8 MAXED OUT Credit Cards

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0:35He loved people, but he also loved peace and quiet. So he cooked up KFC's$4.99 chicken pot pie. Warm, flaky, with savory sauce and vegetables. It's a tender, chicken-filled excuse to get some time to yourself and step away from decking the halls. Whatever that means. The Colonel lived, so we could chicken. KFC's Chicken Pot Pie. The best$4.99 you'll spend this season. Prices and participation may vary. Supplies last. Taxes, tips, and fees extra. I'm Johnny. I'm from Gerald, Texas. 27 years old. And this is Financial Audit. 27 years old yeah okay normally I just break into this like we normally do but I want to say I want to especially thank you for coming on here because I think this is going to be potentially one of if not the craziest situations we've ever seen okay so I I just want to let you know I appreciate you coming on here because this situation a lot of Americans can probably relate to it and so for those who are watching you are actively helping them by you being here.

1:35Awesome. So thank you for that. What do you do for a living? I work in natural gas. Natural gas? Okay. Like what do you do? So we fix like gas leaks and replace gas services and stuff like that. And you are married. Yes. What is the annual household income? About 120K. Okay. It's always the people with a good income, isn't it? Yeah. Interesting. More money, more problems. Yeah, more money, apparently more. not having any money. Yeah. Jeez, so what hits your guys' account on a monthly basis? We have the car payment. No, no, no. I mean, like, what money comes in? Oh, so we have just mine and her income.

2:19I'm trying to think, like, what's your post-tax and all that stuff? What does it come out to? So... I'm guessing it's... A month, I think it's about$7 ,000. Okay, that makes sense. And, like, health insurance has taken out before, are you guys contributing to your 401ks? No, she just got offered 401k today, actually. Okay, and you are not? No. I don't have any benefits. So you think it's about a 7 ,000? I'm guessing like 7 ,500. Do you think it's 7 ,000? Yeah, yeah. Closer to 7 ,000. Closer to 7 ,000? Yeah. We'll do 7 ,000 then because you would know. So$7 ,000 hits your account on a monthly basis.

2:51Cool. Most people would say, cool. That's great, especially living in a rural town. Cool. 7 ,000 hours. We can do a lot. Yeah. Oh, and by the way, just a reminder, click that subscribe button. And we're trying to get to 500 ,000 subscribers. And we're, I mean, pretty close. Thank you to everyone who has subscribed so far. Okay. I mean, we're just starting with the first account, right? Yep. And I am going to dig into you because I need to make sure you and everyone else out there knows how absolutely dire your situation is. Because if we go to a place where we're like, okay, we know it's good, but it's not bad either.

3:27Right, right. It's like, then you're not going to do what's necessary to actually get out of it. But here we start with negative$222 in your checking account. We start with that. And not only that,$8 ,449 comes in. That's great. Some of it was savings and different stuff. That's a great amount of money. That's fantastic. We ended with$433. What is happening off the bat? What is up with your financial situation? What's going on? Give us anything. I think it's mostly just eating out is where most of our money goes to. You're not eating out$8 ,000 a month. Between, we were paying for two rents for about three months.

4:10We moved out of one apartment into our house because we were in a studio. So we were paying about$1 ,200 a month on the studio and then moved into the house and that's about$1 ,750. During the time of these statements? Yes. Okay. Yeah. Actually, we just paid the last bill on the apartment. Did you buy the house or are you renting it? Rensing. Okay. So you're saying you eat out$5 ,000 a month? Yeah. Among other things. You must be going crazy. Are you going to like the nicest steakhouses twice a day? I think we both - Yes, one child, six months. Okay. Well, that adds money. That adds money. I wouldn't say$5 ,000 of eating out.

4:50No. But no, it's not just that. And by the way,$204 was yanked from your existence in fees because you're overdrafting and crap. Yeah. Dude, it makes no sense. Okay. I mean, I have to ask. I have to ask because we need to get into your mindset. If we have Adobe, we have a Peacock subscription, some security service that you did, McDonald's, the$200 was taken out for auto safety. Safety, and we're going to Hobby Lobby and Whataburger and Starbucks and some tortilla place and Olive Garden and Dutch Bros and Wendy's and going to McDonald's and Major Burger and Netflix and DoorDashing things. We don't even have money on DoorDashing things and Wingstop and Dutch Bros and Rapzozzi's Cajun Cafe, Amazon Prime, Raising Cane's, Dutch Bros, a Hulu subscription, Longhorn Steak, Whataburger, Dutch Bros.

5:45Two card payments, card payments, card payments. Security service fees, again, twice in one month. I don't even know what that is. Getting our car washed, because that's a necessary expense to survive. Dutch Bros, Panda Express, Whataburger, Firehouse Subs, Domino's, Domino's, Credit One. The auto security safety bullshit again. Some, you know, going out to eat, going out to eat, pizza. Going out to eat, going out to eat, dude. And then Prime Video. We have that. We have, we're Venmoing on money. $575, who knows where the f*** that went. Discovery Plus. More Adobe because the one Adobe we had wasn't enough.

6:24The$575 is actually rent. So we break it up into three payments. Oh. Oh. Yeah. Sorry. I was like,$575, great. Yeah, you were going off, so I didn't want to interrupt you. But yeah, the$575 is rent. The$200 autosave, that's just something it pulls from our checking into our Chase savings. Yeah, when you're like over, oh. No, no, no, yeah. Well, that explains all the money that you're depositing from your savings into here. Because we don't have money. And HBO Max subscriptions all we have in Whataburger and Venmo and Dutch Bros and Spotify and Mojo Coffee. YouTube something. Looks like you rented a video, perhaps.

7:01Yeah. Mexican Grill. McDonald's. Subway. Dutch Bros. Some animation thing, I think. I don't know. I can't read it very well. Oh, sorry. That was the security thing. And then the$50 The$50 every week is my old truck Yeah I totaled it and Didn't have insurance We'll get there Let's just get through the checking account first Again a car wash We need two car washes in a month to survive Formswift.com Olive Garden Starbucks, Dutch Bros Chick-fil-A, Taco Casa Starbucks, purchasing things on Steam Overdraft fee, overdraft fee overdraft fee overdraft fee what are we doing buddy if you know we are overdrafting if all this crap is going wrong i need to know any potential logic behind your couple's relationship this marriage why are you guys going to these restaurants and this isn't where you spend all your money this is a thick stack but that's the checking account in every page is just green slices of crap why why are you doing it if you objective you have to know it's bad because you are negative every single month.

8:14Tell me. There's no excuse. We don't have an excuse. It's just... No, no. This episode is brought to you by NBA on Prime. This Tuesday at 8.30 Eastern, it's the Emirates NBA Cup Championship game on Prime. This year's quest for the Cup has been building to this, the championship game, live from Las Vegas. Not a Prime member? Sign up for a 30-day free trial to get started today. The Emirates NBA Cup Championship game, this Tuesday at 8.30 Eastern, only on Prime. Restrictions apply See amazon.com slash amazon prime for details Talk about an excuse I need to know why Where's your mindset at So we can overcome this Honestly I don't know Do you guys not give a No because we always We'll always come to like the end of our You know whenever we go negative or whatever And we're like we have to stop We have to get better We have to save money And then we get paid again And then it's just the same thing over and over Why doesn't it?

9:06I couldn't tell you Is it both of you? Is it one of you more? No it's both of us It's definitely both of us Total overdraft fees Year to date And we're a quarter Of the way through this year $748 That's insane That's insane Justice period$204 The savings that you transfer to Is there anything in there right now? Yes How much? Last time I checked, about$4 ,500. Why? Why are you overdrafting if you have$4 ,500 in the savings? Because she doesn't want to spend the savings money. That doesn't make sense. You've lost$750 this year. Yeah. Wife, if you are watching this, please understand it makes no mathematical sense.

10:02$750 you've lost because you're not willing to transfer$4 ,500? I'm not angry at you I'm angry at the debt No I know But I want Because immediately You don't have retirement No How old is she? We're same age 27 How old's your kid? 6 months Okay Congratulations Yeah thank you 27 Yeah No retirement Stacked in debt Stacked in debt Yeah Riddled in debt And no retirement We Everything else in here is literally just Cards and crap Credit cards and debts Nothing that's ever paid off by the way No And we do get it paid off and then we just don't spend them again Okay First off, before we even get into them Let's just say, you are not credit card people You are not That's fine It's okay not to be a credit card person Chop them up It doesn't matter Whatever benefits someone might get from a credit card You are not getting you are losing so much money so much money yeah so this situation is scary you need to chop those things up use like the Fizz card that I talk about because it can help your credit kind of like a credit card but it's a debit card and it helps spend within certain categories that you want it helps you manage your spending a little better but for example on this card itself 625 previous balance We made a payment of$160.

11:36Okay, cool. I mean, we're bringing in$7 ,000 a month. It should be more than that. But okay, we did that. Then we purchased$130. $130 was purchased. Are you guys trying to get out of debt?

11:54We had them all paid off for a few months. And then whenever my son was born, she was off for like three weeks. And then I was off for a week. and I wasn't making that much money to begin with at the time. She's paid hourly? She's not like salary? Yeah, we're both paid hourly. She was getting maternity leave, but she was only getting 75 % of her pay. Oh, come on. So you only lost 25%. Yeah, but I wasn't, again, I was only making, at the time I was doing pest control and I was only doing less than 20 hours a week.

12:27Why are we possibly putting money on a card? that we're not even... Okay, not only that, but after your payment and after your purchases, plus fees and interest, you have a$620 balance on a card that has a cap of$600. Cap of$600.

12:52So, do we just not care? I need to know something. No, I mean, we definitely care. I just, I don't know what it is. we have the money and then we spend it. It's there and then it's gone. Whether it be gas or eating out or going shopping or whatever. Now these cards that you have are shit cards. Right. Yeah, because we both have terrible credits so they were the only ones that we could get approved for. And what are we doing on here? We're Dutch Bros-ing and we're McDonald's-ing and Chick-fil-A and McDonald's-ing and Chick-fil-A and and tacos, and Dutch Bros, and Willie Gay, and really Grill, and Ice.

13:34I'm not happy about that. That is where I'm a little upset at you. That's stupid. That is stupid. If we're over our credit card balance, we're not making any progress when we're spending on it? That's objectively stupid. And guess what? Total fees charged in 2023 because you're overspending. These have monthly fees just to be a member of the card. So not even if you have balances, these terrible cards have fees on a monthly basis with no benefits. So total fees, again, we're only a quarter in of 2023. $78 on one card. One card lost in total interest of$70. Lost. And then we're still with the same company here, but we have a new, a different card.

14:22Previous balance,$789. on an$800 credit limit, paying$94. Okay, we're making progress, but then we put on it$86.34 with interest charge of$25.65 and congratulations, fees again of$12, meaning that not only one card now, two cards, two out of your like a billion cards, we are over the credit limit. Over the credit limit, yeah? Yep. So again, the mentality, whatever it was, it's applying to this. It's like we don't have money, but we kind of do. Pretty much all of them. And with this, it was like we went to Walmart and Star Mart. It's either gas or groceries, but we do that from our checking account when we're not credit card people.

15:16We're going to talk about all those methods in the end, but this is the painful part where we go through the pain. It already hurts. We'll get through the good part. It should. And you need to know how much it hurts. And people who are going down the road, you need to know how much it hurts so that we can just improve people's lives. But, again, fees charged in 2023 so far,$61. Interest charged,$71. And, again, that's two cards out of the billion you have. Okay. Credit one now. Oh, my. No, it is Credit limit$300 But your previous balance was$557 No, you didn't pay on You didn't spend money with this card Because there was There was no money to spend Your balance is completely gone You made a$30 payment, so that's like the minimum monthly payment

16:12With$8.25 of fees $12.83 of interest New balance 548 so really no progress is made total fees for 2023 $24 total interest$40

16:33let's go to another card shall we credit limit$600 you are under at this time at 583 but that gave you an excuse to spend money which makes no sense that is not an excuse to spend money just because we have we have 18 bucks on there that we can spend$30 in payments. Boston with the boys is here to let you know that every college football Saturday, FanDuel is dropping profit boosts that can turn wins into bigger wins. Sounds like we should rename Saturday booster day. Nice. 21 plus and present in select states opt-in required bonus issue does not a withdrawal profit boost tokens, restriction supply, including any token expiration and max wager amount.

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17:21We spent$37. No fees for this one, but interest of$14.26. And now we're over the credit limit by$3.90. So total balance now,$603. With total interest charge, 2023,$41. And you went to Star Mart, probably gas, right? Yeah. I assume. Not credit card people. Not credit card people. Say that in your sleep, not credit card people. Because you are not. Now, with a visa, because we just opened every credit card that we can possibly apply for, right? That we can possibly get approved for. Swipe, swipe, swipe, swipe, apply, apply, swipe, swipe, swipe, yeah? Yep. Okay. $269 previous balance payments of$82.

18:03But congratulations for making purchases of$132. Fees charge of$54.25. $54. Within the last month $8.83 of interest Charged Now our balance is$383 With the total credit limit of $300

18:29In Fabletics Do we need to be going to Fabletics? Fabletics do we need to be going to Fabletics? Again In$29 of additional Card fee Monthly servicing fee of$6.25 Annual fee of$48 My goodness. I should go into the credit card, the predatory credit card business because these people just make money off of you. It's insane. And then interest on purchases,$883. Total fees charged, 2023,$96. Total interest charged in the year so far,$26. We have another card. We're getting through the pile slowly. Previous balance, 521 on a credit limit of$500. You made a$25 payment, so you had$4 on there, which gave you an excuse to go purchase.

19:24You purchased$76 of stuff, giving you interest of$14.70 with a balance of$587 on a credit limit of$500. I'm disgusted right now.

19:40I mean, that was like optimum, so like some health thing? That's our internet. Oh, okay. Again, interest,$14.70. Total interest charged year-to-date$26.46 with a 30 % interest fee. We're back to credit run. We just can't leave him. We love him too much. Credit limit,$300. Previous balance,$3.23. $30 payment. You didn't purchase anything on here. probably doesn't have any money yes that's exactly it because there's a new balance of$309 because fees were charged$825 interest charged for$748 total annual fees $333 total interest charged$29 last but not least credit 1 $481 previous balance but there's a credit limit of$500 So we're below that.

20:36But that means we have an excuse to go purchase things. Again,$30 of payments,$45 of purchases,$12, 12 cents of interest charge with total interest this year,$35. Had a 30 % interest rate essentially. And I went to Dutch Bros. Dude, you guys are screwing yourselves. Yeah. You are f***ing up your entire life. Yeah. Okay. I want to make that crystal clear before we put any plan together. Do you understand? Do you both understand? Are you on the same page that your life right now is just f***? Yeah. We know what our finance situation is. Okay. How long have you been in this financial situation? Since we've been together.

21:18How long has that been? About three years. Okay. So what immediately makes me nervous, if nothing has happened for three years and we've known it's been f*** since we've been together, what's going to change now? I'm hoping having our kid would kind of change around. Yeah, absolutely. That's a good reason. If there's a reason, that's a reason. Yeah, because we don't want to live like this forever, especially having him around. You mentioned the car thing and some other things as well. So what's up? What's that? I don't have the statements for those. So I had a truck back in 2017, 2018. I was making payments before I met my wife and everything making payments on it I didn't have insurance on it I wasn't paying that and then I flipped it and totaled it and so they yeah so they're basically in collections now in collections so I'm paying$50 a week so you have a payment plan with them yeah and so that's the security interest no I don't think so Okay, and what's the balance remaining?

22:29It should be around$3 ,000-ish now. What about your current car? So that's, I think we owe around$30 ,000 left on that. The interest rate is pretty high. I think it's 10%, 11%. Maybe more. Could be more. I'm just right high. Yeah. What's the minimum monthly payment for that? 680 Is that just one Is there another car No No I drive her old car That's paid off Good Yeah What is that car The one we're paying on A 2020 Chevy Equinox Yeah We might be selling that I'm not sure yet Okay But we might have to See how far in the hole you are Any other debts Not that I can think of No Okay So that's all You only have that much We only have 1, 2, 3, 4, 5, 6, 7, 8 credit cards that are either maxed out or well over maxed out.

23:34Plus a truck that doesn't even exist that you're paying on. And a ridiculous car with a ridiculously high interest rate. So your minimum monthly payments on your debts are over$1 ,000. And this is for nothing that's even benefiting you except for one of the cars. Everything else is just money you've spent and whatever you've spent it on is gone. Fees and interest, not including either of your cars, by the way. This is just on the credit cards. Fees and interest, first quarter this year,$632.41 has been ripped from your existence. Thoughts? Yeah. Yeah. and your total debt owed is$35 ,720.15. Which actually does not sound insane.

24:25This is insane the way you've done it. Right. Your minimum payments on your debts are$1 ,000, but the amount that you spent on food going out to eat was$1 ,578.50 in a month. Is that not insane? This is a real good story about Bronx and his dad Ryan, real United Airlines customers. We were returning home, and one of the flight attendants asked Bronx if he wanted to see the flight deck and meet Captain Andrew. I got to sit in the driver's seat. I grew up in an aviation family, and seeing Bronx kind of reminded me of myself when I was that age. That's Andrew, a real United pilot. These small interactions can shape a kid's future.

25:04It felt like I was the captain. Allowing my son to see the flight deck will stick with us forever. That's how good leads the way. Oh yeah, it's insane. It's ridiculous. It's aggressively insane. And all your bills and fees are$1 ,751. Overdraft fees, 204. Subscriptions,$175.

25:25Walmart, whatever. Is that only grocery store shopping? Yeah, usually it's baby formula. $571 in a month of baby formula? Yeah. Not just baby formula, but yeah, diapers, wipes, clothes, all that stuff. He grew out of all the clothes that we had for him in the first month. Yeah, babies do that. Yeah. and then he has to have expensive formula. He's got a sensitive stomach, so it's like$35 a can. He goes through that like every two days. You're killing yourself. You guys are killing yourself. So what is very clear from my situation, this is a disaster. Credit cards need to be gone today. Like it's not even an option.

26:04When you guys are home, are you guys on the same page relatively? If you guys are, then burn them. Have a ceremony. Burn them. All of them? Every single credit card. All of them? You can ask all of them after this? All of them? All of them. What? We're just trying to build our credit back up. Your credit. I don't give a shit. Credit is awesome. For those who can utilize it, you are being taken advantage of by that system. Someday we can talk about it. Again, I've mentioned it millions of times. I think I may have said it in this episode already. I don't know. You can use the Fizz card that I recommend.

26:42And that builds credit and it's a debit card. Dude, insanity is what this is. Build credit? You guys are over maxed out on that build credit. Fuck you, build credit. No, build credit's not in the conversation. Maybe we can talk about that eventually, but no. Build credit. Build credit. So, every person is situation to situation. Your situation is Dave Ramsey is perfect for you. You know him? Yeah. Okay. We've listened to Dave Ramsey. He is perfect for you. Your debt is laid out in such a perfect way to follow his whole baby steps model. And he does the snowball method when it comes to paying off debt, which, of course, was invented when money was invented.

27:30So he didn't invent that. But it's a part of his baby steps, and it would work for you. I would probably modify this first one to meet your situation and we will get your budget here in a bit especially since you have a kid it's a little more risky but I want if this wasn't already clear enough about how dire this situation is I want to talk to you about the child aspect of this thing you guys have zero retirement barely anything in savings yes you guys are below 30 but with where you guys are headed with nothing in retirement and always in debt for the rest of your lives, that is irresponsible of a parent because you are forcing your child to have to deal with you as a required expense later instead of you sacrificing now saying, okay, let's not live this extreme lifestyle we're living now.

28:20Let's take care of ourselves and we will actually have money to set ourselves up for the rest of our lives eventually, when we're in our 60s. And they won't have to worry about it. What is happening now is irresponsible parenting. Yeah. Do you agree? Yes, I agree. Good. So if none of that else mattered, that should. Yeah. That is critical. And show them this video at some point. Do it. Be like, this is why you shouldn't go into death. Mom and dad made that mistake. Yeah. Learn from our mistakes. So we need to build a budget and then we need to attack this thing. because it's as easy as that. I mean, that's what it's going to come down to for you.