You're Saving $400 a Month Why Isn't Your Credit Card Debt Going Down?

Saving $400 a month but your credit card balance won't budge? This video shows exactly where your progress disappears between your savings account and your credit card, and gives you a simple rule (Floor, Rate, Refill) for deciding what to do with your money. We follow Sam, a saver with a $6,000 balance at 24% APR, through one month of interest, new charges and payments, then compare two versions of him over four months. In this video: • Why your balance stays flat even when you pay on time • How credit card interest really works (and why only part of your payment reduces the balance) • The minimum payment trap • Why carrying a balance can remove the interest-free grace period • Savings at 4% vs card debt at 24%: the hidden gap • Should you pay off credit card debt or build an emergency fund first? • The Floor, Rate, Refill rule • How to run it on your own numbers with three figures from your statement CHAPTERS 0:00 The $400 mystery 0:51 Meet Sam: the numbers 1:59 One month on the card statement 3:47 The grace period catch 4:21 How your savings and card are connected 5:21 The third leak: idle savings 7:05 Why saving feels right 8:15 What happens if you go all-in with no buffer 9:15 Sam A vs Sam B: four months later 10:52 The rule: Floor, Rate, Refill 12:58 Run your own numbers 13:21 Honest exceptions 14:07 The first of the month, again Your turn: if it were your $400, where would it go first, savings or card? Comment below. #CreditCardDebt #PayOffDebt #PersonalFinance Disclaimer: Money Actually provides general educational information for informational purposes only. Nothing on this channel constitutes personalized financial, investment, tax, legal, or other professional advice. Financial circumstances differ from person to person, and financial products, laws, regulations, taxes, benefits, and rates vary by jurisdiction and may change over time. Always verify information relevant to your country and individual circumstances and consider consulting a qualified professional before making significant financial decisions.