My Credit Card Payment Is Half My Income

[Music] brought to you by the Every Dollar app. Start budgeting for free today. >> So, I'm having a bit of a dilemma. Excuse me. I'm a little nervous. >> It's okay. >> Um, my fiance and I, we get married next week on Friday. >> Oh, congratulations. >> Coming up, we are >> Yes, very soon. Um, we are excited about that, but I am still in the mindset of my debt, his debt sort of thing. Um my my dilemma is um I'm having a dilemma with using my $800 I'm on baby step one to throw at my credit card that I am behind on and my minimum is half of my take-home pay. So it's it's half of what I make in a month. That's what my minimum is. And that is the only I'm >> sorry. What is your minimum? That's 2734. >> What do you owe on this credit card? >> 13,000. >> And you have a $2,700 payment on 13,000. >> Yes, I fell behind um for a few months and then um it's just interest added on and it's becoming unbearable and I don't want >> that's not the normal minimum payment. And it's all the back payments. >> Yes. Mhm. It's normally around $300 or $400. >> Ah, that sounds more like it. Okay. >> Yeah. >> All right. So, um, >> and you bring home what? 5,000 6,000 a month? >> About 5,000? Yeah. >> Yes. >> And you're you're getting married and he has how much debt? >> Um, he has about 40. >> Mhm. And you only have 13 or you have a car and everything else or what? Um, so together we have about $79,000 worth of debt. >> Okay. Which means you have another 20 something other than this 13. >> Yes. >> On what? >> Um, it's personal loans. Um, I owe a family member. It's a various of other things. >> Okay. And so your household income is about 80, right? Your income. And what's his? Um, so my income is about, like I said, that's 5,000. Then his is about the same a month as well. >> Your take-home pay? Yeah. Okay. >> Yes. Mhm. >> All right. So, you're that's $120,000 take-home pay. And so, you're probably making 150 or so. Okay. All right. Um, and we need to pay off 80 overall. So, >> yes. >> Really? Um, you you don't really have a minimum payment of $2,700. You have a single a single payment of $2,700 to get current. >> Okay. >> Right. Cuz the next month it won't be $2,700. It'd be 300. >> Well, if I if I don't pay on it, if I don't get caught up on it. >> No. If you pay 2,700, the next month your payment would be 300. >> Yes, that's correct. >> That's what I'm saying. Okay. So, um, what I would do is just call a credit card company and ask them to roll that in and reset your payment. Well, I called them. Um, I don't have a problem saying their names. Capital One. I called them and they said that there's nothing that they can do. >> Okay. Then there's nothing I can do. You're not going to get paid. >> How's that? You get nothing, honey. If you don't work with me because I got no money. I can't pay you $2,700. >> I can pay you I can pay you $300. If you want to reset the payment, that's fine. Probably I need to talk to your supervisor cuz apparently your two brain cells aren't rubbing together. This is how you talk to Capital One. What's in your wallet? Stupid. You know, I mean, come on. Of course, they can roll that in. They do it every day, all day long. But you got some junior bird man on the phone up there in a cubicle, right? And so you got you got to nail them. That's what you have to do. And then and then then catch them up anyway because you got to get the whole stupid thing paid off. And remember how they treated you the next time you get ready to whip out that card or do any business with this company. >> Oh no, I'm done. I >> cut the stupid thing up and let them know that we're done. Uh we're breaking up here. You aren't you aren't all you were cut out to be. >> I don't care which uh particular movie star says gives me financial advice on your stupid commercials. Oh god. So it would it would hurt me to close it and pay them later. >> Doesn't matter. >> Doesn't matter whe you close or not, you still got exactly the same problem. >> So >> that's true. >> Yeah. So you know, here's what you can I just call and mess with them and just, you know, be be um start out. >> You're nice, Nicole. You got to kind of hype out, you know, hype up yourself. >> Start out pleasant and then end up nasty before you get off. Yeah. get ready to dial the nasty up pretty quick as you're on the phone if their brains aren't working because sometimes apparently they aren't. And so, you know, now then the trick is it doesn't matter because in the end of just a few months, you're going to have a zero balance on this because you're going to get paid off cuz you make $120,000 after you get married and y'all need to clean this $80,000 up fast. And one of the first orders of business is this credit card because it's probably one of the smallest debts you all have, right? >> Yes. So, we're going to list that in the debt snowball, smallest to largest, and I'm going to pound their face in, and it's going to sound like $2,000 a month or $3,000 a month, regardless of what their minimum payment is. Your minimum payment is I want you morons out of my life forever. Okay? And that I'm I'm teaching you to be a little bit angry about this because that's a good thing. That'll that'll push you through this and cause you to just pound their face in with the math as you're doing your budget. You're going, "Take that, Capital One. Take that Capital One. Take that Capital One. 30 years ago, 35 years ago, American Express called Sharon and asked her why she would stay with a man that wouldn't pay his bills. And I'm still pissed. 35 years later, I'm still pissed. I would still find that guy if I could find him, you know, cuz she called me crying at work like I thinking the same thing, right? And so, oh my god, these guys, they're just they're just it's a ridiculous company. >> And Nicole, for you and your husband, I mean, make this a year, the first year of marriage that and you guys are working extra at night. Like, I mean, you're just you're high-fiving in the middle of the night because you don't see each other. I mean, like, make it really be done with it. Like, get really, really aggressive with this. And then it's done forever. And then for the rest of your marriage, you guys have no debt. You have your whole income, >> no stress. It's it's a beautiful thing. And so the more intense you guys can be in this first year and if you guys want kids later even before the kids like this is this is the time to do it. >> Yeah. So if you don't pay them 2700 and you pay them2100 because they're first thing on your debt snowball and that's all you squeeze out of the first month's budget >> or a thousand whatever you pay them a whatever you pay them I don't care then the next month you pay them a bunch more and the next month you pay them a bunch more. I don't really care what they think. It's irrelevant. Just just pound. >> What sucks is the is the interest right? You get 26% on this amount, you know. But it's it's on the whole thing anyway. It's on the whole It's on the whole 13,000. That's true. Period. It doesn't matter. The interest is the interest until you get it paid off with that credit card. >> Yeah. Get Get it knocked out. What's in your wallet? Oh god. Money now cuz I don't have you people in my life. >> Yeah. >> Yeah. Oh man. I tell you what, I spent the first part of my career doing a dumb thing. I would bring in co people we were coaching and I would call and negotiate with the credit card companies and set payment plans for the people we were coaching and it taught me to hate credit card companies because they're so moronic and I'm still it still rings in my brain and just that I I cuz I just know the conversation she had. It's just pisses me off still. Create your free every dollar budget today. The simplest way to budget for your