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Speaker 1: All right, jiel it's still Christmas week, and I think

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Speaker 1: there might be a lot of folks who are regretting

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Speaker 1: some of the purchases that they made, Like all of

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Speaker 1: the swipes on the card have finally, like the card

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Speaker 1: is cool down a little bit. It was like in

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Speaker 1: Fuego for a second, and maybe some regret has been

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Speaker 1: setting in. Maybe folks are realizing that they're gonna have

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Speaker 1: to face the music of Yeah, maybe all the spending

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Speaker 1: that they've that they've participated in, and I'm guessing they're

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Speaker 1: still being left several weeks. They haven't quite come to

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Speaker 1: grips with that yet, but it's coming.

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Speaker 2: It's coming, and we want you to preemptively get ahead

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Speaker 2: of that sinking sensation and hopefully I mean to change

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Speaker 2: your money habits so that this sort of cycle doesn't

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Speaker 2: perpetuate in the future. But for right now, like let's

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Speaker 2: be honest, getting out of debt is a good goal

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Speaker 2: to have and totally Hey, maybe I'll save the mechanics

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Speaker 2: for like January second or something like that. More power

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Speaker 2: to you. But this episode, we think it's a besty

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Speaker 2: episode can kind of help you formulate a.

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Speaker 1: Plan, start getting your mind wrapped around.

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Speaker 2: What it's going to look like to get rid of

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Speaker 2: that debt that you might have indulge in right the

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Speaker 2: past weeks.

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Speaker 1: And you'll learn whether or not Joel is a debt

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Speaker 1: snowball or debt avalanche kind of guy. And by the way,

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Speaker 1: we will have a fresh episode here for y'all come Monday.

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Speaker 1: But without further ado, here is this Debt Bestie episode.

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Speaker 2: Welcome to How to Money. I'm Joel and I am

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Speaker 2: Matt and today we're discussing a full proof plan to

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Speaker 2: ditch holiday debt.

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Speaker 1: You know it, buddy, This this is gonna be a

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Speaker 1: really wholesome episode for all the folks out there who

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Speaker 1: may have spent a little bit more than they meant

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Speaker 1: to over the past couple of months. But we're gonna

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Speaker 1: talk about, first of all, why it is that having debt,

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Speaker 1: why having those balances, why it's such a bad thing.

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Speaker 1: We're gonna talk through how to put together a plan

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Speaker 1: to eliminate that debt, as well as some other tips

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Speaker 1: as well. Regardless of the approach that you decide to take,

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Speaker 1: there are a few things that you can implement, some

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Speaker 1: different ways of looking at your debt in order to

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Speaker 1: make sure that you are moving onwards and upwards with

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Speaker 1: your finances.

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Speaker 2: Yeah, and if people have been listening for any amount

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Speaker 2: of time, they know we like to be nuanced on

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Speaker 2: the topic of debt. But we're specifically talking about like

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Speaker 2: the crummiest forms of consumer debt in this episode, which

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Speaker 2: is what a lot of people are battling in January. Right,

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Speaker 2: and the credit card statement comes in your email inbox

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Speaker 2: and you're like, dang it, I didn't think it was

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Speaker 2: that bad.

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Speaker 1: Maybe even today that statement showed up. Maybe you had

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Speaker 1: a December fifteenth to January fifteenth statement and you are, yeah,

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Speaker 1: you're maybe you're a little disappointed in yourself.

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Speaker 2: Yeah, but and that's like that happens, right, people are

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Speaker 2: absolutely but how do you combat those now?

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Speaker 1: How do you move forward? That's yeah, we're gonna talk

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Speaker 1: about the deck exactly. Man. Yeah, but first actually, uh so,

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Speaker 1: I've got a frugal or cheap for you. But it

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Speaker 1: is actually, for once, it's not me being cheap. It

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Speaker 1: is it's up to you to decide whether or not

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Speaker 1: is being frugal or cheap. Okay, you're white, that's right.

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Speaker 1: So she was considering getting this face serum. It's this

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Speaker 1: oil that you if you ever see her do it,

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Speaker 1: which that'd be weird. I guess if you were if

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Speaker 1: it's hard doing that night. She does it right before

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Speaker 1: she gets to bed, but it's like this little.

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Speaker 2: Glass usually hanging out of that time. No, yeah, yeah,

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Speaker 2: my wife has some face rum.

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Speaker 1: So I got it. I think I was about so

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Speaker 1: just just she had like this dropper where she squeezes

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Speaker 1: it into this two glass room and she like squirts

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Speaker 1: it like across her forehead, over her cheeks. I forget

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Speaker 1: where normally buys hers from. But I try to convince

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Speaker 1: her to go with the Costco brand when it was

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Speaker 1: on clearance. Did she give a shot? She gave. She

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Speaker 1: gave it a shot, and she's like, it's not it's

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Speaker 1: not as good. This is garbage. Well dang it. So

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Speaker 1: maybe Kate felt that same way as well, because the

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Speaker 1: the stuff that she wanted to buy, I forget the

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Speaker 1: name of the website, but it's like one hundred bucks.

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Speaker 1: It's over one hundred bucks for a three ounce bottle,

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Speaker 1: which is that is not very many ounces? Yeah uh,

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Speaker 1: and so what she realized that, man, this is too

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Speaker 1: stinking expensive. But the website for the bottle that she's

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Speaker 1: wont they list out all the different ingredients. They list

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Speaker 1: out the oils, and obviously she doesn't know the exact ratios,

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Speaker 1: and I mean there's a little bit of fragrance thrown

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Speaker 1: in there as well. But she would have had just

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Speaker 1: ordered some nice organic versions of those oils and created

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Speaker 1: her own blend. And so she's able to make a

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Speaker 1: three ounce bottle, so the equivalent of what you would

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Speaker 1: pay over one hundred bucks for and she's able to

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Speaker 1: make that for under ten dollars dang per bottle. It's

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Speaker 1: like like argone oil or like rose hip, a little

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Speaker 1: bit of like grape seed, like like all these oils combined.

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Speaker 1: There's a lot of bottle, a lot of branding that

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Speaker 1: goes into makeups. But so I'm just like, how's this going?

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Speaker 1: By the way, She's like, it is going incredibly well,

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Speaker 1: and so she's super happy with it. But what are

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Speaker 1: your thoughts? Do you think she was being frugal or cheap?

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Speaker 2: Sounds frugal as I'll get out to me, Like I

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Speaker 2: think if I was like, I agree, I am all

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Speaker 2: for this, it was like destroying her face or something

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Speaker 2: like that. Well that's the risk, right, Like I guess

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Speaker 2: if is there a risk that you run by not

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Speaker 2: getting the proportions exactly right, and you put on your

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Speaker 2: face and all of a sudden you got you know,

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Speaker 2: first degree burns. Yeah, if you were putting it in

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Speaker 2: some potentially face melting acid or something in this concoction,

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Speaker 2: then it could be seen as cheap. You might need

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Speaker 2: some sort of expert blender to get exactly right. But

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Speaker 2: it's it's a bunch of these organic oils to create

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Speaker 2: a face.

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Speaker 1: Like. The chances are you can't screw it up that bad, right, Yeah,

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Speaker 1: And you can always like test it out on your

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Speaker 1: arm or something before going like straight full board, just

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Speaker 1: like squirting it on your face. Right, But this sounds

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Speaker 1: like it's it in an inconspicuous location, sort of like

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Speaker 1: if you're doing a treatment for laundry. Right y, that's

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Speaker 1: what they say.

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Speaker 2: Yeah, I'm thinking the next step for her though, could

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Speaker 2: be to launch a side hustle with this. I start

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Speaker 2: selling her own serums, oh Kates serums. Yeah, I like it, so,

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Speaker 2: I don't know, maybe I'll talk her into that next

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Speaker 2: time I see her.

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Speaker 1: First customer will be Emily.

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Speaker 2: Yeah, probably probably Hopefully it's a that'll save us money too,

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Speaker 2: So no, I like that. I like experimenting in ways

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Speaker 2: like that. I think that's one of those things that

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Speaker 2: you don't you don't even think of doing. Let me

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Speaker 2: just try to make this concoction myself, because wow, they're

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Speaker 2: charging a lot of money for it. But when it's

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Speaker 2: when the cost is that insane, maybe it brings you

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Speaker 2: back to the drawing board and you're like, yeah, maybe

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Speaker 2: I'm gonna give it a shot and see what happens. Absolutely,

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Speaker 2: I kind of like the creativity and the ingenuity that

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Speaker 2: that she's expressing there.

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Speaker 1: Yeah, thinking outside the box a little bit. I will

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Speaker 1: pass along her the frugal approval, Yeah, by my co

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Speaker 1: pat on the back for me. Well, let's introduce our

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Speaker 1: beer this episode. This is Perpetual Composition. This is a

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Speaker 1: beer by Southern Grist Brewery, who we've had on the

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Speaker 1: show many times before, but not this particular beer, and

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Speaker 1: we will share our thoughts at the end of the episode.

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Speaker 1: For sure. Let's go on to the topic at hand. Though.

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Speaker 2: We are talking about creating a full proof plan to

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Speaker 2: ditch holiday debt, and Matt there are some folks out

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Speaker 2: there who might think that just a little bit of

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Speaker 2: debt is no big deal, But it makes me think

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Speaker 2: about something else that we might not consider to be

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Speaker 2: all that bad, and that is sitting sitting down. And

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Speaker 2: it's interesting. I think a lot of new information has

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Speaker 2: come to light in recent years about how bad sitting

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Speaker 2: can actually be for us. Like we all sit down,

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Speaker 2: You and I were sitting down doing this podcast right now,

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Speaker 2: and we're not heeling over and dying right sure, but

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Speaker 2: it turns out that sitting on your butt all day

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Speaker 2: is much worse than we thought. And it's actually been

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Speaker 2: called the new smoking. You for people say sitting is

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Speaker 2: a new smoking.

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Speaker 1: Maybe I have only because I feel like I've heard

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Speaker 1: you talk about it. But this sort of sounds like

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Speaker 1: a report that maybe came from Big Tennis Shoe, all

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Speaker 1: the shoe companies out there, by Nike and Reebok, all

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Speaker 1: the anti chair trade groups out there who are battling

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Speaker 1: so many of them, so many of them clearly well

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Speaker 1: know that when you look at stats from the Heart Foundation,

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Speaker 1: they found that the people who sit sit a.

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Speaker 2: Lot are they're at a greater risk for heart disease

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Speaker 2: and death. They have one hundred and twelve percent increased

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Speaker 2: risk of diabetes, one hundred and forty seven percent increased

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Speaker 2: risk of cardiovascular events like heart attack and stroke, and

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Speaker 2: ninety percent increased risk of death from cardio vascular events

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Speaker 2: in general, and a forty nine percent increased risk of

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Speaker 2: death from any costs just because of the amount of

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Speaker 2: time you're sitting in a day, right and you know, debt,

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Speaker 2: I don't think that that's not going to lead to

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Speaker 2: diabetes that I know of. There's no link between the

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Speaker 2: two that I've seen. But it can cause stress, it

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Speaker 2: can cause relational insecurity, and it can actually lead to

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Speaker 2: adverse physical effects like headaches and inability to focus. So

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Speaker 2: that's why we want it.

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Speaker 1: Out of your life.

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Speaker 2: It's you know, sitting in small amounts isn't the worst thing.

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Speaker 2: The right kinds of debt in your life aren't the

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Speaker 2: worst thing. We've talked about using debt strategically. But if

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Speaker 2: you've racked up the worst kinds of debt, consumer debt,

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Speaker 2: and you actually have more in your life than you

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Speaker 2: expected because of what was happening at the end of

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Speaker 2: last year and what you were spending money on, well,

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Speaker 2: today's show is all about creating a plan to ditch

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Speaker 2: it because it's worse than you think it is.

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Speaker 1: That's right. Simultaneously, it's not like sitting all day once

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Speaker 1: is going to kill you, right, Like most of us

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Speaker 1: probably sit for the majority of our waking hours. You're

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Speaker 1: probably half of the folks out there might be sitting

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Speaker 1: right now. Maybe you're going for a walk, though, But

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Speaker 1: when those weeks turn into years, right, and like when

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Speaker 1: those years turn into decades, like that is when this

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Speaker 1: this fairly normal activity, how it can wreck our health.

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Speaker 1: And we definitely don't want consumer debt to become a

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Speaker 1: normal fixture in your life. But the truth is that

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Speaker 1: if you don't have a plan, you are not going

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Speaker 1: to take action. And so that plan part, like that

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Speaker 1: is crucial to getting you to where you want to be.

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Speaker 1: And if not having debt, you know, lingering around is

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Speaker 1: what you want and it should definitely should be, then

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Speaker 1: we want to help you to get there. Like you're saying, Joel,

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Speaker 1: consumer debt, it's it's worse than most people think. It's

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Speaker 1: not like this, this cute little thing. It's not like

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Speaker 1: a pet that you want to want to keep around.

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Speaker 1: It's quite literally keeping you from achieving your bigger financial goals.

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Speaker 1: It turns out that the average household today has more

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Speaker 1: than nine thousand dollars in recurring credit card debt. And

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Speaker 1: that's not even including some of the other crappy debt

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Speaker 1: products out there, like personal loans or by nopay later. Yeah,

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Speaker 1: that's literally just credit card debt hanging out in people's lives.

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Speaker 1: And you know, I think part of the thing that

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Speaker 1: we need to address here too, is that debt, credit

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Speaker 1: card debt in particular, is getting worse. Variable interest rate

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Speaker 1: debt is steadily becoming a bigger train on your finances

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Speaker 1: because we're in an era of rising interest rates, and

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Speaker 1: so credit card debt is actually worse right now than

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Speaker 1: it was a couple of years ago. And it's always bad,

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Speaker 1: right It sucks no matter what to have credit card debt.

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Speaker 1: We've never liked it. But when you're talking about interest

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Speaker 1: rates closing it on twenty percent at this point, which

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Speaker 1: we're getting pretty close to. I think we're over nineteen

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Speaker 1: percent on average, and there's a lot of predictions because

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Speaker 1: the FED is likely going to continue to raise interest

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Speaker 1: rates that we're going to see twenty percent at some

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Speaker 1: point this year being the average APR on a credit card,

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Speaker 1: and so making the minimums, making those minimum payments is

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Speaker 1: now even worse for you than it was that means

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Speaker 1: more of each payment is going to pay that interest,

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Speaker 1: which means your debt lingers even longer. And the reality

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Speaker 1: is that almost half of folks have no idea what

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Speaker 1: the interest rate is on the credit card they carry anyway.

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Speaker 1: So people are like just would prefer to be ignorant

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Speaker 1: and just got their head in the sand.

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Speaker 2: Yeah, they prefer to keep their eyes closed and not

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Speaker 2: even think about how bad this debt is. Well, the

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Speaker 2: truth is it's bad. And if you're clueless about how

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Speaker 2: bad your debt is, you're likely you're less likely to

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Speaker 2: prove orities getting rid of it. And we want you

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Speaker 2: to get rid of it. So we want to tell

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Speaker 2: you right now upfront, Hey, it's worse than you think.

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Speaker 2: It sucks really bad, and we want you to be

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Speaker 2: done with it.

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Speaker 1: That's right. Yeah, And while existing credit card rates are

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Speaker 1: in the sixteen percent range, new offers are at nearly

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Speaker 1: twenty two percent, So, like you said, it's becoming much

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Speaker 1: more costly to carry a balance on a credit card

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Speaker 1: these days. That's terrible, but it's also important to look

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Speaker 1: at what you are giving up by having to make

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Speaker 1: these payments. We're talking about the opportunity cost here, so

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Speaker 1: going back to the nine thousand dollars that the average

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Speaker 1: household has, So assuming someone is just making minimum payments

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Speaker 1: with an instraight at around twenty percent, you are looking

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Speaker 1: at a three hundred and thirty dollars per month payment

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Speaker 1: that is going to take over three years to fully

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Speaker 1: pay off. And so that means you're looking at around

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Speaker 1: twelve thousand dollars that you're giving up plus another one

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Speaker 1: thousand dollars where you two have invested that money, right,

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Speaker 1: And so I'm pointing that out because it's not just

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Speaker 1: that making payments to the bank that sucks, but it's

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Speaker 1: also what you're not able to achieve because of those

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Speaker 1: monthly payments. It kind of so going back to the

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Speaker 1: sitting analogy, right, it's it's not that the act of

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Speaker 1: sitting on your butt that that in and of itself

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Speaker 1: is bad for you. I think it's also what you

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Speaker 1: are not doing when you are sitting down, right, Like

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Speaker 1: there aren't you're not working out if you're sitting on

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Speaker 1: your butt. Well, I guess technically you can go. You

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Speaker 1: can get on that. You can get on a rowing

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Speaker 1: machine or like a bike or something, right, that's true. Yeah,

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Speaker 1: I do a rowing machine so I guess I am.

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Speaker 1: Technically you are. You are sitting, but most of the time,

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Speaker 1: you know, what they're referring to is a sedentary lifestyle.

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Speaker 1: You're talking about folks PLoP down on the couch watching TV,

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Speaker 1: and not to mention the other behaviors that oftentimes accompany

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Speaker 1: sitting down, like eating some popcorn, some snacks, drinking a coke,

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Speaker 1: that kind of thing. And so in the same way,

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Speaker 1: it's a little bit different, I guess with that because

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Speaker 1: the thing in and of itself is dangerous, is bad

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Speaker 1: for you. So it's more like smoking in this in

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Speaker 1: this way where the actual act of it's not that

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Speaker 1: you're just not spending money on other healthier products. Actually,

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Speaker 1: inhaling smoke is bad for your Yeah, but maybe there

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Speaker 1: is a better analogy overall. But in this case, it

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Speaker 1: also has to do with the things that you can't

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Speaker 1: do with the money, the things that you're missing out on,

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Speaker 1: and we want to make sure that we're highlighting that

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Speaker 1: as well. Well.

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Speaker 2: Yeah, and I think we just in the same way

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Speaker 2: that people are spending more hours of the day sitting,

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Speaker 2: which is impacting their health negatively. People are keeping consumer

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Speaker 2: or debt around in their lives more than ever before too,

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Speaker 2: which is just negatively impacting their financials. And so let's

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Speaker 2: get back to that paying the bill on time and

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Speaker 2: in full every month. We always say that when we're

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Speaker 2: talking about taking on credit card debt, we don't mind

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Speaker 2: people using credit cards, and in fact, we think they're

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Speaker 2: the best method of payment in many cases, but we

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Speaker 2: sure don't want people using them if they're not going

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Speaker 2: to do that basic thing, which is to pay off

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Speaker 2: the balance every single month. And that's because each and

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Speaker 2: every month that you don't attack that debt, that you're

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Speaker 2: not doing that, you start to dig yourself a hole.

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Speaker 2: And every month you let that credit card debt roll over,

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Speaker 2: you're digging that hole even deep. And so unfortunately, that's

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Speaker 2: what a lot of people are doing. According to Bankrate,

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Speaker 2: forty six percent of credit card holders roll over their

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Speaker 2: debt each month, meaning that they're not paying off that

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Speaker 2: balance in full, and so they might not be paying

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Speaker 2: just the minimum, which is the worst possible scenario that you're, well,

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Speaker 2: I guess the worst possible scenario is that you're not

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Speaker 2: even paying that. But if you're just paying the minimum,

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Speaker 2: it's going to take a really long time for you

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Speaker 2: to make progress. For you to actually pay off that debt.

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Speaker 2: But some people might be paying more than that, but

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Speaker 2: they're still they're paying interest to the credit card company

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Speaker 2: on at least a portion of that balance, and that's

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Speaker 2: not good. And so, yeah, for a lot of folks,

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Speaker 2: we think they can handle credit cards wisely. But we

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Speaker 2: only want folks to consider using credit cards if they're

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Speaker 2: going to be able to basically curb rolling over that debt,

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Speaker 2: if they're only only if they're going to be able

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Speaker 2: to pay it off on time, in a full every

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Speaker 2: single month, Because yeah, we want you to refuse to

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Speaker 2: allow yourself to pay extra for using this method of payment.

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Speaker 2: That turns something that can be good for your finances

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Speaker 2: into something that's pretty bad.

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Speaker 1: Exactly. Yeah, we see it as a tool that you

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Speaker 1: need to wheeled properly, and it turns out too. More

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Speaker 1: than one third of folks, according to a wallet hub survey,

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Speaker 1: said that they overspent during the holidays. I think most

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Speaker 1: folks it's something like in the thirteen hundred dollars range.

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Speaker 1: But hopefully just based on you know, just the beginning

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Speaker 1: of this podcast, you've been alerted to just how bad

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Speaker 1: keeping credit card debt around can be. How it's actually

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Speaker 1: getting worse. How it's bad for your health, Like quite literally,

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Speaker 1: debt is bad for your health. And you also might

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Speaker 1: want to even consider look into buying a standing desk

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Speaker 1: as well. After hearing Joel's the sitting stats. I mean,

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Speaker 1: I'm thinking about it right now. Really, you have mentioned

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Speaker 1: it multiple times.

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Speaker 2: We saw one last time you and I were in

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Speaker 2: Costco together. We saw one and I was like, Matt,

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Speaker 2: maybe we should upgrade to these standing desks.

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Speaker 1: It feels like just such a commitment, you know what,

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Speaker 1: let's figure out a way to just elevate our current

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Speaker 1: desks just to try it out. Like, I guess that's

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Speaker 1: the thing for me. I guess we can always take

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Speaker 1: it back to Costco obviously, but it's the commitment of

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Speaker 1: like getting I mean, they're big and heavy, and a

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Speaker 1: lot of times they're adjustable, and so it's it's as.

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Speaker 2: It's nice because like you know, while sitting oh too

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Speaker 2: much is bad for you. You also can't stand necessary

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Speaker 2: for eight or nine hours a day. I don't like

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Speaker 2: it in perpetuity. You don't want to be hunched over.

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Speaker 2: You want it to be whatever. Yeah, size properly for you.

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Speaker 2: But back to debt for the rest of the episode,

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Speaker 2: we're going to talk about creating an effective plan to

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Speaker 2: get rid of that debt that we're talking about, and.

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Speaker 1: We will get to that right after this.

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Speaker 2: All right, Matt, let's keep talking about debt, and let's

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Speaker 2: do it. Clearly, we don't like consumer debt. We don't

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Speaker 2: like these high interest credit card debts that people are

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Speaker 2: keeping around in their lives. And the average person, I

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Speaker 2: think it's in a recent survey I read, I think

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Speaker 2: it takes something like five months for them to pay

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Speaker 2: off the debt they accrued over the holidays. So we're

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Speaker 2: talking about like we're basically in summer right by the

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Speaker 2: time are people are done getting rid.

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Speaker 1: Of that debt.

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Speaker 2: We don't want that to be the case. We want

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Speaker 2: you to pay it off in short order. And the

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Speaker 2: key to doing that is to create a plan. We

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Speaker 2: want you to make a plan to pay off your debt.

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Speaker 2: That's cru to getting rid of it. And so that's

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Speaker 2: what we're going to discuss now. Because you know that

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Speaker 2: there are a lot of folks by the way out

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Speaker 2: there who who are going to tell you I can

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Speaker 2: help you create a plan. And I'm not talking about us,

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Speaker 2: but like I'm talking about that's what we're saying. Yes,

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Speaker 2: what we're saying we actually can. But there are organizations

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Speaker 2: out there who wants you to pay them money and

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Speaker 2: then they promised that they're going to take care of.

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Speaker 1: Your debt issues for you. Right, do not want your money?

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Speaker 2: Right, No, don't send us anything, just just listen. But

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Speaker 2: it might sound nice. There might be people on the internet,

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Speaker 2: or let's say you're listening to traditional radio or something

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Speaker 2: like that. There might be companies that say, listen for

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Speaker 2: a small fee, will help you create a debt plan,

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Speaker 2: and even if you pay us, we'll take care of

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Speaker 2: some of that debt on your behalf. And that sounds

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Speaker 2: really nice because then you're offloading that responsibility to an

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Speaker 2: expert or a supposed expert. But almost always they end

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Speaker 2: up making your situation worse. So we'll discuss more on

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Speaker 2: that in just a minute, but let's start. Let's talk

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Speaker 2: about taking the DIY route. How you can create your

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Speaker 2: own plant. We're not going to create it for you,

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Speaker 2: but we're going to help you create one. How can

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Speaker 2: you create your own plan to get rid of that debt?

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Speaker 1: That's right. Yeah, So the first thing that you'll want

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Speaker 1: to do is determine how much you owe by listing

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Speaker 1: out all your debts between multiple credit cards and buy

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Speaker 1: now pay later companies that are out there, my guess

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Speaker 1: is that a lot of folks underestimate how much debt

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Speaker 1: they get into. And I just mentioned by not pay later,

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Speaker 1: it makes me think about We had a listener actually

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Speaker 1: recently email us and she's she's an HR manager, she

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Speaker 1: works for the government. She's talking about someone she's about

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Speaker 1: to interview, and he had something like eighteen by now

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Speaker 1: pay later accounts on his name, and she didn't, like

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Speaker 1: flat out say that she wasn't going to hire this guy.

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Speaker 1: But it wasn't a good thing. It's definitely not helping

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Speaker 1: his change. He might not be all that responsible. Yeah, well,

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Speaker 1: especially when it comes to different government jobs like that,

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Speaker 1: because there's a security issue. So that's just store that

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Speaker 1: one away. That's another benefit of making sure that you

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Speaker 1: aren't carrying around large amounts of consumer debt and that

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Speaker 1: you're not delinquent on your accounts because they can keep

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Speaker 1: you from potentially getting a job that you're hoping to land.

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Speaker 1: And by the way, we're hunting for you just mentioned

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Speaker 1: that we're probably a people are underestimating how much they

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Speaker 1: owe on some of the to some of these buy now,

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Speaker 1: pay later companies. And it reminds me of when we

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Speaker 1: talked about how much people think they spend in subscription

433
00:19:09,040 --> 00:19:11,040
Speaker 1: dollars every single month versus the reality of how much

434
00:19:11,080 --> 00:19:12,919
Speaker 1: they spend. And I guarantee you the same thing is

435
00:19:12,920 --> 00:19:16,000
Speaker 1: true there. People vastly underestimate how much they spend on

436
00:19:16,080 --> 00:19:20,200
Speaker 1: recurring subscriptions, and once they dig into the details, they're like, Oh,

437
00:19:20,280 --> 00:19:21,879
Speaker 1: I didn't realize that's how much I was spending. And

438
00:19:21,960 --> 00:19:24,040
Speaker 1: I guess that's the problem is because most of the

439
00:19:24,080 --> 00:19:26,520
Speaker 1: time folks aren't digging into the details. They haven't sat down,

440
00:19:26,560 --> 00:19:28,240
Speaker 1: they haven't done their homework. And that's the whole point

441
00:19:28,320 --> 00:19:30,080
Speaker 1: of my not pay later. They want you to forget.

442
00:19:30,160 --> 00:19:32,000
Speaker 1: They want you to make it easy installments so that

443
00:19:32,080 --> 00:19:34,120
Speaker 1: you don't realize how much you're paying. Yeah, you immediately

444
00:19:34,160 --> 00:19:35,960
Speaker 1: forget about it. But if you don't know how much

445
00:19:36,000 --> 00:19:38,159
Speaker 1: debt that you are trying to pay, if you're not

446
00:19:38,200 --> 00:19:40,639
Speaker 1: sure what the end goal is, well obviously it's going

447
00:19:40,720 --> 00:19:44,280
Speaker 1: to be a lot harder to achieve. And it's almost

448
00:19:44,480 --> 00:19:46,320
Speaker 1: always going to ensure that you're you know that you're

449
00:19:46,359 --> 00:19:48,480
Speaker 1: going to take longer to reach that goal. So what

450
00:19:48,520 --> 00:19:50,679
Speaker 1: we would recommend is to log into the back end

451
00:19:50,680 --> 00:19:53,879
Speaker 1: of your credit card, log into Klarna or after pay

452
00:19:54,240 --> 00:19:56,600
Speaker 1: those different accounts so that you can put eyeballs on

453
00:19:56,680 --> 00:19:59,240
Speaker 1: the numbers. We want you to get organized and write

454
00:19:59,240 --> 00:20:03,000
Speaker 1: them all down in one place, because knowing the totality

455
00:20:03,440 --> 00:20:05,439
Speaker 1: of how much you owe like that is a crucial

456
00:20:05,480 --> 00:20:07,960
Speaker 1: first step so that you can make a plan to

457
00:20:08,119 --> 00:20:09,200
Speaker 1: get out of the step.

458
00:20:09,320 --> 00:20:11,880
Speaker 2: That's right, So first, looking the numbers in the face,

459
00:20:11,880 --> 00:20:14,320
Speaker 2: how much that do I actually have? Not just rounding

460
00:20:14,359 --> 00:20:18,440
Speaker 2: it or assuming, but knowing the actual specific amount. That's

461
00:20:18,480 --> 00:20:21,119
Speaker 2: going to be a massive help in helping you in

462
00:20:21,160 --> 00:20:23,960
Speaker 2: allowing you to formulate this plan. Next, let's talk about

463
00:20:24,320 --> 00:20:26,760
Speaker 2: how to come up with how much a payment amount

464
00:20:26,800 --> 00:20:31,119
Speaker 2: that you can reliably and realistically handle, because once you

465
00:20:31,200 --> 00:20:33,480
Speaker 2: know how much you owe, it's important to figure out

466
00:20:33,480 --> 00:20:36,080
Speaker 2: how much you can spare to pay that debt off.

467
00:20:36,359 --> 00:20:38,200
Speaker 2: Can you put an extra twenty bucks a month towards

468
00:20:38,200 --> 00:20:40,840
Speaker 2: it or an extra two hundred Can you truly only

469
00:20:40,880 --> 00:20:43,439
Speaker 2: afford to pay the minimums? Or is there actually more

470
00:20:43,520 --> 00:20:46,000
Speaker 2: wiggle room than you thought? Those are good questions to ask,

471
00:20:46,160 --> 00:20:48,119
Speaker 2: and you want to be realistic with how much you

472
00:20:48,160 --> 00:20:51,919
Speaker 2: can devote to that debt in order to keep yourself

473
00:20:51,960 --> 00:20:54,320
Speaker 2: from flaming out after you've only been out it for

474
00:20:54,400 --> 00:20:56,480
Speaker 2: a couple of weeks. I keep You're like, listen, I

475
00:20:56,520 --> 00:20:58,800
Speaker 2: will reduce my grocery bill from six hundred and fifty

476
00:20:58,840 --> 00:21:01,560
Speaker 2: dollars a month to by eating only rice and beans.

477
00:21:01,800 --> 00:21:03,920
Speaker 1: I'm making a thousand dollars. I'm gonna put a thousand

478
00:21:03,920 --> 00:21:06,760
Speaker 1: dollars payment every single week. Yeah. Yeah. Fourteen days later

479
00:21:06,800 --> 00:21:09,440
Speaker 1: you're like, oh, yeah, I know once those nomine out

480
00:21:09,440 --> 00:21:11,600
Speaker 1: of money, no on hunger paying start and you're like,

481
00:21:11,680 --> 00:21:12,880
Speaker 1: I that was a bad move.

482
00:21:13,119 --> 00:21:15,320
Speaker 2: I can't actually stick to this and you know, scrap

483
00:21:15,320 --> 00:21:17,720
Speaker 2: it all together. That's not a good way to tackle it.

484
00:21:18,200 --> 00:21:20,520
Speaker 2: We want, we want you to have financial stamina. And

485
00:21:20,560 --> 00:21:22,240
Speaker 2: of course, like a simple budget is going to be

486
00:21:22,240 --> 00:21:24,480
Speaker 2: an incredible tool that will help you to calculate a

487
00:21:24,520 --> 00:21:27,280
Speaker 2: reasonable payment. So take a look at your overall incoming,

488
00:21:27,359 --> 00:21:30,440
Speaker 2: your overall outgoing. That's massively important. It will help you

489
00:21:30,480 --> 00:21:33,280
Speaker 2: figure out how much free cash you have left over

490
00:21:33,320 --> 00:21:36,280
Speaker 2: after paying all of your other obligations to dedicate towards

491
00:21:36,320 --> 00:21:38,280
Speaker 2: debt pay down and making it happen quickly.

492
00:21:38,320 --> 00:21:40,520
Speaker 1: That's right. Yeah, And this past Monday, we talked with

493
00:21:40,720 --> 00:21:44,080
Speaker 1: Jesse Meekham, the founder of why Nap. And if you

494
00:21:44,400 --> 00:21:47,680
Speaker 1: are looking for and this is it's funny because they

495
00:21:48,119 --> 00:21:50,800
Speaker 1: charge you in order to use their software, right, And

496
00:21:50,840 --> 00:21:52,360
Speaker 1: so you might be thinking, well, man, Joe, I can't

497
00:21:52,359 --> 00:21:55,400
Speaker 1: believe you're gonna recommend going with this program, with the software,

498
00:21:55,480 --> 00:21:58,159
Speaker 1: with this app that is going to cost me money. Well,

499
00:21:58,200 --> 00:22:00,080
Speaker 1: first of all, free trial and you don't have have

500
00:22:00,119 --> 00:22:03,040
Speaker 1: to enter credit card information and to take part in

501
00:22:03,080 --> 00:22:05,679
Speaker 1: that free trial. But secondly, if you've never done this before,

502
00:22:05,720 --> 00:22:08,800
Speaker 1: you might need some handholding. You might need an app

503
00:22:08,880 --> 00:22:10,480
Speaker 1: or a program like that. And by the way, not

504
00:22:10,560 --> 00:22:12,639
Speaker 1: everyone needs in order. I think even Jesse would say

505
00:22:12,680 --> 00:22:14,080
Speaker 1: that you sure you would say that, I would say

506
00:22:14,080 --> 00:22:15,919
Speaker 1: that you don't necessarily need a program. You can do

507
00:22:16,000 --> 00:22:18,040
Speaker 1: it without one. But if that's what it takes to

508
00:22:18,119 --> 00:22:20,560
Speaker 1: get you making it happen, and that is what it

509
00:22:20,560 --> 00:22:22,120
Speaker 1: takes for a lot of people, like why Nap helps

510
00:22:22,119 --> 00:22:24,240
Speaker 1: a lot of people, absolutely, and if that's what it takes,

511
00:22:24,320 --> 00:22:26,800
Speaker 1: we would it's worth the money, yeah, totally. And when

512
00:22:26,840 --> 00:22:29,199
Speaker 1: it comes to so maybe you're you're kind of like

513
00:22:29,240 --> 00:22:32,040
Speaker 1: all gung ho about it, right, If that's you It's

514
00:22:32,080 --> 00:22:34,439
Speaker 1: important to note that we don't want you to empty

515
00:22:34,440 --> 00:22:36,600
Speaker 1: out all of the cash that you have on hand,

516
00:22:36,800 --> 00:22:38,640
Speaker 1: like all of the cash out of your your bank account,

517
00:22:38,800 --> 00:22:40,480
Speaker 1: in order to pay the debt off.

518
00:22:40,400 --> 00:22:42,240
Speaker 2: Right, it take a hammer to your piggy bank and

519
00:22:42,280 --> 00:22:44,080
Speaker 2: empty it all right, and then take it in.

520
00:22:44,200 --> 00:22:45,720
Speaker 1: Yeah, to your credit card. We still want you to

521
00:22:45,720 --> 00:22:48,159
Speaker 1: maintain that that cash buffer. We still want you to

522
00:22:48,200 --> 00:22:51,840
Speaker 1: maintain at least that bare minimum emergency fund of two thousand,

523
00:22:51,920 --> 00:22:55,160
Speaker 1: four hundred and sixty seven dollars as a base amount

524
00:22:55,240 --> 00:22:57,639
Speaker 1: in your savings account for just some of those other emergencies,

525
00:22:57,640 --> 00:22:59,480
Speaker 1: some of those bumps on the road that could pop up,

526
00:22:59,680 --> 00:23:01,960
Speaker 1: because you might be tempted to destroy this debt as

527
00:23:02,040 --> 00:23:05,560
Speaker 1: fast as humanly possible by taking that balance straight down

528
00:23:05,600 --> 00:23:07,920
Speaker 1: to zero, but that's going to leave you in an

529
00:23:08,000 --> 00:23:12,239
Speaker 1: incredibly vulnerable position two four six seven. That should be

530
00:23:12,359 --> 00:23:15,000
Speaker 1: your essentially like your low water line that you refuse

531
00:23:15,119 --> 00:23:18,560
Speaker 1: to dip below. But then every dollar above that, every

532
00:23:18,560 --> 00:23:22,359
Speaker 1: dollar beyond that, should be headed toward that debt demolition. Yeah.

533
00:23:22,440 --> 00:23:23,840
Speaker 2: So we want you to list out those debts. We

534
00:23:23,880 --> 00:23:26,800
Speaker 2: want you to figure out pragmatic payment amounts which should

535
00:23:26,800 --> 00:23:29,359
Speaker 2: maintain that cash buffer. Those that you're not dipping below

536
00:23:29,359 --> 00:23:32,960
Speaker 2: it and putting yourself in harm's way. And then then

537
00:23:33,040 --> 00:23:34,720
Speaker 2: once you know how much you can dedicate to debt

538
00:23:34,760 --> 00:23:37,399
Speaker 2: payoff and how much those debts stack up to, we

539
00:23:37,440 --> 00:23:39,200
Speaker 2: want you to come up with a timeline to get

540
00:23:39,240 --> 00:23:40,840
Speaker 2: rid of that debt. We want you to have a

541
00:23:40,880 --> 00:23:44,240
Speaker 2: firm week or month amount that is going to take

542
00:23:44,240 --> 00:23:46,359
Speaker 2: you to get rid of it. So, because now you

543
00:23:46,720 --> 00:23:48,480
Speaker 2: have those numbers in hand and you should be able

544
00:23:48,480 --> 00:23:50,880
Speaker 2: to it's a basic math equation now that will tell

545
00:23:50,880 --> 00:23:52,440
Speaker 2: you how long it's going to take to pay it off.

546
00:23:52,600 --> 00:23:55,080
Speaker 2: So let's say you owe the average amount of holiday debt,

547
00:23:55,119 --> 00:23:59,200
Speaker 2: which I said, it's something like one and forty nine dollars.

548
00:23:59,400 --> 00:24:01,160
Speaker 2: And let's say you've got four hundred dollars a month.

549
00:24:01,200 --> 00:24:03,560
Speaker 2: You figured out that you can put towards paying off

550
00:24:03,600 --> 00:24:06,240
Speaker 2: that debt, Well, you should have it paid off in

551
00:24:06,320 --> 00:24:08,439
Speaker 2: four months. And now there's a light at the end

552
00:24:08,440 --> 00:24:10,679
Speaker 2: of the tunnel. Your debt elimination date is set. And

553
00:24:10,720 --> 00:24:13,320
Speaker 2: that's powerful to know that, Hey, it's not just like this.

554
00:24:13,520 --> 00:24:15,080
Speaker 2: I don't know how long it's going to take. I'm

555
00:24:15,119 --> 00:24:16,439
Speaker 2: not sure when I'm going to get rid of it,

556
00:24:16,520 --> 00:24:19,040
Speaker 2: but I'm trying my best. Now it's like no, no, no,

557
00:24:19,200 --> 00:24:20,840
Speaker 2: I know when I'm going to be done with it.

558
00:24:21,000 --> 00:24:22,800
Speaker 2: I know when this monkey's going to be off my back,

559
00:24:22,960 --> 00:24:25,480
Speaker 2: And so we want you to have that specific date,

560
00:24:25,600 --> 00:24:27,320
Speaker 2: do the math and look at your calendar and put

561
00:24:27,320 --> 00:24:29,640
Speaker 2: an X mark. And that's such just like an empowering

562
00:24:29,680 --> 00:24:31,760
Speaker 2: feeling to have to say, I know when this is

563
00:24:31,800 --> 00:24:33,000
Speaker 2: going to be out of my life completely.

564
00:24:33,119 --> 00:24:35,240
Speaker 1: Yeah. In that way, it feels more like a program

565
00:24:35,359 --> 00:24:37,399
Speaker 1: as opposed to just a slog right, like where your

566
00:24:37,440 --> 00:24:39,959
Speaker 1: head's down, you're not even paying attention to the numbers.

567
00:24:40,440 --> 00:24:42,200
Speaker 1: That being said, I think for some folks maybe that's

568
00:24:42,359 --> 00:24:45,840
Speaker 1: what they need to do. I think different personalities are

569
00:24:45,880 --> 00:24:47,639
Speaker 1: going to react differently, but I think for a lot

570
00:24:47,680 --> 00:24:50,880
Speaker 1: of folks, having that thing that you're trying to achieve

571
00:24:51,119 --> 00:24:54,000
Speaker 1: on a timeline is incredibly helpful. Like it's one thing

572
00:24:54,000 --> 00:24:55,360
Speaker 1: to say that you want to pay that debt off

573
00:24:55,400 --> 00:24:58,360
Speaker 1: like maybe sometime this year. It's a very different thing

574
00:24:58,400 --> 00:25:01,560
Speaker 1: to say that you're going to have the financial capability

575
00:25:01,600 --> 00:25:05,000
Speaker 1: to pay off that debt by May, right knowing how

576
00:25:05,040 --> 00:25:05,800
Speaker 1: long it will take.

577
00:25:05,840 --> 00:25:09,199
Speaker 2: I think not only March, hopefully March, but May. Your reality,

578
00:25:09,200 --> 00:25:10,000
Speaker 2: that's Okay, it happens.

579
00:25:10,040 --> 00:25:11,399
Speaker 1: I think it will just help folks to stick with

580
00:25:11,440 --> 00:25:14,919
Speaker 1: that payoff plan and to ensure that this debt payoff

581
00:25:14,960 --> 00:25:16,960
Speaker 1: actually happens. We would recommend for you to automate the

582
00:25:17,000 --> 00:25:20,919
Speaker 1: plan by setting up recurring payments of the amount that

583
00:25:21,000 --> 00:25:23,600
Speaker 1: you want to make on a weekly or bi weekly

584
00:25:23,720 --> 00:25:26,800
Speaker 1: or monthly basis. Again going back to once you've determined

585
00:25:26,800 --> 00:25:29,320
Speaker 1: your payment amount, you've got your total, divide that out.

586
00:25:29,359 --> 00:25:31,480
Speaker 1: You know how many payments you need to make and

587
00:25:31,480 --> 00:25:34,440
Speaker 1: at what dollar amount, Well, go ahead and schedule those

588
00:25:34,520 --> 00:25:38,159
Speaker 1: ahead of time. Something else you could do consider just

589
00:25:38,240 --> 00:25:42,400
Speaker 1: talking about your debt payoff journey with a friend who

590
00:25:42,600 --> 00:25:44,879
Speaker 1: might be interested in talking about finances with you, or

591
00:25:45,119 --> 00:25:47,359
Speaker 1: if not, is like you join the Facebook group the

592
00:25:47,359 --> 00:25:50,560
Speaker 1: how the Money Facebook group, basically just giving someone else

593
00:25:50,640 --> 00:25:52,480
Speaker 1: like a peek under the hood. I think that can

594
00:25:52,520 --> 00:25:55,760
Speaker 1: provide not only some motivation, but some accountability to make

595
00:25:55,800 --> 00:25:58,000
Speaker 1: sure that you're getting it done as well. There's also

596
00:25:58,080 --> 00:26:01,520
Speaker 1: like that element of not embarrassing. I guess it's embarrassment

597
00:26:01,520 --> 00:26:02,840
Speaker 1: if you kind of put it out there for the

598
00:26:03,240 --> 00:26:05,720
Speaker 1: for everyone in the group to know that this is

599
00:26:05,760 --> 00:26:07,919
Speaker 1: something you're working towards, and if you I don't know.

600
00:26:07,960 --> 00:26:10,679
Speaker 1: If you kind of slink off into the background and

601
00:26:10,720 --> 00:26:13,040
Speaker 1: you don't actually achieve achieve that there might be some

602
00:26:13,080 --> 00:26:15,280
Speaker 1: additional pressure there for you to actually get it.

603
00:26:15,280 --> 00:26:16,760
Speaker 2: It might be that kind of good pressure though, kind

604
00:26:16,800 --> 00:26:18,840
Speaker 2: of like we talked about with Katie Milkman right earlier

605
00:26:18,880 --> 00:26:19,280
Speaker 2: in the year.

606
00:26:19,359 --> 00:26:20,879
Speaker 1: It might be like putting good in peer pressure.

607
00:26:20,960 --> 00:26:23,840
Speaker 2: Yeah, it's like putting a good peer pressure to kind

608
00:26:23,840 --> 00:26:25,600
Speaker 2: of help force you in the right direction. So maybe

609
00:26:25,600 --> 00:26:27,600
Speaker 2: you listen to this episode, you do some of these

610
00:26:27,600 --> 00:26:29,760
Speaker 2: steps here, and you kind of realize, here's how much

611
00:26:29,800 --> 00:26:32,280
Speaker 2: I owe, Here's how much I can afford to pay,

612
00:26:32,440 --> 00:26:34,640
Speaker 2: here's the timeline now for me, and then you make

613
00:26:34,640 --> 00:26:36,639
Speaker 2: that public and how to money Facebook group, you do

614
00:26:36,720 --> 00:26:39,320
Speaker 2: a post later this week and you say, hey, guys,

615
00:26:39,640 --> 00:26:43,320
Speaker 2: I know you don't know me, but I've just realized, like,

616
00:26:43,359 --> 00:26:45,600
Speaker 2: this is how much consumer that I'm in and this

617
00:26:45,720 --> 00:26:47,359
Speaker 2: is the date at which I'm not going to have

618
00:26:47,400 --> 00:26:48,320
Speaker 2: anymore and.

619
00:26:48,520 --> 00:26:48,919
Speaker 1: Just love it.

620
00:26:49,000 --> 00:26:51,800
Speaker 2: Hey, you root for me, And that kind of public

621
00:26:51,840 --> 00:26:53,919
Speaker 2: statement I think does go a long way, and it's

622
00:26:54,000 --> 00:26:57,679
Speaker 2: meaningful and it can help kind of steal your resolve

623
00:26:57,760 --> 00:26:59,840
Speaker 2: to keep pushing in the right direction, because hey, you

624
00:26:59,840 --> 00:27:02,600
Speaker 2: may public display of your hatred for debt and like

625
00:27:02,640 --> 00:27:04,280
Speaker 2: when you're going to be done with it. And even

626
00:27:04,320 --> 00:27:06,879
Speaker 2: though those people most of them probably don't know you,

627
00:27:07,040 --> 00:27:09,560
Speaker 2: maybe none of them know you in real life, there's

628
00:27:09,600 --> 00:27:12,080
Speaker 2: still something powerful about that totally. All right, So Matt,

629
00:27:12,160 --> 00:27:14,600
Speaker 2: let's talk about we've kind of got some of those

630
00:27:15,040 --> 00:27:18,440
Speaker 2: some of those basics for how to ditch debt and

631
00:27:18,480 --> 00:27:21,000
Speaker 2: how to kind of create a payment plan to make

632
00:27:21,040 --> 00:27:22,720
Speaker 2: sure you're getting rid of bit out of the way.

633
00:27:22,720 --> 00:27:25,359
Speaker 2: But let's talk about maybe like the order of operations

634
00:27:25,359 --> 00:27:27,840
Speaker 2: when it comes to debt payoff, like and how you

635
00:27:27,880 --> 00:27:30,719
Speaker 2: decide which If you have multiple debts, right, you might

636
00:27:30,760 --> 00:27:32,600
Speaker 2: be just using one credit card and boom, it's it's

637
00:27:32,600 --> 00:27:34,760
Speaker 2: a little bit easier, But you might also have multiple

638
00:27:34,760 --> 00:27:37,359
Speaker 2: credit cards with balances, and it's hard to know which

639
00:27:37,359 --> 00:27:39,399
Speaker 2: debt to payoff first. It's you might have some buy now,

640
00:27:39,440 --> 00:27:42,159
Speaker 2: pay later debt as well, like you talked about, And

641
00:27:42,200 --> 00:27:44,040
Speaker 2: that's a good question. I mean, I think the most

642
00:27:44,040 --> 00:27:46,000
Speaker 2: important part of the debt payoff plan is is what

643
00:27:46,480 --> 00:27:48,920
Speaker 2: we've just talked about. It's discovering how much you owe

644
00:27:48,920 --> 00:27:51,399
Speaker 2: and how much you can dedicate towards paying off those debts,

645
00:27:51,400 --> 00:27:53,920
Speaker 2: and then you know, creating that actual timeline. But it's

646
00:27:53,960 --> 00:27:56,840
Speaker 2: important to configure in order of operations too, to decide

647
00:27:56,880 --> 00:28:00,000
Speaker 2: which debts you're going to attack first. And I think, really,

648
00:28:00,160 --> 00:28:02,560
Speaker 2: when it comes down to it, that question is mostly

649
00:28:02,560 --> 00:28:05,480
Speaker 2: it mostly comes down to the snowball vers avalanche approach.

650
00:28:05,560 --> 00:28:09,000
Speaker 1: That's right, Yeah, which one should you go with? And

651
00:28:09,119 --> 00:28:11,200
Speaker 1: actually we have an article on that up on the website,

652
00:28:11,240 --> 00:28:12,800
Speaker 1: so if you want to dive in deep here, we

653
00:28:12,800 --> 00:28:14,639
Speaker 1: would recommend for you to check that out. We'll make

654
00:28:14,680 --> 00:28:17,040
Speaker 1: sure to link to that article in the show notes

655
00:28:17,080 --> 00:28:21,119
Speaker 1: for this episode. But in short, the snowball approach, that's

656
00:28:21,200 --> 00:28:23,879
Speaker 1: the method where you are paying off your debts with

657
00:28:24,000 --> 00:28:30,159
Speaker 1: the smallest balance first. This method prioritizes the psychological wins,

658
00:28:30,200 --> 00:28:34,200
Speaker 1: the psychological satisfaction that you're going to derive from getting

659
00:28:34,280 --> 00:28:37,160
Speaker 1: rid of a small debt and then getting you get

660
00:28:37,160 --> 00:28:40,680
Speaker 1: that endorphin rush, which will then only embolden your resolve

661
00:28:40,800 --> 00:28:43,440
Speaker 1: to pay off that next debt even more quickly. And

662
00:28:43,480 --> 00:28:47,480
Speaker 1: then you've got the debt avalanche method, and it prioritizes

663
00:28:47,880 --> 00:28:51,760
Speaker 1: not the psychological side of things, but it prioritizes the numbers,

664
00:28:51,760 --> 00:28:54,720
Speaker 1: like the cold hard facts. By paying off whichever debt

665
00:28:54,720 --> 00:28:57,600
Speaker 1: in your life has the highest interest rate. First, So

666
00:28:57,640 --> 00:29:00,000
Speaker 1: this is it's all about the math. It's not psych

667
00:29:00,040 --> 00:29:03,000
Speaker 1: cology at all. And so which one is right for you? Well,

668
00:29:03,240 --> 00:29:05,680
Speaker 1: I think it depends on your personality, It depends on

669
00:29:06,560 --> 00:29:10,680
Speaker 1: a lot of the different things in your specific given circumstance.

670
00:29:10,720 --> 00:29:12,719
Speaker 1: It depends on some of the debt that you have

671
00:29:12,800 --> 00:29:14,680
Speaker 1: and the balances that you have. But at the end

672
00:29:14,680 --> 00:29:16,440
Speaker 1: of the day, we think that something more of a

673
00:29:16,480 --> 00:29:19,800
Speaker 1: hybrid approach is that might be the best approach for

674
00:29:19,880 --> 00:29:20,280
Speaker 1: many folks.

675
00:29:20,320 --> 00:29:22,960
Speaker 2: The toyota prias of debt payoff methods, you might say,

676
00:29:23,160 --> 00:29:24,160
Speaker 2: and I think you're right. I think if you were

677
00:29:24,160 --> 00:29:25,400
Speaker 2: put a gun to my head and you'll say.

678
00:29:25,240 --> 00:29:27,840
Speaker 1: Which one done, avalanche or debt snowball. First off, don't

679
00:29:27,840 --> 00:29:28,800
Speaker 1: do that because that would scare me.

680
00:29:28,960 --> 00:29:32,120
Speaker 2: But debt snowball, I think is something I think early

681
00:29:32,160 --> 00:29:33,760
Speaker 2: on in our podcasting days, we would have been.

682
00:29:33,680 --> 00:29:36,040
Speaker 1: Like, oh, we totally knocked the snowball. Yeah, we were

683
00:29:36,040 --> 00:29:38,000
Speaker 1: Avalanche people, because we're like, it's all about the facts,

684
00:29:38,040 --> 00:29:39,000
Speaker 1: it's all about the numbers.

685
00:29:39,000 --> 00:29:41,200
Speaker 2: But the more you learn about personal finance, the more

686
00:29:41,280 --> 00:29:44,600
Speaker 2: you learn about the deep psychology that you play, and

687
00:29:44,360 --> 00:29:47,000
Speaker 2: the more I'm married to someone who's becoming a you know,

688
00:29:47,040 --> 00:29:50,680
Speaker 2: working to become a licensed therapist. It's like psychology, it

689
00:29:50,720 --> 00:29:52,920
Speaker 2: impacts is a big role our history are you know,

690
00:29:53,080 --> 00:29:55,720
Speaker 2: all so many things going on underneath the surface in

691
00:29:55,800 --> 00:29:59,600
Speaker 2: our brains and our bodies, like impact how we tackle things.

692
00:29:59,640 --> 00:30:02,160
Speaker 2: And so I do think that that psychological aid of

693
00:30:02,200 --> 00:30:04,560
Speaker 2: getting rid of one debt like it can help build

694
00:30:04,560 --> 00:30:06,320
Speaker 2: progress for people. Sure, And the fact is, if it

695
00:30:06,960 --> 00:30:09,800
Speaker 2: was only about the numbers, well, you wouldn't be in

696
00:30:09,960 --> 00:30:12,760
Speaker 2: debt to begin with because you would have seen the

697
00:30:12,800 --> 00:30:14,560
Speaker 2: interest rate. You would have known that this is going

698
00:30:14,600 --> 00:30:16,640
Speaker 2: to end up costing you way more money down the road,

699
00:30:16,960 --> 00:30:19,480
Speaker 2: and you would have said, I'm going to use credit

700
00:30:19,480 --> 00:30:21,280
Speaker 2: cards the way that Matt and Joel recommend for me

701
00:30:21,320 --> 00:30:24,400
Speaker 2: too write. But the fact is, if that is not

702
00:30:24,440 --> 00:30:26,920
Speaker 2: how you naturally think, well, then we need to use

703
00:30:26,960 --> 00:30:30,720
Speaker 2: the tools of psychology, those psychological wins, those emotional wins,

704
00:30:30,960 --> 00:30:33,560
Speaker 2: to your advantage, as opposed to using them against you.

705
00:30:33,640 --> 00:30:33,800
Speaker 1: Yeah.

706
00:30:33,920 --> 00:30:36,040
Speaker 2: Well, let's talk about that hybrid approach to a little

707
00:30:36,040 --> 00:30:38,440
Speaker 2: bit and maybe give an example here, because when we're

708
00:30:38,440 --> 00:30:40,760
Speaker 2: talking about paying off let's say three different credit cards

709
00:30:40,760 --> 00:30:43,800
Speaker 2: that all have between an interest rate between sixteen and

710
00:30:43,880 --> 00:30:46,680
Speaker 2: nineteen percent, then we're really splitting heres and the snowball

711
00:30:47,120 --> 00:30:49,760
Speaker 2: basically the same. The snowball approach is basically slam dunk, yep.

712
00:30:49,920 --> 00:30:51,800
Speaker 2: Just pay off the lowest balance first. That's going to

713
00:30:51,800 --> 00:30:53,000
Speaker 2: create the momentum boom.

714
00:30:53,040 --> 00:30:53,480
Speaker 1: It's great.

715
00:30:53,760 --> 00:30:55,920
Speaker 2: But if you let's say you toss a car loan

716
00:30:55,920 --> 00:30:57,920
Speaker 2: into the mix that you financed a few years ago,

717
00:30:58,200 --> 00:30:59,880
Speaker 2: we're not really seeing rates at one point nine percent

718
00:30:59,880 --> 00:31:01,760
Speaker 2: these days. But let's say you locked in three years

719
00:31:01,760 --> 00:31:03,520
Speaker 2: ago and you got that one point nine percent rate,

720
00:31:03,920 --> 00:31:05,960
Speaker 2: that's a different story. Do we still want you to

721
00:31:05,960 --> 00:31:08,600
Speaker 2: pay off that car loan, of course, but there's such

722
00:31:08,640 --> 00:31:11,600
Speaker 2: a massive disparity in the rates between what you owe

723
00:31:11,600 --> 00:31:15,040
Speaker 2: on that car versus what you owe on the credit cards,

724
00:31:15,320 --> 00:31:17,800
Speaker 2: and it's just so much worse that we'd rather see

725
00:31:17,880 --> 00:31:20,560
Speaker 2: you even if that's the lowest balance that that car loan,

726
00:31:20,760 --> 00:31:22,640
Speaker 2: that car notes, we'd rather see you pay off the

727
00:31:22,640 --> 00:31:25,920
Speaker 2: credit cards first and just the minimums on your car,

728
00:31:26,040 --> 00:31:28,880
Speaker 2: because this is an instance where the specific type of debt,

729
00:31:29,080 --> 00:31:31,600
Speaker 2: the specific interest rate matters, and some people might be

730
00:31:31,640 --> 00:31:33,959
Speaker 2: tempted to throw their mortgage in in these calculations, and

731
00:31:34,280 --> 00:31:36,800
Speaker 2: depending on your interest rate, like, well, consumer debt is

732
00:31:36,880 --> 00:31:40,480
Speaker 2: worse than these other kinds of debt. And so that's

733
00:31:40,480 --> 00:31:42,400
Speaker 2: why you just have to be careful when you're coming

734
00:31:42,480 --> 00:31:45,240
Speaker 2: up with these calculations so that you're not prioritizing the

735
00:31:45,280 --> 00:31:49,120
Speaker 2: wrong thing first. And so, yeah, just know that the

736
00:31:49,200 --> 00:31:52,080
Speaker 2: higher the interest rate often the more important it is.

737
00:31:52,240 --> 00:31:54,120
Speaker 2: And if the interest rates are close enough, then we

738
00:31:54,160 --> 00:31:56,640
Speaker 2: would say snowball approach is great. But if they're far

739
00:31:56,720 --> 00:31:59,600
Speaker 2: enough apart, that's when I think the hybrid approach makes

740
00:31:59,600 --> 00:32:01,320
Speaker 2: the most sense. And if you're looking for a tool

741
00:32:01,720 --> 00:32:04,240
Speaker 2: to help you create that payoff plan, if you don't

742
00:32:04,240 --> 00:32:05,800
Speaker 2: want to just like sit down with a pen and

743
00:32:05,840 --> 00:32:08,400
Speaker 2: paper or create your own Excel spreadsheet, but you want

744
00:32:08,640 --> 00:32:11,120
Speaker 2: a software to help you out, undebt dot it. We

745
00:32:11,200 --> 00:32:13,440
Speaker 2: will link to it in the show notes. Undebt it

746
00:32:13,200 --> 00:32:15,600
Speaker 2: is one of our favorite sites that helps you create

747
00:32:15,800 --> 00:32:18,920
Speaker 2: a debt payoff plan if you want, yeah, some software

748
00:32:19,160 --> 00:32:20,360
Speaker 2: to kind of have your back and so where you

749
00:32:20,400 --> 00:32:22,960
Speaker 2: can kind of track it and see it just helps

750
00:32:22,960 --> 00:32:25,440
Speaker 2: you make that plan. That's always one of my favorite

751
00:32:25,440 --> 00:32:28,040
Speaker 2: resources that we always help you check out if they're

752
00:32:28,120 --> 00:32:30,120
Speaker 2: like on in debt and especially if.

753
00:32:30,000 --> 00:32:34,320
Speaker 1: They have multiple you know, multiple balances with different rates.

754
00:32:34,600 --> 00:32:38,000
Speaker 1: It allows you to, yeah, create that hierarchy of which

755
00:32:38,040 --> 00:32:39,600
Speaker 1: debts you're gonna attack for it again, just like we

756
00:32:39,600 --> 00:32:41,800
Speaker 1: were talking about with why now do you need it? No?

757
00:32:42,000 --> 00:32:43,640
Speaker 1: Can you do it yourself manually? Yes?

758
00:32:43,880 --> 00:32:45,800
Speaker 2: But like, does it help sometimes to be able to

759
00:32:45,840 --> 00:32:48,560
Speaker 2: type some numbers into a piece of software and have

760
00:32:48,680 --> 00:32:50,880
Speaker 2: it render everything for you so that you can more

761
00:32:50,920 --> 00:32:54,480
Speaker 2: easily see your trajectory and what that payoff plan is

762
00:32:54,480 --> 00:32:56,320
Speaker 2: going to look like. Yeah, for a lot of people,

763
00:32:56,480 --> 00:32:59,160
Speaker 2: that is a motivating factor and it's gonna, you know,

764
00:32:59,200 --> 00:33:01,600
Speaker 2: help them actually stick to a plan. But Matt, we've

765
00:33:01,640 --> 00:33:03,200
Speaker 2: got more to get to. We want to talk about

766
00:33:04,000 --> 00:33:07,240
Speaker 2: this foolproof plan to ditch holiday debt, and there are

767
00:33:07,280 --> 00:33:09,560
Speaker 2: a few things you can actually do to speed up

768
00:33:09,560 --> 00:33:12,040
Speaker 2: your progress, and we'll talk about how to do that

769
00:33:12,520 --> 00:33:14,280
Speaker 2: and what to do if you're like I came up

770
00:33:14,280 --> 00:33:16,000
Speaker 2: with a plan and it said it was going to

771
00:33:16,040 --> 00:33:17,760
Speaker 2: be thirty two years before I get out of this

772
00:33:17,760 --> 00:33:20,200
Speaker 2: credit card debt. Like, if that's the case, then you

773
00:33:20,280 --> 00:33:22,280
Speaker 2: might have to take more drastic measures. We'll talk about

774
00:33:22,480 --> 00:33:24,040
Speaker 2: both of those things right after this.

775
00:33:33,560 --> 00:33:35,920
Speaker 1: All right, man, let's continue to help folks on their

776
00:33:35,920 --> 00:33:39,160
Speaker 1: way to becoming consumer debt free. We've got a few

777
00:33:39,160 --> 00:33:42,520
Speaker 1: other suggestions, some different ways to minimize the impact of

778
00:33:42,560 --> 00:33:45,080
Speaker 1: your debt as you try to pay it off. And

779
00:33:45,120 --> 00:33:47,800
Speaker 1: the first one is this is I don't know, I

780
00:33:47,800 --> 00:33:50,600
Speaker 1: don't want this to seem like the kind of moment,

781
00:33:50,640 --> 00:33:54,120
Speaker 1: but make more money when you have a bigger shovel

782
00:33:54,120 --> 00:33:56,760
Speaker 1: that is going to allow you to dig yourself out

783
00:33:56,800 --> 00:33:59,360
Speaker 1: of that hole even faster. A wallet hub survey found

784
00:33:59,360 --> 00:34:01,480
Speaker 1: that fifty eight eight percent of folks would be willing

785
00:34:01,520 --> 00:34:04,840
Speaker 1: to work longer hours to get out of debt. And

786
00:34:04,920 --> 00:34:07,760
Speaker 1: we like hearing that. We're all about work life balance,

787
00:34:07,800 --> 00:34:10,120
Speaker 1: but if you took on too much debt over the holidays,

788
00:34:10,120 --> 00:34:12,760
Speaker 1: you might actually want to take this approach. We're actually

789
00:34:12,760 --> 00:34:14,920
Speaker 1: going to give a bunch of ideas on how it

790
00:34:14,960 --> 00:34:17,120
Speaker 1: is that you can increase your income in twenty twenty

791
00:34:17,120 --> 00:34:18,759
Speaker 1: three next week here on the show. But if you

792
00:34:18,760 --> 00:34:21,160
Speaker 1: can increase your income, that'll allow you to pay off

793
00:34:21,239 --> 00:34:23,920
Speaker 1: crappy debt even faster. And of course, you know, I mean,

794
00:34:23,960 --> 00:34:25,839
Speaker 1: the best way to make more money in the long

795
00:34:25,920 --> 00:34:29,279
Speaker 1: run is not to trade your time for money by

796
00:34:29,560 --> 00:34:32,719
Speaker 1: like driving for Uber or taking online surveys that kind

797
00:34:32,719 --> 00:34:36,799
Speaker 1: of thing. But it will quickly add ammunition to eradicate

798
00:34:36,840 --> 00:34:39,440
Speaker 1: that debt in the near term, right like temporarily. If

799
00:34:39,480 --> 00:34:42,279
Speaker 1: you are in a bind and you have some ridiculous

800
00:34:42,320 --> 00:34:45,200
Speaker 1: debt where you're paying a dumb interest rate, then we

801
00:34:45,239 --> 00:34:47,760
Speaker 1: are not above you taking some of these more drastic

802
00:34:47,800 --> 00:34:49,440
Speaker 1: steps to make sure that you are out of that

803
00:34:49,440 --> 00:34:50,520
Speaker 1: debt quickly. Yeah.

804
00:34:50,560 --> 00:34:52,960
Speaker 2: Man, it's not often that we tell people to drive

805
00:34:52,960 --> 00:34:57,399
Speaker 2: for Uber or to do some of these gig jobs.

806
00:34:57,080 --> 00:35:00,920
Speaker 1: Where you're beholden to these giant companies do with you

807
00:35:01,080 --> 00:35:01,719
Speaker 1: whatever they want.

808
00:35:01,800 --> 00:35:04,920
Speaker 2: Yeah, and we'd rather you make less money typically but

809
00:35:05,040 --> 00:35:08,520
Speaker 2: build something that could be more sustainable and potentially more

810
00:35:08,640 --> 00:35:11,799
Speaker 2: lucrative for you over the years. But if we're talking

811
00:35:11,800 --> 00:35:13,919
Speaker 2: about getting rid of some of this high intras debt

812
00:35:13,960 --> 00:35:16,440
Speaker 2: and getting rid of it more quickly, I think treating

813
00:35:16,480 --> 00:35:19,560
Speaker 2: it like it's a serious problem and signing up for

814
00:35:19,640 --> 00:35:22,080
Speaker 2: whatever you can do to make a little extra income

815
00:35:22,239 --> 00:35:24,880
Speaker 2: to make that debt payoff happen even more quickly is

816
00:35:25,440 --> 00:35:26,080
Speaker 2: worth considering.

817
00:35:26,160 --> 00:35:27,960
Speaker 1: Yeah, it's like a tourniquit, like you are just trying

818
00:35:27,960 --> 00:35:30,560
Speaker 1: to stop the bleeding. Yeah, exactly. We can worry about

819
00:35:30,560 --> 00:35:32,600
Speaker 1: stitches later, but right now, just like whip off that

820
00:35:32,640 --> 00:35:34,479
Speaker 1: belt and tighten that sucker around.

821
00:35:34,520 --> 00:35:36,640
Speaker 2: It doesn't have to be for forever, right, Yeah, yeah,

822
00:35:36,680 --> 00:35:38,400
Speaker 2: even if it's just two months driving for Uber, so

823
00:35:38,400 --> 00:35:40,000
Speaker 2: you can knock this out more quickly.

824
00:35:40,000 --> 00:35:41,320
Speaker 1: That's fine, exactly.

825
00:35:41,640 --> 00:35:43,399
Speaker 2: But let's talk to another thing that you can do

826
00:35:43,520 --> 00:35:46,040
Speaker 2: and you should do in all likelihood if you think

827
00:35:46,040 --> 00:35:48,040
Speaker 2: this is as big of a problem as Matt and

828
00:35:48,120 --> 00:35:50,520
Speaker 2: I do, if you think this consumer debt is just

829
00:35:50,560 --> 00:35:54,560
Speaker 2: a financial calamity, is that you should consider cutting your

830
00:35:54,560 --> 00:35:56,279
Speaker 2: spending and that there were a lot of folks in

831
00:35:56,280 --> 00:35:58,480
Speaker 2: that same survey you just mentioned that said that they

832
00:35:58,480 --> 00:36:01,759
Speaker 2: would cut out luxuries or vacations in order to get

833
00:36:01,800 --> 00:36:03,719
Speaker 2: rid of their debt faster. Yeah, and I think those

834
00:36:03,760 --> 00:36:06,239
Speaker 2: are both great choices. And again I feel like, you know,

835
00:36:06,400 --> 00:36:08,319
Speaker 2: we're all about balance here. We don't want people working

836
00:36:08,320 --> 00:36:11,040
Speaker 2: eighty hours a week normally, we won't want people skimming

837
00:36:11,160 --> 00:36:15,319
Speaker 2: vacations for years on end or never buying anything they

838
00:36:15,360 --> 00:36:18,200
Speaker 2: care about. Like we want people to be intentional with

839
00:36:18,280 --> 00:36:21,360
Speaker 2: their spending too. But again, consumer debt should be treated

840
00:36:21,440 --> 00:36:25,080
Speaker 2: like a real severe problem. And I wouldn't want to

841
00:36:25,120 --> 00:36:28,120
Speaker 2: spend personally a couple thousand bucks on a beach vacation

842
00:36:28,640 --> 00:36:31,320
Speaker 2: while credit card debt is still lingering in the background.

843
00:36:31,440 --> 00:36:33,520
Speaker 2: I wouldn't want to be booking my beach vacation for

844
00:36:34,560 --> 00:36:38,359
Speaker 2: July and spending money that I don't have, adding to

845
00:36:38,400 --> 00:36:41,000
Speaker 2: the problem. And so you know, dialing back you're spending

846
00:36:41,040 --> 00:36:44,880
Speaker 2: on the big stuff until you've eradicated that debt is crucial.

847
00:36:45,080 --> 00:36:47,200
Speaker 2: We also say don't forget the small expenses either, right,

848
00:36:47,239 --> 00:36:50,200
Speaker 2: There likely some monthly spending categories where you can cut

849
00:36:50,239 --> 00:36:52,680
Speaker 2: back at least temporarily in order to grow the gap,

850
00:36:52,840 --> 00:36:54,480
Speaker 2: which is going to speed up the process. Again, that

851
00:36:54,520 --> 00:36:57,319
Speaker 2: doesn't mean rice and beans right for months on end,

852
00:36:57,600 --> 00:37:00,000
Speaker 2: but there are smart ways maybe for a couple months, though,

853
00:37:01,120 --> 00:37:01,640
Speaker 2: for a couple of weeks.

854
00:37:01,719 --> 00:37:04,680
Speaker 1: Yeah, I don't know how long you're to stem that bleeding. Yeah,

855
00:37:04,719 --> 00:37:06,759
Speaker 1: I think it can be a good approach. Yeah, it is.

856
00:37:06,880 --> 00:37:09,400
Speaker 2: It's a real problem. And cutting back on spending, especially

857
00:37:09,400 --> 00:37:11,520
Speaker 2: on some of those big things for the time being,

858
00:37:11,560 --> 00:37:13,600
Speaker 2: until you've got it under control, until you've gotten rid

859
00:37:13,600 --> 00:37:16,120
Speaker 2: of it is I think it is a really important

860
00:37:16,160 --> 00:37:16,600
Speaker 2: move to make.

861
00:37:16,680 --> 00:37:19,120
Speaker 1: Yeah. Well, I mean again, it's temporary, right, and I

862
00:37:19,160 --> 00:37:21,680
Speaker 1: think by making some of those more severe cuts, it

863
00:37:21,719 --> 00:37:24,600
Speaker 1: can strengthen your resolve to actually stick with the program

864
00:37:24,680 --> 00:37:27,960
Speaker 1: to actually not want, you know, for you to say

865
00:37:28,000 --> 00:37:30,359
Speaker 1: this sucks and I don't ever want to end up

866
00:37:30,360 --> 00:37:32,120
Speaker 1: in this kind of situation again. I think it can

867
00:37:32,320 --> 00:37:37,440
Speaker 1: can strengthen your resolve by actually experiencing some true temporary

868
00:37:37,520 --> 00:37:39,560
Speaker 1: suffering when it comes to the money that you're spending.

869
00:37:39,760 --> 00:37:41,440
Speaker 1: It's not again, like you said, this is not your

870
00:37:41,480 --> 00:37:44,440
Speaker 1: new lifestyle, but maybe it is until you are out

871
00:37:44,440 --> 00:37:47,360
Speaker 1: of that worst of the worst debt suffering with a purpose,

872
00:37:47,480 --> 00:37:50,000
Speaker 1: because it is I think it is doing. It is doing.

873
00:37:50,280 --> 00:37:52,520
Speaker 1: It's teaching you a deeper lesson and it's also at

874
00:37:52,520 --> 00:37:54,080
Speaker 1: the same time helping you get out of this place

875
00:37:54,080 --> 00:37:56,359
Speaker 1: more quickly. Exactly. Yeah. And so another way to make

876
00:37:56,360 --> 00:37:59,080
Speaker 1: your debt less egregious and to catalyze the process is

877
00:37:59,560 --> 00:38:03,680
Speaker 1: by asking for a lower APR from your current credit

878
00:38:03,760 --> 00:38:07,080
Speaker 1: card provider, asking for a lower rate. Obviously, if you

879
00:38:07,120 --> 00:38:09,080
Speaker 1: don't ask, you you're certainly not going to receive you're

880
00:38:09,080 --> 00:38:11,680
Speaker 1: certainly not going to get one. But seventy percent of

881
00:38:11,719 --> 00:38:14,839
Speaker 1: folks who ask, according to recent survey, received some sort

882
00:38:15,080 --> 00:38:17,600
Speaker 1: of interest rate reduction. And we're talking about an average

883
00:38:17,600 --> 00:38:20,640
Speaker 1: reduction somewhere in the ballpark of seven percent. That is

884
00:38:20,719 --> 00:38:23,920
Speaker 1: huge and of course that reduction will mean more of

885
00:38:23,960 --> 00:38:26,840
Speaker 1: your dollars are then going to be attacking the debt balance,

886
00:38:26,880 --> 00:38:28,879
Speaker 1: which is huge. And one of the reasons that we're

887
00:38:28,920 --> 00:38:32,520
Speaker 1: highlighting this is because I'm afraid that we're a generation

888
00:38:33,040 --> 00:38:36,040
Speaker 1: that were we're not advocating for ourselves enough. I think

889
00:38:36,040 --> 00:38:38,399
Speaker 1: a lot of folks feel like it's personal where they

890
00:38:38,400 --> 00:38:41,200
Speaker 1: feel like whoever they're talking to like that they're then

891
00:38:41,280 --> 00:38:42,880
Speaker 1: not going to be able to put food on the

892
00:38:42,920 --> 00:38:46,279
Speaker 1: table because they might be offering a lower rate. No,

893
00:38:46,400 --> 00:38:48,600
Speaker 1: this is just business, and they either have the permission

894
00:38:48,719 --> 00:38:51,400
Speaker 1: or they don't have the permission to lower your APR

895
00:38:51,480 --> 00:38:54,680
Speaker 1: based on your credit score, maybe your payment history, a

896
00:38:54,719 --> 00:38:56,800
Speaker 1: variety of different factors that they have to take into account.

897
00:38:56,880 --> 00:38:59,319
Speaker 2: Right, you're not taking food out of the baby's mouth

898
00:38:59,680 --> 00:39:02,040
Speaker 2: because some reservice sharpers. If you're talking to you're just

899
00:39:02,040 --> 00:39:04,560
Speaker 2: advocating for your for yourself and you are asking, say, hey,

900
00:39:04,840 --> 00:39:09,600
Speaker 2: based on my my long standing relationship with you with

901
00:39:09,640 --> 00:39:11,520
Speaker 2: a BANG as a customer, based on would you like

902
00:39:11,600 --> 00:39:14,520
Speaker 2: to keep me around? Yeah, I'm basically a good customer

903
00:39:14,560 --> 00:39:17,919
Speaker 2: for you because I I'm willing to have this conversation. Yeah, yeah,

904
00:39:18,239 --> 00:39:20,279
Speaker 2: will Will you now give me a little bit of

905
00:39:20,280 --> 00:39:22,719
Speaker 2: a break. And I think they're willing to do that

906
00:39:22,760 --> 00:39:25,839
Speaker 2: too because it engenders them to you. They want now

907
00:39:26,000 --> 00:39:28,040
Speaker 2: now they they you're going to think of them as

908
00:39:28,040 --> 00:39:29,920
Speaker 2: a company you want to continue to do business totally

909
00:39:29,920 --> 00:39:31,959
Speaker 2: because they were generous to you in a moment of pain.

910
00:39:32,000 --> 00:39:33,880
Speaker 1: Absolutely. Yeah. And so there's there's sort of like that

911
00:39:33,920 --> 00:39:36,239
Speaker 1: element of it where it's just like, well, who am

912
00:39:36,320 --> 00:39:39,239
Speaker 1: I to be asking? Like why? Why? Why can't you know?

913
00:39:39,239 --> 00:39:41,200
Speaker 1: Why wouldn't they just say no? So I feel like

914
00:39:41,200 --> 00:39:43,160
Speaker 1: there's that side of it. Why wouldn't they proactively reach

915
00:39:43,160 --> 00:39:44,600
Speaker 1: out in the normal I rate? That's that's not how

916
00:39:44,640 --> 00:39:47,080
Speaker 1: it works, that's not how business works. But there's also

917
00:39:47,160 --> 00:39:50,200
Speaker 1: sort of like the social norms and like mora's associated

918
00:39:50,280 --> 00:39:53,000
Speaker 1: with like asking for something, which we just actually published

919
00:39:53,000 --> 00:39:55,120
Speaker 1: an article on our side about asking for a discount.

920
00:39:55,160 --> 00:39:56,440
Speaker 1: Well link to that in the show is because there

921
00:39:56,440 --> 00:39:59,080
Speaker 1: are so many ways, and there's there are tips I

922
00:39:59,120 --> 00:40:01,480
Speaker 1: think to help you do it the right way so

923
00:40:01,520 --> 00:40:04,160
Speaker 1: you're more likely to get the answer being of yes

924
00:40:04,239 --> 00:40:05,719
Speaker 1: and said no no. Yeah. I think a lot of

925
00:40:05,760 --> 00:40:08,880
Speaker 1: times folks they're just too afraid of like rocking the boat.

926
00:40:09,520 --> 00:40:13,120
Speaker 1: They're afraid of like offending whoever they're talking to, as

927
00:40:13,120 --> 00:40:15,400
Speaker 1: opposed to just starting a conversation. There's a way that

928
00:40:15,440 --> 00:40:17,960
Speaker 1: you can go about this in a friendly way. You

929
00:40:18,000 --> 00:40:20,520
Speaker 1: mentioned Costco earlier with the staying desk. That same trip,

930
00:40:20,560 --> 00:40:22,960
Speaker 1: we're at Costco. We were grabbing pizzas for our families

931
00:40:22,960 --> 00:40:25,319
Speaker 1: for a Friday night pizza movie night kind of thing.

932
00:40:25,360 --> 00:40:26,960
Speaker 1: And we're staying there, getting ready to pick them up,

933
00:40:27,320 --> 00:40:30,799
Speaker 1: and I was holding a bag of Meyer Lemons and

934
00:40:30,800 --> 00:40:32,400
Speaker 1: there's a lady there and we got to talking to

935
00:40:32,400 --> 00:40:34,080
Speaker 1: her and she's like, oh, man, Meyer Lemons. I did

936
00:40:34,280 --> 00:40:37,160
Speaker 1: We've always been wanting to try those. And I was like,

937
00:40:37,600 --> 00:40:40,400
Speaker 1: you want one, which isn't a normal thing that you

938
00:40:40,440 --> 00:40:42,000
Speaker 1: do with standing there in a grocery store, is like

939
00:40:42,000 --> 00:40:43,799
Speaker 1: giving somebody some of your grocery. But it's like a

940
00:40:43,880 --> 00:40:47,120
Speaker 1: huge Obviously it's Costco. So there's like fifty of eighty

941
00:40:47,160 --> 00:40:49,359
Speaker 1: two myer levels. There's a bunch of them in there.

942
00:40:49,840 --> 00:40:53,720
Speaker 1: And she was like, well yeah, but and so obviously

943
00:40:53,800 --> 00:40:55,279
Speaker 1: I was like, yeah, sure, totally have one, and you

944
00:40:55,320 --> 00:40:58,439
Speaker 1: autographed the too. No, but had she asked, I would

945
00:40:58,440 --> 00:41:00,560
Speaker 1: have also been like, well, of course. I mean, granted,

946
00:41:00,560 --> 00:41:02,759
Speaker 1: we were nice and kind of offered or one. But

947
00:41:02,960 --> 00:41:04,959
Speaker 1: I think there's a way that you can go about

948
00:41:05,000 --> 00:41:08,680
Speaker 1: asking for something in a way where you're building sort

949
00:41:08,680 --> 00:41:11,680
Speaker 1: of good will, like be cheeky about it, right, Like

950
00:41:11,719 --> 00:41:14,359
Speaker 1: you're being a little irreverent about what you're asking for.

951
00:41:14,480 --> 00:41:15,560
Speaker 1: But if you can do it in kind of a

952
00:41:15,600 --> 00:41:17,000
Speaker 1: funny way, if you can kind of do it in

953
00:41:17,239 --> 00:41:19,279
Speaker 1: a kind way, I think a lot of times the

954
00:41:19,320 --> 00:41:20,840
Speaker 1: answer that you're going to hear is yes.

955
00:41:20,680 --> 00:41:22,040
Speaker 2: I might just call up the credit card company, the

956
00:41:22,080 --> 00:41:23,720
Speaker 2: one eight hundred number, and I might be like, hey,

957
00:41:23,920 --> 00:41:25,759
Speaker 2: I'm sure you're getting this call. A lot a lot

958
00:41:25,800 --> 00:41:27,600
Speaker 2: of people spent too much money at the end of

959
00:41:27,680 --> 00:41:30,320
Speaker 2: last year. I'm one of them, Like yeah, yeah, guilty

960
00:41:30,400 --> 00:41:32,200
Speaker 2: is charged, and then started the coming.

961
00:41:32,680 --> 00:41:34,680
Speaker 1: Eighteen nineteen percent. But I was really hoping to get

962
00:41:34,680 --> 00:41:37,640
Speaker 1: that down to one and a half. What do you think, right?

963
00:41:37,880 --> 00:41:39,760
Speaker 1: And they're like, no, you're crazy.

964
00:41:39,800 --> 00:41:41,600
Speaker 2: We get you twelve or thirteen right, Yeah, And that

965
00:41:42,080 --> 00:41:44,239
Speaker 2: at least is going to ensure that more of your

966
00:41:44,239 --> 00:41:47,799
Speaker 2: payments are going to the principle and that you that

967
00:41:47,920 --> 00:41:50,800
Speaker 2: your payment timeline is going to be shortened. So I

968
00:41:50,800 --> 00:41:52,600
Speaker 2: think that's a really important one. Asking for a lower

969
00:41:52,640 --> 00:41:55,560
Speaker 2: rate from your current issuer. Also, what about zero percent

970
00:41:55,600 --> 00:41:57,839
Speaker 2: balance transfer cards, Matt, that's another way that you can

971
00:41:57,880 --> 00:42:01,239
Speaker 2: take something that is pretty dang bad and turn it

972
00:42:01,280 --> 00:42:04,920
Speaker 2: into something less awful. And that's another way to just

973
00:42:05,719 --> 00:42:08,840
Speaker 2: move your consumer debt around to make it less nasty

974
00:42:08,880 --> 00:42:10,880
Speaker 2: and to make sure you can make more progress more quickly.

975
00:42:11,560 --> 00:42:13,520
Speaker 2: And of course, like some debts are worse than others,

976
00:42:13,520 --> 00:42:16,080
Speaker 2: like a three percent mortgage shouldn't be a top priority

977
00:42:16,080 --> 00:42:18,520
Speaker 2: for you when you've got credit card debt lingering around.

978
00:42:18,680 --> 00:42:20,640
Speaker 2: But what if you could take a debt that looks

979
00:42:20,640 --> 00:42:23,160
Speaker 2: really bad, it looks like a financial black eye, and

980
00:42:23,200 --> 00:42:24,600
Speaker 2: you can just like, I don't do one of those

981
00:42:24,640 --> 00:42:28,000
Speaker 2: killer makeup jobs with it, and nobody knows that you

982
00:42:28,080 --> 00:42:30,160
Speaker 2: got punched in the eye. Well, that's kind of what

983
00:42:30,280 --> 00:42:33,640
Speaker 2: transferring to a zero percent interest credit card can do

984
00:42:33,719 --> 00:42:35,759
Speaker 2: for you. And by the way, Matt, you wrote an

985
00:42:35,840 --> 00:42:38,799
Speaker 2: article about the best balance transfer credit cards. You can

986
00:42:38,840 --> 00:42:42,000
Speaker 2: go to how toomoney dot com slash balance transfer and

987
00:42:42,280 --> 00:42:43,880
Speaker 2: you can read that list and you can find one

988
00:42:43,880 --> 00:42:46,040
Speaker 2: if you're like, man, I've got ten thousand dollars worth

989
00:42:46,040 --> 00:42:47,840
Speaker 2: a credit card debt and I'm in nineteen percent. But

990
00:42:47,880 --> 00:42:49,879
Speaker 2: if I can get it down to zero percent for

991
00:42:50,000 --> 00:42:52,239
Speaker 2: twelve months, I can be rid of it without paying

992
00:42:52,239 --> 00:42:54,400
Speaker 2: any interest, and I can do it much more quickly. Well,

993
00:42:54,440 --> 00:42:57,279
Speaker 2: then this can be one of those methods to minimizing

994
00:42:57,280 --> 00:42:59,040
Speaker 2: the impact of that debt as you're paying it off

995
00:42:59,239 --> 00:42:59,800
Speaker 2: more quickly.

996
00:43:00,040 --> 00:43:01,759
Speaker 1: Yeah, getting one means that you're going to need to

997
00:43:01,840 --> 00:43:04,200
Speaker 1: have a solid credit score, but it'll also mean that

998
00:43:04,239 --> 00:43:07,640
Speaker 1: you'll need to have the personal resolve to pay this

999
00:43:07,719 --> 00:43:10,080
Speaker 1: debt off right, because you know, transferring that debt to

1000
00:43:10,120 --> 00:43:12,400
Speaker 1: another piece of plastic and just continuing to spend them

1001
00:43:12,440 --> 00:43:14,239
Speaker 1: like you've been doing like that is only going to

1002
00:43:14,360 --> 00:43:17,920
Speaker 1: dig the hole deeper. It's possible to use this technique

1003
00:43:17,960 --> 00:43:20,360
Speaker 1: just to make your situation worse. You don't want to

1004
00:43:20,400 --> 00:43:23,120
Speaker 1: be shifting the chairs around on the deck of the Titanic.

1005
00:43:23,280 --> 00:43:25,440
Speaker 1: You want to prevent it from sinking. If you deploy

1006
00:43:25,480 --> 00:43:30,600
Speaker 1: the strategy before you're actually ready to make some permanent changess,

1007
00:43:30,600 --> 00:43:32,359
Speaker 1: going toa end up making things worse for you for sure. Yeah.

1008
00:43:32,400 --> 00:43:34,480
Speaker 2: Some people think like, oh, if I just get the

1009
00:43:34,520 --> 00:43:36,520
Speaker 2: lower interest rate, that's going to solve my problems, and

1010
00:43:36,560 --> 00:43:39,399
Speaker 2: it's just not true. The plan is the biggest thing

1011
00:43:39,520 --> 00:43:42,759
Speaker 2: that having the plan, Knowing the numbers and realizing how

1012
00:43:42,760 --> 00:43:44,200
Speaker 2: long it's going to take you to pay it off,

1013
00:43:44,440 --> 00:43:47,680
Speaker 2: Like these are just like cherries on top of a Sunday.

1014
00:43:47,880 --> 00:43:50,239
Speaker 2: The sunday is the plan that you're going to be

1015
00:43:50,239 --> 00:43:52,320
Speaker 2: able to create. And so, yeah, if you can lessen

1016
00:43:52,360 --> 00:43:53,480
Speaker 2: the pain of the debt, if you can make it

1017
00:43:53,560 --> 00:43:55,839
Speaker 2: less egregious, and if you can lower the interest rate

1018
00:43:55,880 --> 00:43:57,920
Speaker 2: on it, that's good because it's going to benefit you

1019
00:43:57,960 --> 00:43:59,160
Speaker 2: and it's going to allow you to pay it off

1020
00:43:59,160 --> 00:44:01,600
Speaker 2: more quickly. There's also ways that you can screw that up,

1021
00:44:01,719 --> 00:44:03,399
Speaker 2: and so we don't want you to, yeah, take out

1022
00:44:03,440 --> 00:44:07,200
Speaker 2: other credit cards and then add more consumer debt on

1023
00:44:07,560 --> 00:44:10,080
Speaker 2: to the pilots you already have. That you're making the

1024
00:44:10,120 --> 00:44:13,319
Speaker 2: situation worse at that point. But yeah, let's talk about too.

1025
00:44:13,360 --> 00:44:16,040
Speaker 2: Matt I mentioned a minute ago about how somebody might

1026
00:44:16,080 --> 00:44:19,680
Speaker 2: have just so much debt and they are overwhelmed when

1027
00:44:19,680 --> 00:44:21,279
Speaker 2: they look at it that it's just that bad, right,

1028
00:44:21,280 --> 00:44:23,959
Speaker 2: that their consumer debt situation. And maybe it didn't happen

1029
00:44:24,040 --> 00:44:26,040
Speaker 2: just over the holidays. In all likelihood, if it's that bad,

1030
00:44:26,239 --> 00:44:28,080
Speaker 2: it's been happening over the course of years and years

1031
00:44:28,080 --> 00:44:30,319
Speaker 2: and years, and you have built up to the point

1032
00:44:30,320 --> 00:44:32,400
Speaker 2: where you're like, listen, I created one of these debt

1033
00:44:32,440 --> 00:44:36,239
Speaker 2: payoff plans that you talked about, and it just seemed insurmountable.

1034
00:44:36,560 --> 00:44:39,520
Speaker 2: Even at that point, it felt like I wasn't going

1035
00:44:39,520 --> 00:44:41,279
Speaker 2: to be able to make progress in any sort of

1036
00:44:41,280 --> 00:44:44,360
Speaker 2: timely manner. And sometimes you are so mired in debt

1037
00:44:44,520 --> 00:44:46,360
Speaker 2: that it becomes too hard to go it alone, and

1038
00:44:46,400 --> 00:44:49,080
Speaker 2: so maybe you are actually in too deep. And the

1039
00:44:49,120 --> 00:44:51,440
Speaker 2: truth is that this mountain of debt that you've acrued,

1040
00:44:51,480 --> 00:44:53,160
Speaker 2: it didn't happen overnight, like I said, and the fix

1041
00:44:53,200 --> 00:44:54,880
Speaker 2: isn't going to happen in a week or two either.

1042
00:44:55,120 --> 00:44:57,040
Speaker 2: So it's important to know that. I think sometimes Matt

1043
00:44:57,040 --> 00:45:00,400
Speaker 2: people get into a situation over the course of number

1044
00:45:00,400 --> 00:45:03,640
Speaker 2: of years and they want it to be remedied really quickly,

1045
00:45:03,719 --> 00:45:04,880
Speaker 2: but that's just not how.

1046
00:45:04,760 --> 00:45:06,160
Speaker 1: It happens when it fixed overnight.

1047
00:45:06,200 --> 00:45:09,399
Speaker 2: And hopefully you can fix it quicker than how long

1048
00:45:09,440 --> 00:45:10,799
Speaker 2: it took you to get into the mess in the

1049
00:45:10,800 --> 00:45:13,040
Speaker 2: first place. But it's just important to note that that

1050
00:45:13,520 --> 00:45:15,719
Speaker 2: you know, it typically takes time to get out of

1051
00:45:15,719 --> 00:45:19,080
Speaker 2: this problem too. But if after running the numbers, it's

1052
00:45:19,120 --> 00:45:20,919
Speaker 2: going to take you a lot of years to pay

1053
00:45:20,920 --> 00:45:22,600
Speaker 2: that debt off, and it feels hopeless. We would say

1054
00:45:22,600 --> 00:45:24,439
Speaker 2: it's time to bring in the big guns and reach

1055
00:45:24,480 --> 00:45:27,600
Speaker 2: out to the not for profit folks at the NFCC

1056
00:45:28,160 --> 00:45:32,080
Speaker 2: or Money Management International, Unlike those for profit services that

1057
00:45:32,120 --> 00:45:35,080
Speaker 2: I talked about, who might You might hear advertised and

1058
00:45:35,239 --> 00:45:37,800
Speaker 2: they say, hey, pay us some money up front. You

1059
00:45:37,840 --> 00:45:40,560
Speaker 2: might see them on social media. You know they're saying

1060
00:45:40,560 --> 00:45:42,600
Speaker 2: that they can they can help you get out of

1061
00:45:42,600 --> 00:45:45,800
Speaker 2: this debt, but for a small fee, or sometimes a

1062
00:45:45,880 --> 00:45:48,239
Speaker 2: large fee. Oftentimes they're going to make it worse. Almost

1063
00:45:48,280 --> 00:45:50,640
Speaker 2: always are going to make it worse. Well, the NFCC

1064
00:45:50,840 --> 00:45:54,520
Speaker 2: or Money Management International, those not for profit companies, they

1065
00:45:54,520 --> 00:45:57,000
Speaker 2: can help you put together a debt management plan that

1066
00:45:57,120 --> 00:46:00,120
Speaker 2: actually works, and they can even negotiate with creditors on

1067
00:46:00,120 --> 00:46:02,360
Speaker 2: your behalf. So we would say go see a credit

1068
00:46:02,360 --> 00:46:04,560
Speaker 2: counselor they can help you figure out the best way forward.

1069
00:46:04,719 --> 00:46:07,439
Speaker 2: If you run those numbers and you're like it's worse

1070
00:46:07,440 --> 00:46:09,440
Speaker 2: than I even thought, that's when you're gonna want to

1071
00:46:09,480 --> 00:46:11,960
Speaker 2: like reach out to one of those companies. And typically

1072
00:46:11,960 --> 00:46:15,239
Speaker 2: it's one hundred percent free. Sometimes they'll charge very very

1073
00:46:15,239 --> 00:46:17,800
Speaker 2: modest amounts of money. I'm talking like sixty seventy dollars

1074
00:46:18,320 --> 00:46:20,760
Speaker 2: in order to see a debt counselor. But that's probably

1075
00:46:20,800 --> 00:46:23,000
Speaker 2: where you gonna want to go. We will put links

1076
00:46:23,000 --> 00:46:25,080
Speaker 2: to both those organizations in the show notes.

1077
00:46:25,480 --> 00:46:27,200
Speaker 1: That's right, man. And one other thing that we would

1078
00:46:27,239 --> 00:46:29,920
Speaker 1: recommend is for you to celebrate some of the small

1079
00:46:30,000 --> 00:46:33,360
Speaker 1: victories along the way to paying down your debt. We

1080
00:46:33,360 --> 00:46:36,040
Speaker 1: would recommend for you to just treat yourself a little bit,

1081
00:46:36,120 --> 00:46:39,640
Speaker 1: not like Parks and Rex style treat yourself, but just

1082
00:46:39,960 --> 00:46:42,799
Speaker 1: find some different ways to mark your accomplishments, to mark

1083
00:46:42,840 --> 00:46:45,120
Speaker 1: the occasion. And it doesn't have to be and likely

1084
00:46:45,120 --> 00:46:47,680
Speaker 1: shouldn't be an expensive reward because obviously that I'll slow

1085
00:46:47,719 --> 00:46:52,359
Speaker 1: down your payoff progress. But it's amazing how something that

1086
00:46:52,400 --> 00:46:54,239
Speaker 1: just that costs very little that or maybe something you

1087
00:46:54,239 --> 00:46:56,520
Speaker 1: already have on hand, or something that costs you nothing,

1088
00:46:56,560 --> 00:46:58,880
Speaker 1: how that can provide some additional motivation. It could just

1089
00:46:58,880 --> 00:47:00,400
Speaker 1: be a board game night with friends. You'd be like,

1090
00:47:00,400 --> 00:47:02,880
Speaker 1: that's my ruward, yeah, or like I'm thinking of like

1091
00:47:02,920 --> 00:47:05,160
Speaker 1: a creative it's not even creative, but just like having

1092
00:47:05,239 --> 00:47:08,239
Speaker 1: a picnic in a like in your favorite park. But

1093
00:47:08,280 --> 00:47:09,960
Speaker 1: you might be paying off your first card here in

1094
00:47:09,960 --> 00:47:12,160
Speaker 1: a couple of months, once the weather warms up a

1095
00:47:12,200 --> 00:47:14,239
Speaker 1: little bit, invite some friends over, take a meal that

1096
00:47:14,239 --> 00:47:16,239
Speaker 1: you would have already eaten at home. Maybe you can

1097
00:47:16,719 --> 00:47:18,160
Speaker 1: like show us some two buck chuck, you know, like

1098
00:47:18,160 --> 00:47:21,000
Speaker 1: that's very affordable. That's the kind of wine. If you're

1099
00:47:21,000 --> 00:47:23,399
Speaker 1: into wine, you should be drinking cheap wine while you're

1100
00:47:23,400 --> 00:47:25,840
Speaker 1: paying off your debt. But take something like that to

1101
00:47:25,880 --> 00:47:27,920
Speaker 1: a park, because that is going to help you to

1102
00:47:28,080 --> 00:47:30,440
Speaker 1: mark the occasion. Not only that, but you're also doing

1103
00:47:30,520 --> 00:47:32,719
Speaker 1: it with friends. That's something that they're gonna remember. They're

1104
00:47:32,719 --> 00:47:35,160
Speaker 1: gonna maybe even ask you about, like why are we

1105
00:47:35,200 --> 00:47:37,840
Speaker 1: doing this? Or you know, what's what's the special occasion?

1106
00:47:38,280 --> 00:47:40,279
Speaker 1: Which is really cool too because then it'll get you

1107
00:47:40,320 --> 00:47:42,640
Speaker 1: and your friends talking about money, and before you know it,

1108
00:47:42,800 --> 00:47:46,160
Speaker 1: you're all gonna be getting richer, getting wealthier together. That's

1109
00:47:46,200 --> 00:47:47,680
Speaker 1: the kind of thing that we want to see you doing.

1110
00:47:47,719 --> 00:47:49,279
Speaker 1: We want you to pat yourself on the back a

1111
00:47:49,320 --> 00:47:51,600
Speaker 1: little bit here for making some smart choices and it'll

1112
00:47:51,600 --> 00:47:53,920
Speaker 1: make this journey a bit more enjoyable and less of

1113
00:47:53,920 --> 00:47:56,839
Speaker 1: a slog. It's not that we want we don't want

1114
00:47:56,880 --> 00:47:59,600
Speaker 1: you to intentionally make your life miserable miserable, but we

1115
00:47:59,640 --> 00:48:02,160
Speaker 1: do want you to make decisions that is going to

1116
00:48:02,360 --> 00:48:04,360
Speaker 1: leave more money in your bank account so that you

1117
00:48:04,360 --> 00:48:06,640
Speaker 1: can attack this debt and be done with it once

1118
00:48:06,680 --> 00:48:08,200
Speaker 1: and for all. Yeah, And we just don't want this

1119
00:48:08,239 --> 00:48:10,759
Speaker 1: debt lingering over you anymore. We want you to be

1120
00:48:10,840 --> 00:48:12,640
Speaker 1: rid of it once and for all, and we want

1121
00:48:12,680 --> 00:48:14,800
Speaker 1: you to look in ahead to like the bigger and brighter,

1122
00:48:14,880 --> 00:48:18,439
Speaker 1: better things that you do want to achieve life. Paying

1123
00:48:18,440 --> 00:48:20,200
Speaker 1: off this kind of debt often means you're looking kind

1124
00:48:20,239 --> 00:48:21,880
Speaker 1: of in the rear view mirror instead of through a

1125
00:48:21,880 --> 00:48:24,239
Speaker 1: windshield right of your life exactly, And so we want

1126
00:48:24,239 --> 00:48:27,479
Speaker 1: you to like, you know, you always need a mirror

1127
00:48:27,480 --> 00:48:29,200
Speaker 1: when you're driving a car, but we want you at

1128
00:48:29,320 --> 00:48:30,880
Speaker 1: least when it comes to your life, we want you

1129
00:48:30,960 --> 00:48:33,000
Speaker 1: to kind of be able to act that off. We

1130
00:48:33,000 --> 00:48:36,440
Speaker 1: want you to be done with the spending, paying for

1131
00:48:36,440 --> 00:48:38,520
Speaker 1: the spending you did over the past year, and we

1132
00:48:38,520 --> 00:48:40,120
Speaker 1: want you to be thinking about what you can save

1133
00:48:40,200 --> 00:48:42,480
Speaker 1: up for and invest for so that you can think

1134
00:48:42,480 --> 00:48:46,000
Speaker 1: about building wealth and think about those bigger possibilities, right,

1135
00:48:46,200 --> 00:48:47,960
Speaker 1: creating more margin. And you can't even get to that

1136
00:48:48,000 --> 00:48:50,080
Speaker 1: point when you've still got that debt lingering around. That's

1137
00:48:50,120 --> 00:48:50,760
Speaker 1: first priority.

1138
00:48:50,840 --> 00:48:53,439
Speaker 2: So absolutely hopefully we've given you enough tips to create

1139
00:48:53,440 --> 00:48:57,320
Speaker 2: an effective plan to get rid of it in hopefully

1140
00:48:57,560 --> 00:48:59,360
Speaker 2: not too much time. But Matt, let's get back to

1141
00:48:59,400 --> 00:49:01,480
Speaker 2: the beer that we had on this episode. This one

1142
00:49:01,520 --> 00:49:05,239
Speaker 2: is called Perpetual Composition. It's by Southern Gris who I

1143
00:49:05,239 --> 00:49:06,959
Speaker 2: believe they're out of Nashville, Is that correct?

1144
00:49:07,080 --> 00:49:09,000
Speaker 1: I think? So I can take a look here on

1145
00:49:09,080 --> 00:49:12,239
Speaker 1: the bottle yeap Nashville, Tennessee. And this is Perpetual Composition

1146
00:49:13,040 --> 00:49:16,440
Speaker 1: blend number two. So maybe we'll have additional blends here

1147
00:49:16,480 --> 00:49:18,160
Speaker 1: on the show. But what your thoughts on this one?

1148
00:49:18,160 --> 00:49:19,880
Speaker 1: If I can get some additional blends of this one,

1149
00:49:20,160 --> 00:49:21,839
Speaker 1: I'll take it. I'm all about it.

1150
00:49:21,840 --> 00:49:23,960
Speaker 2: It's delicious, love it. You were just mentioning wine. This

1151
00:49:24,000 --> 00:49:26,600
Speaker 2: one has a lot of white wine uys. Actually for sure,

1152
00:49:26,719 --> 00:49:27,319
Speaker 2: it's the sea.

1153
00:49:27,400 --> 00:49:30,839
Speaker 1: So it's a celera style food beer aged for six

1154
00:49:30,880 --> 00:49:33,600
Speaker 1: months in a French Bordeaux fooder.

1155
00:49:33,760 --> 00:49:37,120
Speaker 2: Oh yeah, yeah, guess what.

1156
00:49:37,160 --> 00:49:40,319
Speaker 1: We're also not in debt, so we can afford to

1157
00:49:40,360 --> 00:49:42,719
Speaker 1: splurge a little bit. Exactly.

1158
00:49:42,800 --> 00:49:46,000
Speaker 2: Yeah, well this one definitely so. My dad he always

1159
00:49:46,080 --> 00:49:50,040
Speaker 2: gets this white wine called gervertz remeanor but when we

1160
00:49:50,120 --> 00:49:53,920
Speaker 2: have Thanksgiving and uh, he has always called it Goosemeister

1161
00:49:54,000 --> 00:49:57,200
Speaker 2: for some reason, Goose. It's pretty goofy, but it's it's

1162
00:49:57,239 --> 00:49:59,040
Speaker 2: kind of a it's like more of like a dessert

1163
00:49:59,040 --> 00:50:01,080
Speaker 2: white wine. And I really don't drink wine very much,

1164
00:50:01,120 --> 00:50:03,160
Speaker 2: but I always look forward to it on Thanksgiving, even

1165
00:50:03,200 --> 00:50:05,400
Speaker 2: though I don't know anything about white wine, but this

1166
00:50:05,400 --> 00:50:07,680
Speaker 2: one has some of those elements. It's a little bit sweeter,

1167
00:50:08,080 --> 00:50:10,440
Speaker 2: kind of like one of those dessert white wines, but

1168
00:50:10,480 --> 00:50:13,040
Speaker 2: it's like golden sour. It's got more nuanced though, and

1169
00:50:13,080 --> 00:50:14,960
Speaker 2: I think part of that is the oak barrel aging.

1170
00:50:15,600 --> 00:50:18,319
Speaker 2: But I like everything I've had from Southern Grist and

1171
00:50:18,360 --> 00:50:19,319
Speaker 2: this is one of the better ones.

1172
00:50:19,360 --> 00:50:21,719
Speaker 1: It's so good. Yeah. When we poured it, it just had

1173
00:50:21,760 --> 00:50:23,480
Speaker 1: like a beautiful I mean, the sun was kind of

1174
00:50:23,520 --> 00:50:27,240
Speaker 1: shining through It's it's been like a sun out sudden

1175
00:50:27,280 --> 00:50:29,880
Speaker 1: hidden sun out, sun hidden kind of day, and like

1176
00:50:29,920 --> 00:50:31,600
Speaker 1: the rays hit it perfect. Oh yeah, yeah, Like right

1177
00:50:31,640 --> 00:50:33,120
Speaker 1: when I cracked this thing up and poured it, like

1178
00:50:33,160 --> 00:50:35,600
Speaker 1: the beams of light shot through the sun. It was

1179
00:50:35,640 --> 00:50:37,840
Speaker 1: just like sparkling. So it had this beautiful golden color.

1180
00:50:38,480 --> 00:50:41,440
Speaker 1: It was really carbonated initially. It's almost like champagne. Yeah,

1181
00:50:41,560 --> 00:50:44,480
Speaker 1: or like a lot of effervescens coming up. But I

1182
00:50:44,520 --> 00:50:46,239
Speaker 1: think I feel like it was a nice balance of

1183
00:50:46,920 --> 00:50:49,680
Speaker 1: acidity and sweetness. It wasn't too over the top sweet

1184
00:50:49,680 --> 00:50:52,480
Speaker 1: for me. It had that, yeah, that nice kind of

1185
00:50:52,520 --> 00:50:56,200
Speaker 1: tart acid profile as well, that combined with that depth

1186
00:50:56,200 --> 00:50:58,640
Speaker 1: that you get with the oak if in particular, Yeah,

1187
00:50:58,680 --> 00:51:01,319
Speaker 1: if you like white wine, this is apps, look up

1188
00:51:01,360 --> 00:51:03,719
Speaker 1: golden sours just in general, Yeah, because that is a

1189
00:51:03,760 --> 00:51:07,040
Speaker 1: style that you will would likely find yourself gravitate towards.

1190
00:51:07,360 --> 00:51:09,280
Speaker 1: But if you know your beer and you are looking

1191
00:51:09,320 --> 00:51:13,960
Speaker 1: for an oak age sour, would definitely recommend this perpetual

1192
00:51:13,960 --> 00:51:16,680
Speaker 1: composition by Southern Christ out of Tennessee mostep.

1193
00:51:16,760 --> 00:51:18,719
Speaker 2: All right, that's going to do it, Matt for this episode.

1194
00:51:19,120 --> 00:51:20,880
Speaker 2: And if you want, yeah, some of the links that

1195
00:51:20,920 --> 00:51:23,799
Speaker 2: we mentioned on this episode, you can find them up

1196
00:51:23,800 --> 00:51:25,719
Speaker 2: on our site at how to money dot com. There

1197
00:51:25,719 --> 00:51:28,279
Speaker 2: are also other helpful resources there too. We've got a

1198
00:51:28,360 --> 00:51:31,239
Speaker 2: lot of new money content that we're writing about that

1199
00:51:31,239 --> 00:51:33,080
Speaker 2: we're putting out on a weekly basis, And you can

1200
00:51:33,080 --> 00:51:35,040
Speaker 2: also sign up for our newsletter at how tomoney dot

1201
00:51:35,080 --> 00:51:37,719
Speaker 2: com slash newsletter. But Matt, that's going to do it.

1202
00:51:37,800 --> 00:51:40,359
Speaker 2: Until next time. Best Friends Out, Best Friends Out,