How I Paid Off $12k in Credit Card Debt in 6 Months

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Here’s the Video Transcript:

 

how does a single twenty six-year-old airman military individual incur roughly twelve thousand dollars in debt more specifically credit card debt especially someone who studies wisdom how does someone get caught up in the foolishness well it’s quite simple it’s quite simple it’s called wisdom must be applied not just know not just heard not just you know pursued it must be applied once you know it once you hear it you must apply it to your everyday life okay first things first first things first what is wisdom wisdom is the ability to predict an outcome wisdom is the ability to see afar off to see trouble approaching and to hide yourself fits of their bond reaction to an earthly problem it’s the correct way of responding in a gated situation wisdom ability to see difference to discern you know right from wrong to predict potential outcomes to predict every reward in a given context wisdom is the principal thing any problem you have in your life whether it be a relationship problem a financial problem in this case it’s a wisdom problem it’s a wisdom problem when it comes down to your decision-making and that’s how we arrived at you know I believe it was like eleven thousand three hundred and something dollar credit card debt and in a short amount of time mind you in a short amount of time I’m here to bare my soul to to the followers because you know a lot of people here my content and a lot of people you know assume or you know get the impression that I’m perfect or you know I don’t make any mistakes and that you know I’ve know all this information or you know I hear all this wisdom and I study all these different people and that you know my life is so regimented and not perfect in every single area the truth being nowhere near it nowhere near it I’m a student I’m a student meaning that I have to apply it to get the reward and so as I document you guys will notice that my rewards will soon be coming but they’re not all here yet in most of my life I’m in a place of growth I’m in a place of growth so that’s why I want to talk about today is how I grew out of that situation how I had to change my mindset and I was very blessed in the process because there are a lot of more difficult ways to go about rectifying said that I was blessed to receive you know the process that I received as far as getting out of credit card debt so when I got my credit cards in mouth because a friend advised me to get a credit card you know in terms of emergencies at the time I didn’t have emergency fund and so being the friend he was he was like brave you should have at least a credit card in case something goes down you need some type of funds laying you know laying aside and till you able to build up your emergency fund I’m a huge follower of Dave Ramsey you know Clark Howard Suzy Orman finance minds and so for person who follows them so religiously I still make mistake that still did what I wanted to do and that’s you know the plight of those who provide value and those who put out content is that you know your followers still may do what they want to do I’ve been a day because they’re still an adult and they still have ego and they still have you know the stimuli that they respond to you know quicker than wisdom and so I got the credit card in the mail and uh you know being the great you know servicemen and and loyal customer that I am to my bank which I will not name they provided your boy with a fifteen thousand dollar balance fifteen thousand dollars and you know my eyes got big and almost you know much you couldn’t I could buy with that you know me so I can take a look at you know how many hotel stays I can buy you know I’m how many bowls at Chipotle I can buy instantly you know my mind starts racing I have so many options right now I have so many options age has something to do with wisdom IH has nothing to do with wealth age has nothing to do with your success in life wisdom is based on your decisions which is based on your questions which is based on your goals a lot of people keep asking how do you know the right questions to ask you need to have a goal in mind when you know where you’re going if you set a destination that you know LA now you know the right question is asked as in how do I get to LA so set a goal which will you know lead you to questions which will lead you to the right decisions provided you’re seeking wisdom and you know mentorship in the form of you know learning from some else’s experiences because it’s very inefficient as you will learn in my story it’s very inefficient to learn via experience I had to learn we experience credit cards are not your friend you need very high levels of discipline in order to coexist with the credit card especially when you have portion control issues like myself no again I’m not perfect but I’m a learner I’m learner so as I get the credit card no slowly but surely and again when I got my credit card the first thing I did I went to Dave Ramsey’s YouTube channel and I just began to watch videos on credit cards and he hates them he hates credit he hates borrowing money he believes cash and you know saving and investing properly is key is key to financial success I knew all these things but I thought I could get over on the system I thought I could go to a casino and you know bet on read every single time and walk out with you know double my money well that’s not how it worked the house won this time the house won greatly so after watching a couple of videos you know I thought I had a great handle on you know the things to look out for with my credit card how I was gonna proceed with this credit card I was gonna buy just a couple couple things for my little homes to just go buy a couple camera things couple wimzie’s I’m gonna buy a couple trips to maybe Florida maybe I just just one or two balls that you’re polite and nothing crazy really I was gonna buy just a couple things and then I was gonna like you know put the credit card down leave it alone leave it at home don’t ever travel with it don’t buy nothing but don’t leave it on my Amazon account just leave it sitting there well that’s not what happened that’s not what happened because a couple months later you know you look at that thousand dollar sitting there all on your credit card pay it off it was cool I’ll put on payment plan so I can build my credit and then turns them to you know 1500 nice no that’s one check two thousand dollars three four and you’d be surprised how quickly just seems to ramp up am I gonna get into you know percentages and interest and all that there are plenty of gurus on that which I should not be the person talking to you about that I’m just telling my story about how I failed how I failed so definitely you know look up Dave Ramsey or you know Clark our Suze Orman one of those individuals or you know who else that there’s a thousand gurus on a given subject but I’m here to tell you how I felt so oh yeah the money seem to just be snowballing up it just seemed to be you know I swear last month I had like a thousand you know howhow is it five thousand now so quickly ah how did I spend that much money I don’t even have you know that many assets in terms of what do I have to show for this $5,000 how do you have the equipment that I was gonna buy with it I have more so you know Chipotle receipts and a Taco Bell receipts where all this money go I don’t have anything to show for it and so as time rode along you know it began to just grow and grow and so know I’m looking panicking in my mind you know I’m still going about my business still making my videos still want to work still functioning like a normal adult on the outside no no it’s still showing up to work as if I’m Superman I’m still making my videos I’m still putting out wisdom are still you know providing values to answering comments I’m still doing the best I can as a single individual but in my in my closet I have foolishness going on foolishness all right financially you know dead in the water I felt completely a my financial you know health until it panic you know you just in a way offs I was helpless because of military you know your salary is set unless you promote your money does not grow like there’s no way to increase your income you can’t just work more hours and get more money no you work 24 hours a day and you still get the same shape so I’m thinking on mine how in the world do I get out of this how do I get out of this I remind you I paid this credit card off in six months less than less than six months I was like you know five months honestly so I’m thinking myself how do I get out of this how do I bring myself back to zero because I can’t live on like this it’s only gonna grow if I pay the minimum payment you know consistently and we’re gonna bi-weekly it would be years years mind you years before I got out this credit card debt how would I survive how can I build a family how can I pursue a wife if I’m in this much who wants to tie themselves to a sinking ship so a couple months later I’m just at work no DOMA job City my – you know my not business listen to Spotify sipping coffee and I send a email to my chief you know just you know talking everything a little bit just expressing my dissatisfaction with my current job and you know I don’t want to be here and is there anything but you know about of it is there any wisdom advice you can give to me to help me you know get to the next chapter of my life as far as cross-training what not how can I get out of this in a way how can I survive give me some resources give me a person to talk to some mentorship how do I get to the next chapter as far as cross-training is concerned and you know I go speak to her and whatnot and she brings up no honor guard honor guard is basically where you know you do all the marching and you do you know you present the colors at formal events and whatnot funerals in and what have you and so she brings that up and it’s six months long so that’s a six month break from finance somewhat of course I’ll take it I’ll take it appreciate I love March oh I’ll take it and a lot people thing I have is still at face so you know that I’ll be good at it I’ll take it perfect and so you know I accept her offer and then I go back to my – no no it looks itíd you know something changing trying to create change in my own life because you know I wanna see what I was just ahead know it’s a great wide huge military out there there has to be something more I could do outside of just my everyday job if I’m just this miserable like give me something else I’ll go back to my desk no it’s my when our good friends and budget he’s seven he comes up and he pulls me in the office he’s like man there’s a deployment available to out that for UAE do you want it and of course my eyes light up I’m like to get out the country for the first time to travel to you know all the financial entitlements which and I wasn’t thinking credit car at the time I was just thinking I can get over there and go to buy and create more content and vlog and what-have-you so of course I accepted it without hesitation I was like I’ll take it and so I accept his offer and then you know a couple weeks past and they said alright it’s official you’re going you are going on your first deployment of course I didn’t tell anyone I didn’t tell no family I just kept to myself I’m like yes yes change but I lead this all right so long story short because I can honestly tell you every single detail but a lot of you guys can see the blog and kind of put things together I go on deployment and I’m making money all over the place so there are several times you make while you’re deployed to certain locations I was getting harsh of duty pay we just know around hundred fifty bucks a month I was getting tax free so take all the federal and state taxes off my pay and then you have that difference added in bah the Magister who put me in the office asked me if I wonder goal unemployment also helped me get the dorms in time to deploy and make pH at the same time so BH is essentially the military paying you only for your rent I think so they pay your rent essentially and more so for this area in the DMV in the DC area I make around eighteen hundred bucks as a single airman in bah so let’s say my rents 900 I’m only paying nine hundred and i pocket nine hundred bucks per month so when I was deployed I was making eighteen hundred bucks without paying rent that’s crazy you can also you have bas which is just money fish or food that’s it like they pay you to eat and then there’s various other you know entitlements and whatnot like family separation if I had a wife orphan if I had kids I would get family separation pay as well no there’s there’s various other entitlement that you will be entitled to based on a FSC based on your dependency status and so I went over there and I’m just making crazy when I’m making her about you know two thousand bucks every two weeks just crazy amount of money with Minds you almost zero bills zero expenses when you’re deployed you pay for almost nothing unless you have a family unless you have no expenses outstanding back home unless you have a carload or something that wasn’t at least and to begin with because if you have a car lease you can you can break a car lease before you deploy it same thing goes with apartment lease outside of my car note and outside of my car insurance I had zero bills zero bills I’m making about four thousand bucks a month so in my mind I start thinking on my art so if I play this right I can pay off you know my entire credit card if I just basically spin nothing and you know [Music] to some story up very quickly that’s how I did it I just basically spent nothing that’s one of the benefits of the military there are certain tasks that have benefits that far outweigh the foolishness that you will deal with the military this is one of them being able to pay off a $12,000 credit card and five to six months is unheard of I mean it’s crazy that you know that God allowed this to happen to me to you know learn the lesson of incurring $12,000 in credit card debt but also pay it off in half a year I’m beyond blessed to be able to have that story because a lot of people you know don’t have that same story a lot of people are still doing with the same credit card you know mistakes that they made the first time I’m grateful to not have that story so yeah I paid off my credit card in about five to six months and it taught me a lot it taught me a lot about myself because as the money start to accrue you know I start realizing that I did not spend any money because first of all there are a lot of ways to spend money while you’re deployed you may not have expenses you may not have bills but there are still many many different ways to spend that money when you start to get your visa let’s say you’re in a location but you’re able to go off base you’re able to go off and explore while you’re said deployed like I was how Defra is in the UAE so it’s a very calm location potentially the area is very safe it’s very quiet it’s very calm the locals are very polite and accepting people so you’re able to go off base and go off explore and see the attractions and local area Abu Dhabi and Dubai and the surrounding areas it’s a very great tourist location so there are many ways to incur expenses without having actual bills eating out and paying for you know movies and paying for attractions and you know things like that or any cars Dubai is very very glad to help you spin your tax free money so keep those things in mind so that’s my money began to accrue and its ability to grow I noticed that my spinning dropped immensely I spent less money when I had more you know the saying that the rich get richer the poor get poorer and I started noticing as my money begins to grow I don’t have the urge you know yes I’m on Amazon yes I’m on eBay and looking around and yes I have way more money than I’ve ever had in my life at one point I had I believe 14 thousand dollars in my checking account that’s the most money I’ve ever had to my name at one time at one time my people can say they’ve had more whatever for Raymond Isaiah $14,000 is the most I’ve ever had in my checking account at one time it allowed me to go on this tangent allowed me to enjoy this quick little tangent when I had fourteen thousand dollars in my checking account that is the enemy of having options that haven’t fourteen thousand dollars was the best feeling in the world not so much that I could flopped it or you know take it all out ones and and throw it on my bed and throw it up and make it rain on somebody the fact I had every single option in the world that can think of in Raymond’s world I had every option I could take any flight to anywhere in the world I could go on Amazon close my eyes I’m and push by it now I can go on eBay and for the most part close my eyes and buy it now the best feeling in the world to have that many options at my disposal money isn’t everything but it definitely trades experiences and definitely solves problems it definitely gives you the ability to choose well I think we get caught up in you know hip-hop artists and how they they flaunt it and how they worship in a way money gives you options in certain circumstances you know if you’re in jail money is not gonna help you outside of you know bail or bond or whatnot but outside of that you have great options when you have great wealth and so that’s something I’m learning in that in that process is that you know I want to get back to this place I want to get back to this place in life to where money is not the deciding factor and whether or not I do something I love to do or whether or not I go somewhere I want to go money is simply the tool to get there I was listening to a podcast with Tim Ferriss and ever meets a tea and I know this Sheila about you know finances and whatnot and he has a book I will teach you to get rich which I bought and I will be reading to grow myself of course but they mentioned how money should be born money should be boring it should not be something that you get riled up about it should not be something that you have great anxiety about you should not be depressed about money you should not be excited about money money is simply a tool it’s a means of getting somewhere it’s a means of solving a problem [Music] it’s a means of getting from point A to point B now if you don’t have money getting from point A to point B will be a lot harder you may be using the bus you may be walking mm-hmm so no you might be spending your money on shoes rather than a first-class plane ticket so money solves problems money should be boring it should not be something that you know you’re so excited it’s panning yes I probably good to eat no it should not be that you should be solving problems efficiently based on you know your decision-making so definitely check that podcasts out it’s like two hours long full of gold they cover prenups to cover so many different things that I see a young airman young individuals young adults should be adhering to because they have wisdom and mentorship they made mistakes and we can go behind them and you know avoid set mistakes so with $40,000 sitting in my checking account and with all the options and you know the ability to create experiences it dawned on me that the money was not mine not a single penny I owed the bank I owed the credit-card company it came down to a couple of choices am I going to pretend I can pay this off slowly and he knows is paying interest charges compounding just taking else taking nanosec knows am I gonna continue down this cycle you know telling myself that I can pay this off slowly they and keep this $14,000 am i checking and you know those liquid resources be delusional and thinking that I could overcome this these bad habits that I had you know growing up with this poverty mindset because poverty will make you think that you can do something you can’t do delusion will make you think that you can do something you can’t do I had a poverty mindset there’s no way I could pay off this credit card slowly and keep this money because I wanted to keep that $14,000 in my checking I wanted to keep those options I would love the way it felt but it wasn’t mine and so I had to tell myself you need to close your eyes and take a deep breath and pay this credit card off you know one huge button push of a swoop and it hurt it hurt now mind you I didn’t go back to zero my checking I didn’t I wasn’t broke from that point on because I still had some I said like a month left so I was still leave you know my deployment with some money but you know that money was not mine I had to press the button and give that money back unless something like people forget about credit cards is that you know they give you so much up front and you know it comes out of principle you guys you know I preach giving and you get back what you want by default the credit card company doesn’t have to beg you to take their money they give willingly hey you qualify for this we’ve decided that you have been such a loyal customer that we’re gonna give you $15,000 no questions asked it’s your money do what you want with it travel create experiences solve problems do what you want to do with your money just take the money go enjoy it right you deserve it and then you wake up one day and you realize that now it’s their turn to receive what they want back and they get back what they want one way or another and you know wisdom lay waits at the door in hindsight [Music] and so know I learned a lot throughout that process throughout that half a year of a pain because pain is one way of learning but now we have wisdom as well now we can look back and say how could I have approached that differently well oh boy the credit-card period period I can’t think of a good way to use a credit card I cannot think of a good way to use a credit card in my current life after dealing with the foolishness after watching that snowball effect after remembering the feelings associated with paying off that credit card paying off that huge chunk of money I had earned roughly 20 grand in six months and yes I’m debt free yes I can proudly say that at 26 years old I have zero debt but I should have been able to say that anyway that should have been a deep opposition I should have old no man period already but through pain comes wisdom and so I had to learn but no as I said now now I’m debt free now I can you know stick my chest out a little bit and say I’m debt free but you know I should have been there free from the getting anyway so I hope that you know brought you some perspective on credit cards on pain on you know how blessed I was to have a deployment erase that pain it’s not so much erased because they left a scar well my heart I can still see you know the 14 grand in the distance that I could have kept building on for my entire career wisdom tells you that money can be lost and it can be gained again and so now I’m taking a more you know wise approach I’m taking up the long-term around I’m taking the more marathon approach to money now I downloaded that call capital with a q Q a P I tal capital and it basically allows you to save money automatically there’s something I kind of picked up from release 80 and it’s in Paris about how you should automate your savings and how you should be investing you should not be managing your money constantly you should not be constantly paying attention to like my money goes here and then goes here and I got pay this off and I can pay this day and I got a payoff credit-card night I got pip my cell phone bill and I got my groceries money should be a resource meaning you should use it when you need it then the rest of time you’re pursuing things that matter so I said this act in this way and it’s just the way I’m doing it you don’t have to do it my way I’m not telling you how to do anything as far as your money’s concerned I am NOT a financial guru in any way I am a student and I’m someone who just tries to learn from their mistakes and to prevent mistakes and so here’s how I set up my savings any amount of money over 20 bucks that comes into my checking account 25% will go into this capital account I believe it’s sponsored by Wells Fargo and so any amount of money again over 20 dollars will go into this account or 25% at that $20 will go to that account and I won’t touch it I won’t see it I believe that for my phone so set up the rule to know of course I have a corns account where you know rounds up you know cents from purchases or whatnot and I have the same way except for this account as well but yeah I’m not paying teacher to it I set the rule 25 percent of anything I make over 20 bucks that goes in my checking account will be automatically saved in this account and I’m also in the process of setting up a bank guard investment account and you know I’ll get into you know one day I’m still studying it of course because I’ll just jump headfirst into anything as Warren Buffett advises you should know everything about your investments everything you should be you know studying your investments so yeah that was how I paid off 12 grand in credit card debt in six months those berries just spin the money but it was very hard to pay it back very hard to pay it back learn from my mistakes learn from my mistakes that camera that Chipotle that trip of a lifetime that purse that blouse them shoes them Jordans that car the house you can’t afford it you can’t pay cash for you can buy it twice over you can’t afford the Oh change of the Mercedes you know think about these things think about these things patience run the marathon trust me trust me run the marathon a financial wealth that’s what I’m doing currently I had to learn I had to learn run the marathon I’m wealth and you have zero regrets

 

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