Should I use my savings to pay off debt?
Your Credit Minute Show Notes:
- 00:01 Guys, what’s up? I just parked my car at the office, and, um, I just got off a phone call with a client, okay? Uh, a client that I’m absolutely totally stoked for. A client of mine called me last week and said Nick, I’ve got $27,000. I’ve saved 27 grand, $27,000, guys. This is not a small task, okay, but here’s the dilemma. I got $27,000 in credit card debt. What the heck do I do? Do I pay off the debt or do I keep the money in the bank?
- 00:35 Short answer, pay off the debt. Are you insane? Are you nuts? Are you crazy, okay? Get rid of that money. Get rid of that money, pay off that debt, and guys, it’s simple math. The bank’s giving you zero percent. They’re giving you nothing. You stick it in the bank. I get it, it’s nice. You stick it in the bank. You’ve worked hard. You’ve saved. You’ve done the right things to budget, okay, while you’ve been paying the minimum payments on your credit cards. I get it. You hit that number. It’s in the bank, but they’re giving you nothing. But, they’re turning around and they’re charging you 15%, 20%, 25, 30%, okay? These are insane rates. The equation is broken. You’re getting zero percent from the bank and they’re turning around and lending it to you at 29%. There’s something wrong with that, and you’re going to say, well Nick, I’ve been told cash is king. I need to have the cash handy.
- 01:26 Guys, you have to have faith. That’s what you need. You need faith, number one, that’s it’s gonna be okay to not have that $27,000, and for you guys that are used to servicing debt, you service debt, you pay the minimum payments, you got an Excel spreadsheet where you just monitor your debt. It’s not your friend, okay. Don’t get comfortable with it. They’re sucking the money out of your pocket and you don’t even realize it’s happening, okay? You’re going to be fine when you have less money in the bank, okay, you’re left with a few hundred books or a thousand dollars if you follow the Dave Ramsey system, which I love. Um, you’re going to be fine. Why? Because when you have less resources, you become more resourceful.
- 02:05 We’ve all been there. We’ve all been dead broke. None of us had an anxiety attack from being dead broke. But, if you walk into the ER, I guarantee there are plenty of people walking in there every single day that are having panic attacks and anxiety attacks because of the calls they’re getting from their creditors. I promise you, it’s a packed house and I know this, because I get about 100 calls a minute at Key Credit Repair with these exact same scenarios. You gotta have faith. The numbers make sense guys. Take the cash, pay off the debt. Get rid of the rates, okay? And then guess what? You’re going to be able to accelerate your savings pretty substantially, because now all that cash that’s coming in baby, you’re not servicing debt anymore. Okay? You want to spend it? Do whatever you want, okay? But you’re not sending it off to banks and lenders, because they’re going to spend it, okay?
- 02:51 Um, and again, you gotta have faith that it’s going to be okay. You’ve all been at rock bottom before guys, you’ve all been at zero. We’ve all been there. Let’s say we, and we’ve survived. Why? We had faith. See you guys, this is Nik Tsoukales with Key Credit Repair. By the way, to that client that just paid off $27,000 in credit card debts, you are the man. You are the man. I love you for doing that. And if you are having this dilemma or a debt dilemma, call me guys. My direct line is 617-326-3685. We have about 15 consultants on staff that deal with these issues all day long. But I want to hear from you. If you get my voicemail, leave me a message, let me know that you just paid off a debt. Even if it’s a small debt, leave me that message. Email me, Nik@Keycreditrepair.com.
- 03:40 Let me know that you’re having this dilemma. If you feel like you don’t necessarily have the faith, you feel like you’re feeling, you’re feeling a little weak. I’m not sure if I should pay off the debts, hit me up guys. Let me re-encourage you. I’ve been there personally, okay? That’s why I feel so passionate about what I do, okay? So let me re-encourage you, let me show you the way. Let’s get out of debt, let’s use our money to get wealthy. Let’s grow our credit scores. Let’s use credit to build wealth, and let’s absolutely crush it. Later guys.