Business owner on a 60'000 (pre-tax) salary in $134'794 of credit card debt to keep business expanding

Jason, 40 years old, Baton Rouge, LA

This guy seems sane and relatively intelligent unlike a lot of the other people on the show.

Interesting talk about the private security market

4 kids, 16, 15, 10, 7

Total debt: $134'794, 5'384 minimum monthly

Personal debt: $65'903, 3'419 minimum monthly

Last month's interest and fees: $3000

Career/Business:

• He's W2'd himself so no tax issues

• Owns eight security (physical) franchises, 6 active, 2 not launched

• At least one business partner (is legal, not informal)

• Military Police Marines, Air Force 6 years of each

• Started in 2013, employs 150 people

• Revenue $4.2 million last year

  • Expects $7.5 million this year?

• Takes a 60'000 salary, before taxes, $4'000 child support

• around 1k left in salary post minimum payments

• Total needs category is 1000 more than his monthly take home

• Some personal expenses run through business

• "Constant Growth period"

• Charged based on the population of the territory purchased

• Was $0.35 per capita now $1 per capita, minimum 100k chunk of people

• $24-$40ish per hour depending on the service

  • $500 a month (spot checks occasionally at night) - $25'000 a month (dedicated patrols)

• Vehicle insurance gas all business expenses

• Stronger franchises currently funding his newer ones but hasn't slowed down? Thought the opportunities were too good to pass up

• 20 vehicles in fleet

  • Thinks more than $200'000 car debt at the moment? Not sure I heard that right.

Personal Life

• Moving to Dallas in around a month

• Divorced wife partially because of her spending, turned out he had the same issue, moidmoment

Debt

• Started the business on credit cards

• One of those companies that opens a bunch of credit cards in your name

  • 120k cash from that (4500 a month minimum payments), he had no fallback

  • Took 6-7 years to get real progress on the debt

Personal Cards

• USAA Credit Card

  • 10'952 balance on an 11'000 limit

  • Paid 287 on it but made 210 in purchases on it

  • $171 in interest on this one, woah

  • "That's the good card... unfortunately"

• Banana Republic Card

  • $4'764

  • $164 minimum payment

  • $117 interest charged

• City Double Cash Card

  • Was paid off

  • $1600 balance now as a deposit for the movers

• Delta Amex (?)

  • 13000 credit limit

  • 13331

  • Minimum payment $447

  • $297 interest

• Chase

  • $24'290

  • $676 minimum

  • $433 interest

Business Cards

• Card 1 (BoA?)

• $8'990 balance down from $10'567

• 197 finance charges

• "Some of the purchases are unavoidable and some are not. I sometimes have a hard time distinguishing between the two"

• Chase

  • $23'746 down from 24'045

  • $615 interest

Savings/Expenses

• Asked ex if he could borrow against the child support, currently pays 1900 twice a month to afford his move to Dallas

  • wanted to pay once a month for a couple months then three times a month for the next couple

• USAA checking money comes in, goes out to other accounts?

• Bills on autopay for one of his

• Fair bit of eating out? He's on the road pretty frequently

  • Gives himself a $200 budget for that stuff a month

• Borrowing against receivables for payroll? I don't know what that means but it sounds cool