A 5-Step Guide To Getting Out Of Credit Card Debt
Talking about money matters is taboo.
Disclosing how much money we make or being open about how much debt we owe is not on the list of topics to talk about at Brunch on Sunday. It makes people uncomfortable, and as someone that has had a love-hate relationship with my finances, I understand why. Most of us are trying to navigate our monthly financially responsibilities, chase our dreams, and build our futures.
When I moved cross-country for my residency at BuzzFeed, I was swimming in over $10,000 in credit card debt (most of which came from self-funding Mae B).
My financial struggles made it hard for me to wrap my head around starting over in a new city where the median rent is $2,480 per month for a two-bedroom apartment. I knew that surviving on my hourly rate was going to be tough. I also knew it would be even more of a challenge if I went into this new chapter of my life afraid to sit down face to face with my finances.
So, I sought counsel from the one person I knew would help me get things in order: my dad. For years, my dad would try to get me to sit down and unpack where I was financially, but I was embarrassed and afraid that he'd scold me for not being smarter about my money. I spent years and thousands of dollars chasing my dreams of being on-camera and investing in building Mae B. I also spent years saying to myself, "If I just book this gig or if this product is a bestseller, I'll be able to pay off everything."
Looking back, using potential nonexistent income to justify overspending, even if it was to make my dreams come true, wasn't reasonable. Making your dreams a reality costs money. Nearly ten years later, I realize, I didn't have to be a starving creative to bring those dreams to fruition.
Financial planning is the key to success in life and building a career.
The first thing I did to start the process of gaining control of my financial situation was to sit down and look at all of my debt, monthly bills, my FICO score, and my projected net income each month. For years, I dreaded looking my debt. In my mind, I felt that if I just made my monthly payments and looked a way that somehow my debt would magically disappear. I was wrong.
Here is how I'm taking control of my financials while chasing my dreams:
Draft An Excel Spreadsheet
We're lucky to live in a digital world that allows us to check our account balance in seconds. But, what happens when you go out over the weekend, those pending charges hit your account, and the next thing you know you're staring at an overdraft fee? Annoying, right?
I no longer use an app to curate my finances. I use an old school excel spreadsheet. I set my budget on the first of every month, and each Sunday, I check in to see where I am for the month. Seeing my bills, debt, and disposable income has helped me organize my money —and save twenty percent of my income each month (I'll talk more about that later).
Mint offers some great free budget templates that can act as samples you can work with when creating your own budget.
Get Rid of Lingering Credit Card Debt
I have carried the shame of digging myself into a $10,000 debit hole for longer than I care to admit, but now that I am looking my credit card debt square in the eye, I feel empowered. After looking at each credit card, the outstanding balance, and its interest rate — my dad recommended I focus on paying off my Discover card first. Why? Well, it has the highest interest rate out of all of my cards. With a twenty percent interest rate, I was never going to pay off my balance paying my seventy dollars minimum payment each month. Each month, I have a recurring payment of $150, and I often contribute more if I have money left over for the month.
Have Multiple Streams of Income
If the objective is to secure the bag, you must have multiple streams of income. In a panel, Paula Madison (If you don't know her, you should) gave the best advice. She said your full-time job should be your side hustle. Now, that doesn't mean neglect the nine to five that keeps the lights on and food on the table, but there is value in pursuing things you're passionate about outside of your job.
As a freelancer, I can bounce from gig to gig, but freelancing also has its flaws. No health insurance, no job security, and when our contracts are up (usually three to six months), you have to find your next job. So, I always have an extra stream of income. It's a great way to impact your savings, pay off your debts, and build on something you love. I used to think of extra income as throw away money, but now I see it as extra money to save. There are opportunities everywhere to make a few extra dollars, whether you freelance write on the weekends or bake cakes for a few parties each month.
Plan For The Future
When you're young and ambitious, retirement might not be a top priority. CNN Money released a reporting stating that sixty-six percent of millennials have nothing saved for retirement. As a millennial that only has a few thousand dollars saved for retirement, I can relate. I also recognize this is something I need to fix. If I don't start saving for retirement now, I am mapping out a financial path similar to the one I was on for the last ten years. I have opened an IRA, but if I'm honest, I'm still learning how to save properly for retirement. With guidance from my financially savvy dad and articles like this one, I think I am headed in the right direction.
We can't forget to grow our savings account. It is a rule of thumb that we should save at least twenty percent of our monthly income. With student loans, health care (my premium is almost $300 a month.), and unforeseen expenses that can be hard to do. Instead of waiting until the end of the month to save twenty percent, I break my earnings down for the week like I do my expenses for the month. I pay my bills, shop for groceries, and whatever is left over at the end of the week, I save. Sometimes it's only ten percent of my earning, but it's something.
Trim The Unnecessary Spending
When I started my new gig in LA, I was throwing away money on morning coffee, fifteen dollar lunch dates, and UBER since I am one of the only people in LA that doesn't drive. If I was going to stay the course and continue to work on my finances, I had to rein in the miscellaneous spending. I saw the most significant difference in my monthly expenses when I cut out UBER and started taking public transportation. Taking public transit in Los Angeles isn't ideal. It's slow and dirty, but the bus stop is right outside of my house. Each morning, I take a bus to a train and walk a mile to get to work.
A commute like that coupled with the homelessness I take in every day does wear on me (Los Angeles County has the second largest population of homeless people of any region in the United States), but it keeps me humble. Not to mention, I am saving nearly ninety dollars a week. I have cut out all of my excess spending, including online shopping, three dollar morning coffee, and fifteen dollar lunch dates, and have committed to meal prepping each Sunday. I am living a no-frills lifestyle, but I don't mind. I am learning to be financially disciplined.
I understand that sacrificing now will set me up to live a debt-free, financially healthy life later.
I don't have this financial game down just yet, but the key is starting somewhere. If that means cutting weekend brunches, saving fifty dollars more each month, or picking up a job to bring in extra cash, small changes can make an impact. In the last six months, I paid off one credit card, saved twenty percent of my earnings (My savings account has never looked so good!), and changed my relationship with money.
Take it a day at a time, and if you have an off month don't beat yourself up about it. We're human, and it takes time to create new habits.
- How to Get Out of Credit Card Debt - NerdWallet ›
- Credit Card Help: 8 things you must know about credit card debt ... ›
- How to Pay Off Your Oppressive Credit Card Debt - Credit.com ›
- Settling Credit Card Debt | Consumer Information ›
- Credit card debt can be bad for your health ›
- Credit card debt hits record high ›
Bianca Lambert is a proud Atlanta native soaking up the Los Angeles sun. She is the founder of Mae B: a stationery company for women of color and a digital content creator on a mission to elevate the voices of women of color everywhere.
ItGirl 100 Honors Black Women Who Create Culture & Put On For Their Cities
As they say, create the change you want to see in this world, besties. That’s why xoNecole linked up with Hyundai for the inaugural ItGirl 100 List, a celebration of 100 Genzennial women who aren’t afraid to pull up their own seats to the table. Across regions and industries, these women embody the essence of discovering self-value through purpose, honey! They're fierce, they’re ultra-creative, and we know they make their cities proud.
VIEW THE FULL ITGIRL 100 LIST HERE.
Don’t forget to also check out the ItGirl Directory, featuring 50 Black-woman-owned marketing and branding agencies, photographers and videographers, publicists, and more.
THE ITGIRL MEMO
I. An ItGirl puts on for her city and masters her self-worth through purpose.
II. An ItGirl celebrates all the things that make her unique.
III. An ItGirl empowers others to become the best versions of themselves.
IV. An ItGirl leads by example, inspiring others through her actions and integrity.
V. An ItGirl paves the way for authenticity and diversity in all aspects of life.
VI. An ItGirl uses the power of her voice to advocate for positive change in the world.
Let’s make things inbox official! Sign up for the xoNecole newsletter for daily love, wellness, career, and exclusive content delivered straight to your inbox.
ItGirl 100: Get To Know Some Of The Most Inspiring And Empowering Women On Our List
The ItGirl 100 List, in partnership with Hyundai, is a celebration of 100 Black women who aren’t afraid to pull up their own seats to the table.
We often see lists featuring amazing women who are seasoned in this thing called life, and our ItGirl 100 List gives flowers to the people they’ve passed the torch to: young millennial and Gen Z women who are innovating and disrupting in today’s world of advancement.
xoNecole has partnered with Hyundai for its inaugural ItGirl 100 List to give these women their flowers today. It’s a celebration of 100 Genzennial women who have built their own tables, launched new businesses, and redefined what it truly means to be blessed, booked, and busy.
Here’s a snapshot of fun facts from a few of the women listed on the ItGirl 100, representing the East, West, Midwest, and South:
EAST
Courtesy
DJ 9AM: DJ & Curator
Representing: Brooklyn
Ultimate ItGirl Song: "On My Mama" by Victoria Monét
Favorite OG It Girl: Nia Long
Zodiac Big Three: Cancer Sun, Taurus Moon, Pisces Rising
Favoring open-format, multi-genre mixes, this DJ has created a winning reputation for rocking a crowd with seamless transitions and selections, always representing Southwest musical and cultural influences.
Courtesy
Tiffany James, Founder, Modern BLK Girl
Representing:Brooklyn
Ultimate ItGirl Song: "Lucky Girl" by Carlina
Favorite OG It Girl:Naomi Campbell
Zodiac Big Three: Sagittarius Sun, Leo Moon, Virgo Rising
Modern BLK Girl is one of the leading investment groups among women of color, and the founder serves as an avid investor, community builder, and advocate. Tiffany James is also a mentor, utilizing her unique combination of financial and fashion expertise.
Courtesy
Kat Mateo, Casting Director
Representing: New Jersey
Ultimate ItGirl Song: "Princess Going Digital" by Amaarae
Favorite OG It Girl: Kelis, Eve, Lil Kim
Zodiac Big Three: Aries Sun, Cancer Moon, Cancer Rising
Thriving as a casting director and stylist, Kat Mateo offers a unique point of view that has shaped New York Fashion Week shows, ad campaigns, and editorials. She has also been a major contributor to cultural conversations related to fashion and inclusivity.
Courtesy
Denise Stephanie Hewitt, Photographer
Representing: Brooklyn
Ultimate ItGirl Song: "Experience" by Victoria Monét
Favorite OG It Girl: Hannah Montana
Zodiac Big Three: Taurus Sun, Aquarius Moon, Aquarius Rising
This Gordon Parks Foundation scholar is a full-time student who has been working to expand her freelance career in photography. Denise is also been featured among Essence'sinaugural list of "Top 10 Creators Under 30," for her unique aesthetics and perceptions through her art.
WEST
Courtesy
Nayamka Roberts-Smith, Aesthetician
Representing: Los Angeles
Ultimate ItGirl Song: "Tomorrow 2" by GloRilla & Cardi B
Favorite OG It Girl: Meagan Good
Zodiac Big Three: Sagittarius Sun, Leo Moon, Capricorn Rising
Nayamka Roberts-Smith is an award-winning professional in the skincare industry and serves as an educator, offering knowledge on beauty culture. She also is a well-sought-after speaker on beauty and women’s issues, with a following of more than 1 million on social.
Courtesy
Desiree L. Talley, Esq., Vice President, Legal & Business Affairs, Revolt TV
Representing: Los Angeles
Ultimate ItGirl Song: "Nice" by The Carters
Favorite OG It Girl: Issa Rae
Zodiac Big Three: Cancer Sun, Scorpio Moon, Cancer Rising
An attorney and storyteller, Desiree L. Talley meshes relatability with her legal smarts for the culture. She advocates for cultural advancement and societal change through her POPLAW Podcast while balancing her executive duties at Revolt TV.
Marley Rae
Courtesy
Marley Rae, Organizer, WalkGood
Representing: Los Angeles
Ultimate ItGirl Song: "Nice For What" by Drake
Favorite OG It Girl: Mariah Carey
Zodiac Big Three: Capricorn Sun, Taurus Moon, Leo Rising
Marley Rae is a Nike Athlete, certified yoga instructor, COO, and Director of Health and Wellness for WalkGood LA, a family-founded non-profit organization. She is dedicated to fostering understanding and care in local and global communities.
MIDWEST
Courtesy
Shawnee Dez
Representing: Chicago
Ultimate ItGirl Song: "FreeBody Freestyle" by Shawnee Dez
Favorite OG It Girl: Toni Morrison
Zodiac Big Three: Cancer Sun, Aquarius Moon, Cancer Rising
Shawnee Dez is an artist who's all about captivating her audience through encouragement and empowerment. Her music features fluid harmonic layering, live instrumentation fused with digital production, and her unique multi-talented voice in an alto melodic tone.
Courtesy
Bianca Pastel, Visual Artist
Representing: Chicago
Ultimate ItGirl Song: Anything by Whitney Houston
Favorite OG It Girl: Grace Jones
Zodiac Big Three: Taurus Sun, Leo Moon, Sagittarius Rising
Bianca Pastel's artistic portfolio includes fine art, illustrations, and animation, and she's worked with clients including Disney Pixar, and the NFL, to name a few. Her focus is "empowering the experience of being a Black child and dealing with mental health issues."
Courtesy
Donyale Walton, Founder, Hoop Mobb
Representing: Detroit
Ultimate ItGirl Song: "Yeah I Said It" by Rihanna
Favorite OG It Girl: Aaliyah
Zodiac Big Three: Virgo Sun, Libra Moon, Capricorn Rising
Donyale Walton's brand Hoop Mobb, celebrates the Black and Brown fashion and cultural impact and presence of hoop earrings. It's grown to earn more than seven figures in annual revenue and a nationwide community of loyal consumers.
Courtesy
Ticara Devone, Content Creator
Representing: Chicago
Ultimate ItGirl Song: "She's a Bitch" by Missy Elliott
Favorite OG It Girl: Ananda Lewis
The Zodiac Big Three: Libra Sun, Taurus Moon, Virgo Rising
A trusted sneaker enthusiast and content creator, Ticara Devone uses dynamic storytelling to hold space for others with a passion for sneakers. A published writer, she’s worked with brands including Nike and Footlocker and inspires us all by ensuring women are vocal and seen in the multi-billion dollar shoe space.
SOUTH
Courtesy
AllyiahsFace, Content Creator
Representing: Atlanta
Ultimate ItGirl Song: "Go Off" Doja Cat
Favorite OG It Girl: Gabrielle Union and Halle Berry
Zodiac Big Three: Gemini Sun, Leo Moon, Scorpio Rising
AllyiahsFace's YouTube channel has more than 830,000 subscribers, and she's been hitting the ground running since 2015. Her content creation, which centers on beauty, fashion, and lifestyle, has led to a lucrative career and drawn a close-knit social and real-life community to view and be inspired.
Courtesy
Jaycina, Executive Director, Tender
Representing: Atlanta
Ultimate ItGirl Song: "All I Got" by Amel Larrieux
Favorite OG It Girl:Tracee Ellis Ross
Zodiac Big Three: Leo Sun, Sagittarius Moon, Sagittarius Rising
Jaycina is a signed model with a nonprofit that works to provide support and community for single mothers in Atlanta. She's also appeared in campaigns for brands including Fenty and GAP as well as features in all your favorite magazines and on billboards across the country.
Courtesy
Asha Christian, Founder, Coily App
Representing: Atlanta
Ultimate ItGirl Song: "It's My Life" by Mariah Carey
Favorite OG It Girl: Toni Childs (Girlfriends)
Zodiac Big Three: Sagittarius Sun, Leo Moon, Leo Rising
Asha Christian created Coily to provide beauty recommendations utilizing social data. It offers a more personalized, AI-driven experience for users and part of her mission is to provide solutions related to diversity and put the focus back on the consumer. Meshing tech and culture, Christian is innovating with options that exemplify the Black girl magic needed in tech.
Let’s make things inbox official! Sign up for the xoNecole newsletter for love, wellness, career, and exclusive content delivered straight to your inbox.
Featured image by FG Trade/Getty