Here are Three Crucial Lessons That a Woman Learnt After Paying off Her Credit Card Debt

Apart from higher rent and cost of living, rising credit card debt is a major concern for Americans. As per data from the Federal Reserve Bank of New York, Americans have a credit card balance of $1.115 trillion as of 2024. Another study by Clever, suggests that 61% Americans have credit card debt with an average balance of $5,875. The only way to curb the mounting debt is the adoption of responsible financial habits. To help out with this, TikToker Fallon Moran (@fallonmoran) shared three key lessons she learned from paying off over $25,000 in credit card debt.

Lesson 1: How you talk about money matters

In the video which now has over 962,000 views, Moran explains that the way people talk about money impacts their financial situation. She says she paid off about $25,547 in credit card debt in 2023, but before that, she used to talk negatively about herself. 

She claims saying things like “I used to be so good with money but I don’t know what’s happened to me,” sent a signal to her brain that she wasn’t good with money. So, now, she only says that she is so good with money and she is going to achieve all her financial goals.

Lesson 2: Regular payments are the key

Touching on the subject of 0% interest options, Moran says that it is not an easy way out. She says while taking out a 0% option is great for reducing debt from high-interest cards, people are still in debt unless they pay the balance off. She says borrowers need to make payments towards the balance in 0% options or else they will end up in mounting debt. Moran adds that it is important to get rid of the balance on the 0% options in order to get more credit in the future. 

Lesson 3: Being debt-free isn’t necessarily being happy

Moran says that borrowers aren’t going to become magically happy just because they are debt-free. She says salary hikes, low debt, and higher net worth will not change much in people’s lives unless they do things that make themselves happy.

Viewers seemed to appreciate the advice and comments by users indicated that they have already started to act on the lessons shared by setting out on the right path. “I am so good with money and I’m going to pay off $30k this year, affirmed!” wrote one user @monfortestudio.

Even as some users also suggested that Moran’s advice has already worked for them, there were also a few who didn’t completely agree with her. One user, @rebfive wrote, “Disagree on the last point. Knowing debt is not weighing me down does make me happier. Now I can save and have security.”

While Moran’s advice seemed to be fruitful to borrowers who are already in debt, even new credit card users noted her tips to avoid accumulating debt. “That's wild. just got my first credit card last year and I won't go over $300 without paying off the balance first I'm not trynna do no debt,” wrote user @lionelgutz.

For more such financial and business tips, follow Fallon Moran (@fallonmoran) on TikTok.