Credit card debt is the worst kind of debt to be in.

I speak from personal experience. When I was in my 20's, I racked up $15,000 in credit card debt.

Clearly, I had no idea how to manage my money effectively.

It was only once I got real with myself and changed my bad money habits that I was able to get out of debt and become financially free.

If you're currently in debt, I want to help you. Ready to discover how I paid off $15,000 in credit card debt, then became a millionaire?

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There is nothing fun about debt.

The more that you ignore it, the worse that it gets. If you're in debt, you need to know that you're not alone. On average, each U.S. household with a credit card carries $8,398 in credit card debt and the average credit cardholder has at least four cards.

The first step to getting out of debt is understanding why you're in debt in the first place. Self-awareness is the key to changing anything in your life. If you don't learn from your debt experiences and take ownership of your choices, you will continue to make the same money mistakes.

In my personal life, I identified 3 reasons why I got myself into credit card debt in the first place.

First and foremost, I was living above my means. I was spending more money than I had coming in. Anytime that your expenditures are higher than your income, you will fall into debt. Secondly, I wasn't managing my money. I lacked awareness of where my money was going. In effect, I was digging myself into a hole.

Thirdly, I was avoiding the reality of my situation. I knew that I was in debt, but I avoided it because it was painful. It wasn't until I embraced the pain and hit an emotional threshold that I was finally ready to change my financial situation and formulate a plan to get myself out of debt.

Here are the steps that I took to get myself out of credit card debt.

1. I did a balance transfer

Credit card companies want to acquire you as a customer. This is why some companies will incentivize you by giving you a very low-interest rate to transfer your balance from one credit card to another. This is an opportunity for you to save some money and make sure that you're not paying a huge amount of interest on your credit card. In order to find these credit card companies, do a search on Google for the keyword, “credit card balance transfer.” This really helped me get ahead.

2. I learned how to manage my money

In particular, I started tracking everything that I was spending – all of my income and expenses. I stopped paying for things in cash because cash is hard to track. Instead, I used my debit card or credit card for every expense. Every week on a Tuesday I would log into my online banking and track everything that I was spending in an excel spreadsheet.

I looked at how much money I had coming in every single week and month. Then I started tracking all of my expenses, everything from rent to car payments to groceries. Every week I would update this spreadsheet.

Once I became aware of what my spending habits were, I was able to figure out where I was spending too much money. This is how I started to become a good money manager. It felt so empowering to be in control of my finances.

3. I started to create a budget and eliminate expenses

Once I realized that I was in a negative deficit every month I knew that my lifestyle had to change. I started creating a budget so that I wouldn't overspend. I looked at every single expense that I had in my spreadsheet and I asked myself the question, “How can I reduce this or eliminate this expense altogether?”

For example, I looked at how much money I was spending on my rent. At the time, I really loved my downtown Vancouver apartment. However, the reality was that I couldn't afford to live there. I was living a lifestyle that I hadn't earned yet. My options were to downsize my apartment, move back home, or find a roommate. I chose the third option. I lived on my friend's couch for one year and I paid him $500 per month. That's how I chose to save money.

It was very challenging and embarrassing at times. However, I accepted the fact that I had to make that sacrifice so that I could pay off my debt. Secondly, I sold my 1989 beat-up Honda Civic. I got $1,500 for my car and I started taking the bus. Doing so saved me a lot of money on fuel. Yes, it was really inconvenient but it forced me to start listening to audiobooks. I did all of this so that I could have some positive cash flow.

4. I found ways to make more money

I embraced any opportunity that would get me out of debt, even if that meant having two or three jobs. First, I started doing physical labor work. Not only did this job allow me to get into great shape, but I was also able to make some great money. That being said, this type of work was very hard on my body. I gave up my weekends when all of my friends were partying and invested that time into making extra cash flow.

On top on that, I also started doing freelance work as an online marketer.

Lastly, I decided to build an online business. I took advantage of self-education and learned from the people who had already achieved what it is that I wanted. In short, I was willing to invest my money into assets that could appreciate over time. Over time, I created multiple streams of passive income. Eventually, I paid off all of my debt. I can't tell you how good it feels to be debt-free.

This is how I paid off $15,000 in credit card debt, then became a millionaire.

I hope the steps that I've shared inspire you to get yourself out of credit card debt. I encourage you to look at your debt as a blessing. If you are willing to do anything and everything to get rid of it, I promise that your entire life will change for the better. The quicker that you become debt-free, the quicker you can start creating financial freedom and living the life that you've always dreamed of.

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I would like to share with you some money management tips for getting out of debt. Debt is no fun, and the emotional burden that it can create in peoples’ lives can be overwhelming. Henrik Ibsen said it best, “Home life ceases to be free and beautiful as soon as it is founded on borrowing and debt.”

Have you ever wondered why so many people have outrageous debt? A large reason is due to the lack of having a well-disciplined budget and financial life.

Managing your money doesn’t have to be difficult. It’s about knowing how you are using your money. How would your life change if you were free of debt? Make a decision to get rid of it, once and for all.

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Below are 5 money management tips for getting out of debt:

1. Be Aware of And Accept Your Debt

One of the most difficult things to do when first getting on the debt pay-off journey, is to truly accept your debt. Oftentimes, the reality of debt is too painful to acknowledge or accept, so the natural response is to avoid that it exists. I speak from personal experience.

When I was in my early 20’s, I was in a lot of debt. I had to make sacrifices in order to manage my money more efficiently and become debt-free. It was the acceptance of my reality that allowed me to make a change in my life. If you are serious about becoming debt-free, you need to acknowledge its existence. Be proactive. Don’t live in fear. Instead, take action. 

2. Decide To Change your Spending Habits

Making a decision implies that you are about to take action. When you make the decision to change your spending habits, you are halfway there to financial freedom! Saving money is about changing spending habits. What are your spending habits?

In order to become debt-free, you need to address the actual money management habits that you are struggling with, that led to the debt in the first place. Ramona Pearson, a certified public accountant and personal financial advisor said that “Money habits are formulated at a very young age for most people.” Take the time to figure out why you're spending habits are the way they are.

Sure enough, this is the reason why a lot of people that win the lottery end up losing it all. They don't take the time to develop the discipline in order to manage their money properly.

Focus on cutting your expenses or your overhead in some way. This will allow you to have some extra cash flow every month. Then, you can use that cash flow to start paying off your debt.

3. Track Your Expenses

If you want to free yourself from debt, you need to start tracking your expenses. The best way to work out what you spend your money on and how much you have left at the end of every month, is to keep a record of all your expenses.

According to Pick The Brain, for two weeks you should write everything down that you spend. Record the time, the place, and how much it costs. Doing so will help you identify your spending patterns.

If you haven’t done something like this before, there is a good chance that you will shock yourself. How often do you track your money? If the answer is never, it’s time to get out a calculator and start doing the math!

4. Don’t Spend What You Earn

Once you start making money, don’t be tempted to spend MORE money. This is where people get themselves into trouble. You have to discipline yourself to NOT engage in this behaviour.

In his book, Rich Dad, Poor Dad: What The Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!, Robert Kiyosaki said, “Invest in assets, not liabilities.” An asset is something that puts money into your pocket, while a liability is something that takes money out of your pocket. Which category does everything in your life fall into?

If you can’t manage the money that you currently have, then there is no point making more money. If you adopt the mindset that making MORE money will be the answer to your debt issues, you are wrong. This is a recipe for disaster.

5. Reward Yourself

Adjusting to a new style of living involves sacrifice. Breaking bad habits, especially when it comes to spending money, is hard work. This is why it’s important that you reward yourself when you have practiced self-discipline.

Be kind to yourself and engage in mini-celebrations, now and then. Why? Because the MORE that you acknowledge and reward yourself for your successes, the more success you will have.

Charles Duhigg, New York Times reporter and author of The Power of Habit: Why We Do What We Do in Life and Business, said “First, you have to pick a cue, like every single time that you get a pay check, you’ll move 5% of it into savings.” The key to making your habit stick is to give yourself a reward every time that you engage in a positive behaviour.

Debt is debt, but don’t feel that you have to punish yourself because of it. Honour the small achievements that you make every day, on your journey towards financial freedom. How you choose to manage and spend your money can have a profound impact on your life. I encourage you to follow these money management tips for getting out of debt.

Your ability to make good money decisions will end up shaping the direction that your life will take. Are you ready to be free of debt? Take control of your financial future now!

Are you ready to learn how to master your finances so that you can succeed faster? CLICK HERE to join my Life Mastery Accelerator program!