Maxing out Credit Card and not Paying your Bill

I want to be very clear in this video, people that borrow money without the intention to pay it back, are thief’s they are criminals. One thing is you borrowed, and things got out of hand and now you don’t know how you are going to pay it back, and another is you never planned on paying it back.

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1. The Problem with Maxing out your Credit Card
- The biggest problem is not how its going to affect your credit score
- That’s just something banks say to scare you into paying them back
- Its like your parents telling you, if you don’t eat your vegetables you don’t get to play Xbox tonight or something ( for me it was if you eat, we go somewhere )

But the Real Threat: is your Personal Financial Future
- Interest is going to destroy you ( 18-24 percent usually )
- The average credit card balance according to CNBC is about $6,000 dollars
- And this video is just talking about credit cards, what about your car payments, your student loans and everything else huh

But lets run the numbers: at 18% interest rate
- You’ll be paying about 150 dollars a month
- For about 24 years if you pay the minimum
- My point is, I know you probably will pay more than the minimum, but paying some so much interest is going to handicap you financially

2. What to do to Avoid this
- Stop using the card
- Close down the card
- Payoff the card

Keeping debt is like staying in a toxic relationship because of the benefits it brings
- Most people pay off debt, and keep the tools that got them in debt, still available
- And then I a few months or years they go right back into massive debt
- The best thing you can do, is just stop borrowing money and take a little longer to get the things you want

How can you pay it off:
- Start by creating a budget and using the surplus cash to pay the debt from the smallest to the biggest
- It's that simple, pay the minimum on all the cards
- And use the extra cash to pay extra to the one with the lowest balance
- This is called the snowball method

Ps. You could also get a job, to help pay it off faster

3. What I do
- After maxing out my credit cards not once or twice but more times than I can currently remember
- I closed every single of them down
- But Tommy what about when you want to do normal things in life

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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I'm an Accountant but I'm not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

[TommyBryson]

What the most Credit Cards you have ever had at once? I'll start.

For me it was like
- matress firm
- capital one
- discover
- barclays
- Amazon store and normal card
- chase

thats a total of 7, what was i thinking

[robbiethornton-peek]

You have gotten wiser in your old age. LOL. Thank you. Also just saw your video on Dave Ramsey. Very GOOD.

[aspinaki]

"I don't have any credit card". I like this phrase and I converted the " like" into this video along with the bonus in the form of hitting the subscribe button.

[Stu_Pedazzo]

I've frozen 3 credit cards and would have to actually unfreeze to use. Not that I have a heck of a lot available, but I am paying and not using. This is a slow process, but I can't take it anymore and I have to get a handle on things. It's all so gross and I can't believe I did this to myself, again!

[Bananas-ktnx]

Hey Tommy, you helped get my first credit card and i was irresponsible with it at first. I still have it 4 years later after paying chunks off as much as I could, then one day it was caught up. Now its the only thing I use with bills and its ALWAYS paid off. Thanks for your videos brother.

[jamesst.patrick]

So if all negative marks falls off credit report in 7 years why worry about paying debt off?

[naegleriafowleri]

NONE many years i stopped paying my credit cards and nothing happened, they went collections my credit went down to 450 which was never great anyway as before was 600, eventually it went up and nothing happened

[RakeshPeter]

Thanks Tommy for continued update Making money is action. keeping money is behavior. Growing money is knowledge. I'm excited I started earning upto $65thousand dollars extra income❤️

[straightedgelife]

What really happens if you just stop paying all your credit cards?

[exytplu]

If you are in credit card debt, I pray you go deeper into debt.