Christmas and Credit Cards

LISTEN TO INCREASE — CHRISTMAS & CREDIT CARDS

5:39

Over the last several weeks, we’ve been walking through what I call the Fuel Gauge—eight practical markers that help you build a strong financial foundation before you chase the big dreams on your heart. Because if your tank is empty, it doesn’t matter how nice the destination is—you’re not getting there.

We started with Step 1: Spend Less than You Make, where money stops leaking out of your account and you begin telling your money where to go instead of it just flying the coop. Then we moved to Step Two: Give 10%, which sets the tone for the other 90% and reminds us that money is a tool, not a master. From there we hit Step 3: Your New Zero - a buffer in your checking account so you never see a real zero again.

Last week, we began discussing Step 4: Consumer Debt. We realized it isn’t right or wrong in and of itself, but we need to understand it so that we don’t become burdened by unwise debt. 

I want you to think back to an image we’ve used last week—the hole and the dirt. Every time you use a credit card to buy something you didn’t plan for, every time you use store credit, finance Christmas gifts, or take out a personal loan with no real asset behind it, you’re digging a hole. And the problem isn’t just the hole—it’s that there’s no dirt in sight to fill it back in.

When I walk through neighborhoods across America, I see yards full of holes and no piles of dirt anywhere. That’s consumer debt. And here’s what makes it exhausting: every extra dollar you make just goes toward buying more dirt to fill the hole you already dug. No progress. No momentum. Just fatigue.

Consumer debt has robbed our country of financial prosperity and keeps families trapped in a vicious paycheck-to-paycheck cycle. And while I understand that times can be tight, hear me clearly—you are not captive to your paycheck, but you do need to spend less than you make. 

Don’t like it? No problem! You are working on increasing your income. It may take time, yes—but wealth gained bit by bit lasts. Don’t speed up your lifestyle because your neighbor bought a boat before you did. Build slowly. One step at a time. Because when you do, you’ll look back one day and realize you’re standing in a mansion—and there are no holes in sight.

If you’ve already dug a hole—credit cards, personal loans, consumer debt—it’s time to get to work filling it in. Once you have one month of expenses saved, every extra dollar in your budget goes toward paying off that consumer debt.

This is also the phase where you must ratchet up your income. You dug the hole. Now it’s time to fill it. And here’s the secret most people miss: the dirt you need may only be one or two raises away. It may be just that one promotion around the corner. The real question is—what value do you need to create to earn that income?

If you want a side job, great. But your first move shouldn’t be Uber Eats. Your first move should be to increase the value of the hours you already work. Value first. Hours second.

I’ve shared before that I do use a credit card—but every expense is planned, budgeted, and paid off in full every month. Emergencies come from savings, not plastic.

If you’re currently carrying a balance, I recommend being consumer-debt free for one full year before touching another credit card. You need new habits. And if there’s even a chance you’ll fall back into debt, no travel points in the world are worth digging another hole.

Today, there’s three action steps: 1 - How much consumer debt do you have? Tally it up and write it down. It’s time to start filling in that hole with any leftover money - 2 - Since it’s Christmas time, don’t dig a bigger hole! Just because you already have a hole doesn’t mean you should keep digging. Put the shovel down and get creative this holiday season. And 3 - have a conversation with your employer and ask them how you can add value to the business and how you can get your next raise. 

As always, if you need to get caught up or learn more about each step, visit www.trumbleagency.com/increase where you’ll find a copy of all of these articles along with additional resources. 

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Zach Santmier is the owner of Trumble Agency, Inc. and the author of the personal financial course, Increase. He focuses on helping families escape paycheck to paycheck living so they can freely pursue their ideal future.