00:00Okay, ladies, if you're thinking about getting a credit card, here's what you need to know.
00:04How about don't? How about don't? Maybe don't. Don't's an answer.
00:12Hi, my name is Megan. I work for a non-profit. I'm about $600 in debt. I make about $45
00:20,000 a year.
00:21I have a co-worker that is also $10,000 in debt, and she makes about $70,000 a year.
00:28Do you happen to know the rate that she's paying? I want to start with her.
00:32Yeah, I think it's about like 18.24%.
00:35Okay, that's high. So, first of all, I despise credit card debt.
00:43My saying or my belief is that if you can't buy it without taking on credit card debt, you can't
00:50buy it, and you shouldn't buy it.
00:51And in terms of the 18.25%, 24%, do the math, just the interest payments for that are going to
01:00cost her $1,824 a year.
01:04Here's the way to think about it. It is 27 massages a year.
01:10Wow.
01:11Right? It is a round-trip ticket to Copenhagen.
01:14Oh, my goodness.
01:15And she needs to work two weeks a year at her salary, her $70,000 salary, two weeks a year
01:23just to pay the credit card company for the interest.
01:26What I advise for her or for you is, firstly, see if you can transfer that balance to 0%
01:34interest credit card.
01:35There are any number of credit cards out there where you can transfer that whole amount of money and go
01:40from paying 18.24% to 0%.
01:42All of a sudden, you get to take that money that you're paying in interest rates and start to repay
01:47the debt.
01:48Another thing to do is pay off every penny possible that you can to get the credit card debt down.
01:55So, you know, if it means not going out to a nice dinner, it means not going out to a
01:59nice dinner.
02:00If it means moving to a smaller apartment, it means moving to a smaller apartment.
02:04And it means getting a raise and taking all of that raise and putting it to pay down that credit
02:09card debt.
02:10If you feel like you need to get a credit card for some reason, you've got to pay the whole
02:16thing off.
02:17I pay it off every month.
02:18You've got to tighten your belt, and it's not comfortable, but sometimes you can't have everything.
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