Lesson 35: Get Off the Debt Cycle with a Payment Push
Hello Revolutionists,
How did you go with last week's challenge? If you haven't done it, please do. It is more than a challenge, it is important for your family's well being and future security.
This week I'm going to teach you how to get out of debt, fast and once and for all. It's a simple program, one anyone can use to make a huge dent in their debt. And boy is that dent needed!
As of late 2025, Australians owed more than $43.57 billion (yes, billion!) dollars on credit cards alone. That doesn't include personal loans, mortgages or private loans. Approximately 50% of Australians are currently carrying credit card debt, an increase of 9% from 2024.The average credit card balance is $3,557 with the average interest rate being 18.61%pa.
Not much if you say it and pay it off quickly. But not so many do that. In fact most credit card holders carry debt from one month to the next, making just the minimum payment, because that's all they can afford, for years and years and years.
A word of advice: if you can't afford to pay cash for something, you can't afford it! Putting it on credit and paying it off will end up costing you up to three times the value of the item.
Lets do some sums!
If you have $4,700 in credit card debt and only make the minimum repayments, it will take 49 years to pay it off and cost you around $14,600 in interest. It's not called buying on the never never for nothing - and who's going to work that long anyway? Obviously the person with that debt!
But if you are able to pay off $250 each month, you'd pay off your debt in two years and save $13,700 in interest. That's a lot of money, at least two months worth of Emergency Fund, or a huge chunk of the mortgage, private school fees for a year, a fantastic family holiday, new carpet - there are so many things you could do with that $13,700 that would be much more fun that boosting your credit card company's profits.
How Can You Pay Down Debt Quickly? With a Payment Push!
The Payment Push is a simple technique, that anyone can use, to wipe out debt in record time.
To get started put away the credit cards; borrowing is no longer an option. Even when you know you deserve something, you can't have it until you can afford to pay cash for it.
Your mantra from now on is going to be "NO NEW DEBT".
It's a head game, one you need to win. A daily affirmation helps to program your mind for success; post this on your bathroom mirror or the fridge door: "By living the Cheapskates way we will have the cash necessary to pay off our debts in ___ months instead of ___. The $______ we save in interest will be put into savings so we will always have enough to pay the rent and weather any lean periods in the future."
How It Works
1. List all your debts - credit cards, mortgage, car loan, personal loans, HECS, school fees, outstanding accounts, money owed to parents, doctors bills, etc.
2. Work out which debt has the shortest time left before it is cleared - the debt with the smallest amount owning. Then which has the next shortest time left, etc. until you've worked your way through them all.
3. Order them from 1 - 10 (or however many there are) in order of smallest balance to largest balance left to clear the debt. You can use an exercise book to set up your records, or you can use a spreadsheet on your computer (Excel is easy to set up for this system) or you can download the free Payment Push planning sheet to use.
4. Calculate the minimum payment required on each debt for this month. This is going to be the amount you pay every month from now on - ignore the minimum amount on the statements.
5. Now you are going to pay that minimum on all the debts every month until the first debt is cleared. All extra, available cash is used to pay down the debt with the smallest balance first. That includes raises, bonuses, belt-tightening and that $20 note that unexpectedly popped up. Push hard at the this debt.
6.When the first debt is paid off, use the cash that is freed up to pay down the next debt on the list. The next month you are going to apply the amount you were paying on the now cleared first debt to the minimum payment of the second debt. Continue to pay the minimum amount you calculated on the other debts every month.
7. When debt number two is cleared, you will apply the minimum payments from debt one and the newly cleared debt two onto the minimum payment of debt three until it is cleared. And so on through your list.
Be on the lookout for new ways to cut costs and bring in more money. The sooner a debt gets paid off, the sooner you can push hard at the next one on the list. Keep on going until you are debt free.
• What's Next?
When all the debts have been cleared, you can apply the total amount you were spending on debt repayments to building your Emergency Fund. Do this every month and watch your bank balance grow!
When your Emergency Fund is fully-funded (at least six months of complete living expenses) apply the money to your mortgage and watch it disappear.
As you pay off each credit card, cancel it. Don't just cut it up, but actually close the account. You'll need to contact the credit card company and they will try to convince you to keep it, they may even pull out the "for emergencies" ploy - ignore them. Be sure to cancel your credit cards properly by informing your bank because if you just cut it up and don't tell your bank you may still need to pay fees.
If you must keep a credit card, choose the cheapest - the one with the lowest interest rate and fees. And use it only for true emergencies.
Consider using a debt card for your online purchases instead of a credit card so that you are buying thing with money you already have. You'll own them immediately and it will be paid in full.
And you'll be off the debt cycle.
Lesson 35 Challenge: This week update your blog each day. The best time is of an evening, just before you go to bed, or first thing in the morning, before you start work for the day. It only takes a minute. Record one thing you did that day toward achieving your financial goals. It might be something as simple as choosing a cheaper brand than your regular one, or contacting an old friend who has connections in a field you'd like to explore, or even listing something for sale on eBay or Gumtree. This habit will instantly give your self-esteem and confidence a boost.
How did you go with last week's challenge? If you haven't done it, please do. It is more than a challenge, it is important for your family's well being and future security.
This week I'm going to teach you how to get out of debt, fast and once and for all. It's a simple program, one anyone can use to make a huge dent in their debt. And boy is that dent needed!
As of late 2025, Australians owed more than $43.57 billion (yes, billion!) dollars on credit cards alone. That doesn't include personal loans, mortgages or private loans. Approximately 50% of Australians are currently carrying credit card debt, an increase of 9% from 2024.The average credit card balance is $3,557 with the average interest rate being 18.61%pa.
Not much if you say it and pay it off quickly. But not so many do that. In fact most credit card holders carry debt from one month to the next, making just the minimum payment, because that's all they can afford, for years and years and years.
A word of advice: if you can't afford to pay cash for something, you can't afford it! Putting it on credit and paying it off will end up costing you up to three times the value of the item.
Lets do some sums!
If you have $4,700 in credit card debt and only make the minimum repayments, it will take 49 years to pay it off and cost you around $14,600 in interest. It's not called buying on the never never for nothing - and who's going to work that long anyway? Obviously the person with that debt!
But if you are able to pay off $250 each month, you'd pay off your debt in two years and save $13,700 in interest. That's a lot of money, at least two months worth of Emergency Fund, or a huge chunk of the mortgage, private school fees for a year, a fantastic family holiday, new carpet - there are so many things you could do with that $13,700 that would be much more fun that boosting your credit card company's profits.
How Can You Pay Down Debt Quickly? With a Payment Push!
The Payment Push is a simple technique, that anyone can use, to wipe out debt in record time.
To get started put away the credit cards; borrowing is no longer an option. Even when you know you deserve something, you can't have it until you can afford to pay cash for it.
Your mantra from now on is going to be "NO NEW DEBT".
It's a head game, one you need to win. A daily affirmation helps to program your mind for success; post this on your bathroom mirror or the fridge door: "By living the Cheapskates way we will have the cash necessary to pay off our debts in ___ months instead of ___. The $______ we save in interest will be put into savings so we will always have enough to pay the rent and weather any lean periods in the future."
How It Works
1. List all your debts - credit cards, mortgage, car loan, personal loans, HECS, school fees, outstanding accounts, money owed to parents, doctors bills, etc.
2. Work out which debt has the shortest time left before it is cleared - the debt with the smallest amount owning. Then which has the next shortest time left, etc. until you've worked your way through them all.
3. Order them from 1 - 10 (or however many there are) in order of smallest balance to largest balance left to clear the debt. You can use an exercise book to set up your records, or you can use a spreadsheet on your computer (Excel is easy to set up for this system) or you can download the free Payment Push planning sheet to use.
4. Calculate the minimum payment required on each debt for this month. This is going to be the amount you pay every month from now on - ignore the minimum amount on the statements.
5. Now you are going to pay that minimum on all the debts every month until the first debt is cleared. All extra, available cash is used to pay down the debt with the smallest balance first. That includes raises, bonuses, belt-tightening and that $20 note that unexpectedly popped up. Push hard at the this debt.
6.When the first debt is paid off, use the cash that is freed up to pay down the next debt on the list. The next month you are going to apply the amount you were paying on the now cleared first debt to the minimum payment of the second debt. Continue to pay the minimum amount you calculated on the other debts every month.
7. When debt number two is cleared, you will apply the minimum payments from debt one and the newly cleared debt two onto the minimum payment of debt three until it is cleared. And so on through your list.
Be on the lookout for new ways to cut costs and bring in more money. The sooner a debt gets paid off, the sooner you can push hard at the next one on the list. Keep on going until you are debt free.
• What's Next?
When all the debts have been cleared, you can apply the total amount you were spending on debt repayments to building your Emergency Fund. Do this every month and watch your bank balance grow!
When your Emergency Fund is fully-funded (at least six months of complete living expenses) apply the money to your mortgage and watch it disappear.
As you pay off each credit card, cancel it. Don't just cut it up, but actually close the account. You'll need to contact the credit card company and they will try to convince you to keep it, they may even pull out the "for emergencies" ploy - ignore them. Be sure to cancel your credit cards properly by informing your bank because if you just cut it up and don't tell your bank you may still need to pay fees.
If you must keep a credit card, choose the cheapest - the one with the lowest interest rate and fees. And use it only for true emergencies.
Consider using a debt card for your online purchases instead of a credit card so that you are buying thing with money you already have. You'll own them immediately and it will be paid in full.
And you'll be off the debt cycle.
Lesson 35 Challenge: This week update your blog each day. The best time is of an evening, just before you go to bed, or first thing in the morning, before you start work for the day. It only takes a minute. Record one thing you did that day toward achieving your financial goals. It might be something as simple as choosing a cheaper brand than your regular one, or contacting an old friend who has connections in a field you'd like to explore, or even listing something for sale on eBay or Gumtree. This habit will instantly give your self-esteem and confidence a boost.