@@thatoneguy4646 No leverage. Debt free and I have everything I need or want. I worked hard when I was young. Now I just relax and play, retired at 40. Trying to be wealthy is a trap, so I decided to be happy, instead.
If you use cash, you’re still operating on the basis of debt. A note is a debt and we all use fed reserve notes. You never actually bought anything. If you use gold, silver, etc then you are debt free.
@@Livvertical Peter Schiff is not going to notice you on this channel. If you held your breath while typing that, you are debt free. Otherwise, you owe the plants an apology.
I have been debt free for the last 1.5 years. It feels amazing! I never have to worry about if I have enough to pay my bills. I don't need to worry if I have enough money in my account for a purchase, because I KNOW I have enough. Less stress. It is sooooo worth getting out of debt. I will never have credit card debt ever again.
I'm out of debt 100% but use credit cards for every purchase for points and cash back. My own house I have created an apartment pays $950, detached apartment $400, detached garage with 2 apartments above pay $$2,400. My house is actually an asset, not a liability 🤷🏼♂️ love your channel. Thank you. People need to get out of their comfort zone
When you are out of debt you sleep better And your happier and healthier. The mental stress of being in debt robs you of enjoying daily life. God Bless you for teaching about keeping a budget and getting debt free quickly. There is a difference between needs and wants.
I used to do this and had almost an 800 credit score… problem now is that my income doesn’t even cover rent and groceries so all the other expenses are just piling up on credit cards. I don’t know how any single parents can keep a roof over their kids heads anymore.
Hello! Can you explain in deep how is that achievable? I don't understand how the debt will be paid? If I have x amount of debt and pay my utilities with that card, won't the amount I owe stay the same? I would be only paying my utilities debt.
Yes I agree with @berlizbatista4776. I don’t understand how you actually pay down your credit card. Could please make a video in explaining this please. I’m sure a lot of people will appreciate this. Thanks again
The only debt I had 3 years ago were my mortgage & about $2,000 of credit card. Once I paid off my credit card, a huge weight lifted off of me and I was able to focus on paying down my mortgage. Plus, I was able to focus on my business much more. Thank you Ninja. God bless.
some people say to not use any credit cards... the problem isn't the credit card. The problem is buying things out of your mean. The card doesn't swipe itself or tap itself. My only debt right now is my student loans which I had to take. No credit card debt but watching this to help my partner come up with a strategy. Love looking at finance videos for tips and suggestions! There's always thing to learn, even for me in my case who does not have any credit card debt. But paying off my student loans!
I started to work on this back in January, because I'd run up some balances for our wedding last fall. First off, I cancelled my Prime account. That really helps. To get to the point where I could start to stack silver, I transferred $3500 from my low interest cc using a 0% balance transfer. I'm paying that off $300/mo while paying off my cc in full every month, and buying silver with the rest.
Take your lowest balance loan and try to pay it off in one or two months while paying minimum payments on everything else. Then when that bill is paid off pick your next lowest balance loan and do the same until you have one big credit card bill and make them as big a payment as you can afford until it is paid off...
I have two paid off houses, no car payments, no credit card debt, zero debt...it feels effing awesome. The second house will be my retirement house and I'll sell the first house at some point. The second house is a vacation house that is in a curiously affordable vacation town 1.5 blocks from the water. Now that the vacation house it costs less per month than what I was paying to keep a camper at a campground that I could only use 6 months per year. Again, no debt feels GREAT!
I sure need this. Will have to watch again to fully understand. When you don’t have extra money to put towards a credit card because you have medical bills, it does get overwhelming.
We actually do buy most of our food at the beginning of the month bc Albertson's has a "Senior discount day" the first Wednesday of the month. We'll still pick up some items later, but the bulk of the shopping is that first Wednesday. The prices are still crazy, but we've adjusted our food shopping habits so we can take less of a hit.
Pay off the lowest balance then apply that amount you were paying on your 2nd lowest card again while making the payment on that card. You will be out of debt faster.working on it myself.
I created debt by helping others and then got stuck with it. I got through most of it by acquiring a second FT job. I did what I could but using your method, I’m sure I can get out faster. Cheers
Personally speaking..... Spiritual debt is very important to address right now. Though one might be physically rich, spiritual debt can be catastrophic....when the debt collector comes to collect. Agape !
I like it but aren't you paying it then charging it back up with the utilities and food your charging on it? Also how would this work if you have more than 1 credit card? I need help here lol I'm about to hit the bottom.
Everyone is saying how great this system is but I’m confused. You’re putting a chunk down on ur CC and then using it on ur bills? I need more clarity on how this gains ground better than just putting the money on the card & not racking it up again. I watched the video 3 times & still don’t understand what’s happening here.
You are correct, this adds more to the credit card. This strategy costs money. You are using the credit card to pay the other bills. That amount does not add up on the card. First, you move money to your credit card. At the same time, this move of money is paying the minimum payment for the credit card. Then you pay the other bills with the credit card. This is like putting a pause on paying your credit card balance. This means your credit card balance does not go down and the cost is the interest charge. If your being charged $200 in interest this would quickly spiral out of control. Now, this could be beneficial if you have 2 credit cards. One with a high interest charge and another one a small interest charge. You could save money by using this strategy on the low interest card and put the money to the high one. But I would run some calculations and compare to see if it would save.
I’m debt free & bought a Co-op this year. Credit score is excellent. It took some time to accomplish, but it’s done. Yes, it’s a good feeling to be debt free.
The ninja is right on. Discipline is the key to wealth. One thing i do is wait like a rabied dog for the new bikling cycle too extend my credit by the max 25 days interest free. Screw them at their bug game of getting their interest and fees
What I do is use multiple cards, and any long term balance on a card for a zero interest period. Yes, you pay 4 to 5% up front, but that is cheap when compared to 8% for a house. It is usually a 12 month loan and you can redo it then. Discover is a good one to use.
Would love to see a realistic set up. Disabled person, ss check of 900, chronically ill, no insurance, 600 of the 900 goes to keeping them alive. PLEASE tell me how its "so easy" for them to get off the cc merry go round.
Start with the Smallest balance for motivation to pay off the next. That's what I did, many years ago. Hard to stay motivated for as long as it usually takes. Debt is Slavery!
I live in Santa Barbara CA with my wife and my rent is 1440...... My wife's friend a real estate agent said to try to find a place to buy thats cheaper than my rent but I imagine even mobile homes cost more...... >.> I pay off all my credit cards in full twice a month. My food budget is probably higher than ninja's. My gas budget is probably closer to 400-500 a month too..... Gas too high!
I'm not trying to be a party pooper but have a sincere concern that credit is going to start tightening. I have known of this method and use it personally and I know others who use a HELOC the same way. My worry is that they'll start lowering credit limits and if that happens to the line of credit being used, you're screwed to pay those other debts. Any ideas to hedge against that?
I got out of debt in 2020 and didn’t really feel anything. If fact, I just turned around and got right back into it. I’m deeper in debt now than I was before. This time around my attitude and mental state is different.
I must be missing something. You are not paying off more than you are spending on your cc. It’s still only going down by the $400 of you original payment. Unless the interest for those extra days makes that much of a difference. But, cc’s put your payment towards your oldest purchase first
I thought it was just me, too. If the bills you're paying totals to the same amount you're putting on the cc, how is the debt going down. 🤦🏾♀️ What'd I miss🤷🏾♀️
You are correct, you’re not spending any more money on your bills. You are using the credit card to pay the bills. The money you would have used to pay the other bills is being used to pay the credit card bill. This is like putting a pause on paying your credit card balance. This means your credit card balance does not go down but up because of the interest charge. If you’re being charged $200 in interest this would quickly spiral out of control. Now, this could be beneficial if you have 2 credit cards. One with a high interest charge and another one a small interest charge. You could save money by using this strategy on the low interest card and put the money to the high one. But I would run some calculations and compare to see if it would save.
This method doesn't pay down credit cards if you don't pay down more principal than you add each month. So you would have to pay the $700 that you moved to credit cards plus at least enough to cover the interest balance on the remainder. It might take your total needed cash per month down to $900 instead of $1100, though.
Exactly what I was thinking, he should have made that more clear. I really don't understand how it helps pay OFF the card so maybe watching again might help. I'll have to look into this method more, but until then I'll stick to paying the minimum then add on $1k each month.
My understanding is you pay that $700 for the other bills, but then you also still put the $400 credit card payment on it. So you're paying the minimum already with money you put on it in the beginning. Then the $400 is for paying it down.
Paying the $700 (which is greater than the current min payment of $400 in this scenario) at the first of the month is ensuring no late payment penalties which the CC issuer will add to the principal making it harder to pay off. Also, the minimum fee is calculated on a daily average etc so some people can benefit by making multiple payments per month which can also impact what balances are reported to the 3 credit bureaus who are then gauging your credit score not only on whether you are paying on time but also your credit utilization
I do something like this. Credit cards give me so much freedom. I definitely have to work on a food budget though. My student loans were forgiven so now the only debt I have is about $800 which is from dental work and new brakes. I have an old line of credit from a credit union with 6% APR way better than my credit cards. I need to have that separate so I know my debt vs regular expenses. Im divorced and a mom living in Orlando so I need to stay on top of my expenses. I don’t want to be thrown into poverty ever.
I’m sorry I don’t understand, you’re paying double on your credit card bill with the money that you make that part I understand but then you’re putting more debt onto the credit card with those other two bills that are $100 each which you have to pay off the end of the month by the end of the month is that right so what’s the advantage?
@@kimberlylucas3310 if u hv high interest, and u pay other bills that allow you to use cc’s, you hv to pay those anyway but you took care of the minimum payment so now u can pay whatever u can afford towards that 400 cc. and the bill will slowly get paid off whereas if you don’t do that, you hv to pay interest on the monthly payment not getting much taken care of of that 400. lets say your minimum payment is 80 a month because of the added interest. but u can only really afford 50. that 700 you paid from the other bills took care of minimum payment takes care of of the interest that month and now u can pay 50 towards that 400 u owe on cc so you save 30 and your still slowly paying down your cc. it only works if u hv high cc payment due to high interest.
I would show your net income and total expenses. Misc is always a big one not listed. What about gasoline or diesel...which may be big. Just some points to add. I do admire you for doing this in the first place. Thanks
Awesome video,I have zero credit cards,or credit card debit.Would it be smart to get a credit card for gas,food or for an emergency.Ibhave two rental properties.
Unfortunately I fell under. Started a debt resolution plan and had to fall behind on everything then decided to leave the program cuz they were charging ridiculous fees to settle. Now im pretty effed and will have to settle myself or allow them to get charged off them try to see if any errors so it can fall off the bureaus. Ugh!
Im normally great understanding financial and debt topics.... but i didn't really understand this one. I understood how to use the card to help pay bills and timing to avoid building interest.... what I didn't pick up what how to attack already accumulated credit card debt while also keeping up with bills.....
No dept house Severn acre's chickens _ alpacas silver gold off grid no bills am I doing right? Love you ninja keep preaching the gospel ❤ ps lost my dream Spanish house in 2009 but I have studied economics ever since.thànk you ninja for all your help
The water bill cann be reduced by ....... Toilet.....if it's yellow let it mellow!. Flush once a day....shower......get a water reducing shower head.....set a timer and don't sing in shower! In and out in 4 mins. Dropped our monthly bill in half. The kids won't listen? Solution? Throw a suitcase in front of their door and tell them to comply or their moving! 😄
Ok so I’m in a pickle with mine so I have $18,500 on a card with a limit of $19,500 I’ve been struggling to pay it off My minimum payment is $467/mo My APR is 18% about ($292/mo) So in reality while I’m making the minimum payment $467 dollars only $175 is being put towards the overall balance. I get your strategy my question is why you wouldn’t remain stagnant If I’m going off your scale and I take the money I pay for my other bills say 500 with my credit card and then using the cash I have going to those bills to add to my credit card payments. Wouldn’t I still just be paying off the balance at the same rate. Sure I’d be putting $967 towards that debt but I’m still only really taking $467 off the top to pay for the monthly APR and balance while the 500 balance spent on my bills with the credit card is still getting paid off at the same rate? Or are you saying this is the way to avoid having APR added to the balance every month while you’re paying it off. Meaning instead of the $292 in interest being taken away from my minimum payment and $175 being towards the overall balance the entire $467 gets put towards the overall balance instead?
I guess I don't understand how this pays off your cc faster. You are adding $700 a month in new cc debt, and your minimum payment due increases as your balance increases. How does this work??
I'm pretty good with numbers and was thinking the same thing and to top it off people in comments saying things making me think it was me. Seems to me your credit card payment would be $1100 next month.
Im currently going through the discounted real estate crash course and this video is on the level of the paid content he puts out. So much value, thank you for helping us become financially sound.🙏🏼
The ninja is so educational. Debt is bad makes for sleepless nights right now. Making over the minimum but they put it at 29 % interest rate. CHA CHUNG.
The problem is that you are assuming people are getting a regular paycheck and can drop that amount of money on the credit card at one time. I work in the food service industry which is notoriously under paid and cannot count on putting a large amount toward my credit card in any one particular month. What advice do you have for people like me?
This is exactly what i started doing about a year ago! I still have a little ways to go, but i am gaining ground on my debt!❤
So do you take that $400 and use it for paying off the credit card? Then use it for other debt?
I'm confused.. I'm putting more debt on my credit card and taking the cash to pay my credit card?? Is that right??
New video on 'Easy Way To Pay Off Debt Fast': tth-cam.com/video/2ET4luYs29s/w-d-xo.html
Congratulations. I hope to be there soon
Update? How’d it go for you? Still in debt/ how long did it take you to pay it off?
Debt free for almost two decades. No credit cards. Life has been good and mostly stress free. Highly recommended!
So are you going to leverage debt to be wealthy?
@@thatoneguy4646 No leverage. Debt free and I have everything I need or want. I worked hard when I was young. Now I just relax and play, retired at 40. Trying to be wealthy is a trap, so I decided to be happy, instead.
If you use cash, you’re still operating on the basis of debt. A note is a debt and we all use fed reserve notes. You never actually bought anything. If you use gold, silver, etc then you are debt free.
@@Livvertical Peter Schiff is not going to notice you on this channel. If you held your breath while typing that, you are debt free. Otherwise, you owe the plants an apology.
New video of "Easy Way To Pay Off Debt Fast"
th-cam.com/video/2ET4luYs29s/w-d-xo.html
It's wild to me to hear people are in 20,000-30,000 credit debt. I'm $7,000 in and it feels virtually impossible to pay off
@@DS-po4xg same lol i feel your pain
Same. Personal loan not a credit card.😢
@@MotherOfThings I took out a personal loan to pay off my ccs and redo my mom’s flooring! Around 7000
This is called velocity banking and it works to help pay off debt quicker, relieves stress because you aren’t living pay check to pay check.😊
I have been debt free for the last 1.5 years. It feels amazing! I never have to worry about if I have enough to pay my bills. I don't need to worry if I have enough money in my account for a purchase, because I KNOW I have enough. Less stress. It is sooooo worth getting out of debt. I will never have credit card debt ever again.
New video of "Easy Way To Pay Off Debt Fast"
th-cam.com/video/2ET4luYs29s/w-d-xo.html
I'm out of debt 100% but use credit cards for every purchase for points and cash back. My own house I have created an apartment pays $950, detached apartment $400, detached garage with 2 apartments above pay $$2,400. My house is actually an asset, not a liability 🤷🏼♂️ love your channel. Thank you. People need to get out of their comfort zone
New video of "Easy Way To Pay Off Debt Fast"
th-cam.com/video/2ET4luYs29s/w-d-xo.html
This is my goal in life. 🙏🏾 Our condo is paid off but I want to turn it into an asset.
When you are out of debt you sleep better
And your happier and healthier. The mental stress of being in debt robs you of enjoying daily life. God Bless you for teaching about
keeping a budget and getting debt free quickly.
There is a difference between needs and wants.
New video of "Easy Way To Pay Off Debt Fast"
th-cam.com/video/2ET4luYs29s/w-d-xo.html
I used to do this and had almost an 800 credit score… problem now is that my income doesn’t even cover rent and groceries so all the other expenses are just piling up on credit cards. I don’t know how any single parents can keep a roof over their kids heads anymore.
I had good credit and bought a home in 2010. Got it for super cheap. Keeping low debt is the way to go
I’ve done this for years. Your the first one I’ve seen that explained it simple and fast. Good job. Was nice to watch.
New video of "Easy Way To Pay Off Debt Fast"
th-cam.com/video/2ET4luYs29s/w-d-xo.html
Hello! Can you explain in deep how is that achievable? I don't understand how the debt will be paid?
If I have x amount of debt and pay my utilities with that card, won't the amount I owe stay the same? I would be only paying my utilities debt.
Yes I agree with @berlizbatista4776. I don’t understand how you actually pay down your credit card. Could please make a video in explaining this please. I’m sure a lot of people will appreciate this. Thanks again
@berlizbatista4776 when you pay a larger amount than the monthly payment, it will lower the interest rate on that card
The only debt I had 3 years ago were my mortgage & about $2,000 of credit card.
Once I paid off my credit card, a huge weight lifted off of me and I was able to focus on paying down my mortgage. Plus, I was able to focus on my business much more.
Thank you Ninja. God bless.
Did you use this system? I have credit card debt too but I'm not seeing how this works.
🤨….A 2k credit debt made you feel that way. Well I couldn’t imagine what would happen to you if you had a 30k credit debt like me 😅
New video of "Easy Way To Pay Off Debt Fast"
th-cam.com/video/2ET4luYs29s/w-d-xo.html
some people say to not use any credit cards... the problem isn't the credit card. The problem is buying things out of your mean. The card doesn't swipe itself or tap itself. My only debt right now is my student loans which I had to take. No credit card debt but watching this to help my partner come up with a strategy. Love looking at finance videos for tips and suggestions! There's always thing to learn, even for me in my case who does not have any credit card debt. But paying off my student loans!
New video of "Easy Way To Pay Off Debt Fast"
th-cam.com/video/2ET4luYs29s/w-d-xo.html
@@bivianacoyomani515 You didn't have to take student loans. I worked two jobs and paid my way thru school. Maybe other people are buying food?
I started to work on this back in January, because I'd run up some balances for our wedding last fall. First off, I cancelled my Prime account. That really helps. To get to the point where I could start to stack silver, I transferred $3500 from my low interest cc using a 0% balance transfer. I'm paying that off $300/mo while paying off my cc in full every month, and buying silver with the rest.
Take your lowest balance loan and try to pay it off in one or two months while paying minimum payments on everything else. Then when that bill is paid off pick your next lowest balance loan and do the same until you have one big credit card bill and make them as big a payment as you can afford until it is paid off...
I have two paid off houses, no car payments, no credit card debt, zero debt...it feels effing awesome. The second house will be my retirement house and I'll sell the first house at some point. The second house is a vacation house that is in a curiously affordable vacation town 1.5 blocks from the water. Now that the vacation house it costs less per month than what I was paying to keep a camper at a campground that I could only use 6 months per year. Again, no debt feels GREAT!
paid off mortgage on Wednesday and i am crushing it. Debt free
I sure need this. Will have to watch again to fully understand. When you don’t have extra money to put towards a credit card because you have medical bills, it does get overwhelming.
This is velocity banking! A great strategy to get out of debt.
We actually do buy most of our food at the beginning of the month bc Albertson's has a "Senior discount day" the first Wednesday of the month. We'll still pick up some items later, but the bulk of the shopping is that first Wednesday. The prices are still crazy, but we've adjusted our food shopping habits so we can take less of a hit.
Thanks for this tip. I live near one & had no idea.
No debt is total freedom.
Pay off the lowest balance then apply that amount you were paying on your 2nd lowest card again while making the payment on that card. You will be out of debt faster.working on it myself.
I’m watching while working and will need to watch again. For the first time in my life I have about 5k of cc debt. Never again.
I have no credit card debt but I know folks who do. I have never thought of this idea. Fantastic!
Great Ninja!! THIS is what people need! Theory is great, but showing some 'mechanics' to get to real wealth is the step of which many do not get.
You can also use your points/cash back bonus to pay down the principal on your card. I do this quarterly! 😊
I don't quite get this yet but I'm going to try it. I'm desperate to get rid of cc payments. Thank you!
You feel free to take risks when you are out of debt - because you know it’s not going to hurt you if it doesn’t pan out as expected. Risks = rewards.
Oh my goodness yes!!! A house in our neighborhood sold for $50k through auction in 08. I wish I would have been ready for that!!!
I learned this technique not too long ago......good stuff Ninja thanks for caring enough to share such valuable info bud!
I created debt by helping others and then got stuck with it. I got through most of it by acquiring a second FT job.
I did what I could but using your method, I’m sure I can get out faster. Cheers
All my debt is from helping others too. I would not recommend helping anyone including family. I’m in debt they are fine.
@@slny1208 yes, learned my lesson. Had to work two jobs until I was exhausted and couldn’t anymore to try and get most of it down. 😩😔
Bless you Ninga. Bless your soul, your heart, and your family.
My favorite velocity banking channel is Vanntastic finances. Christie Vann is the best!
Personally speaking..... Spiritual debt is very important to address right now. Though one might be physically rich, spiritual debt can be catastrophic....when the debt collector comes to collect. Agape !
Yup!
VERY TRUE!!
Amen
What’s spiritual debt? Like if you’ve done people wrong and stuff ?
I like it but aren't you paying it then charging it back up with the utilities and food your charging on it? Also how would this work if you have more than 1 credit card? I need help here lol I'm about to hit the bottom.
Great information. Thank you so much. Trying to help my kids get out of debt.
Everyone is saying how great this system is but I’m confused. You’re putting a chunk down on ur CC and then using it on ur bills? I need more clarity on how this gains ground better than just putting the money on the card & not racking it up again. I watched the video 3 times & still don’t understand what’s happening here.
You are correct, this adds more to the credit card. This strategy costs money. You are using the credit card to pay the other bills. That amount does not add up on the card. First, you move money to your credit card. At the same time, this move of money is paying the minimum payment for the credit card. Then you pay the other bills with the credit card. This is like putting a pause on paying your credit card balance. This means your credit card balance does not go down and the cost is the interest charge. If your being charged $200 in interest this would quickly spiral out of control. Now, this could be beneficial if you have 2 credit cards. One with a high interest charge and another one a small interest charge. You could save money by using this strategy on the low interest card and put the money to the high one. But I would run some calculations and compare to see if it would save.
I think it’s to lower interest fast . Putting the money on your card day before it’s due
Amen!!! I sent this video to some friends who need to see this. I love this educational helpful video. Thank you.
Thank you Ninja!!
Would love to see more videos like this!!
We are personally debt free, but our business holds debt.
I’m debt free & bought a Co-op this year. Credit score is excellent. It took some time to accomplish, but it’s done. Yes, it’s a good feeling to be debt free.
Thank you! Straight, to the point and so helpful!
Im currently debt free. Woot!
Well done Ninja! Simple method but very effective
Being out of debt is amazing!!!
The ninja is right on. Discipline is the key to wealth. One thing i do is wait like a rabied dog for the new bikling cycle too extend my credit by the max 25 days interest free. Screw them at their bug game of getting their interest and fees
That's what I've been doing as well! I wait till the next billing cycle before using my credit card in order to extend my available funds!
No debt, no stress...cut up those stupid credit cards and live within your means.
Paul...did you steal from Peter to pay Paul🤣🤣🤣 I'm not serious! I totally agree with You👍🥰
What I do is use multiple cards, and any long term balance on a card for a zero interest period. Yes, you pay 4 to 5% up front, but that is cheap when compared to 8% for a house. It is usually a 12 month loan and you can redo it then. Discover is a good one to use.
Would love to see a realistic set up. Disabled person, ss check of 900, chronically ill, no insurance, 600 of the 900 goes to keeping them alive. PLEASE tell me how its "so easy" for them to get off the cc merry go round.
Can also use a personal line of credit for this and then u pay for everything this way and save a ton on interest
Start with the Smallest balance for motivation to pay off the next. That's what I did, many years ago.
Hard to stay motivated for as long as it usually takes.
Debt is Slavery!
Velocity banking. Nice lady on TH-cam shows you. Good info Ninja
Very good information I wish they would teach this in economics class in school it would help so many people that have not a clue.
I live in Santa Barbara CA with my wife and my rent is 1440......
My wife's friend a real estate agent said to try to find a place to buy thats cheaper than my rent but I imagine even mobile homes cost more...... >.>
I pay off all my credit cards in full twice a month. My food budget is probably higher than ninja's. My gas budget is probably closer to 400-500 a month too..... Gas too high!
This is helpful, simple and straight to the point! My next debt which will be only debt is from school and I am bracing myself for that.....
Debt free since February 2022!
I'm not trying to be a party pooper but have a sincere concern that credit is going to start tightening. I have known of this method and use it personally and I know others who use a HELOC the same way. My worry is that they'll start lowering credit limits and if that happens to the line of credit being used, you're screwed to pay those other debts. Any ideas to hedge against that?
I got out of debt in 2020 and didn’t really feel anything. If fact, I just turned around and got right back into it. I’m deeper in debt now than I was before. This time around my attitude and mental state is different.
For the better or worse?
@@vickihepper9473 for the better.
Im confused as to how this method decreases the credit card debt? Seems the amount wouldn’t decrease with this method
We pay off our credit card bill every month when we get the bill. Haven’t had a loan since 2010.
I must be missing something. You are not paying off more than you are spending on your cc. It’s still only going down by the $400 of you original payment. Unless the interest for those extra days makes that much of a difference. But, cc’s put your payment towards your oldest purchase first
I’m lost too. Watched it 3 x
@@Meli27w Me too!
I thought it was just me.
I thought it was just me, too. If the bills you're paying totals to the same amount you're putting on the cc, how is the debt going down. 🤦🏾♀️
What'd I miss🤷🏾♀️
You are correct, you’re not spending any more money on your bills. You are using the credit card to pay the bills. The money you would have used to pay the other bills is being used to pay the credit card bill. This is like putting a pause on paying your credit card balance. This means your credit card balance does not go down but up because of the interest charge. If you’re being charged $200 in interest this would quickly spiral out of control. Now, this could be beneficial if you have 2 credit cards. One with a high interest charge and another one a small interest charge. You could save money by using this strategy on the low interest card and put the money to the high one. But I would run some calculations and compare to see if it would save.
I really liked this format! Please do more like this!!
What is this strategy called?
I need your help any more tips on this topic?
Wonder should I take all my 0apr cc offers and buy gold. Then pay them off if gold goes up.
It frees your mind and less stress
Less debt, better sleep
What if we already have thousands on the credit card and then putting the food bill on it, won't it acrue more interest, I'm confused with it all
This method doesn't pay down credit cards if you don't pay down more principal than you add each month. So you would have to pay the $700 that you moved to credit cards plus at least enough to cover the interest balance on the remainder. It might take your total needed cash per month down to $900 instead of $1100, though.
Exactly what I was thinking, he should have made that more clear. I really don't understand how it helps pay OFF the card so maybe watching again might help. I'll have to look into this method more, but until then I'll stick to paying the minimum then add on $1k each month.
@@sarahm-a2782 I don’t get it either.
My understanding is you pay that $700 for the other bills, but then you also still put the $400 credit card payment on it. So you're paying the minimum already with money you put on it in the beginning. Then the $400 is for paying it down.
@@sarahm-a2782it’s called velocity banking, I believe.
Paying the $700 (which is greater than the current min payment of $400 in this scenario) at the first of the month is ensuring no late payment penalties which the CC issuer will add to the principal making it harder to pay off.
Also, the minimum fee is calculated on a daily average etc so some people can benefit by making multiple payments per month which can also impact what balances are reported to the 3 credit bureaus who are then gauging your credit score not only on whether you are paying on time but also your credit utilization
That was fantastic info. Thanks Ninja!!
God bless you Ninja!
Stay safe
I do something like this. Credit cards give me so much freedom. I definitely have to work on a food budget though. My student loans were forgiven so now the only debt I have is about $800 which is from dental work and new brakes. I have an old line of credit from a credit union with 6% APR way better than my credit cards. I need to have that separate so I know my debt vs regular expenses. Im divorced and a mom living in Orlando so I need to stay on top of my expenses. I don’t want to be thrown into poverty ever.
@@newfiemom8696 I worked in public service for 10 years and made payments for those 10 years.
@@newfiemom8696 Thanks Joe Biden.
I’m sorry I don’t understand, you’re paying double on your credit card bill with the money that you make that part I understand but then you’re putting more debt onto the credit card with those other two bills that are $100 each which you have to pay off the end of the month by the end of the month is that right so what’s the advantage?
@@kimberlylucas3310 if u hv high interest, and u pay other bills that allow you to use cc’s, you hv to pay those anyway but you took care of the minimum payment so now u can pay whatever u can afford towards that 400 cc. and the bill will slowly get paid off whereas if you don’t do that, you hv to pay interest on the monthly payment not getting much taken care of of that 400. lets say your minimum payment is 80 a month because of the added interest. but u can only really afford 50. that 700 you paid from the other bills took care of minimum payment takes care of of the interest that month and now u can pay 50 towards that 400 u owe on cc so you save 30 and your still slowly paying down your cc. it only works if u hv high cc payment due to high interest.
Awesome information!!! Thank you Economic Ninja
I would show your net income and total expenses. Misc is always a big one not listed. What about gasoline or diesel...which may be big. Just some points to add. I do admire you for doing this in the first place. Thanks
Research is one of the most needed tools, by no means the only.
AWESOME INFORMATION AND great thoughts. This all makes perfect sense. Blessings, Carlos ✝️🙏❤️😊🇺🇸
Awesome video,I have zero credit cards,or credit card debit.Would it be smart to get a credit card for gas,food or for an emergency.Ibhave two rental properties.
I do this method, except i use a cash budget for groceries.
Unfortunately I fell under. Started a debt resolution plan and had to fall behind on everything then decided to leave the program cuz they were charging ridiculous fees to settle. Now im pretty effed and will have to settle myself or allow them to get charged off them try to see if any errors so it can fall off the bureaus. Ugh!
Ninja, please do one of these to pay off home
Im normally great understanding financial and debt topics.... but i didn't really understand this one.
I understood how to use the card to help pay bills and timing to avoid building interest.... what I didn't pick up what how to attack already accumulated credit card debt while also keeping up with bills.....
No dept house Severn acre's chickens _ alpacas silver gold off grid no bills am I doing right? Love you ninja keep preaching the gospel ❤ ps lost my dream Spanish house in 2009 but I have studied economics ever since.thànk you ninja for all your help
The water bill cann be reduced by ....... Toilet.....if it's yellow let it mellow!. Flush once a day....shower......get a water reducing shower head.....set a timer and don't sing in shower! In and out in 4 mins. Dropped our monthly bill in half. The kids won't listen? Solution? Throw a suitcase in front of their door and tell them to comply or their moving! 😄
Does it ever jaw drop you when the realization hits as you see your path God had for you all along? Thank you for this video.!
Ok so I’m in a pickle with mine so I have $18,500 on a card with a limit of $19,500 I’ve been struggling to pay it off
My minimum payment is $467/mo
My APR is 18% about ($292/mo)
So in reality while I’m making the minimum payment $467 dollars only $175 is being put towards the overall balance.
I get your strategy my question is why you wouldn’t remain stagnant
If I’m going off your scale and I take the money I pay for my other bills say 500 with my credit card and then using the cash I have going to those bills to add to my credit card payments. Wouldn’t I still just be paying off the balance at the same rate. Sure I’d be putting $967 towards that debt but I’m still only really taking $467 off the top to pay for the monthly APR and balance while the 500 balance spent on my bills with the credit card is still getting paid off at the same rate?
Or are you saying this is the way to avoid having APR added to the balance every month while you’re paying it off. Meaning instead of the $292 in interest being taken away from my minimum payment and $175 being towards the overall balance the entire $467 gets put towards the overall balance instead?
Also called Velocity Banking
So e credit cards have great purchase protection and mine doubles the manufacturers warranty!
All you have to do,is cut back and pay more on them.
Or pay min per card,while u focus on 1..then another etc
What if you have more than one credit card with a balance? God Bless you!
When does the information start The into is long winded
Kinda ELOC ing your own money cool, thanks Ninja!
I noticed you didn’t apply a credit card balance to this example. I thought this was to help pay down a remaining balance…
I guess I don't understand how this pays off your cc faster. You are adding $700 a month in new cc debt, and your minimum payment due increases as your balance increases. How does this work??
I don’t get it either. Unless you are paying more than the monthly interest + new purchases, how will the balance ever go down?
Question? How does this method works for Multiple Credit Cards too embarrassed to say how many, do you start with one than the next?
Exactly... This is my question also. 🥺
Finally a relatable video, I ain’t buying no house
Good to hear, keep crushing it!
Do the same talk with all credit cards maxed out.....
So basically velocity banking
So how does increasing your credit card debt by charging your cell phone bill and internet bill to your credit card help you pay it down?
I'm pretty good with numbers and was thinking the same thing and to top it off people in comments saying things making me think it was me. Seems to me your credit card payment would be $1100 next month.
Im currently going through the discounted real estate crash course and this video is on the level of the paid content he puts out. So much value, thank you for helping us become financially sound.🙏🏼
The ninja is so educational. Debt is bad makes for sleepless nights right now. Making over the minimum but they put it at 29 % interest rate. CHA CHUNG.
New video of "Easy Way To Pay Off Debt Fast"
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Very informative , thanks for sharing.
The problem is that you are assuming people are getting a regular paycheck and can drop that amount of money on the credit card at one time. I work in the food service industry which is notoriously under paid and cannot count on putting a large amount toward my credit card in any one particular month. What advice do you have for people like me?