The Fastest Way To Pay Down Credit Card Debt (Become Debt Free In 2024)
Published: 2023-12-10
Status:
Available
|
Analyzed
Published: 2023-12-10
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Assumes an 18% annual return on investment.
"let's assume that you can get an 18% return on your money every single year"
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$6,500 invested at 18% annual return for 45 years will grow to $1 million.
"your $6,500 investment is going to grow to not a million not $5 million not $10 million but $1 million"
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Credit card companies (Amex, Visa, Mastercard) are charging 18% or more in annual interest.
"these companies are charging you 18% or more every single year"
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The average credit card debt in American households is $6,500.
"the average household credit card debt in America right now"
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0% APR credit cards typically offer a grace period of 6 to 12 months.
"typically you'll get like 6 to 12 months of a 0% APR period"
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Average annual returns in the stock market and real estate are estimated to be between 7-10%.
"you might be getting an average 7 to 10% return a year this is the average return in stocks and real estate"
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Credit card debt typically incurs interest rates of 15-25% annually.
"which is charging you 15 to 25% a year"
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Paying off credit card debt offers a guaranteed return of 15-25% annually.
"this is going to give you a guaranteed guaranteed 15 to 25% return on your money"
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Credit card rewards were used to pay for a one-week trip to Jamaica.
"my credit card rewards paid for my entire onee trip to Jamaica"
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A business credit card with a $150 annual fee offers 2% cash back on all spending.
"this credit card has a $150 annual fee and I get 2% cash back on every dollar that I spend"
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A Chase Freedom Unlimited card with a $0 annual fee provides 1.5% cash back on all purchases.
"this Chase Freedom unlimited card this one has a $0 annual fee this is for anybody and I get 1 and a half% cash back on everything"
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The Amazon Prime card offers 5% cash back on all Amazon purchases.
"I have the Amazon Prime card which gives me 5% cash back on all of my Amazon purchases"
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The Carrot card, an invite-only card for influencers, offers 3% cash back in three specific categories.
"this carrot card this is kind of a more exclusive card made only for influencers it's an invite only card at the moment and this card is very interesting it's for businesses more particularly influencers it gives you 3% cash back on only three categories"
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The Amex Platinum card has an annual fee of $695.
"this AX platinum card has almost a 700 annual fee it's $695 a year"
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The Chase Freedom card extends the manufacturer's warranty by an additional year.
"this Chase Freedom Card extends her manufacturers warranty by another year"
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Optimal credit utilization is around 30% of the total credit limit (e.g., $3,000 on a $10,000 limit).
"if you have a $10,000 credit limit you want to be spending around $3,000"
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Debt consolidation involves combining multiple debts into a single loan, ideally with a lower interest rate.
"roll all these debts together into one debt with ideally a lower interest rate"
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It is financially beneficial to invest money if the expected investment return is higher than the mortgage interest rate.
"if the interest rate from your home is less than the interest rate from your investment then it makes sense for you to invest your money get a better return"
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For a 30-year mortgage starting in 2023 with a 6% interest rate, principal payments will exceed interest payments around October 2036.
"it isn't until October of 2036 until more of your payment is going to ur your principal balance rather than your interest paid"
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Historically, average annual returns for the stock market and real estate are around 10%.
"the average stock market return is 10% a year historically and the average real estate return is also right around 10% a year"
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Paying off debt one year early provides a guaranteed 20% annual return.
"when you pay down your debt you're getting a guaranteed return because if you canare pay down your debt one year early that's a guaranteed 20% return"
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Paying off a 16% interest credit card offers a guaranteed 16% return, which is higher than the average 10% stock market return.
"when you're paying off your 16% interest rate credit card well that's a guaranteed 16% return on your money here when you invest your money in stocks or real estate the average return is 10% a year"
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The maximum contribution limit for 401k, 403b, and 457b plans was $20,500 in 2022.
"the 401K the 403b and the 457b have a maximum contribution limit of $20,500 in 2022"
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The maximum contribution limit for an IRA was $6,000 in 2022.
"the IRA has a maximum contribution limit of $6,000 in 2022"
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A traditional tax-deferred account might be more suitable if one plans to have no other income or assets in retirement.
"if you plan on not doing anything and not having any other income in your 60 and not having any assets or Investments that are going to pay you then sure a traditional is going to make more sense"
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A Roth account may be more beneficial if one plans to accumulate significant assets and income streams by retirement.
"if you plan on buying additional assets every single year and you plan on building and stacking your additional streams of income that way by the time it comes to your retirement you're going to be having a whole bunch of income well then this is going to make a whole lot more sense"
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An expense ratio over 0.75% for an index fund is considered high.
"generally if it's costing you more than 0.75% that would be considered a high fee"
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ETFs can be traded like stocks throughout the trading day.
"ETFs trade just like stocks you can buy and sell shares of an ETF just like any other stock"
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Index funds often have investment minimums, potentially ranging from $1,000 to $10,000.
"with an index funds you're typically going to have some sort of investment minimum it might be $1,000 it might mean $10,000"
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Approximately 80% of stock market traders lose money within a 12-month period.
"something like 80% of Traders end up losing money over a period of 12 months"
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The speaker's primary goal when investing in real estate is to generate cash flow.
"when I buy property my goal is to get cash flow"
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Cryptocurrency is described as a highly speculative, risky, and volatile investment.
"cryptocurrency is a much more speculative and it's a much more risky and volatile investment"
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Crowdfunding platforms allow investment in real estate without direct property ownership.
"you don't have to invest in physical real estate to get exposure and the upside of real estate you have platforms out there which allow you to invest in crowdfunded real estate"
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Crowdfunding enables investing in startups with as little as $100.
"now thanks to crowd funding you can invest in startups with as little as like a $100"
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Two budgeting plans are proposed: 75-15-10 (spending-investing-saving) and 50-30-20 (spending-investing-saving).
"our 75 1510 or 503020 plans"
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Automate investment by transferring 15% of monthly income ($750 from $5,000) into an investment account.
"if you know that $5,000 are coming into your bank account every single month then you can create automatic transfers that move 15% of this $5,000 or $750 into investment account"
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Automate savings by transferring 10% of monthly income ($500 from $5,000) into a savings account.
"and you can move 10% of this $5,000 or $500 into your savings account automatically"
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Investing in index funds reduces risk because the fund holds multiple companies, mitigating the impact of a single company's failure.
"if you invest in index funds now you're not investing in individual companies you're investing in a fund that invest in a whole bunch of companies now even if one company goes bankrupt you're okay because there's a lot of other compan in the fund to balance that one bad company out"
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Successful real estate investment requires building a team, understanding location, and ensuring tenants pay rent.
"if you want to invest in real estate successfully you got to build a team you got to know the location and you got to make sure your tenants are paying rent"
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Paying off a student loan with a 6% interest rate a year early yields a guaranteed 6% annual return.
"if you're paying 6% a year in interest on your student loans and you pay off your student loans a year early well you just got a guaranteed 6% return on your money"
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