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Speaker 1: Welcome back to Sugarmummer's Fireplay, the podcast where wednite your

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Speaker 1: financial independence, fuel your early retirement goals and dreams, and

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Speaker 1: build sustainable wealth one smart step at a time together.

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Speaker 1: I am your host financial planner, Canna Campbell. I'm an author,

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Speaker 1: I'm a keynote speaker, I'm a busy working mum of three,

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Speaker 1: and I'm also a firm believer that your financial story

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Speaker 1: can be rewritten at any time, the moment you are

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Speaker 1: ready now. Today's episode is for anyone who is feeling

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Speaker 1: the heavy weight of credit card debt on their shoulders.

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Speaker 1: The guilt, the stress, the frustration. I see you. I

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Speaker 1: am not here to judge you, but I'm actually here

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Speaker 1: to help you. And I've helped so many people walk

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Speaker 1: this road, and I know that there is a faster,

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Speaker 1: healthier route forward from this point on. So we're going

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Speaker 1: to talk about how to pay off your credit card

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Speaker 1: debt for good using my hit List strategy, a method

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Speaker 1: that has helped thousands of people around the world break

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Speaker 1: free from the toxic credit card debt cycle. And yes,

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Speaker 1: you may pay a little bit more in interest, but

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Speaker 1: the payoff emotionally, mentally, and financially is enormous because this

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Speaker 1: strategy doesn't just fix the numbers. It builds the habits,

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Speaker 1: the motivation, and the mindset that actually makes debt free

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Speaker 1: freedom last forever. And once you're debt free, I'll show

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Speaker 1: you exactly how to harness that exact same energy to

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Speaker 1: create your next financial chapter, one that is filled with confidence, security,

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Speaker 1: and most importantly, financial freedom and independence. So let us begin. Okay,

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Speaker 1: before we tackle the hitless strategy, there are a couple

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Speaker 1: of things I really want you to fully understand, And

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Speaker 1: the first thing is why credit card debt is so harmful,

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Speaker 1: not just to your finances, but to your mental wellbeing

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Speaker 1: as well. Credit Card debt isn't simply a balance, you know,

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Speaker 1: money that you owe. It's actually a barrier, like a

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Speaker 1: brick wall. It stands between you and the life that

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Speaker 1: you're meant to live. It doesn't just drain your bank account.

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Speaker 1: It drains your energy, your motivation, your focus, your clarity,

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Speaker 1: and it can really damage your credit score, restricting your

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Speaker 1: borrowing power, which could potentially mean that you can't afford

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Speaker 1: to buy or afford to borrow the right amount of

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Speaker 1: money to buy your dream home. And of course it

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Speaker 1: can cost you thousands sometimes even tens of thousands of

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Speaker 1: dollars in interest every single year. So if you take

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Speaker 1: say ten thousand dollars on credit card debt being charged

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Speaker 1: at twenty two percent per animate interest, which is not unusual,

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Speaker 1: that is two two hundred dollars a year. That is

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Speaker 1: your money that could be compounding your goals, not funding

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Speaker 1: the bank's profits and those shareholders' dividends. But there's also

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Speaker 1: a hidden cost, and that is the intangible emotional one,

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Speaker 1: the shame, the regret, the guilt, the remorse, that constant

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Speaker 1: background stress that keeps you up all night staring at

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Speaker 1: the ceiling, tossing and turning. It doesn't need to be

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Speaker 1: like this. You don't need to live like this. We

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Speaker 1: can find a solution together through this hit list strategy.

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Speaker 1: And that's exactly why my hitless strategy works so well,

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Speaker 1: because it actually replaces the shame with progress, breakthroughs, shifts,

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Speaker 1: and it replaces the stress with empowerment and confidence and

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Speaker 1: faith and even excitement. It's not just about being debt free,

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Speaker 1: it's also about feeling powerful again and in control, which

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Speaker 1: is sexy. So now that you can see how destructive

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Speaker 1: credit card debt can be, let's talk about the most

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Speaker 1: common trap so many people fall victim for when trying

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Speaker 1: to fix the credit card debt, and that is with

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Speaker 1: the quick fixed ideas and strategies you see when you're

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Speaker 1: desperate to escape debt in particular, like toxic debt, like

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Speaker 1: credit card debt, something like a zero balanced transfer or

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Speaker 1: a debt consolidation loan like a personal loan can sound

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Speaker 1: like a salvation, like a night and shining armor that's

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Speaker 1: here to save you in all of your financial stresses.

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Speaker 1: But here's what happens, I'd say nine times out of ten.

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Speaker 1: So you go and roll the debt over, you consolidate it,

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Speaker 1: move it, and you feel a sense of relief and

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Speaker 1: you tell yourself, you're great, I've got a year to

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Speaker 1: deal with that. I'll deal with that later, and you know, oh,

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Speaker 1: chip away at that ten thousand dollars at credit card

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Speaker 1: debt through the year. You know, in the meantime, I

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Speaker 1: can just kind of live my life. And the thing

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Speaker 1: is really that actually happens. A year slips by, and

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Speaker 1: we all know how quickly twelve months slip by, and

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Speaker 1: you know that zero percent honeymoon discount rate ends and

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Speaker 1: the real rate kicks in and whilst you had that

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Speaker 1: amazing intention of chipping away at the margin loan, and

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Speaker 1: whilst you had the best intention of chipping away that

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Speaker 1: personal loan of the next twelve months, it didn't actually happen.

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Speaker 1: That debt hasn't gone away at all, definitely hasn't reduced,

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Speaker 1: and in fact it may even be bigger because now

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Speaker 1: a much higher interest rate is being applied, or because

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Speaker 1: you haven't made any repayments towards that personal loan, that

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Speaker 1: loan is actually even bigger with all the interest being

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Speaker 1: charged to it and all those fees as well. And

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Speaker 1: sometimes it can get even worse where you have continued

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Speaker 1: on shopping, you have continued on living your life as

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Speaker 1: you were before, and now you've got another credit card

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Speaker 1: debt in your life. This is not uncommon and something

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Speaker 1: I see all the time. And the reason why this

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Speaker 1: quick fix didn't work is because your habits didn't change.

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Speaker 1: This quick fix fix the symptom, not the actual system

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Speaker 1: in your life, and that's where it goes wrong, and

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Speaker 1: it can go wrong diabolically. So the hitless strategy of

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Speaker 1: mind does the complete opposite. It really forces you to

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Speaker 1: step up and take control. It makes you become aware

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Speaker 1: it inspires you and empowers you to actually do the work,

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Speaker 1: and therefore you build that resilience and you finally create

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Speaker 1: a sustainable mindset that keeps you debt free for life

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Speaker 1: but also allows you to use the hacks and the

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Speaker 1: ideas and the strategies and the mindset to actually build wealth.

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Speaker 1: So let's walk through the hitless strategy step by step

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Speaker 1: so it's really easy for you to follow. Step one

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Speaker 1: is to write down every debt that you owe, from

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Speaker 1: the smallest amount of money that you owe to the

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Speaker 1: largest out of money that you owe. Seeing these numbers

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Speaker 1: in front of you in black and white is very

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Speaker 1: confronting and it's uncomfortable, but it is the clarity that

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Speaker 1: gives you power. Now we'll focus on the smallest balanced first,

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Speaker 1: because progress fuels the motivation to keep going. It's the

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Speaker 1: smallest debt is going to be the easiest and the

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Speaker 1: quickest to get out of the way. So your list

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Speaker 1: might look like this Visa five hundred dollars, HSBC eighteen

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Speaker 1: hundred dollars, MasterCard two thousand, three hundred, Virginian five hundred,

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Speaker 1: AMEX twelve eight hundred. See how they're written from the

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Speaker 1: smallest amount ode to the largest amount ode and knocking

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Speaker 1: out that smallest debt, which would be the five hundred

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Speaker 1: dollars visa. And this example gives you the momentum and

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Speaker 1: the confidence to quickly move on to the next As

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Speaker 1: I say, it's like juggling balls. You can quickly get

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Speaker 1: one ball out of the air, will be suddenly so

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Speaker 1: much easier to juggle the remaining amounts. Step number two

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Speaker 1: is to cut your cards up. Okay, if you're in

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Speaker 1: credit card debt, you are officially on a credit card cleanse.

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Speaker 1: I want you to remove the temptation of these cards

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Speaker 1: out of your life completely. So you need to change

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Speaker 1: any automatic payments that you have on your credit card

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Speaker 1: and switch them over to a debit card or coming

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Speaker 1: directly out of your everyday bank account. From now on,

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Speaker 1: you only can use cash or your debit card to

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Speaker 1: pay for things. You cannot put anything on your credit

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Speaker 1: card at all. Step number three is to set up

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Speaker 1: minimum automatic repayments to each of these debts. You need

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Speaker 1: to keep your debts quarantined so that it doesn't grow,

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Speaker 1: which means making sure each repayment covers at least at

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Speaker 1: the very least the interest repayment on each of these debts,

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Speaker 1: so I recommend automating them right after payday so that

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Speaker 1: they are dealt with and handled before you can go

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Speaker 1: and spend that money elsewhere. So, for example, if you

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Speaker 1: get paid on the first of every month, I would

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Speaker 1: have all your minimum credit card repayment plans to come

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Speaker 1: out on the second of every month, So this is

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Speaker 1: really important. You set it up and it's set up

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Speaker 1: automatically so there are no excuses and you cannot forget

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Speaker 1: this important priority. Step number four is to do a

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Speaker 1: brand new budget, or if you haven't done a budget before,

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Speaker 1: to do your first budget. The reason credit card debt

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Speaker 1: builds up is normally because of overspending without awareness. So

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Speaker 1: I recommend sitting down and doing a proper budget so

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Speaker 1: you can see where your money goes and where your

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Speaker 1: money is being wasted and is leaking out of your budget. Now,

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Speaker 1: if you would like my help, I'm more than happy

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Speaker 1: to help you. There is the Sugar Mamma Budget and

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Speaker 1: cash Flow Academy where I teach you how to create

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Speaker 1: a sustainable budget. I show you how to create a

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Speaker 1: money system, and this also includes a one on one

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Speaker 1: session with me so that we can build and plan

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Speaker 1: your budget together. Now I'm going to link in the

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Speaker 1: podcast notes exactly how to enroll, what it involves, and

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Speaker 1: why it's so different. But I give you all the

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Speaker 1: tools and all the lessons in a podcast format and

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Speaker 1: a video format, and it's actually really liberating. It's a

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Speaker 1: system that I follow myself personally, so they'll be in

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Speaker 1: the podcast notes. But my point is you must have

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Speaker 1: a budget now. Step number five is to keep that

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Speaker 1: hit list that we just wrote in step number one

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Speaker 1: always visible. I want you to look at that hit

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Speaker 1: list on a daily basis, and I want you to

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Speaker 1: set some small target dates for each of those debts.

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Speaker 1: This daily focus means that your brain is completely wired

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Speaker 1: towards progress and helps you spot all of those old

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Speaker 1: habits that always try and creep back and undo all

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Speaker 1: our hard work. But by looking at it every day,

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Speaker 1: even twice a day, morning and night, this will really

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Speaker 1: help you stay motivated and focused and really aware of

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Speaker 1: their old habits so you can jump on them and

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Speaker 1: stop them debt in their tracks. And that's how we

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Speaker 1: start to rewire our brains. Step number six is to

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Speaker 1: cut back ruthlessly and redirect those savings, so as you're

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Speaker 1: doing your budget, look at things that you are wasting

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Speaker 1: money on. So cancel any unused memberships, skip those takeaways,

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Speaker 1: unsubscribe from services that you no longer use or need.

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Speaker 1: Every single dollar that you can free up needs to

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Speaker 1: go towards paying off the smallest debt on your hit list.

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Speaker 1: So if you cut, say a thirty dollars per month subscription,

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Speaker 1: I want you to increase your automatic repayment plan by

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Speaker 1: thirty dollars to the first payment. They may seem like

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Speaker 1: small amounts of money, but every little adjustment has a

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Speaker 1: huge impact in building momentum, and you'll feel so much

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Speaker 1: more inspired when you see these debts coming down faster,

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Speaker 1: because every single dollar really does count, and every dollar

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Speaker 1: has a job. Step number seven is to find some

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Speaker 1: extra income. If you can try and create some extra

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Speaker 1: income in your life that you can again put towards

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Speaker 1: that smallest debt first as a priority. So can you

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Speaker 1: take on an extra shift at work? Can you do

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Speaker 1: some freelancing work that there's some things that you can sell.

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Speaker 1: Could you negotiate a pay rise? Is it time to

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Speaker 1: maybe look at a new job. Every dollar that you

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Speaker 1: can get, put it onto your hit list, with the

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Speaker 1: first one the top of your list as your number

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Speaker 1: one priority. The faster you see the progress, the faster

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Speaker 1: you're going to finish. So these little boosters really make

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Speaker 1: a massive difference. Step number eight, Review and repeat every

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Speaker 1: time you make a repayment, whether it's a lumpsum or

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Speaker 1: an increasing of an automatic repayment. I want you to

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Speaker 1: go and check the debts how much you owe, and

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Speaker 1: then go and update your list. Seeing these balances shrink

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Speaker 1: is so addictive. And when that debt is gone, So,

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Speaker 1: for example, the smallest one year list, you roll its

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Speaker 1: repayment onto the second smallest debt which is on your list,

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Speaker 1: and you keep going from the second to the third

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Speaker 1: to the fourth as you start paying the top one

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Speaker 1: on your list off and get great satisfaction by the

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Speaker 1: way ticking and crossing it off. But my point is

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Speaker 1: you keep repeating this until you are completely debt free.

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Speaker 1: Now that brings me to step nine. Eliminate temptation for good.

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Speaker 1: The moment you are debt free, cancel all of your

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Speaker 1: cards if you have not done so already, And I

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Speaker 1: should point out the moment you've knocked someone off your list,

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Speaker 1: a debtor canceled that card immediately. So in the example

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Speaker 1: we had that moment that Visa card of five hundred

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Speaker 1: dollars is paid off, I would call up Visa and

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Speaker 1: cancel that card, so they should technically be already canceled

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Speaker 1: as you work through your list. So this is incredibly important,

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Speaker 1: and you may get to the point where you realize

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Speaker 1: you don't actually want a credit card at all because

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Speaker 1: it doesn't serve you actually more of a hindrance than

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Speaker 1: a help. And I want you to replace that idea

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Speaker 1: that emergency credit is what emergency money is, because it

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Speaker 1: most definitely not. I want you to use all of

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Speaker 1: those funds that you were using to pay off your

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Speaker 1: credit card debt to actually build an emergency fund, not

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Speaker 1: emergency credit and emergency fund. Ideally, as an absolute minimum,

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Speaker 1: you should have about five to ten thousand dollars always

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Speaker 1: set aside, and as I said, you redirect all of

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Speaker 1: those old repayments straight into this fund until the moment

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Speaker 1: it is fully restored. Now, this is where things can

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Speaker 1: get really exciting, because your wealth journey after debt looks

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Speaker 1: really exciting. The moment you are no longer sending hundreds

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Speaker 1: of dollars each month to credit card companies, I want

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Speaker 1: you to redirect that same cash flow to start building

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Speaker 1: your financial future. So there are so many different things

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Speaker 1: you can do, and it's really up to use to

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Speaker 1: what what spies you and makes you feel excited, but

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Speaker 1: also what makes you feel safe and secure and stable.

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Speaker 1: So here's a couple of ideas. Why don't you start investing.

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Speaker 1: You could start your own one thousand dollars project. If

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Speaker 1: you're not familiar with this, it's where I built a

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Speaker 1: three hundred and sixty five thousand dollars share portfolio, literally

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Speaker 1: one thousand dollars at a time. Another great idea is

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Speaker 1: actually to build up your emergency money further. So I said,

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Speaker 1: sort of five to ten thousand dollars is a minimum,

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Speaker 1: but that's my point. It's a minimum. You know, depending

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Speaker 1: on your financial situation, your responsibilities, what your life looks like,

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Speaker 1: you will most likely need more emergency money. So perhaps

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Speaker 1: you can use this extra money to prioritize building that

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Speaker 1: up until you feel it's the right figure for you.

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Speaker 1: Another great idea, if you wanted to and you're comfortable

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Speaker 1: with the restrictions that come with this, is to put

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Speaker 1: that extra money towards your superannuation and some of your

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Speaker 1: retirement goals. Now, obviously you need to be aware that

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Speaker 1: the moment you put money into super you can't get

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Speaker 1: it out, so you may want to get some financial

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Speaker 1: advice about this, but this is a great way of

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Speaker 1: helping create some financial stability in your life, particularly for

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Speaker 1: the long run. Another great idea is using this new

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Speaker 1: found cash flow savings we're previously being used to pay

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Speaker 1: off debt to start building assets. So you could use

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Speaker 1: this money now to start saving for a deposit for

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Speaker 1: your first home, or to upgrade your home, or to

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Speaker 1: pay off the mortgage. Or perhaps you might want to

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Speaker 1: use this money to launch a side business or a

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Speaker 1: profitable side hustle that's going to add more value to

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Speaker 1: your life. The point is, debt freedom is not the

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Speaker 1: finished line. Is actually just the starting point of your

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Speaker 1: wealth journey. You know you have learnt the discipline, you've

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Speaker 1: built the self control, you've discovered the power of patients,

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Speaker 1: and these are the exact same traits that actually can

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Speaker 1: help make you a brilliant investor and someone who is

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Speaker 1: really smart and savvy and respectful with money. So as

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Speaker 1: we wrap up today's episode, please promise me this. You

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Speaker 1: will never repeat old habits. You will learn from the

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Speaker 1: mistakes that come from reckless spending on credit cards. From

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Speaker 1: this point forward, money is your alley, not your stress.

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Speaker 1: So if you are in credit card debt, here's your challenge.

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Speaker 1: Create your hit list today, face your numbers front on,

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Speaker 1: head on, take full responsibility and accountability. You got yourself there,

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Speaker 1: you'll get yourself out of here and write everything down

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Speaker 1: the smallest to the largest, and you pick your smallest

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Speaker 1: debt first and start hitting it hard, one payment at

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Speaker 1: a time. This is not about punishment at all. It's

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Speaker 1: about progress, and every repayment that you make is a

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Speaker 1: statement to yourself and the universe saying I'm taking back

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Speaker 1: control and doing things very differently now. And when you

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Speaker 1: make that final credit card payment and you realize it

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Speaker 1: wasn't just the debt that you cleared, it was the

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Speaker 1: fear and limitation that came with it. Debt free isn't

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Speaker 1: just a financial mindstone, it's actually a mindset that can

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Speaker 1: serve you for life. And from that mindset everything becomes

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Speaker 1: possible now. So if you would like my guidance in

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Speaker 1: building your own budget and cash flow system, which I

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Speaker 1: highly recommend and swear by, of course, please go and

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Speaker 1: enroll in the Sugar Mama Budget and cash Flow Academy.

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Speaker 1: I will link it in the podcast notes for you,

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Speaker 1: and if you have any questions about this particular course,

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Speaker 1: please feel free to send me a DM on Instagram

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Speaker 1: or you can use the email address provided in the

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Speaker 1: podcast notes. But this is a brilliant way of actually

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Speaker 1: getting back in control of your cash flow, of your debts,

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Speaker 1: and of course all of your financial goals and dreams

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Speaker 1: because we put this into your budget. And thank you

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Speaker 1: everybody for listening to Sugar Mama's fireplay this morning. I

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Speaker 1: am financial planner Canna Campbell and as always, please keep

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Speaker 1: that financial fire burning bright within. This is Sugar Mamma's

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Speaker 1: fire Away