| Well, Welcome back!! | This marks our THIRD email together!!! I hope I haven’t bored you yet. Surprisingly, we started this newsletter with a waitlist of over 16,000 people and only 94 have unsubscribed, so that’s a good sign!!! 😂🤪 Let’s talk about debt and how to finally beat the hell out of it.
Question for ya: How often do you think credit cards charge us interest?
Weekly? Monthly? Every day? Well, my friend, I regret to inform you it is every single day… I know, I know. It sucks. But there’s a way to beat it and that’s what I’m gonna show you today.
Everyday you wake up from your beauty sleep and don’t realize that your credit card charged you interest that day. Now, because you got charged interest, you technically have more debt now. Tomorrow when you wake up from that beauty sleep again, you got hit with EVEN MORE interest. it’s a daily COMPOUNDING effect. This stuff is designed to keep us on the hamster wheel.
And you will forever be stuck on that “hamster wheel” if you continue to live by these 3 words…
Minimum Payments Only
Minimum payments are THE WORST thing you could possibly do 😩 These banks know how much they’re gonna end up charging us by the end of the month so they set that minimum payment as bait. They WANT you to take it. And every month you do it…
Let’s say you have $5,000 worth of credit card debt at a 25% APR. Let’s break down how much interest you really get hit with…
Daily: $3.42
Weekly: $24.03
Monthly: $104.16
Yearly: $1,250
When you see it like that, it’s pretty ridiculous. And the REALLY crazy part is… These numbers will change EVERY SINGLE DAY. Since your balance is going up by $3.42 everyday, your interest is increasing everyday. It’s just stupid…
So, wtf do I do??
You should try what I did with my student loans and make tiny payments scattered across the month. Those are called micro-payments
So, in the example above, you’re getting hit with $3.42 per DAY.
What if you paid even just $2? Sure, it’s not going to completely offset the interest, but it slows down the snowball effect.
You have to understand your balance is increasing DAILY cause of the daily interest. You ever wondered why your interest is basically JUST AS MUCH as your minimum payment? Yeah, that’s cause of daily compound interest.
I personally made tiny payments every OTHER day. I started by using engagement on my videos to determine my payment. But you can come up with whatever gamification tactic you want.
- Every time you say a cuss word: put $1 to the debt
- Every time your mom calls: $5 to the debt
- Every time you see my email: put $8 to the debt
Whatever the heck you wanna come up with , JUST DO IT | | What would Stack do?
Well obviously, micro-payments are the top priority, but Stack would also try to consolidate whatever debt he currently has. Personal loans are really helpful for that.
If you have multiple credit cards and they all have different interest rates, it can be a pain in the butt to knock all of those down at the same time. Consolidating could be a good idea!
Obviously not financial advice, but Stack and I have used personal loans before and have had good experience with Credible. (this is not some paid sponsor) It’s kinda like an Expedia for loans. You can check around and see what’s out there. I’m not sure what you’ll get, but it can definitely help. It won’t run your credit, so your good to just check around and see what COULD get 😊 | | Go be a Responsible Adult and have the best day ever! ❤️ | Mikey (& Stack 🦥) | www.responsibleadult.life |
|
