Speaker 1: And now time for the b A Q B keep
Speaker 1: A b A keep I love when we do the
Speaker 1: brann abission question, anansa.
Speaker 2: Yes, and don't forget. We have a fun new segment
Speaker 2: including or a fun new segment on Fridays that we're
Speaker 2: calling BA fan Fridays because Friday was just not complete
Speaker 2: with justice, ba Q and A. We wanted to shout
Speaker 2: out some of our favorite fan mails. So this is
Speaker 2: going to be reviews that y'all have left for us
Speaker 2: on iTunes. So we're going to pluck those out and
Speaker 2: give y'all some love on our socials. So definitely leave
Speaker 2: those reviews on iTunes or wherever you listen to the show,
Speaker 2: and maybe you'll have a special shout out on Friday.
Speaker 1: So first question of BA Fridays Vaqa is from anonymous,
Speaker 1: So we're just gonna call you muss so Mussas. In
Speaker 1: twenty nineteen, I paid off fourteen thousand dollars off my
Speaker 1: student loan debt. COVID happened, and I didn't pay any
Speaker 1: money in twenty twenty and haven't made any payments in
Speaker 1: twenty twenty one. I've just been saving. I have thirteen
Speaker 1: thousand dollars of debt left that I can pay off today.
Speaker 1: Even with paying off the loan, I will still have
Speaker 1: over a year's worth of savings. I'm hesitanting to pay
Speaker 1: off my loans because I was hoping for some student
Speaker 1: loan forgiveness from the Bided administration. I didn't want to
Speaker 1: pay them off and then ten thousand dollars of student
Speaker 1: loan debt be forgiven the next day. But I also
Speaker 1: just want to be debt free and officially done with
Speaker 1: nail net. Would you pay it off now? Would you
Speaker 1: wait until the government made a decision? What should I do? Ooh, muss?
Speaker 1: It is a conundrum.
Speaker 2: Indeed, I can't with that name mus. It's just rhymes
Speaker 2: will puzz And it's just like anyway this is I
Speaker 2: love this question because I feel like a lot of
Speaker 2: folks are in this predicament right now. Like student loan
Speaker 2: you know, payments have been deferred or for you know,
Speaker 2: suspended since the pandemic hit, and it's going to be
Speaker 2: that way through January at least. Biden said that was
Speaker 2: the last extension he was going to give. So the
Speaker 2: ball isn't his court, and he's had this investigation team
Speaker 2: looking into supposedly how he could possibly cancel student loan debt,
Speaker 2: but even if he does, it does seem like he's
Speaker 2: gonna go with just the ten k option. So there
Speaker 2: are folks who are like, I've been saving up money,
Speaker 2: or I have money, what do I do? So Tiff like,
Speaker 2: what's your first reaction to this question?
Speaker 1: My first reaction is, Okay, well, maybe just leave the
Speaker 1: ten thousand because I get it, because I'd be highly
Speaker 1: pissed if you know, he paid it off. And I'm like, oh, so,
Speaker 1: I mean, I'm assuming that your interest rate is not
Speaker 1: too crazy because these are student loans. If you have
Speaker 1: thirteen thousand left to pay off, I don't think he's
Speaker 1: going to forgive more than ten thousand, honestly, So maybe
Speaker 1: I would pay down the three if I was feeling
Speaker 1: some sort of way about it. And I would say,
Speaker 1: if you have all of this and you would still
Speaker 1: have a year's worth of saving saved, one, you might
Speaker 1: be saving too much because at some point, you know,
Speaker 1: it's called the law of diminishing returns, you can actually
Speaker 1: have too much savings, meaning that the money is not
Speaker 1: being put to work. I would consider, also, in the meantime,
Speaker 1: putting some of that money to work in the market,
Speaker 1: you know, investment property somehow like getting that money to grow.
Speaker 2: I absolutely agree. I was going to say, I mean, honestly,
Speaker 2: I don't think you should give your student loans any
Speaker 2: more than you absolutely have to. So when your payment's
Speaker 2: become due, I would just look at your monthly payment
Speaker 2: and just make that payment in full each month and
Speaker 2: then take that money that you've been saving and actually
Speaker 2: start investing it, you know. And that's different for every person,
Speaker 2: and we don't know a ton about you, so it's
Speaker 2: hard to give like specific advice. But it could be
Speaker 2: increasing how much you're contributing to your four one K
Speaker 2: if you're working or if you're not working, your individual
Speaker 2: retirement account your IRA, and think about the benefit of
Speaker 2: just sinking a big chunk of change. Like if Tiffany
Speaker 2: says you have a nice you have a nice emergency fund,
Speaker 2: you don't have other debt. You know, you're feeling financially stable,
Speaker 2: think about making a lump some contribution to an IRA,
Speaker 2: or even maxing it out for the year. I think
Speaker 2: the limit is sixty sixty, five hundred or six thousand
Speaker 2: dollars for twenty It changes every year, so IRS DOT
Speaker 2: go for all your specific questions, but actually funding that
Speaker 2: so that the money can start working for you and
Speaker 2: start growing for you, because you know, like Tiffany said,
Speaker 2: student loan debt, the interest rate is fairly low, especially
Speaker 2: federal student loan debt, and you potentially could stand to
Speaker 2: earn a lot more by investing your money in the market.
Speaker 2: And you know, lump some investing may sound scary, but
Speaker 2: studies show that sometimes it can be more beneficial in
Speaker 2: the long run. You'll earn more in the long run
Speaker 2: if you just kind of sink everything in and one go.
Speaker 2: That's a super aggressive approach. But at the same time,
Speaker 2: like you want to sleep at night, and there's no
Speaker 2: wrong answer here, like paying off your student loan debts
Speaker 2: is an amazing thing, but you have to kind of
Speaker 2: weigh do you want to sleep now and feel like
Speaker 2: you've you've said like f you to neel net or
Speaker 2: would it make you even more upset if you found
Speaker 2: out that you could have got that ten k you
Speaker 2: know forgiven, and which one of those emotions is stronger,
Speaker 2: And then just make the call that you know you
Speaker 2: you want to make that makes you feel not fulfilled,
Speaker 2: but makes you feel stable, It makes you feel like
Speaker 2: you did the right choice with the information that you have.
Speaker 1: You know right now? Okay, we wish you well.
Speaker 2: This listener who says we can call her Brie, says, hello,
Speaker 2: beautiful ladies, I have a question. After graduating college, I
Speaker 2: was super broke and used my Discover and Chase Chase
Speaker 2: credit cards. Both cards have been charged off and sent
Speaker 2: to collections. At this point, I'm not sure what to do.
Speaker 2: Do I reach out to Chase and Discover to try
Speaker 2: to pay it back. Well, paying the charge off card
Speaker 2: increase my credit score? Once paid? Can I have it
Speaker 2: turned back on? Since those two are my oldest credit cards?
Speaker 2: Please help? Sad face emogree.
Speaker 1: This is a really good question. A lot of people
Speaker 1: think like, okay, paying off old cards is going to
Speaker 1: raise their credit score. It won't. It actually is gonna
Speaker 1: bring down your score. Here's the thing about credit scores,
Speaker 1: Credit scores and credit bureaus. They like the new, the now,
Speaker 1: the current. They're like, who is breed today?
Speaker 2: Right?
Speaker 1: So bree today is someone yes that has cards that
Speaker 1: are charged off. But because those cards are charged off,
Speaker 1: it that means there hasn't been really any major action
Speaker 1: on them, I'm assuming in some years, but if you
Speaker 1: start paying on them now you literally bring not only
Speaker 1: the current payments but any pass payments current again, and
Speaker 1: then that becomes who you are now, and therefore your
Speaker 1: score is going to drop. So I don't know how
Speaker 1: long ago. What I would do first and foremost is
Speaker 1: I would get my Googles on. I would say, Hey, Google, gird,
Speaker 1: you're looking cute lose away, Oh you thick thig Okay,
Speaker 1: I would say Google, what is the statute of limitations
Speaker 1: of credit card debts or revolving debt in my state,
Speaker 1: in the state of New Jersey and New York, for example,
Speaker 1: is six years. That means after six years, your debt
Speaker 1: becomes what they call zombie debt. Now, it doesn't mean
Speaker 1: that you don't have that you don't technically owe it,
Speaker 1: like a zombie is not technically dead or alive, So
Speaker 1: it doesn't mean that you don't technically owe it, but
Speaker 1: it does mean that they can't technically come after you
Speaker 1: for it, because the state basically says, hey, you have
Speaker 1: six years to get Brie. If you were in New
Speaker 1: York and New Jersey to get Bree to pay up,
Speaker 1: you're not going to have her at ninety years old
Speaker 1: for debt that she owed when she was twenty No. No,
Speaker 1: So if I would say, if my credit card debts
Speaker 1: were in the zombie debt zone, I would move on
Speaker 1: with my life and put my money toward other debt,
Speaker 1: you know, and paying that off and full and being
Speaker 1: timely to raise my credit score, because paying off super
Speaker 1: old debt, honestly is going to bring down your score.
Speaker 2: Yeah, and if it's six years, you're only one year
Speaker 2: away from that falling off your credit report. So if
Speaker 2: you just hang in there and be patient and start
Speaker 2: building up that good credit behavior, then your score should
Speaker 2: definitely bounce back. I would just add when when it
Speaker 2: comes to zombie debt, it's stopping people from suing you
Speaker 2: for the debt. They can still contact you, and they will,
Speaker 2: and that's where it becomes. It's kind of like poking
Speaker 2: one of those zombies, if you imagine them like walking.
Speaker 2: I hate zombie movies. Let me just not invoke that
Speaker 2: image anyway. But if you poke a zombie and it
Speaker 2: starts to chase you like, they'll try and call you
Speaker 2: to get you to fall for their you know, bait,
Speaker 2: take the bait. And if you even pay a dollar
Speaker 2: on an old debt, that technically has Yeah, it's statue
Speaker 2: limitations has expired, then they can it like restarts the clock,
Speaker 2: and then they can try and sue you again for it.
Speaker 2: So that's why it's important to do what Tiffany said,
Speaker 2: find out the facts for yourself and don't believe anything
Speaker 2: they try to tell you to get you to make
Speaker 2: a payment. If you know for a fact that your
Speaker 2: statue limitations is expired or it's close to expiring, you
Speaker 2: know you can It's it's okay to focus on newer,
Speaker 2: you know, newer financial challenges, debt, saving, investing, things like that,
Speaker 2: and let that old debt expire.
Speaker 1: Exactly, Bree, I'm glad you reach out, Boo boo, so hopefully.
Speaker 2: Actually October if spooky season, we're talking about zombies.
Speaker 1: Exactly, we should have a we should have a Halloween
Speaker 1: Q and a SEGMENTO of scary financial questions.
Speaker 2: They're all terrifying.
Speaker 1: I know.
Speaker 2: I'm still shuddering from from the afromanimalist Christine earlier this
Speaker 2: week when she was telling me I talked to my
Speaker 2: dad about his storage shed from hell that I'm going
Speaker 2: to inherit one day. Oh my god, that's a terrifying, terrifying,
Speaker 2: question that I have to figure out how to answer
Speaker 2: for myself.
Speaker 1: Oh oh, it's hard with family.
Speaker 2: My daddy. You're never going to open that thrift store.
Speaker 2: You're never gonna open there. It's just not happening for you. Yeah, tough. Well,
Speaker 2: then you.
Speaker 1: Have questions, you know, you can always reach out to
Speaker 1: us on the IG. You can reach out to us
Speaker 1: via Brandonbision podcast dot com, BRANDI Vision Podcasts at gmail
Speaker 1: dot com.
Speaker 2: Yes, ma'am, we love to hear from y'all. Send us
Speaker 2: all your questions and don't forget to leave your iTunes
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Speaker 2: our b A I Almost said, b A QA No
Speaker 2: b A Fam Fridays, b A Fam Friday. So check
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Speaker 2: where have you been? And stay tuned for that.
Speaker 1: Awesome or Amanda until next week. Booboo