👀 Subscribe & Watch the full episode here: https://youtu.be/PqDA_WDNyuo
Are you drowning in credit card debt? Feeling hopeless? You’re not alone! In this episode of Eternal Wealth, Shani shares a powerful story of redemption and reveals her 3-step plan to conquer your debt and build wealth. Discover how to:
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THINGS MENTIONED IN THIS VIDEO 👀
🔥Submit Money Questions: https://shanitene.com/help
🔥FREE Get Started with Stocks Guide: https://shanitene.com/stockguide
🔥The Story of the Prodigal Son in Luke 15: 11-32
🔥Pre-Approval for Balance TransferCard: https://shanitene.com/discoverit
🔥3 Steps to Start Investing Video: https://youtu.be/itxwv1_Z4wA
🔥Special Gift – I got saved!: https://shanitene.com/saved
SAY HI 👋🏼
Host: Shani Tené
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KEYWORDS
Shani Tené, Eternal Wealth, Credit card debt, debt free, financial freedom, money management, budgeting, investing, christian finance, bible, how to pay credit card debt, reduce credit card debt, eliminate credit card debt, pay off credit card, credit card debt, debt elimination, financial freedom, money management, budgeting, investing, Christian finance, Bible
SUMMARY OF KEY POINTS
Money Talk Series Overview
[00:00 – 01:10] In this episode of the “Eternal Wealth” podcast, Shani Tené discusses strategies to eliminate credit card debt and improve financial health. The focus is on practical steps to manage and reduce debt while aligning financial actions with biblical principles.
Mystery Guest
[01:11 – 02:30] Michael is introduced as a case study, representing someone struggling with $40,000 in credit card debt. His story is used to illustrate common financial pitfalls and the steps needed to overcome them.
Bible Story
[02:31 – 03:45] The parable of the prodigal son is used to draw parallels between financial mismanagement and spiritual redemption. Michael’s financial situation is likened to the prodigal son squandering his inheritance and eventually finding forgiveness and a path to recovery through his father.
Money Misconception
[03:46 – 05:55] A key misconception addressed is the belief that paying the minimum amount on credit cards is effective for reducing debt. Shani clarifies that minimum payments often cover mostly interest, not the principal amount.
Tip #1
Stop Using Your Credit Cards
[05:56 – 07:30] Shani emphasizes the importance of ceasing further credit card usage to prevent additional debt accumulation.
Tip #2
Reduce Your Interest Rates by Doing a Balance Transfer
[07:31 – 13:43] Shani recommends using a balance transfer to move high-interest debt to a card with a 0% interest rate. The Discover It balance transfer card is highlighted as a preferred option. She explains the process of pre-approval, which doesn’t impact the credit score.
FREE Tool to Boost Investing
[13:44 – 15:38] Shani introduces a free guide from Coachline on getting started with stocks. The guide aims to help beginners understand stocks, set an investing budget, choose stocks, and open a brokerage account. Subscribing to the “Eternal Wealth” podcast is required to access the guide.
Tip #3
Pay the Minimum and Invest the Rest
[15:39 – 23:22] Shani advises paying only the minimum on a 0% interest credit card and investing the remaining available funds. She illustrates how investing in the S&P 500, with its 20% average return, can grow the money significantly, enabling quicker debt repayment.
Recap
[23:23 – 23:40] Shani recaps the episode, summarizing Michael’s journey with $40,000 debt, the prodigal son parable, and the three steps to debt elimination:
- Stop using credit cards.
- Reduce interest rates via balance transfers.
- Pay the minimum and invest the rest.
She also reminds listeners not to use lump-sum payments (like bonuses) directly for debt repayment but to invest those funds instead.
BONUS Weekly Action
[23:41 – 24:45] Listeners are encouraged to apply for a balance transfer card’s pre-approval. They are asked to share their experiences and choices in the comments.
Prayer
[24:46 – 26:45] Shani concludes with a prayer, asking for divine assistance in managing debt, changing spending habits, and achieving financial freedom. She also offers a prayer for listeners to invite Jesus into their lives, emphasizing the importance of a spiritual foundation for true wealth.
Closing Remarks
[26:46 – 27:24] Shani congratulates listeners on completing another episode, invites them to subscribe, and directs them to her website for additional resources and community support.
TIMESTAMP CHAPTERS
0:00 Intro
0:28 Episode Topic
1:27 Money Talk Series Overview
2:26 Mystery Guest
5:14 Bible Story
9:50 Money Misconception
10:41 Step #1
12:27 Step #2
15:25 FREE Tool to Boost Savings
16:44 Step #3
18:53 Recap
20:25 BONUS Weekly Action
21:00 Prayer
23:17 Outro
TRANSCRIPT
(0:00) You need to stop paying so much on your credit cards. You are wasting so much of your money. (0:06) There’s a better way to pay down your credit card debt without using up all of your money.
(0:14) What’s up? I’m your favorite money coach, Shani Tanay. Welcome back to Eternal Wealth, (0:20) where finance meets faith. If you’re new here, be sure to click that subscribe button so you (0:26) don’t miss an episode.
In today’s episode, we are talking all about how to eliminate (0:33) credit card debt fast. Make sure you stick around to the end because I’ll share one resource that (0:40) will help you reduce your debt even quicker and one action item you can take this week to see (0:47) immediate results. You’re not going to want to miss those, so stay till the end.
(0:50) Before we hop in, does it feel impossible to pay off your credit card debt? Maybe you (0:58) keep making payments but the number is still the same. Or maybe interest rates are so high (1:04) so you can’t even make a dent in the loan amount. Or maybe you feel like you have so much debt (1:10) that there’s no way that you can realistically get rid of it.
Or lastly, maybe you just can’t (1:16) stop using your credit card so you just continue to rack that debt up. Whatever the case may be, (1:23) you are in the right place to find the solution. Right now, we are in the money talk series where (1:30) we’re normalizing talking about money.
People are always scared to talk about money because (1:35) it’s just this, it’s just like that topic that no one talks about, which is so weird to me. So (1:41) we’re making a thing where we’re talking about our money. We’re talking about the problems that (1:45) we’re having so I can provide real solutions.
So what does that look like? Listeners are submitting (1:52) anonymous stories. I don’t know who they are, you don’t know who they are, and they’re submitting (1:57) their stories, telling us what’s going on in their life, and asking for legit help. And then on the (2:02) episode, I’m going to bring up one of those stories and then give real solutions that you (2:08) can implement and that they can implement to get out of that situation.
So if you have a money problem (2:12) or you need help with something, make sure to go to the link in the description to submit your story (2:18) anonymously. And if your story is selected, then you could be our next mystery guest. (2:25) But today, our mystery guest is so exciting.
Our mystery guest is a male. He’s in his 30s. (2:34) He’s single.
He’s in tech. He makes around $160,000 a year, (2:41) and his monthly expenses are around $6,000, and he lives in Northeast America. His identity has (2:50) obviously been concealed for privacy reasons, but we will call him Michael.
So here’s what Michael (2:57) has to say. I came from a family that had it all. My dad owned a successful retail franchise, (3:06) but when my dad passed away when I was just 10, everything changed.
My mom was left alone with (3:12) just me and my sister and struggled to keep the business running. She didn’t have the same business (3:18) acumen as my dad and did a poor job with the business and ended up making very bad decisions. (3:25) Overnight, we lost everything and ended up homeless.
It was incredibly hard. Years later, (3:32) I finally landed a job where I made more money than I ever imagined. But despite being single (3:38) and earning a good salary, I still don’t have much left over each month after I get paid.
(3:43) My credit card limits are maxed out, and I waste so much money on food, shoes, and things I can’t (3:50) even remember. As much as I don’t want to admit it, I have a spending problem, and I’m constantly (3:57) staring at my maxed out cards. I wrapped up over $40,000 in credit card debt.
I pay about $2,000 (4:05) on my credit cards monthly, and it’s still not making a dent. I just got a bonus at work for (4:11) $20,000, and I’m thinking about using it to pay off the cards. What should I do? (4:17) Michael, wow.
Just wow. Thank you so much for sharing your story. I’ve been where you’ve been, (4:25) and it’s like deja vu.
Because after I got laid off, I had thousands and thousands and thousands (4:32) of dollars in credit card debt. And it’s hard. I get it.
You just see that number staring at (4:38) you in the face, and it gets so daunting that you avoid it. And then the next thing you know, (4:43) it’s even higher. And now you can’t even afford to pay it back.
It’s legit the devil. If you can (4:50) relate, put a hashtag I feel you in the comments. But the good news is, at one point, I had over (4:58) $30,000 in credit card debt, but within just two years, I paid it all off, and you can do the same.
(5:06) I’m so excited to share three tips to help eliminate your credit card debt. But before (5:12) we get into those tips, let’s take a look at the story of the prodigal son in Luke chapter 15, (5:19) verses 11 through 32. Story time.
So there is this father and his two sons. So the younger son (5:30) asked the father for his inheritance money. So he’s like, Dad, I’m grown now, give me my money, (5:35) like the money that he’s supposed to be inheriting.
And so the dad’s like, okay, so the dad gives the (5:41) son the inheritance money, and he leaves home. And he is living that lifestyle. He’s doing all the (5:47) things possible blowing out money spending on this, but not now.
I don’t know what they was (5:51) buying back in the days. But you know what we buy into these days, he was doing that. But back then.
(5:56) And so as the kids these days would say, he had all the Riz. Oh my gosh, my nephew would literally (6:02) freak hearing that. But anyhow, so basically, he goes and spends all his money.
He blows through (6:07) the money and ends up poor and hungry. And so coming to his senses, he’s like, whoa, like, (6:14) can’t believe I did that. He’s like, well, I’m gonna just go back home.
So he takes his butt (6:18) back home is like, Dad, I’m sorry, I know I messed up. And he’s thinking like his dad’s gonna treat (6:25) him like the scum on his shoe. But the dad blew my mind and the in the son’s mind.
And he’s actually (6:32) has a whole different reaction. He’s like happy that the son is returned. He don’t even care that (6:38) he just went and blew all this money.
He’s like welcoming back like welcome back sign like this (6:43) is so great. Open arms like come to Daddy. I’m looking at him like he’s crazy.
But y’all this (6:49) is how God is. So this is how the father is. So he welcomes him back like nothing happened.
(6:53) He throws a party a feast and he forgives him completely like it never happened erased. And the (7:00) older son looking at the younger son like he crazy like he’s legit angry at his younger brother (7:07) because he’s like he just did all this ratchet crazy stuff. And then he did to get to come home (7:12) and be all partied and welcome.
I didn’t even get no party and I did the right thing. And he did all (7:17) this irresponsible stuff yet he’s still getting praise. So yes, older brother is salty.
I probably (7:22) would have been salty too, honestly. But anywho, the father explains that his love is unconditional (7:28) and emphasizing that he’s just so excited to have his lost son back. Like that is so special because (7:36) that’s how God thinks about us.
Y’all, we might go astray, we might do things with our money, (7:41) we might be like Michael and spend $40,000 and all of this stuff. But at the end of the day, (7:46) God still loves us. And he’s going to reconcile that for us.
And he’s going to be happy when we (7:51) come back to him and ask for help and do what needs to be done to get back to where we need to be (7:57) like you’re already forgiven. You don’t have to sit there and be sit in your feelings of like shame (8:03) and be uncomfortable or be embarrassed to admit that you have all that debt. I had it and I’m (8:09) happy to say that I had it.
And I’m also happy to say that I’m out of it, but only through the (8:13) grace of God. So it’s just so amazing how our father forgives us and then comes back and helps (8:20) us knowing when we did wrong. And so this parable is so powerful because it really highlights (8:26) financial responsibility and the importance of why spending with the potential for redemption, (8:33) redemption being the key here, like your current situation doesn’t define where God can take you, (8:39) you can be redeemed.
It doesn’t matter how much debt you’re in. I know people who have (8:43) way more debt than 40,000, hundreds and hundreds of thousands, millions of dollars, (8:48) but God can redeem you. And so by acknowledging our spending mistakes, working hard to repay the (8:54) debt and making responsible financial choices, we can achieve financial freedom like the prodigal (9:00) son who eventually found his way back to financially secure position.
Okay. So we can be like that son. (9:07) And so all you have to really do is first acknowledge the debt problem.
So like Michael (9:12) literally said, which is very admirable that I have a debt, I have a spending problem. So you (9:17) have to first acknowledge that you have it. You can’t just ignore it or pray that it goes or just (9:21) pray that it goes away.
Although you obviously should pray. I’m not saying don’t pray because (9:26) prayer definitely works, but you can’t just pray and do nothing. Again, we know faith without works (9:31) is dead.
And so the Bible literally tells us pray about everything, but prayer can’t be the only (9:37) thing you do. After you pray next, you have to take responsibility. And finally you have to take (9:42) action.
So let’s talk about how you can take action to redeem yourself from that debt. Okay. (9:49) And so when I’m going back to Michael’s story, the main issue that I see with Michael’s story (9:57) is that every time he makes more money, he spends more money.
That’s an absolute no, no. (10:04) The key to real wealth is to keep expenses the same, no matter how much more money you make. (10:11) So any extra money should be invested, not spent.
I mean, obviously you can splurge a little treat (10:18) yourself to something nice because you deserve it, but big expenses should not be accumulated. (10:23) You shouldn’t be getting all this new stuff that you can’t really afford. Secondly, you need to (10:27) stop paying so much on your credit cards.
You are wasting so much of your money. There’s a better way (10:34) to pay down your credit card debt without using up all of your money. So let’s get into it.
(10:42) Step number one to eliminating credit card debt is to stop using your credit cards. (10:50) This one is easy. I really shouldn’t even have to say this, but sometimes we just have to be told (10:56) stop.
Oh, I don’t own the rights. Can’t be singing that, but you need to work on getting the balance (11:04) down and you can’t do that if you keep adding to it. No ifs, ands or buts.
You just need to stop (11:11) using your credit card right this second. If you don’t have the money to buy it now, (11:16) then don’t buy it. End of story.
And I’m sorry, I’m not trying to be harsh, but that’s just, (11:20) you need to hear it. We’re not even going, I’m not even going to be debating with you (11:24) on this one. Just stop using your credit card.
You might be like, but Shawnee, what about the (11:29) credit card points? Cause you know, I’m a credit card point girl. I love my credit card points, (11:34) but we’re not concerned about that right now. If you have that much debt, you just need to be (11:39) concerned about paying down the debt.
Not about credit card points. We can worry about getting (11:43) credit card points after you get this debt down. Okay.
And so right now your focus should be on (11:49) debt elimination. Focus, focus, focus. Okay.
So once you stop using your cards, (11:56) a good way to do this is I at one point cut my cards. I mean, that’s a little extreme, (12:01) but I also put them in a safe. I also gave them somebody else so I couldn’t use them.
Like you (12:08) really got to put measures in place to not use them. Sometimes you might need them handy just (12:14) for something. So maybe cutting them or giving somebody else is not super realistic.
I’m an (12:18) extremist when it comes to those kinds of things, but put it somewhere, hide it. And so you can make (12:24) sure you don’t use it. Now, once you stop using your cards, step number two is to reduce your (12:29) interest rates by doing a balance transfer.
So a balance transfer is when you open up another (12:36) credit card that has 0% interest for a certain amount of time. And so on average, it’s usually (12:42) about 15 to 18 months where you get that 0% interest. So that means for over one year, (12:47) you pay 0% interest.
This is important because that means a hundred percent of your payments (12:53) will go directly to paying down the principal balance on your credit card, which will allow (12:58) you to pay down your debt faster. This is critical you guys, because the main reason why it’s so (13:06) hard to pay down your credit card is because your payments are typically going to the interest and (13:12) credit cards typically have the highest interest, which is well above 20% when it comes to debt, (13:18) which means whatever amount of money you’re putting on your card to pay it down, you’re (13:24) paying that plus 20% more. So that means if Michael has $40,000 in credit card debt, (13:30) when it’s all said and done, if his interest rate is like 26%, which is pretty much the average, (13:35) he would really have paid over $50,000 on his credit cards, even though he only spent $40,000.
(13:44) That’s basically highway robbery y’all, like they out here getting us. And so that extra $10,000 is (13:50) what he has to pay on top of the $40,000. That’s a lot, $10,000 more.
Like where’s he supposed to (13:56) be getting that from? Which we’ll talk about where, but it’s crazy. So each month when you pay just (14:02) the minimum amount, you aren’t even really paying down the principal, meaning the amount of money (14:07) you actually spent. Most of your money is going to cover the interest, that extra stuff that they (14:11) tacked on.
And so that’s why a balance transfer is so dope because that extra $10,000 in interest (14:19) that you would have been paying completely goes away. And my favorite balance transfer card is (14:25) Discover It balance transfer card. You can see if you qualify for this card by doing what we call a (14:31) pre-approval, which basically means you fill out this quick questionnaire and it will let you know (14:37) if you are eligible for the card.
And so the best part is the pre-approval won’t impact your credit (14:43) score. Unlike if you really applied to it. So you could just go to the link in the description to (14:48) see if you qualify.
And it’s really important that you do the pre-approval using the link, (14:53) because if you do the actual application, it will impact your credit score. So we’re doing a (14:58) pre-approval. Okay.
And so now that you do the pre-approval and let’s say you get approved (15:05) and you end up with that 0% interest card and that now you’ll have 0% interest where you can (15:11) pay off more of your balance. And at this point, you can move on to the third step, which will (15:17) really help you clear out the debt fast. But before we get into that third tip for how to actually (15:24) eliminate the debt on your credit cards, let’s check out something from one of our partners (15:29) that will help you pay your debt quicker.
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Ultimately, the goal is to help you get started with stocks without the (16:03) overwhelm. Don’t miss this chance to make your money grow by learning how to invest. You must (16:08) be subscribed to Eternal Wealth to get the free investing guide.
So go ahead and hit that subscribe (16:13) button now. Visit shawntay.com forward slash stock guide to learn more and claim your free (16:20) get started with stocks guide. It’s time to level up.
Y’all that is so awesome. Be sure to subscribe (16:28) now so you can get that free investing guide. Investing is going to be one of the quickest ways (16:33) to build up your money.
So then you can contribute that investment returns to paying down your (16:38) credit card debt is literally a game changer. One of the fastest ways that I pay down my debt. So (16:43) we’re going to jump back in to step number three, which is pay the minimum and invest the rest.
I (16:52) love that pay the minimum and invest the rest. Well, usually I would never recommend just paying (16:57) the minimum. But when you have a 0% interest card, that’s the only exception.
So for 18 months, (17:03) Michael will be able to pay the minimum balance, which is typically 2% of the total. So with a (17:09) $40,000 balance, the minimum payment will be about $800 a month. This is a big difference between (17:17) the $2,000 that Michael is currently paying.
So if he puts $800 towards the credit card, (17:22) then that means he has $1,200 left to invest. And the reason why he should invest the rest (17:28) is because the S&P 500 stock market currently has an average return of 20% for this year, (17:34) not overall, but just this year. So for 18 months, he could be getting 20% return on the $1,200 (17:41) and then use the interest he made plus the money he invested, which at this point will be around (17:46) $30,000 after 18 months to pay off the card in full.
So yes, you guys, if he takes the extra (17:54) money and invest it rather than using it to pay off his card, he would have accumulated $30,000 (18:02) in 18 months. Are y’all hearing me? And with the money that he’s already paid with the minimum (18:08) payment, plus that the card will be paid off in 18 months. It’s simple, y’all.
It sounds hard, (18:15) like how I’m supposed to pay off that much money so quickly. But if you invest the rest, (18:20) it’s going to be able to grow. So hopefully you’re seeing why you should not put more money than (18:25) towards your credit card debt, because when you do that, your money is a losing 20% interest (18:33) when it could be gaining 20% interest in the stock market.
Okay. So instead of losing it, (18:41) gain it. And so this is exactly what I did to pay down thousands of dollars worth of credit (18:48) card debt, you guys.
And so I know we just talked about a lot. So let’s run it back. Let’s do a (18:54) quick recap.
And so we’re gonna we started with Michael, who was drowning and $40,000 worth of (19:00) credit card debt. We tied that into the story of the prodigal son who gets his inheritance, (19:07) then turns it around and spins it up and ends up going broke. Then his father forgives him, (19:12) and he gets back on his feet, showing us that God can reconcile our debt if we return to him (19:18) and do the work.
And then we connected it all together with three tips to help you eliminate (19:26) debt. Step one was stop using your credit cards. Step two was reduce your interest rates by doing (19:35) a balance transfer.
And then step three is to pay the minimum and invest the rest. And one last (19:43) tidbit, because Michael specifically mentioned that he had $20,000 coming from a bonus, (19:48) congratulations, that’s awesome. What you don’t want to do is put that $20,000 towards your credit (19:53) card debt.
That is a no go. You really want to lean into step three with paying the minimum and (19:58) invest the rest. So pay the minimum, use most of that money, I mean, use that money to pay the (20:04) minimum on your card, and then invest the rest because you can have that money grow.
Okay, so (20:10) hopefully that clears that up. I forgot to add that in. But yes.
So for those who stuck around, (20:16) I am so glad you are still with us. Go ahead and give this episode a like and rate it a five if it (20:22) was helpful or if you enjoyed it. And as promised, your action for the week is to submit a pre (20:30) approval for a balance transfer card.
We want you to start to be able to see if you qualify so you (20:37) can transfer those balances from your high interest credit cards to a lower interest credit cards. So (20:42) let me know in the comments when you complete this and which card you do it for. And if you (20:47) already have a balance transfer card, let us know which one you use.
I always love to compare and (20:52) contrast because we always want the latest and greatest and I just want to be able to cheer you (20:56) guys on. So drop that in the comments. And I would also love to pray for you before we close.
So (21:03) let’s pray everyone. So dear Heavenly Father, thank you for today. We rebuke credit debt in (21:11) the name of Jesus.
We release any strongholds that spending might have on us. We release any (21:18) desire to spend, spend, spend Lord. We pray that you help us be good stewards of our money.
We pray (21:23) that debt is eliminated in your name. We pray that our spending habits change. We pray that (21:28) the people listening get approved for these balance transfer cards that they’re able to (21:34) transfer their balances and they’re able to actually see a dent in their debt Lord.
We pray (21:38) for complete debt elimination for every single person in the sound of my voice Lord. That debt (21:43) is completely wiped from their life and that they are debt free Lord. We pray this in your mighty (21:48) name in Jesus name.
Amen. And so I never want to end an episode without giving you the opportunity (21:56) to enter into a relationship with God. It doesn’t matter if your life is upside down, if you don’t (22:02) got it all together, you’re in hundreds of thousand dollars worth of debt.
Y’all it really doesn’t (22:07) matter. God loves you just the way that you are and he can redeem you in any situation. So if (22:13) you’re ready to give your life to Christ and enter into eternity with the Lord and have true eternal (22:20) wealth, then just repeat after me.
It’s really short. All you have to say is Jesus, I accept you (22:27) as my Lord and savior. That’s it.
If you prayed that prayer, congratulations and welcome to the (22:36) kingdom of heaven. We are so excited for you. I’m so excited for you.
Everyone in the kingdom (22:40) is jumping up and down. This is an amazing decision and one of the best decisions that you, (22:46) the best decision you will make in your life. And so we want to celebrate you.
So be sure to go to (22:51) the link in the description to get a special gift to help you start your faith walk. This is so (22:56) exciting and I cannot wait to go on this journey with you. So let’s give it up for those who just (23:01) gave their life to Christ.
So, so, so, so proud of you. And if you enjoyed this episode, be sure to (23:07) subscribe. You don’t want to miss another episode.
Thank you so much for joining me. Until next time, (23:15) peace, love, and eternal wealth. Congrats, you just finished another episode of Eternal Wealth.
(23:22) If you want more, head over to shawnytonay.com for show notes and access to all the resources (23:28) shared. And if you’re looking for a new crew of eternal wealth builders like you to bounce ideas (23:33) and ask questions, be sure to join my exclusive community. The link is waiting for you at (23:38) shawnytonay.com.
