Eliminating credit card debt

>> Julia: EARLIER ON "SUNRISE" DURING OUR NEW YEAR NEW YOU SEGMENT, WE SHARED THE FIRST THREE STEPS TO LEAD TO YOUR FINANCIAL SUCCESS THIS YEAR >> Ben: I DON'T KNOW ABOUT YOU, BUT IT WAS GAME CHANGING FOR ME, MY REPORT

I SAT DOWN WITH BRENT PERRY, FOUNDER OF FINANCIAL VISORS FOUNDER OF FINANCIAL VIADRS FOUNDER OF FINANCIAL VIADVISERS >> Julia: ELIMINATE THE CREDIT CARD DEBT OVERSPENT AT CHRISTMAS, NOW STARING AT MASSIVE CREDIT CARD DEBT OPEN UP THE CARD STATEMENT, AND DON'T JUST LOOK AT THE INTEREST RATE YOU'RE PAYING LOOK AT THE ACTUAL DOLLAR AMOUNT YOU'RE PAYING THE CREDIT CARD COMPANY

THAT MIGHT BE STAGGERING HE SAYS BEFORE YOU PAY ANYTHING, THOUGH, YOUR FIRST STEP SHOULD BE A PHONE CALL TO NEGOTIATE YOUR INTEREST RATE >> GOOGLE SCRIPTS FOR RENEGOTIATING CREDIT CARDS, THERE ARE SEVERAL FINANCIAL WEBSITES, PERSONAL FINANCIAL WEBSITES WRITTEN HOW TO DO IT, HIGHLY RECOMMEND THAT >> Ben: YES, I DID THE DIGGING, BECAUSE I'M THAT KIND OF REPORTER, I FOUND SCRIPTS, I'LL POST THEM ON WTHRCOM, YOU CAN ACTUALLY USE WHEN YOU CALL YOUR CREDIT CARD COMPANY, SURE, A LITTLE CORNY, GO WITH IT, MAKE IT YOUR OWN

GOOD TIPS IN THE SCRIPTS ONCE YOU'RE DONE DOING THAT IT IS REALLY DETERMINING WHAT CARD YOU WANT TO PAY OFF NEXT SO PERRY SAYS SOME PEOPLE LIKE TO PAY OFF CARDS MAYBE WITH THE HIGHEST INTEREST RATE FIRST, OKAY, SOUNDS SIMPLE OTHERS PAY THE LOWEST FIRST, LOWEST BALANCE NO PERFECT WAY, HE SAYS DO WHAT WORKS FOUR, WHAT YOU CAN HANDLE

NEXT TIP, DON'T USE ALL OF YOUR SAVINGS TO PAY OFF YOUR CREDIT CARDS HE SAYS IT IS TEMPTING TO USE YOUR BUILT-UP SAVINGS TO WIPE OUT YOUR CREDIT CARD BILLS FIGHT THE USUAL, UNLESS YOU'RE COMMITTED TO BUILDING YOUR SAVINGS BACK UP SOON IT IS SO TEMPTING TO SAY YOU KNOW WHAT WE'VE GOT $10,000 IN SAVINGS, $10,000 IN CREDIT CARD BILLS, DON'T DO IT, BECAUSE YOU NEED A SAFETY SAVINGS ACCOUNTS FOR THE UNEXPECTED EXPENSES >> LET ME GET A SMALL CASH BUFFER SO I CAN HANDLE A SMALL CAR REPAIR, OR IF I NEED TO REPLACE A WATER HEATER, A SMALL MEDICAL BILL, YOU'VE GOT SOMETHING TO RELY ON

OTHERWISE, ANY EMERGENCY IS GOING TO CAUSE YOU TO PUT MORE MONEY ON THAT CREDIT CARD YOU DON'T WANT THAT TO HAPPEN >> Ben: NO YOU DON'T IF YOU ARE WANT TO BE MORE RESPONSIBLE HERE'S THE THING

>> Julia: YOU WILL YEAH CASH IS KING >> USE CASH ENVELOPE METHOD AMAZINGLY EFFECTIVE CREDIT CARD AND PLASTIC DETACHES YOU FROM YOUR MONEY

>> Ben: DO YOU USE CASH >> Julia: NOT AS MUCH AS I WOULD LIKE >> Ben: LEARN FROM CHUCK LOFTON, CASH IS KING IF YOU HAVE MULTIPLE CREDIT CARDS ACCOUNTS, CLOSE THEM OUT IF YOU'RE AFRAID OF HURTING YOUR CREDIT SCORE, LEAVE IT DORMANT

CUT UP THE CARD IF YOU HAVE TO TO RELY LESS ON YOUR CREDIT CARD AND USE MORE CASH OKAY? NOW, HERE'S THE THING WHEN IT COMES TO FINANCE, CUT, CUT, CUT AT SOME POINT YOU CAN'T CUT CERTAIN THINGS, YOU HAVE TO EAT, A PLACE TO STAY BRING IN MORE MONEY MAYBE IT IS TIME TO ASK FOR A RAISE

TRICKIEST TIP, BUT WHAT'S THE BEST WAY TO GO ABOUT THAT? >> YOU NEED TO MAKE THE CASE WHAT HAVE BY WHAT HAVE I BEEN DOING, WHAT PROJECTS HAVE I ACHIEVED AND DELIVERED FOR THE COMPANY OR MY DEPARTMENT, RIGHT? YOU'RE MAKING A PRESENTATION WHAT IS MY CASE FOR BEING PAID MORE? MAYBE YOU CAN LOOK AT OTHER COMPANIES, WHAT'S THE AVERAGE SALARY AM I BEING PAID FAIR OR READY TO MOVE UP TO THE NEXT LEVEL IN MY JOB >> Ben: BRENT SAYS THIS IS TOUGH, BUT MAYBE IT IS TIME TO TAKE ON A PART-TIME JOB

LOOK AT COMPANIES LIKE UBER AND LYFT, FLEXIBLE WHEN IT COMES TO HOURS, DRIVE WHEN YOU WANT TO, WORK AT YOUR OWN PACE BRING IN EXTRA CASH FOR YOU AND YOUR HOUSEHOLD I MENTIONED THREE OTHER TIPS YOU CAN USE TO START THE PROCESS WITH YOURSELF OR FAMILY HERE IN 2019 TO GET FINANCES IN ORDER