How Kwame from Put a Ring on It Got Out of Credit Card Debt

In 2008, Kwame from Put A Ring On It was 29 years old and had more than $30,000 in credit card debt. That meant he was making just enough to cover the interest payments on his cards each month. His credit had been taken seriously damaged by those payments during the 1990s, and he had filed bankruptcy in the early 2000s.
But Kwame, the New York City-based rap artist and actor, has worked hard to get to the point where he can pay his cards off. He’s using a combination of cash flow and credit card rewards. Here’s how he did it:
1. The bank cut his interest rate from nearly 19 percent to around 10 percent for two years. His total reduced balance went from about $30,500 to less than $1,000.
2. He paid off his cards in full and late.
3. He shopped around for a card that had the best return on rewards, and avoided high-interest cards. The 20 percent return from the card he’s using now is a big reason why his total balance is below $1,000, even though he hasn’t paid it off yet. (It says on the card that the total interest owed is zero.) [NOTE: The highest rewards credit cards will sometimes pay half that rate.]
4. He uses credit to pay off the money he earns between gigs.
5. He still manages to pay his rent and buy food, groceries and other necessities with cash.

kwame from put a ring on it
kwame from put a ring on it

The story of how Kwame from Put a Ring on It got out of the debt cycle.

After doing some research and making a plan of action, Kwame from Put A Ring On It learned that he could get out of credit card debt by getting his creditors to accept a settlement offer instead of having them take any amount of money out of his checking or savings account. He had several months to come up with the money. All he had to do was send out a letter offering to settle the debt for $5,000. He had two choices: he could send out letters to just the major credit card companies, or he could send out letters to all of his creditors. Kwame from Put A Ring On It decided to send out letters to all of his creditors.
Kwame from Put A Ring On It received calls from the creditors wanting to discuss the offer, but they all told him that they were still processing his file. After two months of waiting, Kwame from Put A Ring On It sent them a letter asking them to send back an answer by a certain date and receiving no response, he decided that he would do just as they had suggested and contact each of them individually.
One creditor contacted him and said that his file was being processed, but he would be getting a letter from the other creditors (for Kwame from Put A Ring On It this included all of his co-signers) about their objections to the offer. Kwame from Put A Ring On It had no idea why this was happening; he had already tried to contact each of them individually and they told him that their files were still being processed. Nonetheless, Kwame from Put A Ring On It decided to post the $5,000 settlement offer and contact his creditors individually (as well as his other co-signers) to discuss the offer and receive their objections.

kwame from put a ring on it
kwame from put a ring on it

Here’s my credit card debt story. Growing up without much money, I was impatient and wanted to be “rich.” I didn’t want to wait years to get rich like my parents told me to, so I took out credit cards to spend.

My problems started when I took out multiple mortgages on my first home. I thought that if I could spend money really fast, then I would be rich by the time my home was paid off. Instead of getting rich quickly, things got worse and worse as the years went on. I was so far in debt that I couldn’t even afford my monthly payments. Credit card interest rates were sky-high, and I had to make payments on multiple credit cards. Things got so bad that my wife had to work two jobs just to support our family while I spent all of my time trying to figure out how to get out of debt. It was a sad time for my family, and I didn’t realize it at the time.
My financial problems made me impatient, so I got myself into a lot of trouble with credit card companies. They were always threatening to report me to the credit agencies, but they never did it. I got myself into one big mess after another with these credit cards and didn’t even know it. I stopped paying my credit cards on time and started making payments late every month. I stopped paying off my credit card debt and started racking up more interest every year. I was living for myself and not thinking about the future.

kwame from put a ring on it
kwame from put a ring on it