How to Pay off Credit Card Debt Fast (I Wish I Knew This)

Рет қаралды 31,749

Күн бұрын

Пікірлер: 56

@TangerineTravels 2 ай бұрын

This sounds great in theory and I had the same idea in the past. However I’ve been in this position and because of my balances I was struggling to get approved for a balance transfer card. And when I finally did get approved it was only with a $4,000 limit so it didn’t help much. That was despite having a top 25% income. And although it saved me interest, it temporarily hurt my score because I maxed out the balance transfer card to save the most interest possible. I maxed it out knowing that it would temporarily hurt my score but it was the fastest way to get my debt paid off. I think the idea that you’re going to get a $15,000 limit when you’re already carrying a bunch of credit card debt is unrealistic.

@1234greengrapeyum 2 ай бұрын

Just went through this exact thing!

@JokoOG3 11 күн бұрын

Going through the same thing as well. I've had an "excellent" credit rating from the big three for well over a decade. Had to rack up a card sky high this year due to an unplanned move from overseas back to the US (family matters). I don't want to put my numbers out there, but I was approved for a balance transfer card that is about 40% of what my debt is. It will help for sure, but I agree that the $15k approval is unrealistic for most of us who actually need to utilize what a balance transfer card is for.

@debbiey9452 Ай бұрын

I’m using zero percent cards to pay off my debt. I started with a balance of $9,745 in February 2024 and will make the final payment in time for my birthday in September (next month). After that, I should be credit card debt free in 5 months on my last card. 🙌🙌

@samuellefischer9596 26 күн бұрын

The only issue is that you have to have good credit to get approved for one. I applied to probably 30 0% APR cards and only got approved for one

@debbiey9452 25 күн бұрын

I don’t open new credit cards. I use the promotional offers on the cards I already have. I rotate between 3 cards I’ve had for years. We have debt from unexpected home repairs we had to do. I have good credit but refuse to open new accounts.

@the_dukester 3 ай бұрын

Ben, you really need to let go of referring to the covid stimulus money. The last payment happened in March 2021. That's over three years ago. That money is long gone. That money did not dry up recently. This is something you bring up in a lot of your videos.

@TheCreditShifu 3 ай бұрын

The stimulus money was not just those payments, there were many different programs, some were for companies, some for individuals.

@Richardgg94 3 ай бұрын

Thanks man really helped just paid off two cards got one big 13k left to attack

@Manihsi 2 ай бұрын

"With a utilization rate of 75-90%, you won't be approved for any credit card that allows balance transfers."

@Joce123 2 ай бұрын

When applying for zero % balance transfers in these tough times it is also required that you share the amount in your checking account balance because the underwriters want to make sure that you do not really need the money.. If you have credit card debt...pay a few dollars every few days before the minimum is due and then pay the rest due.. Double check because some companies will still charge you the original minimum due even know you've been making tiny payments.. I raised my credit score 8 points in 10 days.

@Joce123 2 ай бұрын

I pay as much as possible on my car loan because if I get that down by quite a bit. I can always refinance that and even though I'm paying interest on it getting a monthly payment down to improve my cash flow sometimes is the right thing to do.

@garygretarsson 2 ай бұрын

If that was someone’s actual credit situation, they would not be approved for a balance transfer card lol no way, definitely not Bank of America. They would have to spend at least 3-6 months using one of the pay down methods first, and then waiting for the cards to report updated balances and then apply for one, get some balances moved, wait for everything to update, and try for another one. You can’t just get a balance transfer card when your utilization is that high lol this is not reality.

@TheMoneyMakingMentor 24 күн бұрын

I think the snowball method better. You can basically pay off 2 cards instead of 1 card in the same time period. Then you are only looking at 3 cards to work on.

@RomanVarl 3 ай бұрын

Thank you for basic Excel tutorial Ben )

@dandawson8128 3 ай бұрын

Ben, seriously? How could you EVER pay interest with features like auto pay? You’re too senior to make a rookie mistake (even if just $11). lol.

@TheCreditShifu 3 ай бұрын

Yeah I don’t know how that happened. Although i only do auto pay for minimum balances since my income is very sporadic, i get multiple payments throughout the month. So maybe i forgot one month, getting old

@meej6452 3 ай бұрын

No one else on KZbin has helped more people get out of debt than Dave Ramsey, me included. Though he’d be upset since I still have a CC. Lol

@jwil4286 3 ай бұрын

He’s good if you’re in shit-hit-the-fan levels of debt, but if you’re in anything else, you’re fine.

@TheCreditShifu 3 ай бұрын

I agree with this, Dave Ramsey is like break glass, hit the red button level of financial emergancy

@digitalali6550 2 ай бұрын

one of my friend uses credit card..but hes been working since 1986 but now he has only £20 bank balance.......he earns £450 a week..

@blueazul4O1 3 ай бұрын

Credit utilization isn’t figured out individually, it’s based on all utilization, so any percentage you pay down is a win, no matter which card

@mburke364 3 ай бұрын

This is incorrect. Both overall utilization and individual account utilization impact score and underwriting. If you have overall utilization at 10% but one account is maxxed out, that will result in a lower score than if you have overall utilization at 10% but no individual account over 10%.

@TheCreditShifu 3 ай бұрын

We have tested it, maxing our one card at about 96% utilization dropped my score 60 points, even though overall utilization was still around 10%

@blueazul4O1 3 ай бұрын

I heard you say that immediately after submitting my comment 🤦🏾‍♂️

@TheCreditShifu 3 ай бұрын

@@blueazul4O1 more comments, good for the algorithm, so thanks

@blueazul4O1 3 ай бұрын

@@TheCreditShifu your welcome

@Joce123 22 күн бұрын

I did a $9500 balance transfer at 0% interest and a high utilization card.

@goodluck-mx4qr 2 ай бұрын

I asked why I was paying 29% interest and the rich only pay 2%, and he said because you are deemed high risk, so I said what are you doing here then, you should be patting yourself on the back for being correct, imagine if they took you to court, and you ask the judge to ask them why the interest was so high, then ask the judge why did they lend me the money then if they thought I would not pay it back is that not the height of stupidity, maybe because they felt they could use you like a whore to their bidding your honour, that's what it looks like to me, you will be surprised how many Judges find in your favour.

@greentechgiraffe 3 ай бұрын

Another technique is to use a debt consolidation loan like Sofi where the interest is significantly lower... then you have longer time but not a 0% interest rate of course. That BOA one does look pretty good, but im sure those months go by fast! Thanks for the video and good information!

@KittyKat-vb1nd 3 ай бұрын

Stay on a budget, live within means. Put wants before needs, stop buying to keep up or live a false illusion. This how the rest of the world does. Americans seem confused about this for baffling reasons.

@genovaz 3 ай бұрын

@KittyKat-vb1nd this is how you STAY out of debt, not how you GET out of debt. Living in a debt cycle is not a unique American experience, it's also not the majority american experience.

@mehdiabderrahmane2439 3 ай бұрын

Thanks for this new interesting video Ben! 👍🏼 Can i do a balance transfer from business credit card to a other business credit ? (I know it needs to be from two different banks). If yes it works also if it s a buisness credit from a other company that the business credit card from where i want to do the balance transfer ?

@traviselectricalservices4532 3 ай бұрын

What if i use 5% cash back cards on everything and then buy points when they are on sale. Would this strategy out earn the points strategy ?

@deemarietorregiante8059 3 ай бұрын

How about using a consolation company to pay off credit cards ?

@MoneyGreenNeen 3 ай бұрын

Don’t most 0% transfer offers have a clause where they will retroactively go back and charge you interest if it isn’t paid off by the end of the 0% period? That’s very important if so

@genovaz 3 ай бұрын

Most of the major banks balance transfer cards only charge interest moving forward after the period expires. I've never seen a retroactive provision when comparing cards. They do however have the right to cancel your 0% period if you miss a payment and are not obligated to restore it

@vickiemcintyre7902 3 ай бұрын

What is Notice of Adverse Action?

@rachelrodgers9171 2 ай бұрын

An adverse action notice is a written, electronic, or verbal disclosure that creditors must issue to consumers when their credit-based application is denied or when they face another negative credit-related action. The notice is used to communicate the reason for the denial. Negative credit-related actions could include being denied a credit card, not receiving the credit limit they requested, or having their application rejected altogether.

@jonbrooks2102 3 ай бұрын

Your comment on transferring within the same bank is false is some situations. Having a Chase checking account grants the option to transfer funds directly to your checking account which is a loophole to paying off another chase card.

@TheCreditShifu 3 ай бұрын

Hi, we are talking about balance transfers here, directly transferring a balance from one card to another. If you get a cash advance on one card and use that money to pay off your card via your checking account, you will pay interest on that cash advance immediately.

@jonbrooks2102 3 ай бұрын

@@TheCreditShifu I'm not referring to a cash advance as this is an option for chase checking accounts but may not be exclusive to chase. What I am referring to is a balance transfer check. Lately Chase has been sending a blue and green offer in the mail monthly. Be sure to look into it.

@TheCreditShifu 3 ай бұрын

Would you still be able to use that with another Chase card though?

@jonbrooks2102 3 ай бұрын

@@TheCreditShifu To answer your question yes. I have done this to consolidate debt that was on the Freedom Unlimited and 2 other cards to the Freedom Flex card and avoid the high interest charges. Once the money is transferred to your checking account you are able to use the money as you see fit. I currently see this option with my 3 Chase cards (Amazon Prime / Freedom flex / Freedom Unlimited) where up to $15k plus fees could be transferred to either a Chase checking account or via the traditional transfer balance method.