How I Went From Being In MASSIVE Credit Card Debt To Paying It All Off In 3 Years


Are you someone holding on to massive credit card  debts or personal loan debts and do not know how   to pay it off? Are you also someone who spends  frivolously on shopping, going on numerous trips   and buying stuff? Are you the person who's kind of  worried right now and do not know what to do with   all your debts piling up? No worries, I understand  how you feel. I too was that person. Today's video   is about how I went from being in massive credit  card debt to paying it all off in three years   and these are the three secrets you must know. Hey  there, if you're new to our Channel I'm Fran. I'm   a one-half of the Corporate Breakout Couple and  together with my husband John, we broke out of corporate   in year 2020 at the age of 40 years old.

Please  Like And Subscribe to our Channel so that you   don't miss out on any of our videos and it also  helps with the YouTube algorithm. Thank you! [Music]   So the first thing that you need to know about  me is that in the past, I wasn't very good with   personal finance even though I held a business  degree. I didn't truly understand how money really   works and talking about numbers scares the crap  out of me. And the thing is I always found that   money always came very easy to me even from my  childhood all the way into my early 20s. Therefore   I always spend like there's no tomorrow and had  very little savings. If you've been following us   for a while, in our other videos I did share  that in my early 20s to my 30s I earned a lot   of money and at the same time I also did share  that I hated being an employee so in my mid-20s   I started a bikini company with an ex colleague  of mine and remember because I had very little   savings, I actually took out a personal loan  to fund the bikini business.

Therefore in my   mid-20s I had a five digit personal loan. I also  had a car installment loan and I had started to   rack up a little bit of credit card debt. A year  later my business partner and I, we wrapped out   the bikini business even though the business is  profitable. I wanted out of the business because   I didn't really enjoy the nature of the industry  but guess what? What I did was I took my share of   the profits and I spent it all instead of paying  off my personal loan. And around the same time I   had a promotion. I went from being an individual  contributor with a huge commission scheme to   managing a team. My basic salary actually went  up, my commission structure went down because   if my team didn't perform well, then I'll earn  less.

So therefore my annual salary did decrease   a little bit but actually my spending did not.  Therefore I found that I could not pay off my   credit card bills in full anymore and that's  where my credit card debt started to stack up.   So slowly, my credit card debt went from a four  digit to a low five digit to a mid-range five   digit figure and scared the crap out of me.  And fortunately not long after that, I received a   job offer in Singapore so I decided to take  the job in Singapore because of the fantastic   exchange rate. Long story short, I thought the job  in Singapore would solve all my debt problems. So did all my debt problems go away? Of course  not! Because after I settled my Malaysian credit   card debt, guess what? I had now Singapore  credit card debts. So what happened? Well I   went to Ritz-Carlton's famous champagne brunches  often and it didn't help that I worked at Orchard   Road so I went shopping often, sometimes on my  lunch breaks. I knew my spending was getting   out of control but I just didn't know how to  stop. I signed up for a three-day millionaire   mindset course in Singapore and I even paid a  lot of money for a VIP ticket and I sat right   in the front.

In one of the exercises, they  asked us to write down the age at which we   would like to retire and how much money we  would need. So this was in back in 2010, so I   was 30 years old and I wrote that okay I'd like  to retire at the age of 50 years old and I need   an amount of Singapore dollars three million  dollars in order to retire. So I looked at the   paper with the three million dollars written  on it. I thought about how much debt I was in   and then I balled up the piece of paper and  I threw it away. I didn't even bother to go   back to the course to finish it because in my  mind, I was thinking there's no way I would be   able to save up that much that amount of money  in order to retire so I just gave up all hope.   Therefore I continued my merry way of spend spend  spend spend spend. Now about two years later, I was   fortunate enough to meet John. He sat me down and  he crafted out a financial plan for me to get out   credit card debt.

By the time, I was holding a mid  five figure credit card debt in Singapore dollars. When I first met Fran, I wanted to help her  clear her credit card debts so that we can then   come together and put our finances to work. So we  came together, we put out a plan, we evaluate the   numbers and we came up with a three-year plan  to help her to clear her debts. In the plan, it   includes a timeline, what's the repayment amount  and what's your expenses and all the breakdowns   that we need to evaluate. We looked at each  expense starting from the highest which is   her rent at the point of time. I was staying on my  own and she was paying rent so it doesn't make   sense for her to pay as well. So we consolidated  our costs and made sure that every dollar that   we spend on is put to good work. So after three  years, I paid off all my credit card debts. Yippee! Now of course, during that time as well I invested in a lot of self-awareness courses which also made me   understand myself more and where did all  my money problems come from.

My getting   out debt journey certainly has been an  interesting one and very educational so   here are three secrets that you must  know in order to get out of massive debt. Secret number one your money beliefs. As a human  being, we all have beliefs about everything. For   example, about success, beliefs about failure,  beliefs about starting a business, beliefs   about employees, employers, about relationships and  mot certainly beliefs about money. When I evaluated   my own money beliefs, I realized that my belief  about money was easy come easy go. Therefore I   had no qualms about spending every single dollar I  had because my belief was when I spend it all, more   will just suddenly come.

When I changed my belief  about money from Easy Come Easy Go to money is a   tool that I'm going to use to get me  out of debt and become eventually financially   free, that was when everything changed for me. So  my question to you is what are your money beliefs? Secret number two having purpose for your money.   Back then I had no purpose for my money. What was  I even saving for? I didn't know. So I had all that   money sitting in my bank account, I might as well spend it right? Now however, it is different. Every dollar   represents Time Freedom.

It means that I do not  need to go to work to exchange my time for money.   I now appreciate every single dollar that I  have in my bank account because this money   is working hard for me. My question to you now  is what is your purpose for saving up money? The third and final secret is being Financial  Literate. So many of us are financially ignorant.   That's because schools don't teach us financial  literacy. Money is something that everyone   uses and yet it is not taught to us. We're just  expected to go into the world and ultimately we   ought to know how money truly works and how we can  use it to our benefit. I really need to give credit   to John because he really taught me on how the  financial system works, how the banks really work   and how we can use money to our benefit and how  money can truly work for us. Over the years, I also   signed up for financial courses that taught me  how to invest my money properly with proper risk   management put into place.

Now my question to you  is are you willing to put in the work to educate   yourself to be financially literate so that you  can get out of debt and hopefully be on your way   to Financial Freedom? Thank you for listening to me  share my financial story and watching this video. I  hope this video has been educational and beneficial  to you. Please Like and Share this video to   your friends and family. You never know who  could actually gain from watching it. Please   Subscribe to our Channel for more such  videos and we'll see you soon. Bye! [Music].

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