How To Pay Off $40,000 of Credit Card Debt FAST | aja dang
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- เผยแพร่เมื่อ 20 มิ.ย. 2024
- Today, we are helping three people pay off their credit card debt! In episode three of our credit card series, I'm breaking down three different ways to pay off your debt.
When you're in credit card debt, it can be very overwhelming to figure out a pay off plan, so I'm breaking things down step-by-step to show you how fast and easy debt pay off can be.
In example three - I quickly breakdown the basics of the debt snowball method. If I'm going too fast for you to follow, please watch one of my older videos for a better breakdown (linked below)
I'm so excited for those of you who submitted your debt for me to work on. Hopefully this video is giving you a clear path towards becoming debt free!
• TIME CODES •
2:00 - how to stay out of credit card debt
2:42 - how to use your credit card properly
4:08 - other videos to watch:
Snowball vs Avalanche: • How To Pay Off Debt | ...
How I paid off $120,000 of debt: • The Methods I Use To P...
How to budget: • How To Make A Budget |...
How to make a debt-free flow chart: • How To Make A Debt Fre...
5:09 - how to pay off $25,000 in 7 months
9:26 - how to pay off $3500 in 3 months
12:55 - how to pay off $12,000 in 15 months
• VIDEO MENTIONS •
INTEREST CALCULATORS: bit.ly/45DjG3m or bit.ly/4bgBhzc
Budget planner: mstrpln.co/
BILT - the credit card for renters (more about this in ep 5): bit.ly/3x4AR0J
Credit card and HYSA recommendations (more about this in ep 4): bit.ly/3RdWIJU
GRAPHICS: Alyssa Raymundo: / littlesydneydesignstudio
•BUDGET PLANNERS•
mstrpln.co/
•STAY CONNECTED•
MSTRPLN: mstrpln.co
Website: www.ajadang.com
Instagram: ajadang
Twitter: ajadang
Tik Tok: ajadang
Paid off 20k of consumer debt earlier this year and it took a lot of work (over a year) and watching these videos even after being consumer debt free keeps me in check. I’ll never have the mindset to spend on things I cannot pay for ever again!! Love your vids, Aja!
congrats! That's such a huge accomplishment!
What helped me was to apply for another credit card with another cc company, then i transferred my credit card debt over to my new credit card giving me 18 months to pay off my debt interest free.
We have been debt free for several years now. It feels so great! My husband and I love when you paid off your student loans!
Watching you do the math and seeing the debt decrease felt like a win for me every time. This gave me so much hope 🙏
Yes! Debt pay off is definitely a long journey but when you have a plan, it's encouraging!
Love having these back! As a high debt to income ratio person it keeps me motivated to keep creeping towards that student debt free life! Thanks Aja!
I think the first thing anyone in cc debt should do is switch to a lower interest card, they can save hundreds just doing that and then pay off what is on it.
"Don't raise your voice, improve your argument." -Motivation
I also round up my numbers. That way you’re never short and you can transfer the change to savings if you want to
Thanks for coming back doing personal finance videos. Very palatable, just so easy to understand. You make it simple and fun. ❤
love the breakdowns of real budgets
yes! very grateful to those in the community who submitted their numbers
I've been doing the snowball method wrong this whole time. Thanks for clarifying!!! 😮
Oh no! How have you been doing it?
this is a great video and the explanation is easy to follow 👍 and i think, the example with 5 CC will finish off much earlier in reality because since they continue paying the minimum amount so the amounts written at the start of computation also became less each month. thank you for this.
I paid off $40,000 worth of student loans in 18 months as a server.
No wonder i was going no where with snowball method 😂
Ok, watching you plan it out and work through the debt, really made using the snowball method clearer. I have not been doing it correctly, hence why I am not seeing much progress. It was like a light bulb went off and it suddenly makes more sense! I have reassessed and created a plan just like the ones demonstrated. I feel like it's going to work, thanks Aja!!!
Omg, yay! I’m so happy. Were you not adding the paid off minimums towards your payment amount?
@@AjaDang Not only was I not adding the paid off minimums towards the next payment amount, but I was using the extra cash from the paid off amount towards paying off other debt. I was paying extra towards ALL (4) credit cards each month. I now see how it works when you focus on one card at a time.
@@carolslavens5565 aaahhh!!! Hopefully now you’ll start seeing progress in your debt pay off. Keep us updated
Well the problem is that I’m like 13k in debt and I only make $40k a year. I haven’t spent on the cards in months bc I cut myself off. I’ve never been late on my payments but I can barely afford them. I’ve done balance transfers on all my cards so I’m actually not paying an interest. After the promotional period of no interest ends I just do another balance transfer so I still continue to not have interest. I’m doing the snowball method and I have paid off a couple cards but it’s slow going since I make such little money. I’m also torn on whether or not to save an emergency fund or pay my credit cards. I can’t really do both at the same time. I only have $1200 emergency fund but I know that’s not enough.
I think $1200 is enough for a mini emergency fund but if you'd like to add a few more hundred to that to make it an even $2000, I think that's fair. Once you pay off your debt you can increase that to a fully funded emergency fund. The good news is, you are no longer using your credit cards so you're not adding to your balance, which is great!
I’m saying this in a supportive way: If you’ve never asked for a raise or promotion, now is the time. I know it can be scary, but it can really help. Or a side hustle. Or a different company that pays better. Again, I know it’s not easy/can be scary, but I asked and got them after years of hard work. First woman in my family to ever ask. Wishing you the best ✨
@@jackie41083 I get an annual raise next month. Unfortunately it’s only like 3% which is like 50-70 cents. I’ve had my job for 16 years as of next month. And I’ve only had 5 call-ins in all that time! I’m very loyal. I started making $7.25 when I was hired there as a teenager and now I make $18 plus bonuses so I made 40k last year. I get yearly raises plus I got a raise for becoming assistant manager and a few cost of living raises several years ago but it’s still not enough. I brought up another raise a couple months ago but was told by my manager that his hands are tied and that his boss won’t let him give any raises except annual raises which like I said are insignificant. And they are supposed to be capped at 4%. So idk what to do. This is the only job I’ve ever had and I don’t have a college degree or anything. And I only have experience doing this one thing (I’m assistant dietary manger at a nursing home). I’d like to get into something new but I’m not qualified for most jobs and the ones I’m qualified for pay less than what I make now. And I don’t want to get student loans to go to school so I’m kind of stuck. I will try to negotiate a higher raise when I get my annual next month. I’d like to at least make $20. 🙄 it’s crazy to me that I make so little after being there so long but they don’t see it that way. They told me they don’t really care about seniority.
I’ve been in a non-stop loop of debt. My rent and the earning of minimum wage is ruining my liv’lihood. Entry-level establishments and their employee/work policies are bias towards an outlier outlook on a successful future.😊
Are they ruining your livelihood or are you intent on living beyond your means? Add up your debt, your expenses, and figure out what you can do without for 6 months. Get a roommate, increase your skills to get a higher paying job, and attack your debt. Get out of the loop and you’ll be able to get back to living without a roommate or whatever else you feel you need.
"Too many of us are not living our dreams because we are living our fears." -Les Brown
Great video Aja! Yeah the interest rate can vary within ONE credit card depending on how you used it. A cash advance interest % on your credit card vs balance transfer interest % on that same card. Sigh. It varies. I just paid off my second to last card. Now attacking my last credit card 😕 Yeah, I understand about not discussing the points/rewards systems first because that's how some of us got into credit cards in the first place. Good luck to everyone out there. YOU GOT THIS!
congrats on attacking your last card!
Hi AJA! Thank you for doing this series - I wish there would have been something like this when I first started my credit card / financial journey in my early teens. My question is: I typically use my debit card to pay for everything, while keeping a low balance on my CC's (less than $5k) - should I be using my CC more then my debit card, and then using my debit card to pay off my CC balance each month? I feel like I'm not taking advantage of points on most of my CC's.
if you're comfortable using a credit card, that is what I would recommend. Put everything on your credit card and pay it off in full every month with your checking account. I put everything on my cards and pay it throughout the month to make sure CC balance stays low
I think the thing that kills so many people is rent. Some people pay $800 / month vs someone like me in nyc and i pay almost 3 times. Urgh Living alone is rough haha
yes totally. Housing will be most of our largest expense.
We moved to a state where housing was more affordable and we were able to buy a house
Ya I pay $1,600 in Anchorage, AK
I think that the snowball method is a great method and I am currently working on my. I appreciate your explanation. But I don’t think the minimum balance should be added to the other minimum the first month because it was applied to pay off the other card. Eek!! They would be short in their budget if they did it. At the beginning of the month if that minimum balance has been applied to a card already it should not be applied to another card in that some month. Unfortunately the math isn’t correct but the application- the math is so stinking helpful. Thanks for the encouragement and for the examples.
Idea: A video on STUDENT LOAN DEBT would be super great! Could have a guest who is currently suffering from student loan debt or use numbers from someone as an example.
I can definitely do that!
I went back and reviewed my planning after watching this video and one thing I noticed is that when moving focus to a new card, there isn't an adjustment for all the minimum payments which have been made on that card previously. In the last example, you calculated month two for Citi with the full balance of $1419.67 instead of adjusting for the minimum payment that was made the previous month. Is there are reason those minimum payment aren't accounted for? Just something I'm stuck on because wouldn't that shorten some of these timelines for payoff? Maybe I missed when you talked about it, so lmk if that's the case! Thank you for the videooo :3
Balance transfer options to assist with interest payments????
In my experience if you explain to your CC Companies what you are trying to do, they will work with you as part of your success team....
Buy NVDA stock. Or if you did a couple years ago.
Sometimes credit cards are more secure than debit cards. It should be paid off asap that’s the key!
Once you go to collections, do you save up for the $1k emergency fund first and then go back and start paying off the collections?
i would recommend having a small emergency fund before tackling any debt. The last thing you need is a small emergency, putting you more into debt. Better to be safe and have a small emergency fund while tackling your debt.
What’s your opinion on velocity banking?
It works great if you know what you are doing with it and have discipline to keep expenses in check
My problem is I pay my cards down then I take a vacation because why work so hard and don’t take a vacation every year. It’s more to life than working and paying bills
Nothing wrong with enjoying life but maybe start saving up for your vacations in advance so you’re not going into debt for a vacation. I do this all the time and it makes the trip way more enjoyable!
@ AjaDang… Thank you, I would never go anywhere if I saved up first, however, I’m going to skip a year of vacation to pay my debt down 🥲
Take a vacation every year??
Yeah sure if you want to pay the debt you can't vacation every single year!
She is pretty
Lol.
Hey Aja Dang , very good video . I can do better editing in your videos which can help you to get more engagement in your videos . Pls lmk what do you think ?
Not to take any? (debt) 😂
glad to hear you don't have any debt but that's not the reality for most people.
@@AjaDang for most people in the USA.
40k? Huge red flag
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I just looked up her name online. she is licensed with credible certificates and has an amazing track record. Thank you for the message.
Please can someone tell me more?
Watching this with $10k in card debt. Thank you, Aja. I feel like I’m drowning 🥹