WEBVTT - BA Q&A: Bankruptcy Is No Joke 0:00:02.480 --> 0:00:07.680 Hey, hey, hey, we're back. We're black. 0:00:07.760 --> 0:00:13.120 Wait, actually it's this is the b a q a 0:00:13.119 --> 0:00:15.920 A the b a q a which to say the 0:00:16.000 --> 0:00:18.560 b a q a with tiffin a the b a 0:00:18.920 --> 0:00:21.560 q a eight no man day the b a. 0:00:21.600 --> 0:00:26.119 Q a just may Okay, Hey, I am back in 0:00:26.200 --> 0:00:28.560 this too. Manday's not here today, but that's okay. 0:00:28.600 --> 0:00:30.080 I got you. We're gonna do a little b a 0:00:30.160 --> 0:00:30.400 q A. 0:00:30.520 --> 0:00:33.640 That's when I or myself or and Manday and I 0:00:33.760 --> 0:00:40.320 answered you were questions about business, personal finance career to 0:00:40.400 --> 0:00:42.959 the best of our black and brown ability that you're 0:00:42.960 --> 0:00:45.000 gonna take with the smallest green of salt because you 0:00:45.040 --> 0:00:47.960 do not pay us too. So we're not your attorney, 0:00:48.000 --> 0:00:51.360 we're not your doctor, we're not your your mama. But 0:00:51.440 --> 0:00:56.640 we are your favorite qtie pie internet cousins answering financial questions. 0:00:56.760 --> 0:00:59.600 Okay, okay, so let's start out with some questions. 0:00:59.600 --> 0:01:03.200 If you have questions, you can go to brannibisionpodcast dot com. 0:01:03.400 --> 0:01:06.399 There's like a contact us button or whatever they're You 0:01:06.400 --> 0:01:08.600 can ask a question there. You can slide into the 0:01:08.680 --> 0:01:16.720 dms on Instagram, Brianna Vision Podcast, Twitter, THEBA Podcast, Brannibisionpodcasts 0:01:16.760 --> 0:01:18.800 at gmail dot com. You can email us, you know, 0:01:19.360 --> 0:01:24.800 ask your questions. All right, so let's start with dum. 0:01:25.840 --> 0:01:27.160 Okay, let me see who's this. 0:01:27.959 --> 0:01:32.560 Oh hold up, it looks like we have two dudes 0:01:32.760 --> 0:01:34.080 in the STU today. 0:01:34.959 --> 0:01:36.760 Okay, so we're gonna start with Rob. 0:01:36.880 --> 0:01:40.440 Hey Rob, Rob says, Hey, ladies, I'm a fan of 0:01:40.480 --> 0:01:43.520 you both. By the way, my sister who by way 0:01:43.560 --> 0:01:46.000 of my sister who encouraged me to listen to your podcast. 0:01:46.000 --> 0:01:48.400 Shout out to Robin or Okay, see what your parents 0:01:48.440 --> 0:01:49.360 are there, Robin, Robin. 0:01:49.480 --> 0:01:49.960 I love it. 0:01:51.000 --> 0:01:53.240 I thoroughly enjoyed the topics, and I have learned a 0:01:53.280 --> 0:01:53.920 lot so far. 0:01:54.000 --> 0:01:54.480 We love that. 0:01:55.520 --> 0:01:58.560 I had a serious question pertaining to debt management. I'm 0:01:58.600 --> 0:02:01.560 currently twenty eight and I work for the financial industry 0:02:01.960 --> 0:02:03.480 and I'm making good money. 0:02:03.520 --> 0:02:04.480 However, I have. 0:02:04.440 --> 0:02:08.200 A ton of debt due to poor decisions and being taken. 0:02:08.440 --> 0:02:09.600 Advantage of my family. 0:02:09.760 --> 0:02:13.359 Oh wow, Okay, this debt has been lingering for years, 0:02:13.520 --> 0:02:17.480 and recently my wages were garnished. Okay, I can't afford 0:02:17.520 --> 0:02:19.880 that at the moment, in addition to repayment of my 0:02:19.919 --> 0:02:24.120 student loans beginning in October, because y'all know, know the 0:02:24.200 --> 0:02:27.720 goopid told the president we got to stop paying okay, 0:02:28.600 --> 0:02:31.200 the student loans that he paused, those payments that he paused. 0:02:32.120 --> 0:02:35.679 She says, I'm actively seeking an attorney to explore options 0:02:35.720 --> 0:02:38.239 to stop garnishment and how to manage to eliminate other 0:02:38.280 --> 0:02:41.080 existing debts. I saw something pertaining to bankruptcy, and it 0:02:41.080 --> 0:02:43.600 looks like it may be extremely helpful, but I'm horrified 0:02:43.760 --> 0:02:47.240 at how it could potentially affect my credit, especially when 0:02:47.320 --> 0:02:49.440 I'm working in the industry that pays attention to that 0:02:49.600 --> 0:02:52.239 when it comes to promoting. Do you guys have any 0:02:52.240 --> 0:02:55.320 knowledge about bankruptcies or any other alternatives to debt management 0:02:56.320 --> 0:02:57.480 when it's gotten pretty bad? 0:02:57.760 --> 0:03:00.880 Thanks? Rob, Well, Rob. 0:03:00.720 --> 0:03:03.040 First, I want to say I'm so sorry that you've been, 0:03:03.120 --> 0:03:06.000 you know, taking advantage of by some family, you know. 0:03:06.160 --> 0:03:08.440 Good on you for acknowledging that, you know, sometimes you 0:03:08.480 --> 0:03:10.840 make mistakes and we're here as a result of that, 0:03:11.560 --> 0:03:13.359 and those things happen because Shah I have been there, 0:03:13.400 --> 0:03:14.960 done that, literally. 0:03:14.520 --> 0:03:15.440 Wrote the book about it. 0:03:15.480 --> 0:03:18.920 Okay, So I just want to acknowledge that first and foremost, 0:03:19.320 --> 0:03:21.800 and I would say. 0:03:21.639 --> 0:03:23.959 I want you to be very clear when you file 0:03:24.040 --> 0:03:24.840 for bankruptcy. 0:03:25.080 --> 0:03:27.480 Is not easy, guy, is not as easy as it 0:03:27.600 --> 0:03:30.800 used to be because when you because there are like 0:03:31.440 --> 0:03:34.840 two ways that you could file for bankruptcy, Chapter seven 0:03:35.400 --> 0:03:40.600 and chapter thirteen. So bankruptcy as we know it gives 0:03:40.600 --> 0:03:43.000 you the opportunity to pay down a portion of your 0:03:43.040 --> 0:03:46.360 debts over time or have some of them eliminated entirely. 0:03:46.720 --> 0:03:49.840 Right. So, either way, when you. 0:03:49.800 --> 0:03:53.320 Declare bankruptcy, it grants what's called an automatic stay, which 0:03:53.400 --> 0:03:56.800 basically means a block on your debts to keep creditors 0:03:56.840 --> 0:03:59.120 from trying to collect. They can't deduct money from your 0:03:59.120 --> 0:04:01.360 bank account, they can't go your wages, they can't go 0:04:01.400 --> 0:04:06.520 after other assets potentially, and so you you'll have time 0:04:06.560 --> 0:04:08.600 to work with the courts and your credits to determine 0:04:08.600 --> 0:04:10.480 what the next steps look like. That's what happens when 0:04:10.480 --> 0:04:14.120 you when you declare bankruptcy, right, and so the two 0:04:14.800 --> 0:04:18.440 main types of like I said, individual are Chapter seven 0:04:19.200 --> 0:04:25.000 in chapter thirteen. So Chapter seven bankruptcy is what they 0:04:25.120 --> 0:04:27.320 often like when you think about following for bankruptcy, they 0:04:27.320 --> 0:04:31.920 sometimes will call it liquidation bankruptcy because for in order 0:04:31.960 --> 0:04:34.159 to chile for chapter seven, you're gonna likely need to 0:04:34.200 --> 0:04:37.160 sell off some of your assets so that when you 0:04:37.200 --> 0:04:38.880 can pay back some of the people. So let's just 0:04:38.880 --> 0:04:40.479 say you had a house and a car, and you 0:04:40.480 --> 0:04:43.520 had jewelry and you had you would literally they would 0:04:43.600 --> 0:04:45.680 leave you with something because they know you have to live. 0:04:45.720 --> 0:04:47.760 But they would say, basically. 0:04:47.920 --> 0:04:48.640 You belong to me. 0:04:48.720 --> 0:04:51.359 Now I'm the captain, now you know. So Chapter seven 0:04:51.480 --> 0:04:56.080 can be very aggressive. So it depends on what state 0:04:56.120 --> 0:04:58.680 that you're in. It's going to determine like what assets, 0:04:59.040 --> 0:05:01.720 like you're retiring an account. Maybe like I said, I 0:05:01.760 --> 0:05:03.440 know I mentioned your house in your car, but some 0:05:03.480 --> 0:05:05.839 of them are exempt from liquidation depending on your state. 0:05:06.080 --> 0:05:08.720 So you would check with an attorney depending on your 0:05:08.720 --> 0:05:11.240 state to find out what you'd be allowed to keep. 0:05:11.240 --> 0:05:16.320 If you were considering chapter seven, Chapter thirteen, you don't 0:05:16.360 --> 0:05:18.680 actually need to worry about selling off and if your 0:05:18.720 --> 0:05:23.200 property instead, they're your debt would be reorganized so you 0:05:23.200 --> 0:05:26.640 can pay them off partially or in full for the 0:05:26.680 --> 0:05:28.680 next three to five years. So the thing is the 0:05:28.720 --> 0:05:31.880 benefit of chapter seven, if there is a benefit, is 0:05:31.920 --> 0:05:35.960 that if you are willing to liquidate whatever up to 0:05:36.040 --> 0:05:38.520 whatever the state allows, those debts that you owe, you 0:05:38.600 --> 0:05:43.760 no longer owe. Chapter thirteen is you're actually not you 0:05:43.839 --> 0:05:46.799 won't not owe. It will just reorganize in a way 0:05:47.240 --> 0:05:49.359 to set you up to pay off, you know, in 0:05:49.400 --> 0:05:50.520 the next three to five years. 0:05:50.560 --> 0:05:52.320 So but keep in mind if you. 0:05:52.279 --> 0:05:54.960 Don't pay, like, if you don't align with the payment plan, 0:05:55.279 --> 0:05:58.279 they can come after other stuff like if we're chapter thirteen. 0:05:58.440 --> 0:05:58.760 Okay. 0:05:59.520 --> 0:06:04.800 Now, the issue to your point, Rob, is if you 0:06:04.800 --> 0:06:07.240 your credit is going to be for the most part, 0:06:07.400 --> 0:06:14.719 severely affected if you especially chapter thirty, chapter seven, you know, 0:06:15.320 --> 0:06:17.479 and so it's going to stay on your credit report 0:06:17.480 --> 0:06:20.280 for up to ten years. 0:06:20.320 --> 0:06:21.880 And so Chapter thirteen. 0:06:22.920 --> 0:06:26.120 Although it will affect your credit like as well, it's 0:06:26.200 --> 0:06:28.760 viewed a little bit more favorably because you're still paying 0:06:28.760 --> 0:06:30.440 off at least some of your debts versus just getting 0:06:30.480 --> 0:06:33.760 them like wiped away. The bankruptcy still stays on your 0:06:33.760 --> 0:06:34.920 credit for a very long. 0:06:34.839 --> 0:06:36.200 Time, very long time. 0:06:37.520 --> 0:06:42.840 And now here is the thing. Bankruptcies are publicly filed. 0:06:42.960 --> 0:06:46.680 They're considered public record. Now doesn't mean that you know 0:06:46.800 --> 0:06:49.880 they're going to be like sending a letter to your mama. 0:06:50.279 --> 0:06:54.920 But oftentimes I think it was like I I read 0:06:54.920 --> 0:06:59.479 a statistic it's like up to twenty nine percent of 0:06:59.560 --> 0:07:01.520 employers do check your credit. 0:07:01.560 --> 0:07:03.320 And especially I'm not gonna lie to Rob. 0:07:03.320 --> 0:07:08.000 You're in the financial industry, so filing for bankruptcy because 0:07:08.000 --> 0:07:10.200 you're in the financial industry and you're very young, you 0:07:10.240 --> 0:07:11.840 didn't say how much you owed makes. 0:07:11.720 --> 0:07:13.840 Me feel a little bit new this. 0:07:15.240 --> 0:07:17.880 Because although you have a job, so it might not 0:07:17.920 --> 0:07:18.640 keep you from a job. 0:07:18.720 --> 0:07:19.600 I've actually heard people. 0:07:19.600 --> 0:07:21.400 I remember a friend of mine was working like a 0:07:21.440 --> 0:07:25.240 trucking company and couldn't get a promotion because what she 0:07:25.400 --> 0:07:28.000 did was she handled, like I guess accounts and things 0:07:28.000 --> 0:07:29.600 like that, and they felt like, if you have bad credit, 0:07:29.680 --> 0:07:31.960 you might be more likely to steal, and so she 0:07:31.960 --> 0:07:34.160 couldn't get a promotion until she got her credit score up. 0:07:34.520 --> 0:07:37.920 I had another friend who really my mentee. She just 0:07:37.920 --> 0:07:40.840 got to graduated law school and they let her know 0:07:40.840 --> 0:07:43.040 because she had an internship. Until you get your credit 0:07:43.120 --> 0:07:45.800 score up, we can't hire you as an attorney. And so, 0:07:46.240 --> 0:07:49.760 especially in your space, I cannot see how filing for 0:07:49.800 --> 0:07:52.040 bankruptcy is not going to affect your ability to climb 0:07:52.040 --> 0:07:52.960 the corporate ladder. 0:07:53.040 --> 0:07:54.480 And like I said, that's this on your credit for 0:07:54.680 --> 0:07:55.200 ten years. 0:07:55.240 --> 0:07:59.160 Rob, you young, sir, You're young, so I'm not here 0:07:59.200 --> 0:08:00.360 to tell you what to do, but I'm here to 0:08:00.360 --> 0:08:02.440 tell you what I would do, which is I follow 0:08:02.480 --> 0:08:05.880 for bankruptcy. You know, like unless I owed a million dollars, 0:08:05.880 --> 0:08:08.400 ten million dollars something crazy, then I'm like that makes sense. 0:08:08.880 --> 0:08:11.440 People be following for bankruptcy for some old ten thousand dollars. 0:08:11.480 --> 0:08:14.760 No not you know and you you know you got 0:08:14.760 --> 0:08:18.560 seven kids and you're eighty five. No, Rob, you're twenty eight. 0:08:19.240 --> 0:08:21.240 I'm sure you don't own a million or a million dollars. 0:08:21.800 --> 0:08:25.840 And so there are other alternatives to follow for bankruptcy 0:08:25.840 --> 0:08:28.560 that won't curtail your ability to make money. 0:08:28.680 --> 0:08:30.480 You want to know something some of them? Here you go. 0:08:30.880 --> 0:08:35.400 There's credit counseling right there are literally certified nonprofit credit 0:08:35.400 --> 0:08:39.360 counseling agencies that help you basically similarly due to what 0:08:39.480 --> 0:08:42.200 Chapter thirteen would do, which is helped to reorganize your 0:08:42.280 --> 0:08:45.040 dat One of my favorite is write this down, Rob, 0:08:45.080 --> 0:08:48.839 you got your pen NFCC dot org. Actually gonna be 0:08:48.920 --> 0:08:51.280 just like typeing in so I can't remember, I can't 0:08:51.280 --> 0:08:57.320 look at it. N f n FCC dorg. 0:08:58.520 --> 0:09:03.960 And they are the wh do they call themselves? 0:09:04.200 --> 0:09:08.000 They are that I believe they're the National except National 0:09:08.080 --> 0:09:12.640 Foundation for Credit Counseling and I like them because one 0:09:13.640 --> 0:09:18.480 they it's a nonprofit organization and they have partners in 0:09:18.559 --> 0:09:23.000 every state that these certified nonprofit credit counseling agencies in 0:09:23.040 --> 0:09:25.480 every state, so you can find one in your state 0:09:26.120 --> 0:09:28.320 then and from what I remember the last time, I mean, 0:09:28.320 --> 0:09:30.160 I don't know if they do now, but it would 0:09:30.200 --> 0:09:32.400 be like they used to do, like a sliding scale, 0:09:32.640 --> 0:09:35.559 like helping you anywhere from free to whatever you can afford. 0:09:35.559 --> 0:09:36.480 I don't know if that's still the case. 0:09:36.480 --> 0:09:38.960 You would have to obviously call connect with the counselor 0:09:39.360 --> 0:09:42.000 you can connect like VA. You know, you can call them, 0:09:42.080 --> 0:09:45.720 you can connect with them online. But that is my favorite. 0:09:45.760 --> 0:09:48.439 I have never heard anything bad about them. I love 0:09:48.480 --> 0:09:51.040 the NFC and I've been recommending them for like the 0:09:51.080 --> 0:09:52.960 last ten years and everybody always comes back and says 0:09:53.000 --> 0:09:57.600 thank you so much. So credit counseling is a is 0:09:57.640 --> 0:10:02.240 an alternative. Also two, the debt consolidation. That's a second alternative. 0:10:02.480 --> 0:10:06.400 So debt consolidation basically means like looking at your debt, 0:10:07.360 --> 0:10:11.360 like listing it in a way that you can kind 0:10:11.360 --> 0:10:13.439 of see all you owe, who you owe, what percentage 0:10:13.600 --> 0:10:15.679 you know, what's your interest rate, all of that, and 0:10:15.720 --> 0:10:18.080 then ask yourself. Like say, for example, you've got three 0:10:18.160 --> 0:10:20.320 or four credit cards, depending I don't know what your 0:10:20.320 --> 0:10:23.280 credit score is looking like now, but seeing if you 0:10:23.280 --> 0:10:27.280 could qualify for either a credit card or a loan 0:10:28.000 --> 0:10:33.199 that's less than the average of the interest rate. So 0:10:33.559 --> 0:10:36.280 for example, let's just say you have three credit cards. 0:10:36.280 --> 0:10:38.480 One is a ten percent interest rate, when is twenty 0:10:38.520 --> 0:10:42.079 one is fifteen? Right, And because your credit score is 0:10:42.120 --> 0:10:45.560 pretty decent, you're able to either get a credit card 0:10:45.760 --> 0:10:48.719 or to get a loan from ideally like a credit union. 0:10:50.200 --> 0:10:52.440 That says we can give you an interest rate of 0:10:52.520 --> 0:10:53.520 eight percent or whatever. 0:10:53.679 --> 0:10:56.160 So it's like, okay, that's less than what I'm paying now, 0:10:56.600 --> 0:10:59.040 and that loan you used to pay off the three 0:10:59.160 --> 0:11:00.520 or four people that you ow, oh, and you're just 0:11:00.520 --> 0:11:05.520 paying this one person now, this one credit union, you know, 0:11:05.760 --> 0:11:08.400 or sometimes people do this with roll of transferring balances 0:11:08.440 --> 0:11:10.800 to a credit card you can roll over, you know, 0:11:10.880 --> 0:11:13.520 sometimes some cards, if you have excellent credit, we'll say 0:11:13.559 --> 0:11:16.520 you pay a zero percent interest rate for like, you know, 0:11:16.600 --> 0:11:20.040 twelve months, fifteen months, and so you're literally all the 0:11:20.040 --> 0:11:22.560 money that you're paying goes directly to the card and 0:11:22.640 --> 0:11:24.319 not to any interest. But the key is you got 0:11:24.360 --> 0:11:26.720 to read the fine print because sometimes they have a 0:11:26.720 --> 0:11:30.600 three percent transfer fee, you know, and then on top 0:11:30.640 --> 0:11:32.480 of that, you want to make sure that there's no 0:11:32.840 --> 0:11:34.120 if you don't pay us back by the end of 0:11:34.120 --> 0:11:36.360 twelve months, you have to pay all the interest that 0:11:36.360 --> 0:11:37.800 we didn't that we didn't charge you. 0:11:38.240 --> 0:11:39.600 So consider that consolidation. 0:11:39.679 --> 0:11:42.600 That's getting a loan from a credit union, ideally a 0:11:42.640 --> 0:11:45.000 credit union that's going to provide you with a better 0:11:45.000 --> 0:11:47.000 interest rate. If you're not a member of a credit union, 0:11:47.080 --> 0:11:49.280 google credit union near me, you can someplace you can 0:11:49.400 --> 0:11:52.840 join today and apply today. Consider balanced transfers, you know, 0:11:53.800 --> 0:11:56.120 to like if you have multiple credit cards. So that's 0:11:56.160 --> 0:12:01.800 another alternative. And so like also to a debt management plan. 0:12:01.920 --> 0:12:04.040 So if you go to that, like I said, NFCC 0:12:05.040 --> 0:12:08.560 dot org, oftentimes they have something called the DMP, which 0:12:08.600 --> 0:12:11.800 is a repayment program that a certified credit counsel can 0:12:11.920 --> 0:12:15.000 organize for you. And so that's like, you know, that's 0:12:15.120 --> 0:12:17.160 maybe like one point, you know, instead of like the 0:12:17.200 --> 0:12:21.680 third alternative, This is an alternative that like kind of 0:12:21.760 --> 0:12:26.120 tax onto getting credit counseling, like literally they will not 0:12:26.280 --> 0:12:28.839 only oh like it's not just that they're on. 0:12:28.840 --> 0:12:31.200 Paper, say Hey, Rob, here's the way you should pay 0:12:31.240 --> 0:12:31.680 off your debt. 0:12:31.720 --> 0:12:35.280 They will reach out to your creditors for you, negotiate 0:12:35.400 --> 0:12:40.640 better repayment terms, negotiate lower interest, and then say, okay, Rob, 0:12:40.679 --> 0:12:41.680 we've done all this work. 0:12:41.840 --> 0:12:44.360 Here's how much you have to pay who and when? 0:12:44.600 --> 0:12:46.480 Does that make sense? Okay? 0:12:47.360 --> 0:12:51.920 And then like, lastly, you can do debt settlement or 0:12:51.960 --> 0:12:54.520 debt relief, you know, and so what that means. And 0:12:54.559 --> 0:12:56.880 I've done this, so I owed. I remember one time, 0:12:57.000 --> 0:12:59.520 like child, like, I dyed my hair. I did not 0:12:59.640 --> 0:13:01.120 know I was alert to a black guy. And when 0:13:01.120 --> 0:13:02.880 I say my face blew up, it was a hot 0:13:02.880 --> 0:13:06.719 air ballode. I mean my face blew up. It looked crazy. 0:13:06.760 --> 0:13:08.520 And I was broke at the time, and I was 0:13:08.559 --> 0:13:09.719 like At first, I was like, oh, it's just a 0:13:09.760 --> 0:13:12.319 little puffy, and then it just kept growing bigger and bigger, 0:13:12.840 --> 0:13:14.760 and I was like, I don't have any money to 0:13:14.840 --> 0:13:17.360 go to the doctor, to the hospital. My mom was like, so, 0:13:18.200 --> 0:13:20.079 do you want to wake up tomorrow or not? And 0:13:20.120 --> 0:13:21.240 so I went to the hospital. 0:13:22.400 --> 0:13:22.600 Child. 0:13:22.640 --> 0:13:25.160 They gave me the equivalent of a Bendadryll and a drip. 0:13:25.200 --> 0:13:28.360 I was so mad. Eight hundred dollars later, I was like, Dad, 0:13:28.400 --> 0:13:31.480 I don't have eight hundred dollars. So I just ignored them, 0:13:31.480 --> 0:13:33.240 and they were calling and calling and sending letters. I 0:13:33.320 --> 0:13:34.199 just ignored it because. 0:13:34.000 --> 0:13:36.959 I was scared. It was like maybe fifteen ten, fifteen 0:13:37.000 --> 0:13:37.400 years ago. 0:13:38.760 --> 0:13:41.559 And then my sister, who worked in the medical field, 0:13:41.640 --> 0:13:43.560 was like, girl, you can negotiate for less. 0:13:43.920 --> 0:13:45.079 You know, what do you have. I was like, I 0:13:45.080 --> 0:13:45.319 don't know. 0:13:45.360 --> 0:13:46.839 I have like three or four hundred dollars. And so 0:13:47.559 --> 0:13:49.280 I called the hospital back and was like, I don't 0:13:49.320 --> 0:13:51.520 have eight hundred dollars. I have three hundred dollars. And 0:13:51.559 --> 0:13:54.960 they were like okay. They were able to offer me 0:13:55.000 --> 0:13:57.800 a settlement for less money because I said I had 0:13:57.840 --> 0:14:01.240 this in lump some and so you can actually negotiate 0:14:01.280 --> 0:14:02.880 with your creditors and say I don't have this, but 0:14:02.920 --> 0:14:04.800 this is what I can do. The more that you 0:14:04.800 --> 0:14:06.480 can pay in a lump sum, the more likely they 0:14:06.520 --> 0:14:09.040 are to say, yes, you know, no one wants to 0:14:09.080 --> 0:14:10.640 hear I don't have ten thousand, but I can pay 0:14:10.679 --> 0:14:13.760 you two thousand over the next two years. Now they 0:14:13.800 --> 0:14:16.199 want to hear I don't have ten thousand, but I 0:14:16.240 --> 0:14:18.720 can pay you two thousand today. Does that make sense? 0:14:18.960 --> 0:14:22.640 So you can like reach out and look. Now, now 0:14:22.640 --> 0:14:24.240 that is gonna affect your credit score a little bit, 0:14:24.280 --> 0:14:28.880 but it won't not like bankruptcy. Okay, so let's recap 0:14:28.920 --> 0:14:36.000 some alternatives. Okay, credit counseling NFCC dot org. Debt consolidation. 0:14:36.200 --> 0:14:39.360 That's either be a balanced transfer credit card or a 0:14:39.360 --> 0:14:44.400 consolidation loan from like your favorite neighborhood credit union. A 0:14:44.440 --> 0:14:47.280 debt management plan. This is a not just a plan 0:14:47.360 --> 0:14:50.080 on paper, but a plan that a credit counselor will 0:14:50.080 --> 0:14:54.000 help to negotiate with your creditors on your behalf and 0:14:54.040 --> 0:14:56.000 then like on the last but not least because it's 0:14:56.000 --> 0:14:59.160 still gonna affect your credit score or negatively, but debt 0:14:59.160 --> 0:15:02.280 settlement like or you know, asking for debt relief. 0:15:03.080 --> 0:15:06.360 Kay, I hope that was helpful. 0:15:06.120 --> 0:15:11.000 Whatever, Yeah, because I know you know these things happen, 0:15:11.080 --> 0:15:13.120 and you know we're not here to beat anybody up. 0:15:14.080 --> 0:15:15.479 We're just here to offer solutions. 0:15:15.520 --> 0:15:19.320 So we're gonna take a quick break and we're gonna 0:15:19.320 --> 0:15:23.040 come back and answer the second question from another dude. 0:15:23.920 --> 0:15:29.000 Okay, it's rain, and then hallelujah, it's rain. Let me stop. 0:15:29.040 --> 0:15:32.520 Anyway, we'll be back in black in a moment, so 0:15:32.560 --> 0:15:34.840 we can pay some bills and I can answer your next. 0:15:34.800 --> 0:15:41.280 Question, and we're back and black and we are here. 0:15:42.080 --> 0:15:44.320 Like I said, you know, you know Briann abishing typically 0:15:44.360 --> 0:15:46.920 because you know me and many are two. Hey ladies, 0:15:47.920 --> 0:15:51.080 let's usual your audience. But I don't know the guys 0:15:51.120 --> 0:15:54.640 are representing today. You know, we answered Rob's question, and 0:15:54.680 --> 0:15:58.720 now we have a question from Todd. I don't know 0:15:58.760 --> 0:16:00.160 if that's your real name, but that's what you put 0:16:00.200 --> 0:16:05.600 in the email. So child, that's your business. So Todd 0:16:05.640 --> 0:16:07.720 as a listener, So let's see what Todd has to say. Hi, 0:16:07.760 --> 0:16:10.320 Tiffany and Mandy, my name is Todd. I just wanted 0:16:10.360 --> 0:16:12.600 to start off by saying I love the show. I'm 0:16:12.640 --> 0:16:15.760 also a black man who enjoys listening. Yes, Tid, we 0:16:15.840 --> 0:16:18.040 love a black man over here. Okay, I listened to 0:16:18.120 --> 0:16:20.440 the audio experience all the time, and I'm a huge fan. 0:16:20.960 --> 0:16:24.520 My question is about Whole Life insurance. I wanted to 0:16:24.560 --> 0:16:28.480 know when you had remat Sethi in the still. Okay, 0:16:28.640 --> 0:16:31.680 I see you taking on my language. He briefly touched 0:16:31.680 --> 0:16:33.560 on whole Life insurance and it sounded like he was 0:16:33.600 --> 0:16:35.480 against it. Likely he was because all of us with 0:16:35.640 --> 0:16:39.400 CeNSE R. But we'll talk, We'll continue. But he didn't 0:16:39.440 --> 0:16:41.680 finish a point he was trying to make about life insurance, 0:16:41.720 --> 0:16:44.640 so I didn't want to assume anything. I was wondering 0:16:44.680 --> 0:16:48.120 if you guys can continue that discussion, Well, probably not 0:16:48.160 --> 0:16:51.280 with Remat, but I can continue the discussion. We'd love 0:16:51.320 --> 0:16:53.080 to hear his thoughts and of course your thoughts on 0:16:53.120 --> 0:16:55.880 whole life insurance or life insurance in general, as I 0:16:55.920 --> 0:16:57.600 hear a lot of people say that it's a wealth 0:16:57.640 --> 0:17:00.920 building tool. Ooh, Chad Todd, No one made me hot 0:17:00.960 --> 0:17:03.080 up in here. So one I can almost guarantee you 0:17:03.080 --> 0:17:06.160 one hundred thousand percent that Remat was saying whole life 0:17:06.560 --> 0:17:10.080 is whole trash because and you know, I've just heard 0:17:10.160 --> 0:17:12.400 him say that, and quite honestly, us in the financial 0:17:12.400 --> 0:17:15.879 space who believe in what's fair for y'all, that's what 0:17:15.920 --> 0:17:18.119 we say. So I actually have a whole chapter in 0:17:18.119 --> 0:17:21.719 my book, Get Good with Money about life insurance. So 0:17:22.119 --> 0:17:26.320 there are two types of well, yeah, there's two basic 0:17:26.359 --> 0:17:27.320 types of life insurance. 0:17:27.400 --> 0:17:27.560 Right. 0:17:27.800 --> 0:17:32.600 There is term and term life insurance is issue for 0:17:32.600 --> 0:17:37.360 a specific number of years, like for a specific timeframe, right, 0:17:37.400 --> 0:17:39.360 and you pay a premium monthly, like, so you might 0:17:39.359 --> 0:17:44.000 pay like, I don't know, for twenty years or whatever, 0:17:44.080 --> 0:17:45.520 you know, like and then you get a payout a 0:17:45.560 --> 0:17:49.080 death benefit that's guaranteed to your beneficiaries if you died 0:17:49.200 --> 0:17:50.960 between that timeframe. 0:17:51.000 --> 0:17:52.000 That's why it's called term. 0:17:52.400 --> 0:17:56.280 But what I really want you to understand that term 0:17:56.359 --> 0:18:00.840 life insurance is like regular insurance. Meaning think about when 0:18:00.840 --> 0:18:02.800 you have insurance for your car. 0:18:03.440 --> 0:18:05.360 It is term, right. 0:18:05.359 --> 0:18:08.920 Because typically people get insurance for a car, it's annual 0:18:09.000 --> 0:18:10.080 and you've renew annually. 0:18:10.440 --> 0:18:11.000 You know, like you. 0:18:11.040 --> 0:18:13.320 Might pay monthly, but it's like if this is only 0:18:13.359 --> 0:18:15.439 good for this year, and every year they reassess and 0:18:15.440 --> 0:18:18.200 you pay right. So even though they make this big 0:18:18.240 --> 0:18:20.400 differentiator like oh, what's term? No, No, I just want 0:18:20.400 --> 0:18:22.080 you to think of every other insurance in your life 0:18:22.600 --> 0:18:28.080 health insurance, dental insurance, petitan insurance, homeowner's insurance, of car insurance. 0:18:28.280 --> 0:18:32.440 It's basically term, and the way is the same way 0:18:32.480 --> 0:18:36.679 it works with these other insurances. If something happens and 0:18:36.760 --> 0:18:39.919 you are fully paid up within the term, then a 0:18:39.960 --> 0:18:42.320 payment is paid out. The reason why people get all 0:18:42.359 --> 0:18:44.320 freaked out is because the thing that has to happen 0:18:44.320 --> 0:18:46.400 for life insurance is for you to pass away. Don't 0:18:46.400 --> 0:18:48.880 nobody want to talk about that. But here we're talking 0:18:48.880 --> 0:18:51.760 about it. But like in cars, right, Like it's like 0:18:51.800 --> 0:18:55.200 the other day. Literally, just yesterday, somebody hit my sister's car. 0:18:55.280 --> 0:18:57.920 It was parked and some kid was driving a beag 0:18:57.960 --> 0:18:59.879 out in his car. He got spooked and he hit. 0:19:00.680 --> 0:19:02.480 You know, he was honest. You know, his insurance is 0:19:02.480 --> 0:19:06.480 taking care of it. YadA, YadA, YadA. But essentially she 0:19:06.640 --> 0:19:10.000 has insurance like he has insurance. She's gonna go through 0:19:10.000 --> 0:19:13.359 his insurance. They're gonna pay because he has insurance for 0:19:13.440 --> 0:19:15.720 the year that he pays for a likely monthly or 0:19:15.800 --> 0:19:17.600 quarterly or whatever. I like to pay my insurance up 0:19:17.600 --> 0:19:19.280 for the year, but you know you have up to 0:19:19.280 --> 0:19:24.479 pay it monthly and it lasts for the year period. 0:19:25.119 --> 0:19:27.800 That's term. It is very familiar insurance. It's the way 0:19:27.880 --> 0:19:30.720 insurance works in every other area of our life. But 0:19:30.760 --> 0:19:34.240 when it comes to life insurance, these tricky little insurance 0:19:34.240 --> 0:19:36.240 companies have figured it out how to get you all 0:19:36.280 --> 0:19:40.680 freaked out by also offering what's called permanent life insurance. 0:19:40.960 --> 0:19:44.639 And so oftentimes permanent life insurance is called universal or 0:19:44.720 --> 0:19:47.480