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Speaker 1: Welcome to How the Money. I'm Joel and I am Matt,

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Speaker 1: and today we are discussing creating a debt payoff plan.

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Speaker 1: Joel Man, we are talking about debt. Everybody's got it.

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Speaker 1: A lot of people do people not everybody. A lot

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Speaker 1: of people do, though, and the amount of debt that

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Speaker 1: we as a country have us as individuals, there is

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Speaker 1: just so much debt going around. We know that we

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Speaker 1: want to get rid of debt, but we don't necessarily

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Speaker 1: know what steps to take in order to get rid

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Speaker 1: of that debt. But a plan can help a whole yes, exactly.

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Speaker 1: So that's what we're gonna talk about this episode. We're

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Speaker 1: gonna talk through what it actually takes to paid on debt. Yeah.

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Speaker 1: But before we get to that, Matt, real quick, I

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Speaker 1: wanted to talk about guilt and money, and I think,

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Speaker 1: especially this time a year, maybe a lot of us

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Speaker 1: are feeling guilt over how we've spent and some of

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Speaker 1: that might be warranted. Right. We might have in November

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Speaker 1: December and the lead up to the holidays, we might

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Speaker 1: have bought too many gifts for other people. We we

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Speaker 1: probably could have done just a little bit better in

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Speaker 1: how we thought through a spending plan, right, and we're

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Speaker 1: gonna talk about a debt plan, but we could have

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Speaker 1: thought through our spending a little bit better. But I

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Speaker 1: think ultimately this show and how we talk about money,

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Speaker 1: we don't want people to feel guilty all the time

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Speaker 1: about how they're spending. And I think certain folks in

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Speaker 1: the personal finance space that's kind of their main tactic

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Speaker 1: is to make people feel guilty about how they do spend,

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Speaker 1: versus motivating folks to help them spend less and to

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Speaker 1: save more. And so I think, you know, as we

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Speaker 1: get further and further into this new year, I just

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Speaker 1: want to let people know that this podcast that what

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Speaker 1: we do, it's all about helping people prioritize the right

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Speaker 1: things and it's not about shaming them for the for

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Speaker 1: the move that they've made, for the things that they

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Speaker 1: haven't done as well as they could have done. Yeah,

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Speaker 1: totally do I completely agree. I think you said shame,

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Speaker 1: which totally may think of something else as well as

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Speaker 1: I'm gonna go there in one second, but I think

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Speaker 1: a guilt trips for you know, based on your spending,

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Speaker 1: that's a bad idea. If you have identified what it

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Speaker 1: is that you want to spend your money on Like,

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Speaker 1: if you have a plan, if you know where your

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Speaker 1: priorities lie, then it's okay to spend money. And yes,

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Speaker 1: you do not need to feel guilty. I do think though,

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Speaker 1: that a little bit of guilt can be a good thing, right,

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Speaker 1: Like to me, be proud a little bit at time, exactly. Yeah. Like,

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Speaker 1: to me, guilt is basically knowing that you could have

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Speaker 1: done something better but you didn't. It basically calls attention

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Speaker 1: to the fact that you're responsible for your actions. And

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Speaker 1: when it comes from money, I think there's definitely a

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Speaker 1: need for more responsibility when it comes to you know,

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Speaker 1: personal finances. But interestingly, like you mentioned shame, and I

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Speaker 1: think that's so clutch because there's a big difference between

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Speaker 1: guilt and shame. Have you read any of Burnet Brown.

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Speaker 1: She's like, she's a she's she has ted talks and

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Speaker 1: she's written books. She's an author. I'm familiar with her

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Speaker 1: just because my wife talks about her a lot. I

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Speaker 1: haven't read any of her book. She she's I think

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Speaker 1: she's really great, But she talks about shame, and one

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Speaker 1: of the ways she characterizes it is that like, shame

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Speaker 1: is well for let's start with guilt. Guilt is knowing

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Speaker 1: that you did something bad and so you feel bad

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Speaker 1: for that action, right, Whereas shame is like you identify

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Speaker 1: as being a bad person, and so we want to

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Speaker 1: focus on the behavior. You know, you're not a terrible

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Speaker 1: person because you know, you blew your budget one month

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Speaker 1: or maybe didn't quite put enough towards retirements that year. Right,

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Speaker 1: But when you identify with being a poor saver, like

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Speaker 1: if that's who you feel you are, well, that's when

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Speaker 1: it can become negative versus a positive effect. It can

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Speaker 1: almost be become a self fulfilling cycle. Oh yeah, if

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Speaker 1: we identify ourselves as a certain way, we're going to

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Speaker 1: act accordingly, and so we have to kind of break

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Speaker 1: that psychological barrier of feeling shame with how we've handled

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Speaker 1: our money. And I completely agree, I think a little

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Speaker 1: bit of guilt can help drive us in the proper direction.

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Speaker 1: But if we completely identify as being someone who doesn't

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Speaker 1: know how to handle money, well, well, then hopefully this

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Speaker 1: show can help people this year to learn some of

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Speaker 1: those tools and then to kind of help break those

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Speaker 1: chains of potential shame that's associated with how they handle

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Speaker 1: money totally. Um, that's that's what we want to be here.

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Speaker 1: We don't want to be here to use a stick

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Speaker 1: to beat you over the head because you haven't done

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Speaker 1: things properly. Well. We want to do is encourage you,

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Speaker 1: motivate you, give you the tools to create a more

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Speaker 1: positive outlook on your relationship with money, and then specifically

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Speaker 1: give you the proper approaches to how you can handle

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Speaker 1: your money well so that you can make changes moving forward,

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Speaker 1: so that whatever cycle maybe you've become accustomed to living

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Speaker 1: in relationship to your money just isn't the case anymore. Yeah, totally.

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Speaker 1: I think if you feel a tiny little bit of

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Speaker 1: guilt when you learn something new or maybe you hear

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Speaker 1: something that you haven't done, I think that can be

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Speaker 1: okay if you respond positively to that. Right. It's just

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Speaker 1: like constructive criticism or feedback that you receive on a

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Speaker 1: project or something that you're working on. If you take

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Speaker 1: that feedback and you then modify your behavior and that

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Speaker 1: allows you to grow. What's It's a positive thing. It's

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Speaker 1: about gaining knowledge and learning from our mistakes. And yeah,

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Speaker 1: like you said, you hopefully that's what folks can do

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Speaker 1: from listening to this podcast. Yeah, man, I think I

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Speaker 1: used to feel guilt over buying really nice beer, and

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Speaker 1: now I just don't anymore. It's because it's something that

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Speaker 1: I've prioritized highly and something that I've made an important

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Speaker 1: line item and my budget, and so I think that's

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Speaker 1: another way that people can approach it. And so, Matt,

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Speaker 1: speaking of beer, the beer that we're having on the

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Speaker 1: show today is barrel aged Yetti Imperial Stout by Great

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Speaker 1: Divide Brewing and the kind folks at a Great Divide

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Speaker 1: in Denver, Colorado, they sent this beer our way. I'm

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Speaker 1: really excited to have the barrel aged version of their

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Speaker 1: Yetti Imperial Stout on the show with you today, my friend. Yeah,

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Speaker 1: this is our last one by them. We've had them

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Speaker 1: for the past few episodes now. So man, Great Divide,

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Speaker 1: y'all are fantastic. You make some awesome beers like you

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Speaker 1: always have. And yeah, we'll get to our tasting notes

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Speaker 1: on this one at the end of the episode. All right, Matt,

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Speaker 1: let's get into the topic at hand. We're talking today

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Speaker 1: on the show. We're talking about creating a debt payoff plan.

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Speaker 1: And let me ask this question to our listeners at

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Speaker 1: the very beginning of the episode. And it might be

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Speaker 1: a little awkward. How's your debt situation? And does that

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Speaker 1: question itself cause a lump to rise in your throat? Well,

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Speaker 1: personal levels of indebtedness are a major issue in our country,

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Speaker 1: but lots of folks feel like they're stuck in quicksand

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Speaker 1: up to their midsections, and they don't know how to

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Speaker 1: navigate themselves out of the problem that they put themselves in.

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Speaker 1: We need a plan to help us get out of

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Speaker 1: debt and to get our feet set in the right

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Speaker 1: direction this year. And so when we see headlines Matt,

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Speaker 1: like we've seen lately eight six percent of millennials overspent

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Speaker 1: on Christmas gifts, Well, we know what that means. That

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Speaker 1: means that a lot of those folks have put that

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Speaker 1: extra spending on plastic on credit cards, and this time

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Speaker 1: a year they're getting that statement in the mail and

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Speaker 1: they're a little shocked. They didn't know that they spent

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Speaker 1: that much, and they didn't realize that they wouldn't be

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Speaker 1: able to afford the bill, and now they need some

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Speaker 1: help to tackle that debt, not to mention the other

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Speaker 1: death they might be caring right now, so it doesn't

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Speaker 1: get even further out of hand. Well, Joe, you're talking

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Speaker 1: about debt. And I feel like I'm super a d

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Speaker 1: D today because you mentioned quicksand and I started thinking

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Speaker 1: about quicksand why is why is like why would we

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Speaker 1: When we were kids, everything was quicksand like Mario Brothers

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Speaker 1: to head quicksand like even as kids playing, it's like

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Speaker 1: watch out for the quicksand like quicksand was this real thing,

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Speaker 1: like this real problem that we had to watch out for.

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Speaker 1: When I think about quicksand I think about the Princess Bride,

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Speaker 1: you know, I mean to me that's strongly correlated. Yes,

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Speaker 1: Like late eighties, early nineties, quicksand was everywhere. Now everything's lava,

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Speaker 1: like the kids have moved on to lava, like it

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Speaker 1: used to be quicksand now it's lava. Alright, Well, sorry,

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Speaker 1: a little side we go with old school reference. We're

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Speaker 1: gonna stick with quicksand floor's lava, all right. Let's get

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Speaker 1: back to debt a little bit though. Here's the thing.

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Speaker 1: Here's a fact for your outstanding student loan debt, Joel.

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Speaker 1: It has reached an all time high last year. We

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Speaker 1: hit one point four one trillion dollars of Americans have

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Speaker 1: credit card debt, and the average outstanding balance is just

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Speaker 1: over six thousand dollars, while consumer debt as a whole

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Speaker 1: stands at fourteen trillion. It's not just I covered my

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Speaker 1: ears there because it just got so horrendous. Way can

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Speaker 1: you say it again, dude, it's terrible. And not only

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Speaker 1: is it just an incredible amount of money, but it's

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Speaker 1: also how we're going about getting this debt. Car loans

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Speaker 1: they've gotten longer, with some folks not just taking out

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Speaker 1: sixty months of payment, but seventy two and eighty four

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Speaker 1: month long loans, and then you know, they end up

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Speaker 1: trading their cars and while they're upside down. We're taking

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Speaker 1: out debt for smaller and smaller purchases as well. Everyone

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Speaker 1: out there, like all the different retailers, offer a payment

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Speaker 1: plan now, and it spans from you know, services at

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Speaker 1: home like your h VAC, to urban outfitters if you

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Speaker 1: just want to, you know, pick up some shoes. We

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Speaker 1: are funding our lifestyles through the accumulation of more and

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Speaker 1: more as well as riskier debt. It's just become easier

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Speaker 1: to take on debt for anything now, Like you go

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Speaker 1: to the dentist and you can take out a payment

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Speaker 1: plan on that new artificial tooth or whatever. Surgery you

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Speaker 1: had to undergo. Yeah, I gotta think that is the

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Speaker 1: absolute least fun loan to pay on. Yeah, paying on

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Speaker 1: my root canal. Still, I'll give you a three loan

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Speaker 1: on that root canal. Matt, But that's just the kind

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Speaker 1: of day and age we live in, easy access to

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Speaker 1: debt for almost anything. Yeah, your local small business electrician

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Speaker 1: probably has the ability to offer you alone on that

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Speaker 1: new age fact. I mean, it's just kind of almost

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Speaker 1: gotten preposterous. And then we end up sinking ourselves in

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Speaker 1: a hole, even if it's zero percent, Even if it's

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Speaker 1: zero percent for multiple years, we'll take out the debt

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Speaker 1: and then ultimately we just don't have the money to

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Speaker 1: meet those obligations. So we have to change our relationship

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Speaker 1: to debt and how we consider taking it on. But

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Speaker 1: Matt also too, I think it's important to mention before

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Speaker 1: we get into the specifics of creating a debt payoff plan,

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Speaker 1: that we don't think all debt is terrible, Like we're

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Speaker 1: not anti every single kind of debt out there. Not

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Speaker 1: all debt is bad debt. Some debt can be used effectively,

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Speaker 1: and there are reasons worth accruing debt. For example, going

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Speaker 1: to get an education, or starting a business or buying

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Speaker 1: a home, and we kind of discussed that in more

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Speaker 1: detail and episode. But just because you're considering one of

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Speaker 1: those good debts doesn't give you a free pass to

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Speaker 1: blindly take out loans in order to go to a

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Speaker 1: fancy school, or to pursue your dream of owning your

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Speaker 1: own restaurant, or to buy more house than you can afford.

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Speaker 1: You still have to take value into the equation when

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Speaker 1: you're thinking about what debts you take on. Yes, we

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Speaker 1: we need to take value into account because you know,

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Speaker 1: not having massive amounts of debt is important, and so

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Speaker 1: I mean, I'll not note you might be asking like, well, well,

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Speaker 1: why is getting out of debt? Why is that actually important?

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Speaker 1: The biggest reason that we're gonna share that getting out

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Speaker 1: of debt is so stinking paramount is because debt is expensive.

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Speaker 1: In the moment, it doesn't feel expensive to pay with

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Speaker 1: a credit card or maybe to take out a loan.

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Speaker 1: If anything, it feels like free money, right And it's

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Speaker 1: really easy to gain access to that credit, which is

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Speaker 1: why in a recent episode Maut we talked about cashed

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Speaker 1: up in or credit like how we spend using credit

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Speaker 1: cards is in particular, the biggest downside is the ease abuse,

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Speaker 1: and that's what causes us to use them more frequently.

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Speaker 1: Even though it's a smooth transaction. Even though we like

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Speaker 1: credit cards, it can be away for us to spend

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Speaker 1: money that we don't have exactly. Yeah, but here's the

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Speaker 1: thing at the core of it, though. Like using your

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Speaker 1: credit cards as a tool, that's not the problem because

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Speaker 1: it really is just a tool. It's when we don't

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Speaker 1: pay off the balances and the interest begins to accrue.

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Speaker 1: It's when we use these tools incorrectly, and so when

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Speaker 1: we're paying interest on a balance, we're paying way too

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Speaker 1: much money for the things that we likely shouldn't have

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Speaker 1: purchased in the first place. So, for example, if hitting

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Speaker 1: thousand dollar car like that could easily end up costing

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Speaker 1: you closer to twenty dollars because you took out a

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Speaker 1: car loan and you're paying interest, and so effectively you're

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Speaker 1: paying way more than you should have for that vehicle.

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Speaker 1: And it's hard to reach your financial goals when you're

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Speaker 1: constantly over paying for things. Yeah, Matt, having a lot

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Speaker 1: of debt puts you on just not solid footing. It

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Speaker 1: put you in this kind of quick sand thing, right,

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Speaker 1: I mean, let's get back to the quick sand. It

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Speaker 1: puts you in this scenario where you're not as financially

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Speaker 1: flexible you could be if you didn't have that debt

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Speaker 1: in your life. The more debt you have, the weaker

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Speaker 1: position that you're in and the less freedom you have.

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Speaker 1: And when we're constantly overpaying for pretty much everything in

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Speaker 1: our lives, it's also it's hard to get ahead and

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Speaker 1: to reach any of those financial goals that we have.

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Speaker 1: The going is slow when we have interest payments working

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Speaker 1: against us. It feels like all the cards are stacked

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Speaker 1: against us, and that can be really discouraging. And instead,

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Speaker 1: we want to be on the receiving side of interest,

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Speaker 1: and that means like having a high interest savings account.

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Speaker 1: That means our investments essentially making money for us while

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Speaker 1: we sleep. Instead of interest working against our money, it's

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Speaker 1: working for us, and it's allowing us to quickly achieve

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Speaker 1: our goals. That's when it allows us to build wealth.

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Speaker 1: We're using interest in the positive frame. We're using returns

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Speaker 1: in the positive sense, as opposed to everything we buy

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Speaker 1: having a much larger price tag based on the fact

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Speaker 1: that we have interest payments going alongside of it. Yeah,

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Speaker 1: that's the difference between paying interest versus receiving interest. Right,

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Speaker 1: And I got a quick illustration for you. Imagine, have

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Speaker 1: you ever been to a store where there's like a

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Speaker 1: second floor, or maybe eve been to a mall, a

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Speaker 1: movie theater, perhaps right where there's an escalator. So imagine

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Speaker 1: you're on level one and level two. That's where you're

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Speaker 1: trying to get to level two, Joel, that's where your

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Speaker 1: financial dreams and hopes are in front of you. You've

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Speaker 1: got two escalators. You've got one that's coming down. At least,

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Speaker 1: it's not like a sky skyscraper that I have to

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Speaker 1: climb up, you know. Yeah, But on one side you've

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Speaker 1: got an escalator coming down. On the other side, you've

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Speaker 1: got an escalator going up. And when you have debts,

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Speaker 1: that is when interest is working against you, right. That

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Speaker 1: is you trying to get to the second level by

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Speaker 1: going up the side of the escalator that's coming down.

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Speaker 1: When you're doing that, you're working crazy hard. It takes

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Speaker 1: way longer, and you know what, at some point you

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Speaker 1: might even actually give up because it's too hard. I

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Speaker 1: probably could have done it really easily when I was

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Speaker 1: twenty five Matt, but even still, like, yes, I agree, right,

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Speaker 1: like I've I've done that before as a kid, But

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Speaker 1: it's still a lot harder versus when you have interest

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Speaker 1: working for you. When you're receiving interest, it's like you're

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Speaker 1: getting on the correct side and you're you know, you're

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Speaker 1: writing that interest up if you want, you can only

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Speaker 1: rely on that interest and you can just stay in there.

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Speaker 1: But if you can do need to work a little bit.

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Speaker 1: Imagine how quickly you're gonna get to that next level

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Speaker 1: walking while you're on an escalator. It's like the best

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Speaker 1: feeling I know. I mean, how quickly do you get

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Speaker 1: from like one level to the next just by doing that.

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Speaker 1: It's amazing. And so the next time you're thinking about

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Speaker 1: taking out a car loan or some other consumer debt,

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Speaker 1: some credit card debt, picture that illustration, because like that

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Speaker 1: truly is what it's like. It's like, like you said,

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Speaker 1: being in quicksand and you're trying to trying to hop

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Speaker 1: out of that quicksand it's so difficult to do that.

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Speaker 1: It's so difficult to make any progress when we're bogged

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Speaker 1: down with that interest working against us. Yeah, no doubt,

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Speaker 1: And we have to get to these specifics for folks

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Speaker 1: that are writing that down escalator and they want to

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Speaker 1: get off, they want to get out of debt, and

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Speaker 1: they want to make their money work for them. Well,

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Speaker 1: let's get to the specifics of how to create a

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Speaker 1: debt payoff plan right after this break. All right, Joe,

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Speaker 1: we're back and we're talking about creating a debt payoff plan.

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Speaker 1: By the way, did you like my my little illustration

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Speaker 1: about the escalator. That was a great illustration. Another one

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Speaker 1: I was thinking of too. I was just like, Okay,

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Speaker 1: what about like headwinds and when is that you're back?

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Speaker 1: I'm like, I was gonna say an example of you know,

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Speaker 1: when you're up at the tea box and you're playing

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Speaker 1: disc off and you're getting ready to throw your driver,

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Speaker 1: but you've got that strong headwind, it's gonna be a

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Speaker 1: lot harder than if you had to win at your back, right. True,

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Speaker 1: that's true. Yeah, that's another great illustration and one that

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Speaker 1: makes sense to me. But I feel like most folks

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Speaker 1: have probably been on escalators more often than they've actually

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Speaker 1: thrown a disc off. That's probably true for most folks

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Speaker 1: out there, sadly, because disc golf is a great sport

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Speaker 1: all right, we're gonna talk now though about what steps

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Speaker 1: that you need to take when it comes to creating

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Speaker 1: a debt payoff plan. These are the steps that we're

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Speaker 1: going to actually help you to make real substantial progress

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Speaker 1: this year. The first thing that you need to do

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Speaker 1: is to make a list of all your debts. The

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Speaker 1: first step in any plane of action is to get organized,

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Speaker 1: and so making sure that you're aware of all the

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Speaker 1: debts that you oh is a really important for step

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Speaker 1: on your path to crushing debt. Yeah. Man, I mean

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Speaker 1: we've used this illustration before, but if you're planning a

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Speaker 1: road trip, you're going to make the dots along the

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Speaker 1: wave where you want to stop. You kind of want

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Speaker 1: to know the layout, How long is it gonna take

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Speaker 1: me to get here and there, especially if you got kids,

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Speaker 1: Like where are we gonna stop to pete? Where we're

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Speaker 1: gonna stop to eat? There's all these questions that come

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Speaker 1: with a big, major trip, right, And so I think

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Speaker 1: the same thing, like paying off your debt is this

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Speaker 1: big trip, and you want to plan the points along

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Speaker 1: the way you want to You want to know exactly

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Speaker 1: what's in store so that nothing hits you terribly by surprise. Yeah,

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Speaker 1: you don't just throw everybody in the car and just

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Speaker 1: start driving. That's a terrible plan. Like lick your fingers

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Speaker 1: sticking up in the air, decide which way then we're

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Speaker 1: gonna go east. Let's do it. We'll see where we

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Speaker 1: end up. Yeah. Yeah, that's not a good way to go.

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Speaker 1: So yeah, making a list of all your debts helps

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Speaker 1: you at least get the lay of the land, and

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Speaker 1: then you need to pick your approach. And then we've

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Speaker 1: talked before about the debt snowball approach versus the debt

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Speaker 1: avalanche approach and which one people should consider, and we

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Speaker 1: went into a lot of detail on how you decipher

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Speaker 1: which plan is better for you in episode eighty six.

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Speaker 1: But do you need or just want some more emotional

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Speaker 1: rewards along the way, or do you just want to

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Speaker 1: pay these debts off as quickly as humanly possible while

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Speaker 1: paying as a little interest as you can. Either way,

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Speaker 1: he'll focus hard on completely obliterating one debt while paying

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Speaker 1: the minimums on the others in both approaches. Maintaining a

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Speaker 1: high level of focus is the key to success because

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Speaker 1: once you know that lay the land, Matt, it's really

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Speaker 1: important to kind of choose which approach you're going to

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Speaker 1: take and then sticking to it. If you've come up

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Speaker 1: with a strategy, do you think it's going to work

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Speaker 1: for you? Looking at the strategies that might potentially work

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Speaker 1: for you and then picking one and sticking to it

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Speaker 1: is going to be crucial to your probability of success. Yeah, Joel,

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Speaker 1: you know. And one thing I'll say is that I

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Speaker 1: think for folks especially who are listening to this podcast,

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Speaker 1: they're thinking, no, man, debt avalanche, that's the way to go.

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Speaker 1: Look at the numbers, do the math. But the older

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Speaker 1: I get, I realized that so much of our money

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Speaker 1: is not just knowing the correct information, isn't just seeing

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Speaker 1: the numbers right. Because we don't operate as robots, we

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Speaker 1: don't always make the rational decision. Our emotions play such

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Speaker 1: a huge role when it comes to how we handle

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Speaker 1: our money. And because of that, I think the debt

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Speaker 1: snowball needs to be considered by way more people than

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Speaker 1: it actually is. Because you are receiving that feedback more quickly.

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Speaker 1: You're able to quickly pay off a debt and then

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Speaker 1: quickly move on to the next one, and that feels good.

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Speaker 1: And when it feels good, that's something that you'll continue

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Speaker 1: to do exactly. The best plan that we can create

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Speaker 1: is the plan that we can stick to. It's not

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Speaker 1: just the best plan in theory, it's the one that

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Speaker 1: we can actually accomplish in real life. And just quick example, Matt,

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Speaker 1: for me, for a lot of years, I wasn't fully

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Speaker 1: funding my wrath I RA and I was just investing

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Speaker 1: a lot more in my four own K because it

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Speaker 1: was a lot easier for me to click the button

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Speaker 1: that up the percentage point coming out of my paycheck.

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Speaker 1: I barely felt it than it was to actually increase

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Speaker 1: that automatic draft amount from my bank account into Vanguard

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Speaker 1: to fund my wrath. And so it literally took more

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Speaker 1: work for you to up your wrath I RA versus

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Speaker 1: your four own K. Yeah, and really the work is

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Speaker 1: the same. It's the mental It's a mental hurdle I

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Speaker 1: couldn't overcome. And so I think that's a huge thing

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Speaker 1: that we do need to consider. What what what's the

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Speaker 1: easiest mental mental hurdle for us to overcome? And again,

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Speaker 1: the plan that we can stick with is the one

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Speaker 1: that we need to commit to. So true, man, all right,

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Speaker 1: so now you've made a list of all your debts,

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Speaker 1: you've gotten organized, you've picked your approach. You know, you

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Speaker 1: thought about which strategy is gonna work for you. The

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Speaker 1: next step is we want you to look at your

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Speaker 1: timeline a little bit. This is when you are going

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Speaker 1: to do some math and you want to calculate how

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Speaker 1: much monthly income you can put towards your debts and

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Speaker 1: and actually figure out how long it will take you

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Speaker 1: to be rid of it all. It is important to

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Speaker 1: know how long this will take in order to manage

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Speaker 1: your own expectations. If you don't take the step, you

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Speaker 1: might think you'll knock out your debt let's just say

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Speaker 1: by the end of the year, and then maybe October

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Speaker 1: rolls around and you realize that you're not even close.

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Speaker 1: If you are not realistically approaching your debt payoff plan,

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Speaker 1: it can be easy to lose hope and basically just

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Speaker 1: burn and fizzle out. Yeah. It reminds me of our

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Speaker 1: conversation with J. D Roth not too long ago, and

428
00:18:34,160 --> 00:18:37,480
Speaker 1: he specifically mentioned he gave a very vivid picture of

429
00:18:37,600 --> 00:18:41,120
Speaker 1: his when he was in the bathy. Okay, he was like,

430
00:18:41,320 --> 00:18:43,000
Speaker 1: this is how I came up with my debt payoff plan.

431
00:18:43,200 --> 00:18:45,119
Speaker 1: I was in the shower, I had this epiphany. He's like,

432
00:18:45,160 --> 00:18:46,760
Speaker 1: I ran out, I didn't dry off, I had a

433
00:18:46,800 --> 00:18:48,320
Speaker 1: towel around me, and I sat at the table for

434
00:18:48,400 --> 00:18:50,800
Speaker 1: hours and I came up with this debt payoff plan.

435
00:18:50,960 --> 00:18:53,800
Speaker 1: What a madman? I know, Yeah, I know, I totally picture.

436
00:18:53,840 --> 00:18:56,359
Speaker 1: I can totally picture it was. It was maybe too vivid.

437
00:18:56,680 --> 00:18:59,280
Speaker 1: And he said he realized it was gonna take thirty

438
00:18:59,320 --> 00:19:01,200
Speaker 1: six months for him to pay off his debt after

439
00:19:01,280 --> 00:19:04,200
Speaker 1: kind of calculating it out, and this timeline helped him

440
00:19:04,240 --> 00:19:07,679
Speaker 1: track his progress. Knowing that timeline helped him have a

441
00:19:07,720 --> 00:19:10,960
Speaker 1: realistic expectation in mind for how long it was going

442
00:19:11,000 --> 00:19:13,320
Speaker 1: to take him to be rid of all his debt.

443
00:19:13,600 --> 00:19:15,520
Speaker 1: And that's really important stuff for us to take in

444
00:19:15,520 --> 00:19:19,280
Speaker 1: this process, is to map out the length of time

445
00:19:19,320 --> 00:19:21,240
Speaker 1: that it's going to take us to go from a

446
00:19:21,280 --> 00:19:24,240
Speaker 1: bunch of debt to no debt, because that can help

447
00:19:24,320 --> 00:19:26,080
Speaker 1: us stick with it. If we know that it's going

448
00:19:26,119 --> 00:19:27,959
Speaker 1: to take three years, well there's light at the end

449
00:19:27,960 --> 00:19:30,520
Speaker 1: of the tunnel. If we have no idea and we

450
00:19:30,640 --> 00:19:33,400
Speaker 1: just are aimlessly attempting every month to put more money

451
00:19:33,440 --> 00:19:35,320
Speaker 1: towards our debt, but we don't have a time frame

452
00:19:35,400 --> 00:19:37,080
Speaker 1: in mind, well then it can just be a little

453
00:19:37,080 --> 00:19:38,800
Speaker 1: more difficult to actually stick with it. It's like the

454
00:19:38,800 --> 00:19:42,359
Speaker 1: difference between running a marathon versus like a sprint, Like

455
00:19:42,400 --> 00:19:44,200
Speaker 1: you need to know the distance because if you start

456
00:19:44,320 --> 00:19:47,360
Speaker 1: running a marathon, like you're running a four ndre meter sprint, well,

457
00:19:47,359 --> 00:19:49,880
Speaker 1: guess what, You're gonna burn out and you're gonna completely

458
00:19:49,920 --> 00:19:53,080
Speaker 1: give up. And so yeah, having that and goal in

459
00:19:53,119 --> 00:19:55,720
Speaker 1: mind and knowing that time frame is is so important.

460
00:19:55,920 --> 00:19:57,480
Speaker 1: And there are tools that can help, by the way,

461
00:19:57,520 --> 00:19:59,200
Speaker 1: and we link to those in the show notes. Whether

462
00:19:59,280 --> 00:20:01,800
Speaker 1: you're taking the snow ball approach or the avalanche approach,

463
00:20:02,000 --> 00:20:03,359
Speaker 1: well link to a tool that can kind of help

464
00:20:03,400 --> 00:20:05,480
Speaker 1: you as you plug in your information. It can give

465
00:20:05,520 --> 00:20:07,600
Speaker 1: you that time frame so that you're not just doing

466
00:20:07,600 --> 00:20:09,760
Speaker 1: pen and paper. You can actually plug it into a

467
00:20:09,760 --> 00:20:12,240
Speaker 1: spreadsheet and then you've got breadsheets. You can share it

468
00:20:12,280 --> 00:20:15,720
Speaker 1: with your significant other or your partner, and it's this

469
00:20:15,800 --> 00:20:17,680
Speaker 1: kind of perfect opportunity to be on the same page,

470
00:20:17,720 --> 00:20:19,399
Speaker 1: to be looking at the same numbers, and it can

471
00:20:19,480 --> 00:20:20,800
Speaker 1: kind of just kind of help you plot your path.

472
00:20:20,840 --> 00:20:22,359
Speaker 1: So you know, I'm all about the spreadsheet. I know

473
00:20:22,440 --> 00:20:24,560
Speaker 1: you are, buddy. Yeah, And so another step we want

474
00:20:24,560 --> 00:20:29,560
Speaker 1: you to take is essentially to create a debt slaying identity. Basically,

475
00:20:29,760 --> 00:20:31,560
Speaker 1: what I want you to do if you're in debt

476
00:20:31,560 --> 00:20:32,800
Speaker 1: and you're looking to get out of it, is I

477
00:20:32,840 --> 00:20:35,600
Speaker 1: want you to say to yourself this year, I am

478
00:20:35,640 --> 00:20:38,440
Speaker 1: all about paying off that debt. It's like your alter ego. Yes,

479
00:20:38,520 --> 00:20:40,640
Speaker 1: like that, that's just who you are. What this means

480
00:20:40,720 --> 00:20:43,359
Speaker 1: is not saving for a vacation, not saving for that

481
00:20:43,440 --> 00:20:46,119
Speaker 1: new car that maybe you wanted. Instead, it means throwing

482
00:20:46,160 --> 00:20:49,680
Speaker 1: all of your weight behind that one singular goal. This

483
00:20:49,760 --> 00:20:52,080
Speaker 1: is a crazy powerful approach, and anyone who has paid

484
00:20:52,119 --> 00:20:55,040
Speaker 1: off large amounts of debt quickly will attest to the

485
00:20:55,080 --> 00:20:57,520
Speaker 1: power of this type of focus. And again, you want

486
00:20:57,520 --> 00:21:00,720
Speaker 1: to make sure to prioritize that top debt while you

487
00:21:00,760 --> 00:21:04,000
Speaker 1: pay minimums on everything else, regardless of what approach you take,

488
00:21:04,040 --> 00:21:05,960
Speaker 1: whether you take the debt snowball or whether you take

489
00:21:05,960 --> 00:21:08,240
Speaker 1: the debt avalanche. All right, we've referenced Batman in this

490
00:21:08,280 --> 00:21:11,919
Speaker 1: podcast before, Matt, but so basically Batman is this perfect

491
00:21:11,960 --> 00:21:14,720
Speaker 1: representation of creating an alter ego. It's it's not that

492
00:21:14,800 --> 00:21:16,960
Speaker 1: he has these special powers. I mean, sure, he's got

493
00:21:17,000 --> 00:21:19,359
Speaker 1: a cooler vehicle and like a grappling hook or whatever,

494
00:21:19,640 --> 00:21:22,960
Speaker 1: but he can't actually fly or do anything super duper special.

495
00:21:23,200 --> 00:21:25,720
Speaker 1: He's just creating an alter ego that helps him to

496
00:21:25,720 --> 00:21:27,480
Speaker 1: fight crime. It's almost like when he puts on the suit,

497
00:21:27,560 --> 00:21:29,760
Speaker 1: he becomes a different person. And I think that's kind

498
00:21:29,760 --> 00:21:32,199
Speaker 1: of how we need to approach paying off debt in

499
00:21:32,240 --> 00:21:35,440
Speaker 1: our lives, is to create this alter ego, to put

500
00:21:35,440 --> 00:21:38,120
Speaker 1: ourselves in this new state of mind, in this new

501
00:21:38,520 --> 00:21:40,600
Speaker 1: superhero suit, if you will. And I think that that

502
00:21:40,760 --> 00:21:43,320
Speaker 1: just kind of mental shift in telling ourselves that we

503
00:21:43,359 --> 00:21:46,240
Speaker 1: are someone who can pay off a large amount of debt,

504
00:21:46,359 --> 00:21:48,560
Speaker 1: who can make a change in our life, who can

505
00:21:48,600 --> 00:21:51,360
Speaker 1: shift our habits. That's a that's a really powerful thing

506
00:21:51,640 --> 00:21:53,600
Speaker 1: for us as we step up to the plate in

507
00:21:53,680 --> 00:21:56,960
Speaker 1: order to vanquish the debt that has become the bane

508
00:21:57,080 --> 00:22:02,080
Speaker 1: of our existence. That's a nerd bad guy reference. I

509
00:22:02,119 --> 00:22:05,040
Speaker 1: love it. The next step is basically to move on

510
00:22:05,040 --> 00:22:07,159
Speaker 1: to debt number two. Once you've done all of that

511
00:22:07,240 --> 00:22:09,920
Speaker 1: and you've crushed that first debt, move onto the next

512
00:22:09,920 --> 00:22:13,040
Speaker 1: debt on the list. Again, regardless of which method that

513
00:22:13,160 --> 00:22:15,880
Speaker 1: you're taking. After that first debt is eliminated, you're gonna

514
00:22:15,920 --> 00:22:18,080
Speaker 1: have more money. It's a blast that next debt on

515
00:22:18,119 --> 00:22:20,399
Speaker 1: your on your list, you might notice that it's a

516
00:22:20,400 --> 00:22:23,399
Speaker 1: little bit easier to attack that next debt that you

517
00:22:23,440 --> 00:22:25,800
Speaker 1: have on your lists. Right, Like interest, it's still working

518
00:22:25,800 --> 00:22:28,679
Speaker 1: against you because you still have debt, but it's not

519
00:22:29,000 --> 00:22:31,639
Speaker 1: working against you quite as hard. Going back to the

520
00:22:31,720 --> 00:22:34,320
Speaker 1: escalator analogy, like you're still going up the wrong escalator,

521
00:22:34,440 --> 00:22:37,160
Speaker 1: but maybe the escalator has slowed down a little bit.

522
00:22:37,359 --> 00:22:39,200
Speaker 1: And not only has this slow down, Jill, you've also

523
00:22:39,240 --> 00:22:42,000
Speaker 1: gotten stronger because now you have more money to throw

524
00:22:42,240 --> 00:22:45,679
Speaker 1: into attack that next debt with. Yeah, it's incredible how

525
00:22:45,960 --> 00:22:48,960
Speaker 1: this process, the debt payoff plan becomes easier after that

526
00:22:49,000 --> 00:22:52,080
Speaker 1: first debt is removed, whether you're going avalanche or snowball,

527
00:22:52,320 --> 00:22:55,439
Speaker 1: having one fewer debt, it just increases your ability to

528
00:22:55,480 --> 00:22:57,760
Speaker 1: attack debt number two. It's a beautiful thing. Yeah, you've

529
00:22:57,760 --> 00:22:59,840
Speaker 1: got more money and it's just easier to focus as well.

530
00:22:59,880 --> 00:23:01,600
Speaker 1: But is guess what if you've got six different debts

531
00:23:01,600 --> 00:23:03,280
Speaker 1: that you know that you want to pay down. It

532
00:23:03,440 --> 00:23:06,320
Speaker 1: might take a lot of mental capacity to focus on

533
00:23:06,400 --> 00:23:07,959
Speaker 1: that one debt when you know you've got these other

534
00:23:08,000 --> 00:23:10,080
Speaker 1: ones that you're just paying minimums on. Right, But guess

535
00:23:10,080 --> 00:23:11,840
Speaker 1: what you knock out one of those and now you've

536
00:23:11,880 --> 00:23:14,560
Speaker 1: only you've only got five, so you're paying against one

537
00:23:14,600 --> 00:23:16,000
Speaker 1: of them, and there's just four of them that that

538
00:23:16,040 --> 00:23:17,200
Speaker 1: are kind of sitting there, and then you know, the

539
00:23:17,240 --> 00:23:19,560
Speaker 1: number just gets smaller and smaller. There are so many

540
00:23:19,560 --> 00:23:22,800
Speaker 1: reasons why focusing on a singular debt is so the

541
00:23:22,800 --> 00:23:25,320
Speaker 1: way to go. Yeah, and Matt, I think another important

542
00:23:25,400 --> 00:23:28,800
Speaker 1: thing to say on when we move on to another

543
00:23:28,840 --> 00:23:30,960
Speaker 1: debt is that it's important to give ourselves a little

544
00:23:31,000 --> 00:23:34,760
Speaker 1: reward along the way with each major milestone that we achieve.

545
00:23:35,280 --> 00:23:38,440
Speaker 1: We discussed this recently in the gamification episode, but small

546
00:23:38,480 --> 00:23:40,800
Speaker 1: rewards along the way can give us a renewed hope

547
00:23:41,240 --> 00:23:44,720
Speaker 1: to pause and realize that we're doing it well, that's huge,

548
00:23:45,240 --> 00:23:47,480
Speaker 1: and then we can start to rent and repeat and

549
00:23:47,560 --> 00:23:50,360
Speaker 1: kind of continue along in the process. But once we've

550
00:23:50,400 --> 00:23:53,959
Speaker 1: appropriately celebrated knocking out a credit card debt or a

551
00:23:54,000 --> 00:23:57,120
Speaker 1: car loan, then start sending your sights on the next

552
00:23:57,160 --> 00:24:00,720
Speaker 1: debt to crush. Maybe student loans are next on the

553
00:24:00,800 --> 00:24:03,040
Speaker 1: hit list. But however you're doing it, make sure that

554
00:24:03,119 --> 00:24:05,600
Speaker 1: you do give yourself like a little reward along the way.

555
00:24:05,760 --> 00:24:09,000
Speaker 1: It can really increase that positivity and continue to fuel

556
00:24:09,080 --> 00:24:13,040
Speaker 1: you in that superhero esque pursuit of paying your debt off. Yeah. Man,

557
00:24:13,040 --> 00:24:16,520
Speaker 1: we're emotional creatures and to have that positive feedback is

558
00:24:16,560 --> 00:24:19,240
Speaker 1: so important. And I think that's one way too that

559
00:24:19,280 --> 00:24:21,639
Speaker 1: we can reward ourselves, not even by spending money, but

560
00:24:21,960 --> 00:24:24,399
Speaker 1: there's ways that we can reinforce that behavior, even just

561
00:24:24,440 --> 00:24:26,560
Speaker 1: with sharing it with others. If you've told some friends

562
00:24:26,600 --> 00:24:28,960
Speaker 1: about your financial journey or like your plan to pay

563
00:24:29,000 --> 00:24:30,919
Speaker 1: down some debt, and you tell them, hey, guess what,

564
00:24:31,000 --> 00:24:33,240
Speaker 1: you know those three credit cards that I'm planning to

565
00:24:33,280 --> 00:24:36,199
Speaker 1: knock out, one of them is completely done with. Like,

566
00:24:36,280 --> 00:24:39,280
Speaker 1: that's huge, and hopefully you know, if you've talked about

567
00:24:39,280 --> 00:24:41,000
Speaker 1: your money with these folks, these are friends who can

568
00:24:41,040 --> 00:24:43,560
Speaker 1: then celebrate with you and encourage you and they become

569
00:24:43,600 --> 00:24:46,520
Speaker 1: like your cheerleaders, like encouragingly. And if you don't have

570
00:24:46,560 --> 00:24:48,399
Speaker 1: these these type of friends, we would encourage you, you know,

571
00:24:48,520 --> 00:24:51,320
Speaker 1: a to talk about money with your friends and family,

572
00:24:51,560 --> 00:24:54,400
Speaker 1: but also check out Facebook. Within our group, folks are

573
00:24:54,440 --> 00:24:56,919
Speaker 1: often posting their winds and then how they're succeeding with

574
00:24:56,960 --> 00:24:59,680
Speaker 1: their money, and we would suggest jumping in there encouraging

575
00:24:59,680 --> 00:25:01,680
Speaker 1: those folks. And then when the time comes for you

576
00:25:01,720 --> 00:25:03,760
Speaker 1: to knock out some of your big debts or meet

577
00:25:03,760 --> 00:25:05,879
Speaker 1: some of your financial goals, you can share that in

578
00:25:05,920 --> 00:25:07,720
Speaker 1: there as well, and it'll be folks in there who

579
00:25:07,840 --> 00:25:11,360
Speaker 1: will be pumped for you. And guess what that costs you? Nothing? Yeah, man,

580
00:25:11,400 --> 00:25:13,640
Speaker 1: sharing those wins with other people that you don't even

581
00:25:13,640 --> 00:25:16,479
Speaker 1: have to like treat yourself to something super fancy. But honestly,

582
00:25:16,480 --> 00:25:19,440
Speaker 1: even just that encouragement from people around you that are

583
00:25:19,760 --> 00:25:22,840
Speaker 1: rooting for you, that's enough of a reward oftentimes for

584
00:25:22,920 --> 00:25:24,679
Speaker 1: us to keep going. That can really be a big

585
00:25:24,720 --> 00:25:27,680
Speaker 1: motivation for us and Matt. Now, if we are kind

586
00:25:27,680 --> 00:25:31,600
Speaker 1: of in this debt slaying superhero mindset, a question pops up, Well,

587
00:25:31,600 --> 00:25:35,800
Speaker 1: how can we accelerate this debt payoff plan process? Well,

588
00:25:35,840 --> 00:25:37,800
Speaker 1: there are ways that we can potentially earn extra money

589
00:25:38,000 --> 00:25:40,000
Speaker 1: and then other ways that we can cut back in

590
00:25:40,040 --> 00:25:43,240
Speaker 1: our spending, and those things can accelerate the amount that

591
00:25:43,280 --> 00:25:45,320
Speaker 1: we're able to put towards that debt to kind of

592
00:25:45,320 --> 00:25:47,800
Speaker 1: make that thirty six month plan let's say a thirty

593
00:25:47,840 --> 00:25:49,560
Speaker 1: three month plan. And that's kind of fun too. Yeah,

594
00:25:49,560 --> 00:25:52,000
Speaker 1: that's right. We need to address both sides of the equation, right.

595
00:25:52,040 --> 00:25:54,520
Speaker 1: We talked about this last week on our episode on frugality,

596
00:25:54,560 --> 00:25:56,680
Speaker 1: how frugality doesn't always cut it, but we need to

597
00:25:56,720 --> 00:25:59,240
Speaker 1: address our big expenses as well as some of the

598
00:25:59,240 --> 00:26:01,639
Speaker 1: big ways that we increase or income. Yeah, totally. So

599
00:26:01,680 --> 00:26:04,160
Speaker 1: on the note of cutting back, we'll choose a specific

600
00:26:04,160 --> 00:26:07,200
Speaker 1: few areas that are meaningful for you to be able

601
00:26:07,200 --> 00:26:11,679
Speaker 1: to still enjoy life. Don't stop drinking craft beer altogether necessarily,

602
00:26:11,720 --> 00:26:14,560
Speaker 1: but make it maybe a special treat. And that act

603
00:26:14,560 --> 00:26:16,879
Speaker 1: of cutting back, well, it can help you to achieve

604
00:26:16,920 --> 00:26:20,399
Speaker 1: this quote unquote no bad debt status far more quickly.

605
00:26:20,680 --> 00:26:22,720
Speaker 1: And if you can continue it after this debt payoff

606
00:26:22,760 --> 00:26:25,479
Speaker 1: plan is complete, it's gonna help you build savings and

607
00:26:25,560 --> 00:26:28,760
Speaker 1: have money to invest for your future at the same time. Yeah, Joe,

608
00:26:28,800 --> 00:26:31,560
Speaker 1: So that's addressing expenses, right, like if we're able to

609
00:26:31,560 --> 00:26:34,440
Speaker 1: cut back. And on Money's episode, we talked about earning

610
00:26:34,440 --> 00:26:37,120
Speaker 1: more money, you know, through entrepreneurship, through starting your own

611
00:26:37,119 --> 00:26:39,240
Speaker 1: small business. We had an interview there with Vincent, So

612
00:26:39,280 --> 00:26:41,240
Speaker 1: we'd recommend checking that one out if you're looking to

613
00:26:41,720 --> 00:26:44,080
Speaker 1: address that side of the equation. But either way, you

614
00:26:44,119 --> 00:26:47,119
Speaker 1: can accelerate the process by focusing on your expenses, by

615
00:26:47,160 --> 00:26:49,359
Speaker 1: focusing on your income. You want to make sure that

616
00:26:49,400 --> 00:26:51,479
Speaker 1: you're doing both of those. We're gonna continue to talk

617
00:26:51,520 --> 00:26:54,160
Speaker 1: about creating a debt payoff plan, and after the break,

618
00:26:54,160 --> 00:26:58,000
Speaker 1: we're gonna talk specifically about some different practical advice and

619
00:26:58,119 --> 00:27:00,800
Speaker 1: some different tactical steps that we can take in order

620
00:27:00,880 --> 00:27:02,919
Speaker 1: to pay down our debt faster. We're gonna get to

621
00:27:02,960 --> 00:27:13,320
Speaker 1: those right after the break. All right, now, we're back

622
00:27:13,320 --> 00:27:15,439
Speaker 1: to the break, and we do have some practical and

623
00:27:15,560 --> 00:27:18,080
Speaker 1: tactical things that we have to share, and they're galactical.

624
00:27:18,680 --> 00:27:21,240
Speaker 1: In this part of the show about how people should

625
00:27:21,240 --> 00:27:23,040
Speaker 1: approach their debt payoff plan, we kind of went through

626
00:27:23,040 --> 00:27:24,640
Speaker 1: all the steps, but there are a lot of other

627
00:27:24,720 --> 00:27:28,359
Speaker 1: things to consider, some tips, some hacks, as the kids

628
00:27:28,400 --> 00:27:31,159
Speaker 1: like to say, on how to approach this plan that

629
00:27:31,280 --> 00:27:35,080
Speaker 1: can help accelerate it. Beyond just the ideas of earning

630
00:27:35,080 --> 00:27:37,560
Speaker 1: more money, there are specific things that we can take

631
00:27:37,560 --> 00:27:40,000
Speaker 1: advantage of in order to help us lower the interest

632
00:27:40,080 --> 00:27:42,200
Speaker 1: rate or find the help that we need in order

633
00:27:42,280 --> 00:27:45,280
Speaker 1: to achieve our debt payoff more quickly. So, Matt, I

634
00:27:45,280 --> 00:27:46,840
Speaker 1: think one of the first things that needs to be

635
00:27:46,920 --> 00:27:49,600
Speaker 1: noted is we really need to think long and hard

636
00:27:49,680 --> 00:27:51,920
Speaker 1: about the things that led us to to this state.

637
00:27:51,960 --> 00:27:54,080
Speaker 1: Of debt in the first place. One of the major

638
00:27:54,119 --> 00:27:56,359
Speaker 1: things we need to come to grips with is to

639
00:27:56,400 --> 00:27:59,639
Speaker 1: think about our triggers, like what caused us to spend

640
00:27:59,760 --> 00:28:02,399
Speaker 1: money that we didn't have in the first place. Knowing

641
00:28:02,480 --> 00:28:05,680
Speaker 1: those triggers is the first step to changing our habits,

642
00:28:05,760 --> 00:28:08,760
Speaker 1: and that's a really crucial process in this whole plan. So,

643
00:28:08,880 --> 00:28:11,000
Speaker 1: if your credit cards or your arch nemesis and you

644
00:28:11,040 --> 00:28:13,320
Speaker 1: just don't know how to stop using them, will cut

645
00:28:13,320 --> 00:28:15,840
Speaker 1: them up or freeze them, put them in a freezer

646
00:28:15,880 --> 00:28:17,679
Speaker 1: bag inside of your freezer, like literally put them in

647
00:28:17,680 --> 00:28:19,280
Speaker 1: a ziploc bag, fill it with water, and stick it

648
00:28:19,280 --> 00:28:22,119
Speaker 1: in your freezer. Put that junk on ice exactly. Like,

649
00:28:22,320 --> 00:28:24,239
Speaker 1: if that's your trigger, you have to figure out how

650
00:28:24,240 --> 00:28:26,600
Speaker 1: to make that stop, because even as you're paying off

651
00:28:26,720 --> 00:28:29,600
Speaker 1: your debt, you might be accruing more along the way,

652
00:28:29,800 --> 00:28:31,520
Speaker 1: and you're just kind of it's a zero sum game

653
00:28:31,560 --> 00:28:33,520
Speaker 1: if we don't know the things that are actually triggering

654
00:28:33,640 --> 00:28:36,600
Speaker 1: us to spend in the ways that are hurting our finances.

655
00:28:36,680 --> 00:28:38,680
Speaker 1: And real quick you mentioned like putting your credit cards

656
00:28:38,720 --> 00:28:41,200
Speaker 1: in a block of ice. Let's clarify, because that is

657
00:28:41,280 --> 00:28:44,120
Speaker 1: literally one way to freeze your credit cards. But there's

658
00:28:44,120 --> 00:28:46,800
Speaker 1: I think sometimes some confusion when people say I've freeze

659
00:28:46,800 --> 00:28:49,240
Speaker 1: my credit. Well, that's not freezing your credit. That's literally

660
00:28:49,240 --> 00:28:52,360
Speaker 1: freezing your credit cards to curb your behavior. But then

661
00:28:52,400 --> 00:28:55,400
Speaker 1: you can actually freeze your credit by going to Trains,

662
00:28:55,480 --> 00:28:59,240
Speaker 1: Union Experience and Equifax, and that actually puts a lock

663
00:28:59,440 --> 00:29:02,120
Speaker 1: on your credit it that way, nobody including yourself, is

664
00:29:02,160 --> 00:29:04,880
Speaker 1: able to take out new credit, new credit cards unless

665
00:29:04,920 --> 00:29:08,400
Speaker 1: they go on their first and unfreeze it, typically temporarily. Yeah,

666
00:29:08,440 --> 00:29:10,440
Speaker 1: And that's something that we recommend, is is for folks

667
00:29:10,440 --> 00:29:12,400
Speaker 1: to freeze their credit so that other people can't take

668
00:29:12,480 --> 00:29:15,800
Speaker 1: out credit lines in your name. But freezing your credit

669
00:29:15,840 --> 00:29:18,120
Speaker 1: card definitely a step to take if that credit card

670
00:29:18,120 --> 00:29:20,520
Speaker 1: has become this problem in your life, this thorn in

671
00:29:20,560 --> 00:29:22,920
Speaker 1: your side. Yeah, man. And another thing to note on

672
00:29:23,560 --> 00:29:25,960
Speaker 1: at since we're speaking about your credit score and freezing

673
00:29:26,000 --> 00:29:28,959
Speaker 1: your credit, well, your credit score is this awesome thing

674
00:29:29,000 --> 00:29:31,800
Speaker 1: to monitor along the way while you're involved in this

675
00:29:31,840 --> 00:29:34,880
Speaker 1: debt payoff plan. And we really like the website credit Carma.

676
00:29:34,880 --> 00:29:36,480
Speaker 1: There are other sites out there as well that can

677
00:29:36,560 --> 00:29:39,120
Speaker 1: help you stay in touch with your credit score. Discover

678
00:29:39,200 --> 00:29:41,200
Speaker 1: has one as well, credit score card dot com. If

679
00:29:41,200 --> 00:29:43,200
Speaker 1: you check out sign up for one of those services,

680
00:29:43,200 --> 00:29:45,680
Speaker 1: and you're staying familiar with what's going on with your

681
00:29:45,680 --> 00:29:48,640
Speaker 1: credit score. Well, as you're paying your debt off, it's

682
00:29:48,640 --> 00:29:51,600
Speaker 1: going to have a direct positive benefit on your credit score,

683
00:29:51,800 --> 00:29:54,600
Speaker 1: and that is motivating as you see that credit score

684
00:29:54,600 --> 00:29:57,880
Speaker 1: balloon over time as it continues to rise from let's

685
00:29:57,880 --> 00:29:59,840
Speaker 1: say it's at six a d now you know over

686
00:30:00,000 --> 00:30:02,280
Speaker 1: six months you might be at seven thirty. And that

687
00:30:02,400 --> 00:30:05,120
Speaker 1: is going to help you achieve these other goals of

688
00:30:05,160 --> 00:30:07,840
Speaker 1: being able to potentially take out a mortgage. Right if

689
00:30:07,880 --> 00:30:09,000
Speaker 1: you want to buy a house and you have a

690
00:30:09,040 --> 00:30:11,400
Speaker 1: really low credit score because you have an overwhelming amount

691
00:30:11,440 --> 00:30:15,200
Speaker 1: of debt, well, attacking that increases your score and not

692
00:30:15,280 --> 00:30:17,680
Speaker 1: only means you have less debt weighing you down, but

693
00:30:17,760 --> 00:30:21,440
Speaker 1: also means the possibilities of taking out positive future debt

694
00:30:21,600 --> 00:30:24,880
Speaker 1: right something like a house are just greatly increased. Yeah,

695
00:30:25,040 --> 00:30:27,480
Speaker 1: seeing that credit score boost like that, that's an amazing

696
00:30:27,600 --> 00:30:31,680
Speaker 1: secondary benefit of paying down that debt. Let's also talk

697
00:30:31,720 --> 00:30:34,720
Speaker 1: about where not to go if you're in debt over

698
00:30:34,760 --> 00:30:37,280
Speaker 1: your head, if you're not able to handle the payments

699
00:30:37,480 --> 00:30:40,160
Speaker 1: currently on your debt, do not sign up with a

700
00:30:40,160 --> 00:30:44,480
Speaker 1: debt consolidation company. They charge big money, and they rarely

701
00:30:44,520 --> 00:30:47,760
Speaker 1: live up to their claims. Often you'll end up paying them,

702
00:30:47,800 --> 00:30:49,720
Speaker 1: you know, a lot of money, and they do little

703
00:30:49,840 --> 00:30:53,160
Speaker 1: or nothing to help you in your debt payoff pursuit. Uh.

704
00:30:53,200 --> 00:30:55,400
Speaker 1: In that case, you're often better off on your own

705
00:30:55,480 --> 00:30:57,640
Speaker 1: because at least then you could toss more of that

706
00:30:57,680 --> 00:31:00,360
Speaker 1: money towards your debt and not going to the service

707
00:31:00,400 --> 00:31:02,640
Speaker 1: that's not actually providing any value. Yeah, if you hear

708
00:31:02,640 --> 00:31:05,480
Speaker 1: an advertiser or someone specifically tells you, yeah, if you

709
00:31:05,520 --> 00:31:07,960
Speaker 1: just pay these people a couple of thousand dollars, three

710
00:31:08,000 --> 00:31:10,600
Speaker 1: or four thousand dollars, they can help you consolidate your debt,

711
00:31:10,680 --> 00:31:13,160
Speaker 1: they can work with your creditors, they'll help you achieve

712
00:31:13,200 --> 00:31:17,120
Speaker 1: your own debt payoff plan. Well upfront payment for someone

713
00:31:17,160 --> 00:31:19,600
Speaker 1: to do that for you. When most of the things

714
00:31:19,600 --> 00:31:22,120
Speaker 1: that these debt payoff companies say they're gonna do, they

715
00:31:22,160 --> 00:31:24,440
Speaker 1: either don't do or you can do yourself. That's just

716
00:31:24,440 --> 00:31:26,400
Speaker 1: not a smart way to go. Yeah, that money upfront

717
00:31:26,520 --> 00:31:28,560
Speaker 1: huge red flag. So what you do want to go

718
00:31:28,600 --> 00:31:31,280
Speaker 1: if your debt is overwhelming is going to be your

719
00:31:31,400 --> 00:31:33,960
Speaker 1: local affiliate of the n f c C, which is

720
00:31:34,000 --> 00:31:37,800
Speaker 1: the National Foundation for Credit counseling. They are a nonprofit

721
00:31:38,160 --> 00:31:41,120
Speaker 1: and they are full of helpful financial services like debt

722
00:31:41,160 --> 00:31:44,080
Speaker 1: and budget counseling. They have the power to help and

723
00:31:44,160 --> 00:31:46,960
Speaker 1: kind of counsel you along your debt journey. They do

724
00:31:47,040 --> 00:31:49,600
Speaker 1: the things that many of the debt payoff firms say

725
00:31:49,640 --> 00:31:52,360
Speaker 1: that they'll do, but then they don't in actuality. Yeah,

726
00:31:52,400 --> 00:31:55,040
Speaker 1: that's true. The NFCC is the only place I would

727
00:31:55,040 --> 00:31:57,640
Speaker 1: tell someone who is up to their eyeballs in debt

728
00:31:57,680 --> 00:31:59,640
Speaker 1: and doesn't know where to go and can't afford their

729
00:31:59,640 --> 00:32:01,800
Speaker 1: debt payments. That is the only place I would send

730
00:32:01,840 --> 00:32:04,640
Speaker 1: them to. And so yeah, NFCC dot org, find your

731
00:32:04,640 --> 00:32:07,920
Speaker 1: local affiliate, meet with someone there. That is your best

732
00:32:08,000 --> 00:32:10,840
Speaker 1: path forward if you're in debt that you can't manage.

733
00:32:11,040 --> 00:32:14,400
Speaker 1: And Matt, let's talk quickly about apps. There are apps

734
00:32:14,400 --> 00:32:17,200
Speaker 1: popping up all over the place that claim to help

735
00:32:17,200 --> 00:32:20,280
Speaker 1: people with their debt payoff. And there are some apps

736
00:32:20,320 --> 00:32:22,400
Speaker 1: that I think could potentially be helpful, but they come

737
00:32:22,400 --> 00:32:25,400
Speaker 1: with a caveat. There's one called coins q O I

738
00:32:25,560 --> 00:32:28,360
Speaker 1: n S and there's one called Tally that offer to help,

739
00:32:28,640 --> 00:32:31,200
Speaker 1: but they charge you to do so as well. So

740
00:32:31,520 --> 00:32:33,040
Speaker 1: you know, you and I we prefer the d i

741
00:32:33,200 --> 00:32:36,479
Speaker 1: Y no fee approach. But these apps can be helpful

742
00:32:36,480 --> 00:32:39,200
Speaker 1: for the right person who has a tough time actually

743
00:32:39,240 --> 00:32:42,000
Speaker 1: sticking to something. And if these apps are gonna help

744
00:32:42,240 --> 00:32:45,440
Speaker 1: basically make the process smoother for you, and that fee

745
00:32:45,720 --> 00:32:48,480
Speaker 1: is basically going to prevent you from defaulting on your debt,

746
00:32:48,800 --> 00:32:50,720
Speaker 1: well then what we would say is use one of

747
00:32:50,720 --> 00:32:53,320
Speaker 1: those apps, use it to its full potential, because yeah,

748
00:32:53,320 --> 00:32:56,080
Speaker 1: paying a fee is is better than not doing it

749
00:32:56,120 --> 00:32:58,640
Speaker 1: all together. If that's gonna get you motivated, if that's

750
00:32:58,640 --> 00:33:00,560
Speaker 1: going to be the thing that helps you to actually

751
00:33:00,600 --> 00:33:03,200
Speaker 1: stick to a debt payoff plan, well then that's great.

752
00:33:03,320 --> 00:33:05,520
Speaker 1: And those are two worth considering. Yeah, man, those are

753
00:33:05,560 --> 00:33:07,240
Speaker 1: some of the the different apps. And there's also some websites

754
00:33:07,280 --> 00:33:10,520
Speaker 1: that can help as well. I'm thinking of unbury me

755
00:33:10,920 --> 00:33:13,600
Speaker 1: and undebt it. And by the way, those are unburied

756
00:33:13,640 --> 00:33:17,920
Speaker 1: dot me and undebt dot it. I guess that's in Italy,

757
00:33:18,000 --> 00:33:20,600
Speaker 1: the i T. I love how the different websites are

758
00:33:20,640 --> 00:33:22,360
Speaker 1: using the different I don't know what you call it,

759
00:33:22,400 --> 00:33:24,560
Speaker 1: like the dot com, dot net, like the postscripts or whatever,

760
00:33:24,880 --> 00:33:26,880
Speaker 1: but they're working them into the name of their site,

761
00:33:26,880 --> 00:33:29,320
Speaker 1: which is I love it. That's why we're changing the

762
00:33:29,400 --> 00:33:30,840
Speaker 1: u r L for our website from how the Money

763
00:33:30,880 --> 00:33:33,040
Speaker 1: dot Com to how the Money dot Listen to our

764
00:33:33,080 --> 00:33:38,440
Speaker 1: podcast now how the Money dot Beer. Actually I legit

765
00:33:38,520 --> 00:33:41,480
Speaker 1: think there is a dot Yeah, I was gonna say

766
00:33:41,520 --> 00:33:44,280
Speaker 1: that that's really oh my gosh. Either way, though, let's

767
00:33:44,280 --> 00:33:47,000
Speaker 1: talk about these websites unbury me and undebt it. They

768
00:33:47,000 --> 00:33:49,400
Speaker 1: are both similar and they can offer some help creating

769
00:33:49,400 --> 00:33:53,320
Speaker 1: a debt payoff plan. If you prefer a more digital interface,

770
00:33:53,480 --> 00:33:55,640
Speaker 1: definitely give one of these shot with the different graphs

771
00:33:55,640 --> 00:33:57,920
Speaker 1: and you know, the digital feedback it might help you

772
00:33:57,960 --> 00:34:00,480
Speaker 1: to visualize your progress and and you know, for that

773
00:34:00,520 --> 00:34:03,400
Speaker 1: reason it can be really valuable. But at the same time,

774
00:34:03,440 --> 00:34:06,920
Speaker 1: we don't want tech to keep you from actually getting

775
00:34:06,920 --> 00:34:09,600
Speaker 1: a plan together at all. Pen and paper can be

776
00:34:09,640 --> 00:34:12,640
Speaker 1: really valuable, especially when it comes to just tracking your progress.

777
00:34:12,680 --> 00:34:15,239
Speaker 1: You know, like it is pretty easy to create a

778
00:34:15,239 --> 00:34:16,840
Speaker 1: little graph and a little chart and you kind of

779
00:34:16,840 --> 00:34:18,360
Speaker 1: fill it in as you work your way up that

780
00:34:18,360 --> 00:34:21,920
Speaker 1: notebook paper. Just know yourself and participate in any of

781
00:34:21,960 --> 00:34:24,399
Speaker 1: these different little tips and strategies that you know will

782
00:34:24,440 --> 00:34:26,759
Speaker 1: resonate the most with you. Yeah, man, I agree. I

783
00:34:26,800 --> 00:34:28,799
Speaker 1: think part of it comes down to knowing yourself and

784
00:34:28,840 --> 00:34:31,439
Speaker 1: knowing the ways that you're best going to be able

785
00:34:31,440 --> 00:34:33,640
Speaker 1: to stick to a debt payoff plan. And and and

786
00:34:33,760 --> 00:34:35,919
Speaker 1: some people they're in a computer all day and using

787
00:34:35,960 --> 00:34:38,319
Speaker 1: a website like Unburied dot me or on debt dot

788
00:34:38,360 --> 00:34:40,880
Speaker 1: it is is going to be a massive help in

789
00:34:40,960 --> 00:34:43,120
Speaker 1: the way they approach paying off that debt. And for

790
00:34:43,160 --> 00:34:45,520
Speaker 1: other people, you know what, a pen and some paper

791
00:34:45,719 --> 00:34:48,239
Speaker 1: that's gonna be motivation enough. They don't need some sort

792
00:34:48,239 --> 00:34:51,360
Speaker 1: of really cutee graph and interface to help them tackle

793
00:34:51,400 --> 00:34:53,279
Speaker 1: their debt. So just kind of know your tendencies and

794
00:34:53,280 --> 00:34:55,480
Speaker 1: that can help you. And Matt I feel like there

795
00:34:55,520 --> 00:34:57,720
Speaker 1: are a few more hacks that we really should mention

796
00:34:58,080 --> 00:35:00,920
Speaker 1: to help folks actually save more on interest payments and

797
00:35:00,960 --> 00:35:03,359
Speaker 1: potentially pay off their debt even more quickly once they

798
00:35:03,400 --> 00:35:05,919
Speaker 1: have a clear plan in place. A zero percent credit

799
00:35:05,920 --> 00:35:08,840
Speaker 1: card transfer can be a game changer for folks, especially

800
00:35:08,880 --> 00:35:11,920
Speaker 1: if they're on the fast track to eradicating debt. And

801
00:35:11,920 --> 00:35:14,560
Speaker 1: this is particularly useful map for folks that have a

802
00:35:14,560 --> 00:35:17,280
Speaker 1: good credit score if they can qualify for a credit

803
00:35:17,280 --> 00:35:19,520
Speaker 1: card with a zero percent intro period of like let's

804
00:35:19,560 --> 00:35:21,759
Speaker 1: say fifteen or eighteen months, and they're ready to to

805
00:35:21,760 --> 00:35:24,160
Speaker 1: pay off their debt quickly. Well, this can mean no

806
00:35:24,280 --> 00:35:26,600
Speaker 1: interest payments on the majority of that debt for a

807
00:35:26,600 --> 00:35:28,600
Speaker 1: long period of time. And so we just wrote an

808
00:35:28,680 --> 00:35:32,040
Speaker 1: article about the best balanced transfer credit cards. It's up

809
00:35:32,080 --> 00:35:33,759
Speaker 1: on our site at how to money dot com for

810
00:35:33,760 --> 00:35:36,359
Speaker 1: folks that specifically are interested in a card like that,

811
00:35:36,440 --> 00:35:37,960
Speaker 1: and we outline the ones that are going to charge

812
00:35:38,000 --> 00:35:40,360
Speaker 1: the fewest fees so that when you make that transfer,

813
00:35:40,680 --> 00:35:43,640
Speaker 1: your payments are working to pay off your debt, they're

814
00:35:43,680 --> 00:35:45,960
Speaker 1: not going towards the bottom line of the credit card companies.

815
00:35:46,160 --> 00:35:48,719
Speaker 1: And if you currently have a credit card and that's

816
00:35:48,800 --> 00:35:51,120
Speaker 1: one of the major debts that you're looking to pay off, well,

817
00:35:51,160 --> 00:35:54,000
Speaker 1: another hack that you can do is to call your

818
00:35:54,040 --> 00:35:56,719
Speaker 1: credit card company and ask for help. Whether it's a

819
00:35:56,719 --> 00:35:59,520
Speaker 1: credit card company or another credit or they're often procedures

820
00:35:59,520 --> 00:36:02,279
Speaker 1: in place for people they call and ask for help. Matt,

821
00:36:02,320 --> 00:36:05,000
Speaker 1: we've talked about asking for a discount before. This is

822
00:36:05,040 --> 00:36:08,160
Speaker 1: asking for potentially a lower interest rate on your debt,

823
00:36:08,320 --> 00:36:09,400
Speaker 1: which is going to help you to be able to

824
00:36:09,440 --> 00:36:11,400
Speaker 1: pay it off more quickly. And Matt, one example I

825
00:36:11,440 --> 00:36:13,840
Speaker 1: wanted to mention is, let's say you've got a student

826
00:36:13,880 --> 00:36:17,360
Speaker 1: loan through a company like so Far, and one of

827
00:36:17,400 --> 00:36:20,400
Speaker 1: the coolest benefits that they offer is help if you

828
00:36:20,440 --> 00:36:23,880
Speaker 1: lose your job. Not only will they provide actual assistance

829
00:36:23,960 --> 00:36:26,800
Speaker 1: for you looking for employment, but what they'll do is

830
00:36:26,800 --> 00:36:28,040
Speaker 1: they'll say, you know what, you don't have to pay

831
00:36:28,040 --> 00:36:30,479
Speaker 1: your loan for the next six months while you're looking

832
00:36:30,480 --> 00:36:33,160
Speaker 1: for employment and so stuff like that. It's out there,

833
00:36:33,360 --> 00:36:35,839
Speaker 1: depending on who you're doing business with and what sort

834
00:36:35,880 --> 00:36:38,200
Speaker 1: of programs are in place. It's just worth it to

835
00:36:38,280 --> 00:36:41,239
Speaker 1: ask whoever you have debt with to see if there's

836
00:36:41,239 --> 00:36:43,319
Speaker 1: some sort of way that they can can help you

837
00:36:43,320 --> 00:36:46,160
Speaker 1: along in the process. Yeah. On the note of lower

838
00:36:46,200 --> 00:36:48,720
Speaker 1: interest rates as well, Man, we would recommend for folks

839
00:36:48,760 --> 00:36:52,360
Speaker 1: to consider checking out maybe some alternatives to credit cards.

840
00:36:52,640 --> 00:36:54,840
Speaker 1: If you have a home, you can consider a helock

841
00:36:55,280 --> 00:36:57,680
Speaker 1: home equity line of credits. You're going to be able

842
00:36:57,680 --> 00:36:59,920
Speaker 1: to get a lower rate. Obviously, there's going to be

843
00:37:00,120 --> 00:37:02,719
Speaker 1: some risks associated with that. You're taking your debt and

844
00:37:02,760 --> 00:37:05,160
Speaker 1: you're tying it to your property. That debt is now

845
00:37:05,200 --> 00:37:08,680
Speaker 1: a secure debt because your home is collateral. So if

846
00:37:08,760 --> 00:37:12,360
Speaker 1: you are really really sure that you're going to knock

847
00:37:12,400 --> 00:37:14,840
Speaker 1: out that debt, then that might be something that you

848
00:37:14,880 --> 00:37:16,959
Speaker 1: can do. But this does not need to be something

849
00:37:17,000 --> 00:37:19,719
Speaker 1: that you you take on lightly. Yeah, because it's one

850
00:37:19,760 --> 00:37:21,520
Speaker 1: thing to not be able to pay off a credit card.

851
00:37:21,719 --> 00:37:23,279
Speaker 1: There are certain rights that you have. You're not gonna

852
00:37:23,320 --> 00:37:24,759
Speaker 1: lose your house or get thrown in prison for not

853
00:37:24,840 --> 00:37:26,719
Speaker 1: being able to pay your credit card debt. But if

854
00:37:26,760 --> 00:37:28,920
Speaker 1: you tie it to your home, if you refinance, or

855
00:37:28,960 --> 00:37:31,719
Speaker 1: you take out a helock, that car that homes on

856
00:37:31,760 --> 00:37:33,919
Speaker 1: the line, dude, Yeah, exactly. And so if you're gonna

857
00:37:33,960 --> 00:37:36,799
Speaker 1: have trouble paying it off with a helock, even if

858
00:37:36,840 --> 00:37:39,120
Speaker 1: it lowers your interest rate, don't do it because you

859
00:37:39,120 --> 00:37:41,440
Speaker 1: don't want to lose your home over credit card debt

860
00:37:41,480 --> 00:37:43,680
Speaker 1: you are unable to pay. That's right. And another option

861
00:37:43,920 --> 00:37:46,399
Speaker 1: to consider is you can always borrow money, maybe from

862
00:37:46,440 --> 00:37:50,680
Speaker 1: a family member. This is something that it just depends

863
00:37:50,680 --> 00:37:53,359
Speaker 1: on who you are and what your relationships are with

864
00:37:53,440 --> 00:37:55,880
Speaker 1: your you know, those in your family, because it can

865
00:37:55,880 --> 00:37:58,680
Speaker 1: get awkward. In many cases, it isn't worth the possible

866
00:37:58,680 --> 00:38:01,600
Speaker 1: harm that could come to you that relationship. But if

867
00:38:01,600 --> 00:38:03,680
Speaker 1: your credit score is really low, that might be your

868
00:38:03,719 --> 00:38:07,799
Speaker 1: only option for lowering any super high interest rates that

869
00:38:07,880 --> 00:38:10,799
Speaker 1: you might have, So definitely consider that. Yeah, Matt. If

870
00:38:10,800 --> 00:38:13,680
Speaker 1: someone submitted and ask htm question for the shows where

871
00:38:13,680 --> 00:38:15,719
Speaker 1: we answer listener questions and said, hey, should I loan

872
00:38:15,920 --> 00:38:17,799
Speaker 1: money to a family or friend, I think we would

873
00:38:17,840 --> 00:38:20,000
Speaker 1: probably say don't do it, or if you do, know

874
00:38:20,080 --> 00:38:21,600
Speaker 1: that there's a good chance that you don't get paid

875
00:38:21,640 --> 00:38:24,719
Speaker 1: back altogether. Just kind of go into that loan situation

876
00:38:24,960 --> 00:38:28,040
Speaker 1: knowing that's the case. But if someone has a really

877
00:38:28,040 --> 00:38:30,200
Speaker 1: low credit score, if they don't have that many options,

878
00:38:30,560 --> 00:38:32,960
Speaker 1: this might be the best option for them, if they

879
00:38:33,000 --> 00:38:36,040
Speaker 1: have a good relationship with a friend or family member

880
00:38:36,080 --> 00:38:38,520
Speaker 1: that is willing to help them out in this way. So, yeah,

881
00:38:38,560 --> 00:38:41,880
Speaker 1: those are some ways that you can approach lowering potentially

882
00:38:41,880 --> 00:38:44,640
Speaker 1: your overall rate of interest, some moves that you can

883
00:38:44,680 --> 00:38:47,279
Speaker 1: make to help accelerate that debt payoff plan, and yeah,

884
00:38:47,280 --> 00:38:49,160
Speaker 1: crush that debt once and for all. Yeah, And it's

885
00:38:49,160 --> 00:38:50,719
Speaker 1: important to keep in mind as well that these are

886
00:38:50,760 --> 00:38:52,759
Speaker 1: things that you want to consider after you have a

887
00:38:52,800 --> 00:38:54,759
Speaker 1: solid plan in place, like these are these are the

888
00:38:54,760 --> 00:38:57,040
Speaker 1: little tweaks, right. Like last week we talked about frugality

889
00:38:57,080 --> 00:38:59,120
Speaker 1: and how we need to focus on the big things. Well,

890
00:38:59,160 --> 00:39:01,360
Speaker 1: in this case, the big thing is creating that plan

891
00:39:01,880 --> 00:39:05,200
Speaker 1: and really getting after it. These these little tips and tricks,

892
00:39:05,400 --> 00:39:08,200
Speaker 1: These are the little tweaks. This is the frugality aspect

893
00:39:08,280 --> 00:39:10,719
Speaker 1: of paying down your debt. They are certainly things that

894
00:39:10,760 --> 00:39:13,319
Speaker 1: could make a pretty big impact and really help you

895
00:39:13,360 --> 00:39:15,960
Speaker 1: along and provide some encouragement and make it possible for

896
00:39:15,960 --> 00:39:18,160
Speaker 1: you to pay down that debt. But first you do

897
00:39:18,280 --> 00:39:20,840
Speaker 1: need to have a solid plan in place for these

898
00:39:21,040 --> 00:39:23,880
Speaker 1: additional pieces to kind of slot in. Yeah, I completely agree.

899
00:39:23,920 --> 00:39:25,759
Speaker 1: And you know what, for anybody out there who is

900
00:39:26,120 --> 00:39:29,799
Speaker 1: it's experiencing a load of debt that is uncomfortable, well,

901
00:39:29,840 --> 00:39:31,719
Speaker 1: best of luck to you in creating a debt payoff plan.

902
00:39:31,960 --> 00:39:34,359
Speaker 1: I feel like having this plan sometimes can help you

903
00:39:34,440 --> 00:39:36,440
Speaker 1: at least have this target to aim at, and it

904
00:39:36,440 --> 00:39:39,080
Speaker 1: can make a huge difference and in helping you actually

905
00:39:39,080 --> 00:39:41,560
Speaker 1: achieve being rid of it as opposed to kind of

906
00:39:41,680 --> 00:39:44,000
Speaker 1: feeling like you're in this quicksand scenario and you don't

907
00:39:44,040 --> 00:39:45,880
Speaker 1: know how to get out. The plan is like the

908
00:39:46,000 --> 00:39:47,920
Speaker 1: rope in Princess Bride that helps you get out of

909
00:39:47,920 --> 00:39:50,400
Speaker 1: the quicksand it is right, that's exactly what that debt

910
00:39:50,400 --> 00:39:55,439
Speaker 1: payoff plan is. As you win, all right, and it's

911
00:39:55,520 --> 00:39:57,160
Speaker 1: it's beer time. Let's take it back to the beer.

912
00:39:57,440 --> 00:40:01,040
Speaker 1: This episode, you and I shared a Berrell aged YETI

913
00:40:01,080 --> 00:40:03,640
Speaker 1: Imperial Stouts. I want to say this can it's it's

914
00:40:03,680 --> 00:40:06,799
Speaker 1: brown and gold and it's like perfect for for the

915
00:40:06,800 --> 00:40:08,640
Speaker 1: way this beer tastes. And I want to mention to

916
00:40:08,640 --> 00:40:11,560
Speaker 1: you the way it poured, and it poured pitch black

917
00:40:11,840 --> 00:40:14,799
Speaker 1: and at the same time it had this amazingly dark

918
00:40:14,880 --> 00:40:17,480
Speaker 1: brown head. It looked like krema, like if you've ever

919
00:40:17,480 --> 00:40:21,240
Speaker 1: gotten an espresso where you know the the espresso bubbles

920
00:40:21,320 --> 00:40:23,400
Speaker 1: like the little cream at the top. They call it krema.

921
00:40:23,680 --> 00:40:26,799
Speaker 1: Little insider knowledge for yet exactly, but I couldn't get

922
00:40:26,840 --> 00:40:30,160
Speaker 1: over how richly brown that head was on his beer.

923
00:40:30,200 --> 00:40:31,720
Speaker 1: And every time I kind of swirled it, it it almost

924
00:40:31,719 --> 00:40:35,040
Speaker 1: had like some red notes in it looked amazing. But yeah,

925
00:40:35,080 --> 00:40:36,920
Speaker 1: what were your thoughts on how this bear taste? Man?

926
00:40:36,960 --> 00:40:39,520
Speaker 1: This beer was so good. It had these nice boozy

927
00:40:39,760 --> 00:40:42,839
Speaker 1: barrel notes. Aren't an already delicious stout? I felt like

928
00:40:42,880 --> 00:40:46,440
Speaker 1: the stout was chock full of bitter, dark chocolate vibes

929
00:40:46,800 --> 00:40:49,680
Speaker 1: and that paired so well with the sweetness coming through

930
00:40:49,960 --> 00:40:51,920
Speaker 1: from the whiskey barrel that it was aged in. So

931
00:40:51,960 --> 00:40:53,399
Speaker 1: in my mind, if you get the dark chocolate, bitter

932
00:40:53,440 --> 00:40:57,439
Speaker 1: stout combined with aging in whiskey barrels. It's a perfect pairing.

933
00:40:57,440 --> 00:40:59,160
Speaker 1: It's that perfect marriage. And that's what that's what this

934
00:40:59,200 --> 00:41:00,839
Speaker 1: beer was. It was so it. Yeah, it's really good.

935
00:41:01,000 --> 00:41:02,719
Speaker 1: It's Asian whiskey barils, and I feel like you could

936
00:41:02,719 --> 00:41:05,440
Speaker 1: tell that it wasn't Asian and bourbon barrels because typically

937
00:41:05,480 --> 00:41:07,440
Speaker 1: I think when you get bourbon, it's a little bit sweeter,

938
00:41:07,920 --> 00:41:10,680
Speaker 1: and this stout drink a little dryer to me, like

939
00:41:10,680 --> 00:41:13,480
Speaker 1: it had a ton of flavor, but it wasn't. It

940
00:41:13,520 --> 00:41:15,960
Speaker 1: wasn't overly sweet, a little bit on the dry side,

941
00:41:16,120 --> 00:41:17,360
Speaker 1: And so it kind of reminds me of like that

942
00:41:17,400 --> 00:41:20,200
Speaker 1: fancier chocolate where it's like caw cow or is that

943
00:41:20,239 --> 00:41:23,160
Speaker 1: how you say it, you say calco cocoa. I don't know.

944
00:41:23,200 --> 00:41:24,960
Speaker 1: It's abelled like cal cow, and I don't think I

945
00:41:25,000 --> 00:41:27,839
Speaker 1: use that word very often. I don't know either, But

946
00:41:27,880 --> 00:41:30,160
Speaker 1: you know, the fancy chocolate where it's there's zero sweetness

947
00:41:30,200 --> 00:41:31,960
Speaker 1: going on at all. That's what I picked up out

948
00:41:31,960 --> 00:41:35,600
Speaker 1: of it. It just had incredibly deep flavor notes and

949
00:41:35,760 --> 00:41:37,920
Speaker 1: I really enjoyed it. All right, man, Well, is that

950
00:41:37,960 --> 00:41:39,640
Speaker 1: going to be it for this episode? That's gonna do it.

951
00:41:39,719 --> 00:41:41,480
Speaker 1: Let's wrap it up, all right. For folks that want

952
00:41:41,520 --> 00:41:43,360
Speaker 1: more money information, well you can go to our website

953
00:41:43,400 --> 00:41:45,200
Speaker 1: at how to money dot com and we'll also have

954
00:41:45,560 --> 00:41:47,960
Speaker 1: show notes up for this episode. All right, man, Well,

955
00:41:47,960 --> 00:41:51,000
Speaker 1: that's gonna do it, Joel. Until next time, Best Friends Out,

956
00:41:51,040 --> 00:42:00,640
Speaker 1: Best Friends Out, m