Ramit Sethi presents a short YouTube video outlining five concrete steps to get out of credit card debt quickly: (1) inventory how much you owe and each card's APR; (2) choose a payoff order (debt snowball or highest APR); (3) call creditors to negotiate lower APRs; (4) decide which income or budget sources will fund extra payments and always pay more than the minimum; (5) begin immediately and iterate. The tone is practical and action-oriented.
Chapters
Here are the exact five steps you need to get out of credit card debt fast. Step number one, figure out how much debt you have. 90% of the people I talk to do not even know how much they owe. Look at the back of your credit card. Call that phone number, ask them how much you owe and what your interest rate is, and then type that into a simple document. Step two, Decide what to pay off first. If you have multiple sources of debt, you can use the snowball method with the smallest balance, which will then snowball and then you can go over to the next one. Or you can tackle the highest apr, the highest interest rate. Just pick one and get going. Number three, Negotiate down the apr. I want you to try it. Call your credit card company up, tell them you're getting serious about paying off your debt and ask them if they can lower your interest rate. Sometimes they'll drop it from 26% to 20%. 15% for an introductory basis. That can save people thousands of dollars. Sometimes they're going to say, not going to do it. Fine. Thanks very much. Hang up the phone, keep going on to the next. Step number four, Decide where the money's coming from. Most people don't know where the money's coming from and that's why they just pay the minimum. Always pay more than the minimum on your credit card debt. And number five, get started. The point is to take action. You do not need to make this perfect. I. I just want you to get the ball rolling and you can always optimize it more. If you find this video helpful, share it with a friend. Make sure to bookmark it later.
