Debt Help Strategy: Stop Using Your Debit Card and Reduce Debt

Vancouver is an expensive city and staying on track requires you to use as many debt help strategies as possible.The average person in Vancouver, BC has $40,000 of debt due to over use of credit cards, lines of credit and the like. However, your debt isn’t just about credit cards; it is also about overuse of debit cards! Guess what? Your debit card in probably putting you into debt without you realizing it! Below is a three step debt help strategy designed to help you go from Debt Chaos to Money Success.

One of the first steps you may have tried to employ when reducing your debt is to stop using credit cards. Your intention to use money you have (what is in your bank account) and avoid money you dont have (credit cards, lines of credit, overdrafts) is a smart and strategic decision. However, you probably havent made a dent in your debt and it is continuing to grow! This puts you at risk for losing the motivation to pay down your debt! A state of mind that you need to avoid if you want to be successful with your money and build the future you want.

Being successful with your money and eradicating your debt is about taking control and building self-esteem based on your money successes. Below is a step-by-step plan to get you started!

Step one: Know the Problem

The problem with debit cards is that they alienate you from your money and developed an idea or experience of money that isnt real. In reality, they are like credit cards because you aren’t making any skin-to-skin contact with your money therefore you begin to spend thoughtlessly on things you dont need. In fact, you can nickel and dime yourself into debt with your debit card for a few reasons:
1. Debt cards alienate you from your money therefore changing how you use your money. Often your behaviour isnt in line with the reality of your money situation. For example; you spend more and NOT less
2. Debt cards, like credit cards, create the feeling that you have more than you really do because money can feel like an unlimited resource (until reality strikes)
3. Debt continues to grow if your debit card is attached to an overdraft or line of credit
4. Small debit purchases represent mindless spending on things you dont really need. This mindless nickel-and-dime spending adds up to hundreds of dollars a month money that could be harnessed, on a monthly basis, to pay down debt or grow into a nest egg

The Pay Off: Knowing the reason why your debit card continues to keep you in debt means you can begin working on a solution because you know the problem!

Step two: Connect with your money and make it real

1. Put your debit card away. Lock it in a drawer, put it in the freezer
2. Force yourself to use real money for all of your daily transactions
3. Determine how much money you will need for the week and withdraw this amount from your bank
4. Strive toward creating left over money for the week. This will occur because you continue to reign in your spending habits

The Pay Off: You begin to develop the idea, through your experience, that YOUR money is a LIMITED RESOURCE and not an unlimited one. Every time you go into your wallet to buy something, you are confronted with the reality that you only have so much for the week. Therefore, you begin to develop the idea that you need to be wise and strategic with purchases.

Step 3: The Solution is to Develop a State of Mind based on Money Successes

The above steps are the key to becoming successful with YOUR money. In fact, your success IS the solution. Every time you insist on using real money, you develop confidence in your ability to take control of your money. This confidence will fuel your motivation to continue therefore creating feelings of success. This feeling of success is the solution because it means you are creating an INTERNAL shift in money values that will eventually translate into new money behaviours.

Do you want to make an INTERNAL shift in your money values but just need a gentle push to get you started? Ask me about my practical and hands plan that will help you go from debt chaos to money success. Connect with your money today and kick that debt to the curb.

==> CONTACT ME To Schedule A Free Consultation To Find Out How You Can Finally Reduce Your Debt

Meet the Author