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.
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Playa del Carmen is the perfect vacation getaway for anyone who loves beautiful beaches, delicious food, and fun activities. Located on the Caribbean Sea side of Mexico, PDC is nestled right between the spring break hub Cancun and the growing hotspot Tulum. Oftentimes overlooked for some of the other popular cities, I found Playa del Carmen to have just as much in terms of vacation necessities, with a more local and authentic Mexican feel.
The Ultimate Guide to Playa del Carmen
Playa del Carmen is perfect for a solo traveler looking to spend a few days in paradise or the group chat that wants to hang on the beach all day and turn up at night. I found the area to have a little bit of everything for everyone, so here’s my guide on where to eat, stay, and play for the ultimate Playa del Carmen vacation.
Getting Around
The easiest way to get to Playa del Carmen is to fly into Cancun Airport and then make your way south. You can rent a car and drive the one hour down to PDC, take a taxi, or you can catch the ADO bus, which will cost you less than $40 roundtrip. Overall, Playa del Carmen is an easy and safe city to navigate. If you stay on or close to Quinta Avenida (5th Avenue), you’ll be within walking distance to a ton of stores, restaurants, and nightlife. Most taxi rides were between 100 and 150 pesos, which is less than $10 USD. Renting a car is also an option, but with things being very walkable and taxis being fairly inexpensive, it’s not a necessity. Another great way to get around is bikes, which you can rent to use throughout the city.
Stay
The Thompson Hotel is for the folks who know that where you stay on vacation absolutely does matter. This luxury property offers chic rooms and upscale suites, onsite restaurants, and a spa for those who are looking to pamper themselves. One of the standout features of this property is the rooftop infinity pool, which has 360-degree views of the city and is absolutely stunning. This is your type of hotel if you value immaculate views, delicious eats, prime location, and live DJs.
Grand Hyatt offers a prime beachfront location, while also being steps away from the mix on Quinta Avenida. I like that this property allows you to take in the calm beauty of the Caribbean, while also being in close proximity to the action within the city. You get both authentic Mexican food and some international fare at the resort restaurants, and this property also has an infinity pool that gives views of the ocean.
Airbnb
If you don’t have the funds to spend on a hotel stay, but still want clean and comfortable accommodations, do not overlook Airbnb. You can find super reasonably priced apartments close to the strip that will leave you in the heart of all the action. Many of these buildings feature 24-hour security, infinity pools, top-notch gyms, and rooftop bars. This is a great way to save some money, while not sacrificing the quality of the accommodations you like.
Eat
One of the best parts of being near the Caribbean Sea is having access to fresh seafood, and Ictio Fish House is the place to go for it. Located just a block off of the 5th Avenida strip, this small seafood restaurant is a quieter change compared to some of the busier and more touristy restaurants located directly on the strip. They have both indoor and outdoor seating available, but if you can snag a spot at the bar, the service is top notch and you can watch the bartender put together your craft cocktail.
Everything they serve is delicious and tastes authentic, so you really can't go wrong when ordering. But to start, the crispy jumbo shrimp and calamari are perfect for sharing. Other must-try dishes are the garlic butter catch of the day and the adobo-styled octopus.
El Fogon
Ask anyone for a recommendation for the best tacos in Playa del Carmen, and I promise you they will point you to El Fogon. You know a spot is good when it’s filled with just as many locals as tourists, and there’s a line outside at 1 p.m. This no-frills spot serves up authentic Mexican favorites like el pastor tacos, chicken quesadillas, guacamole, and margaritas. Every dish comes with the fixings and is not only super filling but extremely affordable. You can easily get a full meal and a drink for less than $20 USD. They have more than one location, so you can taste some of their delicious tacos no matter what part of PDC you stay in.
L&L by Lara&Luca
Before you hit the beach for day drinking, you need a hearty breakfast from L&L to start your day. This cute cafe is the smaller “sister” restaurant to Lara&Luca, another popular breakfast and lunch cafe in Playa. I liked that L&L is less busy and more laid back than the other location. They serve up typical breakfast and lunch items such as eggs, coffee, sandwiches, and French toast.
My favorite item was the ham and cheese croissant, which could be enjoyed on their outdoor seating or taken to enjoy on the go. They also have yummy pastries, but these sell out quickly, so be sure to go early.
El Pirata
If you’re a fried fish lover like me and appreciate sea-to-table service, El Pirata is the place to go. This restaurant is tucked away towards the end of the main 5th Avenida strip, so you might miss it if you aren’t looking for it. The restaurant serves up a plethora of tasty dishes like fresh ceviche, garlic shrimp, and shrimp empanadas, and has a full beverage menu for your libation needs. However, the fried fish is truly the star of the show.
When you order, they bring to your table a few of the fresh fish that were caught that day and allow you to choose which lucky one you want them to fry for you. And let me tell you, picking your own fried fish just hits different! It was one of my favorite meals in Playa del Carmen.
Play
Food Tour
There are so many delicious places to eat in Playa del Carmen so taking a local food tour is the best way to try a little bit of everything. I love taking food tours when I travel because not only is it a great way to try a range of different local dishes, but the tour guides usually give you a history lesson during the tour where you learn more about the history of certain dishes and the country as a whole. In Playa Del Carmen, I took a local food tour with GetYourGuide, where we stopped at several different locations for tacos, fresh fruit juice, tamales, and more.
I value it when there’s a local leading the tour because it’s a way to support the locals and also learn things that only people native to the location would know. While we walked, the guide shared a lot of insight about Mexico and Playa del Carmen, while giving recommendations for places to eat during our trip.
Cenotes
Cenotes are natural sinkholes or underground caverns that have pools of water in which you can explore, dive, and swim in. You will find cenotes all around Mexico, but there are several in the Playa del Carmen region. Cenotes vary in size and also the depth of water, so even if you don’t know how to swim, you can find a cenote to explore at your own comfort level. Two beautiful cenotes you can explore near PDC are Cenote Azul and Cenote Dos Ojos.
Cenote Azul is perfect for snorkeling because of the crystal clear waters that allow you to see the colorful fish and plant life underneath. Cenote Dos Ojos is perfect for explorers due to the mesmerizing underground caverns and rock formations throughout. You can take a trip to the cenotes on your own or book a tour that may take you to several different cenotes.
Beaches
Playa Del Carmen has some of the most beautiful beaches in the Caribbean, so beach hopping is a must while vacationing in the area. Whether you want a chill, relaxing beach day or you are thinking of jet skiing on the blue waters, there is a beach for you. There are several beaches along the coast of Playa del Carmen, some that are within walking distance of most hotels, and others that you may need to travel to get to but are totally worth it.
Playa Mamitas is one of the most popular beaches in PDC due to its location near the heart of the city, and also because of the crystal clear waters and white sand. Playa Mamitas is also a great spot for entertainment and the occasional beach party for the folks wanting to turn up. Playacar Beach is another great option that is located in the upscale Playacar neighborhood, south of downtown Playa del Carmen.
It is known for its pristine beauty and laid-back atmosphere, making it a popular destination for travelers seeking relaxation and seclusion. Other beaches to consider are Punta Esmeralda and Xpu-ha Beach, so you’ll have an option for every day of your trip, depending on your mood.
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