How Do I Get Out of Debt with NO MONEY and BAD CREDIT

If you have ever thought ”how do I get out of debt with no money and bad credit?” then this video is for you! Today I am sharing with you the FIRST things you NEED to do when you are starting your debt free journey to set yourself up for success. We’ve all been there, trying to climb back out of that hole and somehow getting deeper and deeper. In this video you will learn exactly where you need to start, so that you can finally get yourself out of that hole. Learning how to build my credit score and paying down debt properly and effectively is something that took me years to figure out and today I am sharing what I have learned, with you!

How to Achieve FINANCIAL STABILITY | Why YOU Need MULTIPLE Bank Accounts :
5 Things I Stopped Buying to Save THOUSANDS | Things YOU Can Save Money On :

Easiest Budget for Millennial’s | How to Stay On Top Of Your Bills :


New videos every Monday!


Instagram: @rachelbergstrom


Hey guys, my name is Rachel and I am an organization, and budgeting enthusiast, and I have learned oh, so many things over the past 10 years of trying to understand my own personal finances. It can be hard! That’s why I’m here. I am excited for the journey of sharing my tips, ticks and what has worked for me, so that hopefully some of you can kick-butt with your own personal finances too!

At the beginning of my debt journey i Had No money and bad credit and today I have a pretty good savings and I have pretty good credit hi guys how’s It going my name is rachel And welcome to my channel this is a Place where we talk money Life productivity things like that if That’s what you’re interested in Be sure to hit that subscribe button and Join the crew and we can grow And save money together so today i am Talking the six steps that I wish i knew at the beginning of my Debt journey that Could have made it go years quicker And it took me a long time to learn These things and i’m Always learning and there’s always Improvements to be made But if i had known these six steps at The very beginning of my debt journey Definitely would have saved a couple of Years off of that Journey i was there once too you know How do i pay off debt With no money and bad credit Who hasn’t been there at least one point In their life all right so the first Thing that you need to do If you have not done it already is check Your credit score You need to know what this number is you

Need to know where you’re starting You have to check your credit report to Be able to see what debts are on your Name How much do you owe where and it is a Great place to start to just figure out Your baseline What are you working with there are so Many different free credit report Options out there Credit karma being you know the one that Comes to mind that is what i use i love Credit karma you get a free update once A week And that is enough for me to be able to Check it a couple times a month to be Able to figure out How am i doing where am i at um i try Not to obsess over this number too too Much and don’t be looking at it every Single week or anything like that Because it can take time to Change and it can take time to grow Sometimes when you’re looking at it You know every week on the day it can Just be a little demotivating if you’re Not seeing it move as quickly as you Want it to Secondly once you know how much you owe Where you owe it once you’ve looked at That credit report and you’ve Got your list of all those debts you Need to be aware of the cash flow of Your household

You need to know where is your money Going what’s it being spended on What’s a waste of money if you’re not Actually paying attention to the Purchases that you’re making And if you are not actually tracking how You’re spending your money or where it’s Going How much do your bills add up to every Month how much comes off of your credit Card every month just in bills How much interest does that add to by Coming off of your credit card every Single month if you’re not paying it These are the things that you should be Knowing and you should be Aware of so by mapping out what your Current Month to month looks like and how much You’re currently spending in expenses Retail bills all that kind of stuff how Much income are you making You your spouse whatever i’ll leave a Link In the info card above i did a video Called the best budget for millennials It is the Simplest way that i found to organize my Money to just Clearly quickly see what’s going in What’s coming out Where is it coming from and so i really Break down how i Built my like the basics of my budget

In that video and i think that it is Great for everybody Not just millennials but um it is Absolutely important to know The starting point of your budget and What’s currently happening with your Money okay now time for the real work Step Three is you have to learn How to make sacrifices so Chances are once you’ve outlined your Entire budget and you have seen your Credit report to see what debt you owe And where it’s Owed to you now know where You’re over spending in different Categories and you know how much you are Not Putting towards the debt that is growing Every single month in your name Chances are if you have debt and you Have a bad credit score You are overspending in a certain Category somewhere So by learning how to make sacrifices You’re Better able to save money in those Categories By getting rid of those payments you can Put that money towards Paying down your debt so if you were the Type of person that normally went out to Eat three four times a week And you’re spending twenty thirty

Dollars every time you go out if you Were putting that money towards your Credit card or putting that money Towards any type of loan Or debt that you have it would pay it Down a hell of a lot quicker I have a video about the top five things That i stopped spending money on to Literally Save thousands per year and even i was a Sound by the end of it Tallying up how much i actually saved by Cutting all of those things out of my Budget Every single year so if you’re Struggling to find out what things you Cut from your budget and what sacrifices You need to make first I definitely recommend checking out that Video i’ll link in the info card above So that way you can see the top five Things that i Easily easily cut from my budget and Literally saved thousands All right now once you have learned to Make sacrifices you’ve made That step you’re on to the next one step Four is I’m sorry but if you’re in debt you Probably need to make more money It is tough to hear it’s unfortunate but It is the sad truth if you are in debt That you month-to-month are not making Enough money to

Actually get out of and there is nothing That you can cut from your budget that Will Get you out of this hole you probably Will have to make more money and whether It is a second job Or selling things on marketplace Do you have any talent or skill that you Could sell on A website like upwork or fiverr do you Have any talents that you could Pay have people pay you for like do you Enjoy drawing and you’re really good at It Do you want to sell your artwork or draw Custom pieces for people well then Do that on fiverr there’s so many Different ways that you can monetize Your skills and make extra cash that you Really just kind of have to look to see What works best for you Maybe selling things on marketplace that You just have in your home that you Really don’t need anymore maybe it’s Selling your Family’s junk that they just want to get Rid of so you take it and you sell that On marketplace Sometimes you just gotta do what you Gotta do to get Out of that hole and to kind of get that Ball rolling to just start putting Chunks down on your debt to kind of Start climbing out

All right so now that you know your Budget you’ve learned to make sacrifices From it And you’ve now you’re making some extra Cash on the side The fifth step though it may seem like a Really redundant and obvious one Is to pay off as much debt As you can obviously to get out of debt You have to pay off as much debt as you Can That is the purpose of all of it but my Point is is How i started my debt journey and how I’ve really kind of been enjoying it Because i’m not Completely at the end of it i still have My student loans in my car that i do Have to pay I started with paying off my smallest Loans first so i had a 100 Credit card that i paid off i had a 600 I guess it was a loan and then after That i went to my bigger credit card And then after that i went to my bigger Loan you know and so I like to start focusing on the smaller Debts first So that way when it got to the bigger Ones i already felt so much more Accomplished and so much more achieved Because I have paid off debt that is such a good Feeling

That if you start with the largest debt First It could be a really long time before You start to Have that satisfaction feeling and kind Of in the similar sense of like weight Loss People tend to give up because you don’t See those results after one two weeks And It takes a few months before you see Results so if you’re trying to pay down The biggest debt first You may get a little discouraged along The way and feel like it’s taking a Really long time Before that number is even making the Slightest difference so if you’re paying The smallest debt first and putting Those Chunks of money towards it you can knock Off a few of those A lot faster than you’ll even actually Make a dent Probably in your biggest debt even Though Paying off debt is very very good and You want to get as much of that debt Paid off and gone As possible it’s important to remember That when you pay Off a line of credit or a credit card or Anything like that Your credit score actually can take a

Hit so My credit score has taken a hit from Anywhere between five Points to paying off a credit card to i Think The biggest was maybe 45 points i Dropped because i paid off one of my Bigger credit cards And my credit took a 40 i believe it was A 47 point Hit which was huge and i was heartbroken A few weeks later After still making continuous payments And Keeping a zero balance and not carrying A balance month to month and Everything like that i did manage to Build my credit up back Up of course uh fairly quickly after That And then my sixth step once you have all Of that Completed and you are on your way to Paying off your debt and you’re making Good choices and You’re financially stable and you don’t Have All of those worries and you know how to Save your money properly and you’re Doing everything right And you’re still trying to build up your Credit score little by little A good way to start building some credit Would be to get a secured credit card

With whatever bank you may be with And what a secured credit card is is It’s a credit card that say you have a 500 Balance well you pay the 500 at the Beginning And then you use the credit card just Like you would any other credit card but If you Are to not pay back the balance for Any period of time depending on what Your bank Whatever your bank’s policy is they will Take that 500 Deposit that you put down at the Beginning to get that secured credit Card And yeah it’s like a down payment for a Credit card kind of thing It’s like that fee that you pay at a Hotel to promise that like i promise i Won’t damage the room but just in case i Do Here’s 200 dollars that you’ll keep if i Don’t keep my word and keeping the room Not damaged I feel like it’s kind of the same thing And if you’re a little further on your Journey and you already have Many credit cards and lines of credit And you definitely do not Need to open another credit card then Just be sure to be making all of your Monthly payments on time

Try to always be paying more than the Minimum payment to be paying it down What i noticed throughout the years at Least on my credit card is that The minimum payment is usually less than The accumulated interest of that month So if i’m only making the minimum Payment I’m not even covering the interest that My credit card would be accumulating Every single month Which means there would be no possible Way that that number would ever Go down it would just continuously go up And get worse and worse Which is not a situation that you want To be in you want to be financially Stable And if you want to know what bank Accounts you need for financial Stability i Also have a video on that i’ll be sure To link in the info card above So you guys can figure out what does Financial stability mean for you And your family and what bank accounts And how much do you need to have In them to consider yourself financially Stable so that you’re rock solid for the Future and You will never have to be worried about Debt again I swear i wish i knew some of these Things sooner because if i knew that the

First step was just checking my credit Score and seeing what Debts i had and even where they were i Would have done that Years before i did i hope this video got You guys thinking how you can get out of Debt with no money and bad Credit just like i did i make new videos Every monday so i look forward to seeing You guys in the next one Bye

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