Paying off credit card debt can help you establish a good financial foundation, make investments, and build your nest egg so you can retire early. Most people know this, but it's not a common practice.
According to Bankrate, 46% of credit cardholders report having a credit card balance. Furthermore, 23% of people do not think they will ever pay off their credit card debt.
However, some people end up paying off their credit card debt, even if it previously looked insurmountable. Several credit cardholders who paid off their debt recently shared what inspired them to get out of debt in a lengthy Reddit post.
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Multiple Redditors said that their inspiration for paying off credit card debt was seeing how much they were paying in interest. Those small interest payments can add up, especially since credit cards are notorious for having high APRs.
"For me, it was realizing the interest alone was eating up more than my rent every year. Basically paying thousands for nothing," one commenter said. "[That] made me get aggressive about debt payoff."
Getting aggressive about debt payoff may require tough sacrifices and pursuing more ambitious goals. Some commenters suggested getting a higher-paying job, cutting down on travel and dining, and learning about personal finance.
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Are You Prepared For An Emergency?
One Redditor is on the path to becoming debt-free and saving more money. This individual said that their inspiration came from asking uncomfortable questions about what they would do if an emergency came up.
"It's hard to prepare for things when you don't have the means. It's gonna be a while until I'm in a good spot, but it's getting better over time, so that helps my mental [health] immensely," the commenter said.
If you do not have an emergency fund, you may have to take out a loan for a surprise expense that must be addressed right away. A loan results in more interest and puts you deeper into debt. Each time you address an emergency with this approach, it puts you deeper into debt and limits your options in retirement.
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Realizing That You're On Your Own
One Redditor's big moment that caused them to pay off credit card debt was realizing that they were on their own. Many children are used to having their parents cover basic expenses and bail them out in certain scenarios. However, that doesn't happen as much as you get older, and some parents expect their children to be completely independent once they are in their 20s.
"Realizing that my parents weren't going to ‘save me' anymore or ever again (despite them saying they would help if I ever needed it)," one commenter said. "And when help is offered, there are usually strings attached; it's not really help, it's just another bill."
This realization can cause you to take a deeper look at your lifestyle and how you ended up in debt. Then, you can make the necessary changes to get out of debt. One Redditor constantly struggled with debt, but explained that looking at their lifestyle instead of searching for motivation got the best results.
"I had to take a look at the broader lifestyle issues that were causing my debt, rather than look at it as a willpower issue. For me, it was alcoholism. I kicked the drinking and had the debt completely paid off in two years with very little additional effort," the commenter said.
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