[Music] all right Christopher's question is up next hey guys big fan I'm 24 years old how can I approach my 13k and credit card debt. I have roughly 30k in assets and I was thinking a ballast transfer to maximize zero interest for 21 months thoughts. So 13k in credit card debt what's the 30,000 that's what his assets are so I'm assuming like savings Investments that kind of thing. We don't know if they retirement I hope that's what it cuz for young people all times I I got $30,000 in assets and 12,000 that's a car oh that's true and you know Couple Grand is Home Furnishing like um so let's can we answer this question so it' be super super super valuable let's assume that the $30,000 Brian was in uh liquid assets okay right let's assume that you're meaning like it's probably in a retirement account retir accounts or something like that uh and then you

know I've got this $133,000 of credit card debt. What do I do? How do I approach this? And then I think the question like the blocking and tackling was should I do like a 0% balance transfer. What's the solution there? Here, no matter what our answer is here, we think that credit card interest is something that can be incredibly punitive. Like you think about a really good rate of return and how what that can do for your financial life, but then you think about credit card interest and how punitive it can be. That's why in the financial order of operations, we hold your thing up. That's why we put High interest. It just doesn't have the same thing. It's why we put it a step three. We want that to be something that you prioritize getting out of as quickly as you Poss quickly as you can. So even hearing that you have $30,000 in assets suggests to me that you've probably been saving, probably been building up. I would guess that means you've gotten a

little out of order of the Foo, and I think that reprioritizing and knocking out that $13,000 ought to be like priority number one. You agree with that Brian? Yeah, I think if you got $13,000 a credit card debt and you now woken up to realize hey, I've got to get through this, I think you almost even need to take a period where you just don't even use the credit cards. Yeah, that's a great point, just shut it down. And now we're in the process, how do we pay this off, and we'll come back and revisit the question of credit card use after this is completely extinguished, um, the debt. I mean those Balance transfers, I mean realize that you're kind of making a deal with a lone shark, is that you have to. Doesn't it's very similar to all the movie plots you've ever seen where people go and they get themselves out of bonds, um, by going to the Shady lending companies and others, um, it could work out great if you

create a plan. I would really put on my 3D glasses and that's remember that's where I want you to run three plans. Your dream, this is where I really hope things work. The down-to-Earth plan, this is where you know this is the reality of how things are going to play out where you maybe have some ups and downs in life financially. And then I want you to have the doo plan of what happens if all of a sudden you can't pay off that credit card after the 21 months or whatever you said that you could get the 0%. And then figure out if there is a path forward that let you and then make a promise to yourself because I that's one of the things I cover in millionaire mission is I made an access to cash disaster of a decision with a home equity line yours is credit card so it's different but it still is. I promised myself and even said some prayers that if I got myself out of this I would

never ever ever ever fall in this trap again. And then you just, you fight like, you know, heck, I'm about cussed. You fight as hard as you can to get yourself out of it, in that things. And you don't, you don't compromise. You actually have to go hard on it because that's the thing. Nobody who's successful that comes to see us as prospects ever shows up with credit card debt. I don't think we talk about that enough. And that's why when people ask us about bankruptcy as a tool and all these other debt restructuring questions, I'm like, I have no idea how any of that stuff works because the reality is that good financial mutants don't struggle with this type of debt. This is a trap that's put out there by our consumption society, and you've got to figure out how you get post this debt. And that's why I would go cold turkey on not using credit cards. Maybe you can use the 0% tool, but make sure you read all the fine print because

those things can also be gotcha. I did see him chatting with some people in our chat and just kind of saying like, ah, it's just, you know, I've been paying them off. I'm not really using the credit cards anymore, but that interest rate, it's just, I hate that interest rate. But I don't want him to, like, try to cut the corner off. Like, I don't know, like, just as a fellow Financial mutant lay person, it's like, well, yeah, that's kind of part of it. Like, just keep going. I just feel like you, I feel like in America, we've gotten way too Americans have gotten way too comfortable with debt. Like, if you had a broken leg today, how many things would you do before you address that broken leg? Like, nothing. Like, you're going to figure out, oh my goodness, my leg is broke. I have to do everything in my power to fix this today. And I feel like we don't do that same thing with credit card debt when, realistically, I mean, I'm talking about it's not a flesh.

wound how yeah how do I get rid of my gym membership. How do I stop eating out. How do I do this. How do I do this. How do I do this to get rid of this like very bad thing in my life. I mean I would cut with reckless abandon to get on the other side of it as quickly as possible because even thinking about stretching it out over 21 months I'm like I'd love for you to figure I don't know what your income is but man how lean can you live at 24 years old to get that stuff gone and not have it come back. I think that's how serious and severe it is and do the desperate. I mean I've there's seasons of life where I would encourage you go through your closet go through. I know this sounds so ridiculous but when you're when you're in this desperate phase take our 200 Monon challenge that I have in millionaire Mission um but I think about the fact of golf clubs workout cloth. I mean because you can by

way, there's a market on. Like, I don't know how many consumption traps that you've fallen into while you build up, built up this $113,000. But maybe you need to do all the crazy things of cleaning out and selling, and reselling some of these things to see can we turn the 13 into 10 from just what you already have. I mean, I know that sounds crazy, and that's what I'm not a latte effect type person. I mean, you guys know, I think that it's the big decisions that get most people with their housing and their cars. But when you're in this type of situation, Christopher, there is nothing off limits. This is where do a budget. I mean, I, and I mean, I mean, gut this budget down to the bare minimum so you know what you're actually supposed to spend. Compare that and track what you're actually spending, and then cut without Mercy.

How Do I Tackle $13,000 in Debt as a 20-Year-Old?

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