That’s an awesome tips to pay off debt fast. Remember the 2nd and 3rd debt don’t go down because of the interest adds on at every new bill when it comes out for the min payment.
Hi from Beth in California ❤️ You might not see this…but my mom and I have been unfortunately on not-speaking terms for years. But last week, she visited my home and we are on a path back to healing. When she first arrived, sitting with her on the sofa was awkward, but on TV there was one of your videos, then it auto played two more of your videos. Honestly, enjoying your videos together and discussing really broke the ice - we were having fun together. I just wanted to say thank you for being such a lovely person 😊 Beth, 32
wow Beth, thank you so much for sharing and glad to have been part of that memory. Hope this is the beginning of a healing relationship with your mother. Sending love.
Thank you for helping me understand how the process works. I've created my plan and can see my journey. Cheers to being debt free in about 3 years. My goal is to pay off my transfer debt 1st since I don't have interest accruing. That one will be paid off by Feb of 2026 and then I can move onto the last 2 credit cards. My total debt is $28,473. I can do this!
Trying to tackle my six-figure student loans (law) with the avalanche method. 😂 Feels good seeing the loan w highest interest balance go down but I know it's going to be a looong journey. Thanks Aja for these types/all your videos are inspiring to watch. Saw a comment below re your budget videos - ignore the negative people cause your community will still be here supporting!
This was amazing to watch! I have been trying to figure out ways to pay off my student loans and this gave me hope. It was clearly explained and now it gives me something to work with. Thank you!!
I have a question. What about the interest charges? My interest charges right now are almost as much as my minimum payments. I feel like I take a step forward and 2 steps back.
Idk if this helps, but what I was doing was adding the avg interest charges within like the past 3 months and putting that towards the payment. If you have multiple cards, try to see if you’re able to include interest charges with the minimums, if not, just pay the minimums for the other cards for now and try to add in the interest charge on the card you’re trying to pay off first. If that makes sense lol
So I'm going to be starting my debt free journey as of Jan. 2025 with around $22K worth of consumer debt. After watching your vids, this is the one that really explained the Snowball method the best (not taking into account the interest and that's fine cz I can account for that myself.) Hopefully all goes according to plan.. Thanks for the vid😊
This girl should do balance transfers. I owe 11k in cc. I’m doing the snowball method bc I have done balance transfers on all my cards so I don’t have interest. Idk why everyone doesn’t do it. It saves so much money. Once the 0% interest promotion ends (usually 12-18 months) I just do another balance transfer. It’s helped me pay off a few cards way faster than I would have otherwise.
As someone whose life depends on balance transfers, it’s become a trap for me because I keep spending. But that’s probably me and a deeper issue that I have. Initially it kept me debt free for 6 months but I kept deferring to balance transfers and it’s become a bad habit now. I know it works for many people though.
@@AjaDang all of my credit cards have had balance transfer offers. I have them on my chase cards, discover, Bank of America, and Citi. You can call them but I’ve always just logged into the apps and found the offers on there. There’s usually a fee but it waay less then what the interest would be.
Satisfying videos! But one question- maybe I missed it - won't the cards with outstanding balances ALSO rack up interest every month on the remaining balances? Or am I not understanding correctly?
This is great. Now that I see how you did this I can do this too. I have been paying extra on my credit cards and not seeing the results. Going to work on one at a time. Thanks!🎉🎉🎉
I'm fine, financially. But, I saw this video's title in my "suggested" feed and dropped by to give you a thumb's up. Please, keep up the good work...🇺🇸 👍☕
For anyone interested, the interest will be about $3050 for all three debts if only the $300 is paid per month. Def pay a little more when you can, your future self will thank you! But if you reverse the order and do the large debt first the total interest tacks on an additional $1300. So she’s right I just felt like doing the math 😂
Love seeing these realistic examples! It takes time but as we all know the time will come and go regardless so we might as well make these contributions to see these goals get accomplished!
How does this work if the credit card companies are adding on their interest rates every month which in most cases is far more than even the minimum payment?
I have paid off credit cards with this method and she does say that she isn't including interest so it is not exact. All I can say is that it works, maybe not as fast. Anything extra you can pay helps. Takes discipline though.
Isn’t interest added each month? How does the snowball method include interest charges? The ending balance of each month is going to have interest applied, correct?
hello question isn't the interest gonna just cancel out what you pay on the minimum? meaning go right back up instead of chipping away at the total? thank you
Yes…she will have accrued $1124 in interest on that last debt before she start making above that minimum payment. Wild… and that’s a fairly low interest
I don't know if I've missed this or if it's my adhd but where does the interest rate come into this? Surely it's going to take longer to pay these off than you've calculated as interest is being added every month? Or am I missing something
This visual really helps me a lot! 😅 but I do have a question. Wouldn’t it take longer once the interest charges are but back onto the account each month? That is one of the reasons I feel like what’s the point. I know the point but I’m just being dramatic 😂 Edit: ok, I didn’t wait til the end bc you totally mentioned it. Haha thank you Aja! This is getting me excited to pay down my debt 🎉
Why do you treat these debt as if they were 0% interest loans? On just he 1st cc the interest alone will be $38 the first month (and this big debt 600-700per year), which makes this payment plan impossible to pay off in the time you are suggesting with 300 per month. Wouldn't it be more realisting to add the cost of interest?
But this does not account any INTEREST for the credit cards. I think this is a miscalculation since credit cards still have fees when you pay minimum amount (or not fully paid for that month).
If this person is trying to pay off a $2,000 balance with an APR of 21% they will find it very hard to absolve their debt. After paying $230 the first month, she will have $400 added to her balance! What may be best for this young lady in this situation would be to Revise her budget and try to see if she can have $500 cap on what she puts towards her CC bill!! because by the 5th month, her balance with interest would be 3,035.31.
Not to denounce anything Aja has shared with you all. However, I would encourage you all to utilize your Credit cards wisely! Have better spending habits! Do not spend $600 on your credit card knowing you cannot pay off the balance at the end of the month!!! SAVE UP FOR THAT $600 item/trip/activity! Even if you have to save $50 a week to save up the $600, Id encourage you to do that. THEN charge your credit card so you have that usage for that month, but NOW you also have the money to pay it off at the end of the month because you saved!!! Best of luck to you all. xoxo
@@BOO_b00D1just wanted to add, not everyone using a cc is using it for fun stuff they can't afford! Layoffs and unemployment can result in some need for serious help and not everyone has the deeper savings or ability to pay for essentials from whatever they're able to get from the government through EI (or the American equivalent of that).
@@BOO_b00D1Disagree, the minimum payment was separate! Saying this because I have intimate knowledge of all three debts (hint). I suspect you have forgotten to divide the APR by 12. Once you do that you get the monthly interest charge that shows up on at least one of the statements. :)
that's correct. I mention that in the beginning of this video - there are links in the description box to interest rate calculators if you'd like to be more precise with your debt.
Because these balances are low. I would do a consolidation. The interest would also be cheaper. From there, I would keep one credit card that offers the best rate and the best incentives. I would pay that off every single pay period.
I was in a 15k credit card gamble dept.. and 33k gamble dept loan from my sister. It been one year and 8 months... the 15k credit card dept is now $6500 and the 33k is now 15k.. im getting out of dept by july,2025... i lose all my saving also total 85k to sport gamble. I make $41 an hr so i should be out of dept soon
How do you know if you should pay before the bill is due so the interest is paid down quicker. Sometimes when I pay my debt it doesnt pay down a lot of principal balance because the interest is so high. How close to my bill due date should i be paying it and should i pay more than my minimum balance because when I pay more some months it doesnt bring the balance down much.
I was gonna try that and then I decided to take out a loan to pay off both of my credit cards and then after all of a sudden done, I realized that the loan I took out was 2% higher than my highest credit card or interest rate lol but it’s too late now so I’m still gonna pay higher than I normally would, but for some reason, I thought it was lower
I’m confused - given the high interest rates, does it not make sense to consolidate and transfer the credit card debts over to a 0% interest credit card and then pay off the £7K debt first and then move across to the cc debt. That would be a faster process as you’d end up paying less interest. This video while interesting could have been done by taking $13000 and dividing by $300 which gets you to 43 months - so not sure why it needed to be that complex especially as interest rates weren’t taken into account. Sorry if I’m misunderstanding something here 😬
@AjaDang I totally understand not wanting to deal with all the negative comments. To be honest, I probably would have stopped doing it too if people were acting like that. But I just wanted to put in that I really enjoyed those videos. I’m really happy for the money you make now, and it was really cool to have the real numbers. It sucks that people get envious.
I would love to see an estimate of how much is the hour spent into setting up a yt channel valued. That is, if you were to stop creating content how much money would you get per month and what would the resale value of your channel be, considering that return ~#*Dalevalskov* ~ was my REDEMPTION
That’s an awesome tips to pay off debt fast. Remember the 2nd and 3rd debt don’t go down because of the interest adds on at every new bill when it comes out for the min payment.
Hi from Beth in California ❤️ You might not see this…but my mom and I have been unfortunately on not-speaking terms for years. But last week, she visited my home and we are on a path back to healing. When she first arrived, sitting with her on the sofa was awkward, but on TV there was one of your videos, then it auto played two more of your videos. Honestly, enjoying your videos together and discussing really broke the ice - we were having fun together. I just wanted to say thank you for being such a lovely person 😊 Beth, 32
wow Beth, thank you so much for sharing and glad to have been part of that memory. Hope this is the beginning of a healing relationship with your mother. Sending love.
This comment is really sweet! Thanks for sharing and best of luck to your family as you learn to renavigate that relationship.
This was kind of you to share. I pray you and your mom continue towards healing ❤
❤this is beautiful ❤
Congratulations on almost 5 years debt free! It’s been amazing seeing your journey- including all the fun you’ve gotten up to after meeting your goal!
crazy right? Time flies.
Thank you for helping me understand how the process works. I've created my plan and can see my journey. Cheers to being debt free in about 3 years. My goal is to pay off my transfer debt 1st since I don't have interest accruing. That one will be paid off by Feb of 2026 and then I can move onto the last 2 credit cards. My total debt is $28,473. I can do this!
You got this!!
You will do this 🎉
Another Aja Dang financial video?? OMG yes. Keep doing these. You freaking rock!! I love these type of videos
I'm trying to get back into it for y'all but short form videos are just so much easier 🙇🏻♀🙇🏻♀🙇🏻♀🙇🏻♀
Trying to tackle my six-figure student loans (law) with the avalanche method. 😂 Feels good seeing the loan w highest interest balance go down but I know it's going to be a looong journey. Thanks Aja for these types/all your videos are inspiring to watch. Saw a comment below re your budget videos - ignore the negative people cause your community will still be here supporting!
So happy the avalanche method is working for you! It's gonna be a long journey so remember to treat yourself along the way!
Writing it out this way is so very satisfying and gives a concrete, visual plan to keep one motivated. Thanks for sharing!
This was amazing to watch! I have been trying to figure out ways to pay off my student loans and this gave me hope. It was clearly explained and now it gives me something to work with. Thank you!!
I am in love with how she explains and showing a great plan. I am now a subscriber.
welcome :)
But you are not accounting for interest charges 😢😢
I was thinking the same thing
Exactly!!!!!
I have a question. What about the interest charges? My interest charges right now are almost as much as my minimum payments. I feel like I take a step forward and 2 steps back.
Idk if this helps, but what I was doing was adding the avg interest charges within like the past 3 months and putting that towards the payment. If you have multiple cards, try to see if you’re able to include interest charges with the minimums, if not, just pay the minimums for the other cards for now and try to add in the interest charge on the card you’re trying to pay off first. If that makes sense lol
So I'm going to be starting my debt free journey as of Jan. 2025 with around $22K worth of consumer debt.
After watching your vids, this is the one that really explained the Snowball method the best (not taking into account the interest and that's fine cz I can account for that myself.) Hopefully all goes according to plan.. Thanks for the vid😊
This is such a good video. I have done this. Of course the real challenge is do not get into debt again.
Thank you for breaking this down visually as it give me hope and focus. Since I have been juggling one after another
Great video! Thanks for sharing this method.
Forever grateful for your wisdom and guidance in helping me in my debt free journey!!
and you killed it!!!
I think your amazing, your voice is soothing, your doing a fabulous job 🎉
thank you :)
This girl should do balance transfers. I owe 11k in cc. I’m doing the snowball method bc I have done balance transfers on all my cards so I don’t have interest. Idk why everyone doesn’t do it. It saves so much money. Once the 0% interest promotion ends (usually 12-18 months) I just do another balance transfer. It’s helped me pay off a few cards way faster than I would have otherwise.
This is also the method I’m using! So helpful especially for larger cc balances
@@ccap3211 which cards do you use to transfer your balances. I know someone looking into it
As someone whose life depends on balance transfers, it’s become a trap for me because I keep spending. But that’s probably me and a deeper issue that I have. Initially it kept me debt free for 6 months but I kept deferring to balance transfers and it’s become a bad habit now. I know it works for many people though.
Correct. The calculation did not account for the interest that add up and increased minimum payment each month. But it is still a good plan of action.
@@AjaDang all of my credit cards have had balance transfer offers. I have them on my chase cards, discover, Bank of America, and Citi. You can call them but I’ve always just logged into the apps and found the offers on there. There’s usually a fee but it waay less then what the interest would be.
Satisfying videos! But one question- maybe I missed it - won't the cards with outstanding balances ALSO rack up interest every month on the remaining balances? Or am I not understanding correctly?
this is really helpful even though mine is not a credit card, I'm also on a debt free journey, good luck to us ❤
This was great. Each time she paid off a bill I would clap and cheer!!!
This is great. Now that I see how you did this I can do this too. I have been paying extra on my credit cards and not seeing the results. Going to work on one at a time. Thanks!🎉🎉🎉
This was amazing!!!
I'm fine, financially. But, I saw this video's title in my "suggested" feed and dropped by to give you a thumb's up. Please, keep up the good work...🇺🇸 👍☕
Good luck to everyone on their financial journeys! We can do this
Thanks for the encouragement ❤🎉
For anyone interested, the interest will be about $3050 for all three debts if only the $300 is paid per month. Def pay a little more when you can, your future self will thank you! But if you reverse the order and do the large debt first the total interest tacks on an additional $1300. So she’s right I just felt like doing the math 😂
Great job breaking this down!
glad it was easy to understand!
Love seeing these realistic examples! It takes time but as we all know the time will come and go regardless so we might as well make these contributions to see these goals get accomplished!
I've always heard about the snowball method but i really enjoyed watching you break it down and help me visually see it!! Thanks Aja!!
it seems confusing until you see how it's broken down!
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The deeper your investment roots, the stronger your financial security will be in the future.
Exactly! With my adviser, I’ve cultivated deep investment roots, strengthening my financial security for the future.
I would love an introduction to an adviser who can help me strengthen my financial roots.
My CFA Grace Adams Cook a renowned figure in her line of work. I recommend researching her credentials further.
Thank you for this amazing tip. I just looked the name up and wrote her.
Please do more of these videos, atleast 1 video bi-weekly of you helping a subscriber.
Thank you so much for putting this together. I am going to map out my plan as soon as possible. This will help me alot.
Just what I needed !!!! Thank you so much
I get it but where is the interest for the CC that are being paid the min? 🤔
How does this work if the credit card companies are adding on their interest rates every month which in most cases is far more than even the minimum payment?
I have paid off credit cards with this method and she does say that she isn't including interest so it is not exact. All I can say is that it works, maybe not as fast. Anything extra you can pay helps. Takes discipline though.
Isn’t interest added each month? How does the snowball method include interest charges? The ending balance of each month is going to have interest applied, correct?
hello question isn't the interest gonna just cancel out what you pay on the minimum? meaning go right back up instead of chipping away at the total? thank you
Yes…she will have accrued $1124 in interest on that last debt before she start making above that minimum payment. Wild… and that’s a fairly low interest
The only problem is that you don’t add the interest to the credit card balances… why?
Thank you. I loved your video. You inspired me 😊
I don't know if I've missed this or if it's my adhd but where does the interest rate come into this? Surely it's going to take longer to pay these off than you've calculated as interest is being added every month? Or am I missing something
This visual really helps me a lot! 😅 but I do have a question. Wouldn’t it take longer once the interest charges are but back onto the account each month? That is one of the reasons I feel like what’s the point. I know the point but I’m just being dramatic 😂
Edit: ok, I didn’t wait til the end bc you totally mentioned it. Haha thank you Aja! This is getting me excited to pay down my debt 🎉
Why do you treat these debt as if they were 0% interest loans? On just he 1st cc the interest alone will be $38 the first month (and this big debt 600-700per year), which makes this payment plan impossible to pay off in the time you are suggesting with 300 per month. Wouldn't it be more realisting to add the cost of interest?
Exactly
But this does not account any INTEREST for the credit cards. I think this is a miscalculation since credit cards still have fees when you pay minimum amount (or not fully paid for that month).
If this person is trying to pay off a $2,000 balance with an APR of 21% they will find it very hard to absolve their debt. After paying $230 the first month, she will have $400 added to her balance! What may be best for this young lady in this situation would be to Revise her budget and try to see if she can have $500 cap on what she puts towards her CC bill!! because by the 5th month, her balance with interest would be 3,035.31.
Not to denounce anything Aja has shared with you all. However, I would encourage you all to utilize your Credit cards wisely! Have better spending habits! Do not spend $600 on your credit card knowing you cannot pay off the balance at the end of the month!!! SAVE UP FOR THAT $600 item/trip/activity! Even if you have to save $50 a week to save up the $600, Id encourage you to do that. THEN charge your credit card so you have that usage for that month, but NOW you also have the money to pay it off at the end of the month because you saved!!! Best of luck to you all. xoxo
The interest charges per month are only $40ish per month, which Aja was aware of when she made this plan.
@@BOO_b00D1just wanted to add, not everyone using a cc is using it for fun stuff they can't afford! Layoffs and unemployment can result in some need for serious help and not everyone has the deeper savings or ability to pay for essentials from whatever they're able to get from the government through EI (or the American equivalent of that).
@@bookphilia that may be her minimum payment. but that's not how much she'll be accumulating in Interest. 21% of 2,000 is $420...
@@BOO_b00D1Disagree, the minimum payment was separate! Saying this because I have intimate knowledge of all three debts (hint). I suspect you have forgotten to divide the APR by 12. Once you do that you get the monthly interest charge that shows up on at least one of the statements. :)
Hi. Thanks for the info. How do you feel about 0% balance transfers at 3%-5% surcharges
Aja.. that’s such a beautiful name ❤ I’ve never heard of it before.
Paying minimum amount will not reduce the balance by the total payment
I have a question… isn’t additional interest accruing on the debt while you’re paying them down?
Your calculation is not accurate; you are forgetting the interest charges. The payments you make do not go entirely toward the principal.
that's correct. I mention that in the beginning of this video - there are links in the description box to interest rate calculators if you'd like to be more precise with your debt.
I was coming here to say this too!
@@AjaDang I love your videos.❤️
Because these balances are low. I would do a consolidation. The interest would also be cheaper. From there, I would keep one credit card that offers the best rate and the best incentives. I would pay that off every single pay period.
Where can I get that app from? I would like to put it on my IPad. Thank you
I love that digital planner! Do you have a link for a 2025 planner like the one you used in this video?
Where can I find that digital planner ?
What app is that you are using on the Ipad?
Wow this is great eh! 😀🔥
Aka…girl! You just got a new subscriber!!! What app are you using?
nice but your theory doesn't add in the finance charge/interest. A few of my cards are 30%
I have a question when you have a debt that’s no interest for 12 months should that would be paid first or keep the snowball method?
I was in a 15k credit card gamble dept.. and 33k gamble dept loan from my sister. It been one year and 8 months... the 15k credit card dept is now $6500 and the 33k is now 15k.. im getting out of dept by july,2025... i lose all my saving also total 85k to sport gamble. I make $41 an hr so i should be out of dept soon
congrats on getting your life/finances together!
What’s your profession? I’m want a career switch lol
I'm in the process of paying off my debt. Its rough at this moment.
How do you know if you should pay before the bill is due so the interest is paid down quicker. Sometimes when I pay my debt it doesnt pay down a lot of principal balance because the interest is so high. How close to my bill due date should i be paying it and should i pay more than my minimum balance because when I pay more some months it doesnt bring the balance down much.
I was gonna try that and then I decided to take out a loan to pay off both of my credit cards and then after all of a sudden done, I realized that the loan I took out was 2% higher than my highest credit card or interest rate lol but it’s too late now so I’m still gonna pay higher than I normally would, but for some reason, I thought it was lower
I’m confused - given the high interest rates, does it not make sense to consolidate and transfer the credit card debts over to a 0% interest credit card and then pay off the £7K debt first and then move across to the cc debt. That would be a faster process as you’d end up paying less interest.
This video while interesting could have been done by taking $13000 and dividing by $300 which gets you to 43 months - so not sure why it needed to be that complex especially as interest rates weren’t taken into account.
Sorry if I’m misunderstanding something here 😬
On month 10 if you were paying $230 on CC #1 and only needed $53, then you should have deducted $177 from CC #2. I'm just OCD on math
Please I need your help on paying my student loan of 87k with a 30k earning plus other debt 😢?? Im super stressed and and dont know what to do
Shouldn't you be subtracting 230-53 $ in month 10 for the remaining amount from debt 1?
So that is if you are not using the cards
The hardest part is the interest on top 😭😭
Interesting
8K and only $20 a month? confused.
And if they pay the $600 instead of the $300 that she was using, this person will be debt free in less than 2yrs if they attack this thing.
You are not adding in the interest
❤❤❤❤
Its really good to see you back! Would you consider restarting the monthly budget videos starting next year?
Please please please🥹🥹🥹
I dunno girl. People get upset seeing my real numbers now. I don't want to discourage people by having "unattainable" budgets
They were so satisfying 😢
@@AjaDangi love how real you were regardless of how i couldnt relate 😓 or if you considered a vid guiding someone through their own monthly budget (?)
@AjaDang what is wrong with people?? Like we're all here bcs we liked watching you succeed?? Sorry you gotta deal with this 🙃
@AjaDang I totally understand not wanting to deal with all the negative comments. To be honest, I probably would have stopped doing it too if people were acting like that. But I just wanted to put in that I really enjoyed those videos. I’m really happy for the money you make now, and it was really cool to have the real numbers. It sucks that people get envious.
I would love to see an estimate of how much is the hour spent into setting up a yt channel valued. That is, if you were to stop creating content how much money would you get per month and what would the resale value of your channel be, considering that return ~#*Dalevalskov* ~ was my REDEMPTION