPPLE your cash flow. You pay $5000 off a $10,000 balance and boom, you have NO cash left. You are forced to turn to the credit card again, repeating the shame and anxiety cycle for another month.
I know your brain is going to say “Let’s just pay it off quick,” and you need to remember that’s the feelings of shame and anxiety, not the logical, business centric voice I know you have. I’m here telling you to take the mortgage strategy— what is doable for you?
Let’s say on a credit card that has $20,000 on it, you can pay $1,000 a month. You’re sales revenue for the store is about $15,000 a month, so this is a solid, but good chunk of money that still allows you to start paying cash for what you need to run the store.
Committing to that $1,000 a month has you paying off the credit card in LESS THAN 2 YEARS. It has you PAYING CASH for inventory and expenses. It helps you feel like you aren’t continuing the cycle of “just putting it on the credit card.”
I say this all to help you with the MINDSET and the FEELINGS that money triggers in us. Our triggers are the #1 reason we get taken OUT in business.
I’m not a financial advisor or accountant. I don’t subscribe to “debt gurus” or “money managers” strategies. I’m seeing this cycle in SO MANY BOUTIQUE OWNERS that I feel compelled to SHOW you in infographics and writing, what is REALLY going on in that sweet brain of your’s. It’s not the MONEY, it’s the MINDSET.
Take the shame, anxiety, pressure, whatever feelings you have attached to money, making it, paying debt off, spending it… and let’s GET REAL about it. Unattach the FEELINGS and start thinking long term about the STRATEGIES we need to put in place to get your finances where you want them to be. Where you can be proud of your business and what’s happening in it.
Now tell me below… how are you SHIFTING your MINDSET around money and debt NOW?
Here's to making lots of CASH money and making lots of friends,
Emily