Hello, welcome. You’ve just arrived for the moment
in which I am about to spill some tea. Actually no, I really don’t want
to spill any tea because this is really great tea. Little-known fact about me
is that I went through a phase in my life
in which I had horrible credit-card debt. In all seriousness, I did go
through a period in my life in which I had to resort to using
credit cards for most of my expenses. This was a very, very
difficult time in my life. I accumulated something
over $30,000 in credit card debt which is pretty bad
considering interest rates. What sets me apart from anybody
who’s doing other videos like this is that I never got a full-time job
in order to get out of this debt. I was building up my business at the time and I chose to focus on that completely. I was my full-time boss. Every job under
that in my business as well. On top of trying to get rid
of over 30,000 of credit card debt if you’re watching this video
because you are looking for advice in getting rid
of your own credit card debt hopefully this video will help you out. But I do want
to make a disclaimer that I am not a financial adviser
nor am I an accountant or anything like that. Don’t go broke, OK? Go whoa. That being said, the first one
is going to be a little bit obvious. But stick around
to the end of this video because I am going to be dropping
a tip that most people don’t do. Here’s the obvious one.
Organize your finances. Spreadsheets are your BFF. I cannot live without spreadsheets and I have a spreadsheet
for every dollar that comes in and every dollar that goes out. So, I am tracking all of my income
and my expenses. This is something that you will
just have to get into the habit of doing or hire someone to help you with that. Organizing your finances means
tracking every dollar that you spend. See where your money is going. I also have another spreadsheet
that is just for my credit cards. So, I have a list
of all of my credit cards, how much interest
I am paying on each credit card what my credit limit is,
what my balance is and when the due date is
for those payments and how much I am paying
every month towards that balance. Here’s a quick example
of what my spreadsheet looks like if you want take a screenshot
so that you can make your own. If you’re interested in just downloading
a blank template or something like that then let me know in the comments below and I’ll make one up real quick
for you guys to download from my website and I’ll put it in the description. If enough people ask for that
then it will appear there magically. Now that you are tracking your income
and your expenses and you know where
all of your dollar bills are going, assess what you are
spending money on and see what you can afford
to cut out of your life. So, I made the decision early
on to not live that cup of noodle life. Instead of acting like I couldn’t
afford these things anymore and I had to cut them out of my life, I went a different route
and decided to treat them like rewards. It gave me motivation
to keep income coming in and instead of thinking
I can’t afford these things I kept thinking, how am I going
to keep affording these things? I would continuously try
to keep those things in my life. Most people choose
the cup of noodle life and decided to cut
every single expense from their life. Now, depending
on how much debt you have and kind of how well
you manage your money, this might be the route
that you want to take. I trusted myself and I knew
that I was fairly good with my finances. And you know what?
I didn’t choose the Netflix life, the Netflix life chose me. Because I decided
to continue living my life while I was paying off my debt, it did take me a little bit longer
to pay off those balances, but I decided to make that sacrifice
because figured Yolo, I don’t know
where I’m gonna be tomorrow. We’ve got two ways
to pay off credit card debt, two methods are the avalanche
and the snowball method. Avalanche method is
paying off credit cards that have the highest interest rates first. And snowball is the ones
that have the lowest balances first. I did both of these methods. I started off
with the snowball method. Essentially, I was paying
minimum payment on all of my cards except the one card
that had the lowest balance that I owed. And once that was paid off,
I would move that payment over to the next one on the list. Eventually, when I got about halfway
through the list of my cards I switched over
to the avalanche method. I started to learn more
about my credit card debt and exactly how credit cards work, and I realized
that I was paying so much money on interest rates alone. Basically my minimum
payment was covering interest rates and not the actual purchases
that I made. If you decide to do the Avalanche
or the snowball and you only do want
to do one method, then that’s totally fine,
both of these methods work if you just keep doing them
until the debt is paid off. It really doesn’t matter
which of the two you choose. I suggest just analyzing your credit cards and seeing if you have really,
really high interest rate credit cards and just see how much interest you’re actually paying
every month towards those cards and see
what is the smartest route according to your own circumstances. The one thing that you can do to pay off
any kind of credit card debt while you are working for yourself
or doing freelance work where your income fluctuates
from month to month, is to educate yourself. Do the research. There are so many
free resources available online that teach you
about credit cards how they work,
how interest rates work and how you can best use them
towards your advantage. Some of the things
that you might want to look up for your own credit cards is,
do you currently pay a fee to have that credit card? Are your interest rates
astronomically high? I’m talking about higher
than the average credit card. If you have a lot
of credit card debt, would it be better for you to get
another credit card in order to transfer your balance over and consolidate your credit card debt. If you guys have any more questions
about this specific tip then let me know in the comments below. And if it’s something that I have experienced and can talk about then maybe I can make
some more videos to answer your questions. And just as a little reminder
in case you forgot, I am not a financial adviser
and I’m not an accountant. I am not someone
who is professionally licensed to give any kind of financial advice. So, please don’t go broke
if you listen to me. I’m trying to let you guys know
what I have been through so that hopefully you do not go
through the same or can get out of whatever pickle
you are currently in. By the way, before I drop this last tip. If you have enjoyed this video then I want to remind you
to give it a thumbs up so that you can let me know. And if you want to see
more from this face then hit the subscribe button. And don’t forget
to hit the little notification bell because that’s gonna let you know
whenever I upload a new video. Lastly, here is the last tip
that I find that most people don’t do. It is incredible
how many of my friends have told me, “What? You can do that?” And that is
to call up your credit card and ask them
if they have any promotions or can lower your interest rate. Yeah. Guess what?
You can call your credit cards and ask them for this. Call them all of the time. These credit cards
run promotions constantly, and they will not tell you. Most of the time you won’t even
know that a promotion is going on unless you call them and find out. Some of the things that you can
accomplish from this phone call is getting your interest rate lowered. Sometimes you can get
your interest rate lowered, especially if you’ve been
with a specific credit card for a certain period of time. Now, something else
that might happen is, they might have a promotion
for you to do a balance transfer for 0%. If you can get that
kind of promotion and you have enough credit limit
to transfer over a significant amount
of balance from another credit card, you are able
to transfer that balance over and not pay any interest rates
on that balance for the duration of that specific promotion which generally is about a year,
is what I have found, but that changes
from promotion to promotion, sometimes it’s just six months, etc, etc. This kind of thing
helped me so much in lowering my credit card debt. I was calling my credit cards
all of the time. And the best part about this
is that it can’t hurt you at all to call. The only thing bad
that can happen is if they tell you, “Sorry, we don’t have any
promotions available for you at this time.” you’ve got nothing
to lose and everything to gain. Call then. Hopefully you guys enjoyed
that little tea that I just spilled for you. I really wanted to make this video
for a really long time, it’s something real people experience,
credit card debt. Since I know that so many of you
are entrepreneurs or business owners or creatives, this kind of thing can get a little bit overwhelming and really frustrating, especially if you’re carrying
a credit card debt for a really long period of time and it’s a really, really big balance. I make videos like this because I want to help people
to avoid them from making the same mistakes I did or to maybe help them out
of a situation that I’ve found myself in. If I can help you get through this faster,
then we’re both winning here. And with that I am done
with this video. So, I will see you when I see you, bye! This video was made possible by my patrons
over at PATREON.COM/REDROMINA If you like what I do, become a patron
and be a part of the exploration.