1
00:00:00,120 --> 00:00:03,440
Speaker 1: Joel, what's going on, buddy? Hello, my friend, are you

2
00:00:03,520 --> 00:00:05,920
Speaker 1: enjoying your time right now at the beach? I am

3
00:00:06,720 --> 00:00:08,559
Speaker 1: recording this before we go there, but I'm just imagining

4
00:00:08,600 --> 00:00:11,119
Speaker 1: the joy I'm gonna feel. I'm asking future Joel if

5
00:00:11,360 --> 00:00:13,399
Speaker 1: if he's going to enjoy his he's having a rock

6
00:00:13,440 --> 00:00:15,600
Speaker 1: and time. Yeah, we're actually at the beach for a

7
00:00:15,640 --> 00:00:18,599
Speaker 1: few days. We've gone there with our families. We're spending

8
00:00:18,640 --> 00:00:20,319
Speaker 1: a lot of time out there in the sun, in

9
00:00:20,360 --> 00:00:24,040
Speaker 1: the waves. But we are replaying a bestie episode. This

10
00:00:24,120 --> 00:00:25,880
Speaker 1: is a really good one, as it seems a lot

11
00:00:25,960 --> 00:00:29,760
Speaker 1: of people are returning to their old spending ways. There's

12
00:00:29,800 --> 00:00:31,880
Speaker 1: nothing wrong with being intentional with your money, but we

13
00:00:31,920 --> 00:00:34,800
Speaker 1: don't want you to get carried away with your spending. Uh.

14
00:00:34,840 --> 00:00:37,400
Speaker 1: And in this episode, we actually go step by step

15
00:00:37,440 --> 00:00:40,479
Speaker 1: on how to create a debt payoff plan and how

16
00:00:40,479 --> 00:00:42,360
Speaker 1: to stick with it. Yeah, I feel like this episode

17
00:00:42,520 --> 00:00:45,440
Speaker 1: does deserve another spin, Mattine. People haven't listened to it

18
00:00:45,440 --> 00:00:47,879
Speaker 1: because it's way back in the back catalog. Well, it's

19
00:00:47,960 --> 00:00:49,720
Speaker 1: right here for you right now and U. Yeah, but

20
00:00:49,840 --> 00:00:51,800
Speaker 1: before we get to that episode, you know, this is

21
00:00:52,120 --> 00:00:54,040
Speaker 1: typically a Friday flight episode, and we did want to

22
00:00:54,080 --> 00:00:57,640
Speaker 1: mention actually one Friday flight story before we get into

23
00:00:57,640 --> 00:01:01,320
Speaker 1: this Bestie episode one headline it everyone out there should

24
00:01:01,320 --> 00:01:04,520
Speaker 1: be excited about that that we saw a pesky refinance

25
00:01:04,600 --> 00:01:07,200
Speaker 1: fee is going away. Hooray. Any listeners that have been

26
00:01:07,200 --> 00:01:09,119
Speaker 1: around for any length the time, you know how much

27
00:01:09,160 --> 00:01:12,640
Speaker 1: we hate fees. And as of August one, lenders will

28
00:01:12,680 --> 00:01:15,399
Speaker 1: no longer have to pay Fannie and Freddie an additional

29
00:01:15,680 --> 00:01:17,480
Speaker 1: half a percent fee that was imposed at the end

30
00:01:17,520 --> 00:01:20,319
Speaker 1: of last year, and so that means lower rates for

31
00:01:20,440 --> 00:01:23,319
Speaker 1: you when it comes to refinancing a mortgage, which I

32
00:01:23,319 --> 00:01:25,479
Speaker 1: know a lot of people are considering right now because

33
00:01:25,720 --> 00:01:27,720
Speaker 1: rights or low. Yeah, this is great news because it

34
00:01:27,720 --> 00:01:29,920
Speaker 1: will save the average person twenty dollars a month on

35
00:01:29,959 --> 00:01:33,760
Speaker 1: a three thousand dollar mortgage loan and twenty bucks a month.

36
00:01:33,840 --> 00:01:36,040
Speaker 1: That's not chump change, not at all. Yeah, So shopping

37
00:01:36,040 --> 00:01:39,120
Speaker 1: around for that refinance is of course always a good idea.

38
00:01:39,120 --> 00:01:41,280
Speaker 1: But we wanted to pass on the good news that

39
00:01:41,480 --> 00:01:44,319
Speaker 1: rates that you're seeing next week could be even lower

40
00:01:44,560 --> 00:01:47,440
Speaker 1: as this fee gets acts completely. It's something that we

41
00:01:47,560 --> 00:01:49,720
Speaker 1: covered towards the end of last year because we saw

42
00:01:49,760 --> 00:01:51,120
Speaker 1: that this was gonna be something that was going to

43
00:01:51,120 --> 00:01:54,680
Speaker 1: be added to the cost of underwriting alone, but that

44
00:01:54,800 --> 00:01:57,040
Speaker 1: is not something you're gonna have to worry about much longer. Yeah, man,

45
00:01:57,040 --> 00:01:58,720
Speaker 1: I'm kind of guy who wants to see, like an

46
00:01:58,720 --> 00:02:01,560
Speaker 1: Elon Musk flamethrower take into all the fees in existence,

47
00:02:01,560 --> 00:02:03,360
Speaker 1: and so yeah, just seeing a fee go down in

48
00:02:03,400 --> 00:02:06,880
Speaker 1: flames like this just makes me so happy. By the way,

49
00:02:06,960 --> 00:02:09,800
Speaker 1: make sure to check out Monday's episode, we have an

50
00:02:09,800 --> 00:02:12,800
Speaker 1: interview with the one and only Clark Howard, my good friend,

51
00:02:12,840 --> 00:02:15,040
Speaker 1: and so yeah, there's some really helpful travel advice that

52
00:02:15,080 --> 00:02:17,360
Speaker 1: we got into in that conversation, as well as some

53
00:02:17,520 --> 00:02:19,920
Speaker 1: wisdom when it comes to being your own advocate in

54
00:02:19,960 --> 00:02:22,880
Speaker 1: the tumultuous world of personal finance. So you can look

55
00:02:22,919 --> 00:02:25,160
Speaker 1: forward to that hitting your podcatcher. But for now, let's

56
00:02:25,160 --> 00:02:27,720
Speaker 1: get on that bestie episode about debt payoff and Matt

57
00:02:27,840 --> 00:02:30,360
Speaker 1: back to the beach for us. Welcome to How the Money.

58
00:02:30,440 --> 00:02:32,640
Speaker 1: I'm Joel and I am Matt, and today we are

59
00:02:32,680 --> 00:02:54,440
Speaker 1: discussing creating a debt payoff plan. Joel Man, we are

60
00:02:54,440 --> 00:02:57,120
Speaker 1: talking about debt. Everybody's got it. A lot of people

61
00:02:57,120 --> 00:02:59,959
Speaker 1: do people not everybody. A lot of people do though,

62
00:03:00,280 --> 00:03:03,240
Speaker 1: and the amount of debt that we as a country

63
00:03:03,240 --> 00:03:06,079
Speaker 1: have us as individuals. There is just so much debt

64
00:03:06,120 --> 00:03:07,840
Speaker 1: going around. We know that we want to get rid

65
00:03:07,840 --> 00:03:11,160
Speaker 1: of debt, but we don't necessarily know what steps to

66
00:03:11,240 --> 00:03:12,920
Speaker 1: take in order to get rid of that debt. But

67
00:03:12,960 --> 00:03:15,239
Speaker 1: a plan can help a whole lot, Yes, exactly. So

68
00:03:15,280 --> 00:03:17,080
Speaker 1: that's what we're gonna talk about this episode. We're gonna

69
00:03:17,120 --> 00:03:19,640
Speaker 1: talk through what it actually takes to paid on debt. Yeah,

70
00:03:19,680 --> 00:03:21,079
Speaker 1: But before we get to that, Matt, real quick, I

71
00:03:21,120 --> 00:03:23,920
Speaker 1: wanted to talk about guilt and money. And I think,

72
00:03:24,080 --> 00:03:26,200
Speaker 1: especially this time a year, maybe a lot of us

73
00:03:26,240 --> 00:03:29,920
Speaker 1: are feeling guilt over how we've spent. And some of

74
00:03:29,960 --> 00:03:33,040
Speaker 1: that might be warranted. Right. We we might have in

75
00:03:33,080 --> 00:03:35,640
Speaker 1: November December, in the lead up to the holidays, we

76
00:03:35,720 --> 00:03:37,520
Speaker 1: might have bought too many gifts for other people. We

77
00:03:37,520 --> 00:03:39,200
Speaker 1: we probably could have done just a little bit better

78
00:03:39,480 --> 00:03:42,280
Speaker 1: in how we thought through a spending plan, right, And

79
00:03:42,320 --> 00:03:43,800
Speaker 1: we're gonna talk about a debt plan, but we could

80
00:03:43,800 --> 00:03:45,600
Speaker 1: have thought through our spending a little bit better. But

81
00:03:45,800 --> 00:03:48,960
Speaker 1: I think ultimately this show and how we talk about money,

82
00:03:49,200 --> 00:03:51,240
Speaker 1: we don't want people to feel guilty all the time

83
00:03:51,280 --> 00:03:53,840
Speaker 1: about how they're spending. And I think certain folks in

84
00:03:53,880 --> 00:03:57,120
Speaker 1: the personal finance space. That's kind of their main tactic

85
00:03:57,360 --> 00:03:59,680
Speaker 1: is to make people feel guilty about how they do

86
00:03:59,720 --> 00:04:02,520
Speaker 1: spend versus motivating folks to help them spend less and

87
00:04:02,560 --> 00:04:04,480
Speaker 1: to save more. And so I think, you know, as

88
00:04:04,520 --> 00:04:06,600
Speaker 1: we get further and further into this new year, I

89
00:04:06,640 --> 00:04:08,800
Speaker 1: just want to let people know that this podcast, that

90
00:04:08,920 --> 00:04:12,680
Speaker 1: what we do, it's all about helping people prioritize the

91
00:04:12,760 --> 00:04:16,440
Speaker 1: right things and it's not about shaming them for the

92
00:04:16,680 --> 00:04:18,320
Speaker 1: for the move that they've made, for the things that

93
00:04:18,360 --> 00:04:20,240
Speaker 1: they haven't done as well as they could have done. Yeah,

94
00:04:20,279 --> 00:04:22,719
Speaker 1: totally do. I completely agree. I think you said shame,

95
00:04:22,760 --> 00:04:24,440
Speaker 1: which totally may think of something else as well as

96
00:04:24,440 --> 00:04:26,240
Speaker 1: I'm gonna go there in one second, But I think

97
00:04:26,240 --> 00:04:28,560
Speaker 1: a guilt trips for you know, based on your spending,

98
00:04:29,320 --> 00:04:32,520
Speaker 1: that's a bad idea. If you have identified what it

99
00:04:32,680 --> 00:04:34,440
Speaker 1: is that you want to spend your money on, like,

100
00:04:34,520 --> 00:04:36,160
Speaker 1: if you have a plan, if you know where your

101
00:04:36,200 --> 00:04:39,120
Speaker 1: priorities lie, then it's okay to spend money. And yes,

102
00:04:39,200 --> 00:04:41,440
Speaker 1: you do not need to feel guilty. I do think though,

103
00:04:41,560 --> 00:04:45,040
Speaker 1: that a little bit of guilt can be a good thing, right,

104
00:04:45,080 --> 00:04:47,480
Speaker 1: Like to me be proud a little bit at time. Exactly. Yeah. Like,

105
00:04:47,520 --> 00:04:50,159
Speaker 1: to me, guilt is basically knowing that you could have

106
00:04:50,200 --> 00:04:53,359
Speaker 1: done something better but you didn't. It basically cause attention

107
00:04:53,400 --> 00:04:55,479
Speaker 1: to the fact that you're responsible for your actions. And

108
00:04:55,520 --> 00:04:57,560
Speaker 1: when it comes from money, I think there's definitely a

109
00:04:57,600 --> 00:04:59,560
Speaker 1: need for more responsibility when it comes to you know,

110
00:04:59,640 --> 00:05:02,800
Speaker 1: personal finances. But interestingly, like you mentioned shame, and I

111
00:05:02,839 --> 00:05:05,520
Speaker 1: think that's so clutch because there's a big difference between

112
00:05:05,680 --> 00:05:08,480
Speaker 1: guilt and shame. Have you read any of Burnet Brown.

113
00:05:08,720 --> 00:05:11,040
Speaker 1: She's like, she's a she's you know, she has ted

114
00:05:11,080 --> 00:05:12,840
Speaker 1: talks and she's written books and she's an author. I'm

115
00:05:12,839 --> 00:05:14,839
Speaker 1: familiar with her just because my wife talks about her

116
00:05:14,839 --> 00:05:16,360
Speaker 1: a lot. I haven't read any of her books. She

117
00:05:16,360 --> 00:05:18,880
Speaker 1: she's I think she's really great. But she talks about shame,

118
00:05:19,040 --> 00:05:21,400
Speaker 1: and one of the ways she characterizes it is that,

119
00:05:21,440 --> 00:05:24,280
Speaker 1: like shame is well, for let's start with guilt. Guilt

120
00:05:24,640 --> 00:05:26,720
Speaker 1: is knowing that you did something bad and so you

121
00:05:26,720 --> 00:05:30,160
Speaker 1: feel bad for that action, right, whereas shame is like

122
00:05:30,279 --> 00:05:33,880
Speaker 1: you identify as being a bad person, and so we

123
00:05:33,920 --> 00:05:35,719
Speaker 1: want to focus on the behavior. You know, you're not

124
00:05:35,760 --> 00:05:37,960
Speaker 1: a terrible person because you you know, you blew your

125
00:05:38,000 --> 00:05:40,240
Speaker 1: budget one month or maybe you didn't quite put enough

126
00:05:40,240 --> 00:05:43,960
Speaker 1: towards retirements that year, right, But when you identify with

127
00:05:44,160 --> 00:05:46,760
Speaker 1: being a poor saver, like if that's who you feel

128
00:05:46,800 --> 00:05:50,000
Speaker 1: you are, well, that's when it can become negative versus

129
00:05:50,440 --> 00:05:53,120
Speaker 1: a positive effect. It can almost be become a self

130
00:05:53,160 --> 00:05:56,400
Speaker 1: fulfilling cycle. Oh yeah. If we identify ourselves as a

131
00:05:56,400 --> 00:05:59,720
Speaker 1: certain way, we're going to act accordingly, and so we

132
00:05:59,800 --> 00:06:02,839
Speaker 1: have to kind of break that psychological barrier of feeling

133
00:06:02,920 --> 00:06:05,480
Speaker 1: shame with how we've handled our money. And I completely agree.

134
00:06:05,480 --> 00:06:07,440
Speaker 1: I think a little bit of guilt can help drive

135
00:06:07,520 --> 00:06:09,880
Speaker 1: us in the proper direction. But if we completely identify

136
00:06:09,880 --> 00:06:12,280
Speaker 1: as being someone who doesn't know how to handle money, well, well,

137
00:06:12,279 --> 00:06:15,760
Speaker 1: then hopefully this show can help people this year to

138
00:06:15,839 --> 00:06:17,640
Speaker 1: learn some of those tools and then to kind of

139
00:06:17,640 --> 00:06:21,159
Speaker 1: help break those chains of potential shame that's associated with

140
00:06:21,160 --> 00:06:23,200
Speaker 1: how they handle money. Totally. Um, that's that's what we

141
00:06:23,240 --> 00:06:24,839
Speaker 1: want to be here. We don't want to be here

142
00:06:24,880 --> 00:06:26,800
Speaker 1: to use a stick to beat you over the head

143
00:06:26,839 --> 00:06:29,120
Speaker 1: because you haven't done things properly. What we want to

144
00:06:29,160 --> 00:06:31,960
Speaker 1: do is encourage you, motivate you, give you the tools

145
00:06:32,160 --> 00:06:35,600
Speaker 1: to create a more positive outlook on your relationship with

146
00:06:35,640 --> 00:06:38,640
Speaker 1: money and then specifically give you the proper approaches to

147
00:06:38,720 --> 00:06:40,800
Speaker 1: how you can handle your money well so that you

148
00:06:40,839 --> 00:06:43,840
Speaker 1: can make changes moving forward, so that whatever cycle maybe

149
00:06:43,880 --> 00:06:47,119
Speaker 1: you've become accustomed to living in relationship to your money

150
00:06:47,560 --> 00:06:49,880
Speaker 1: just isn't the case anymore. Yeah, totally. I think if

151
00:06:49,920 --> 00:06:51,960
Speaker 1: you feel a tiny little bit of guilt when you

152
00:06:52,040 --> 00:06:54,080
Speaker 1: learn something new or maybe you hear something that you

153
00:06:54,120 --> 00:06:56,600
Speaker 1: haven't done, I think that can be okay if you

154
00:06:56,640 --> 00:06:59,560
Speaker 1: respond positively to that. Right. It's just like constructive criticism

155
00:06:59,680 --> 00:07:01,719
Speaker 1: or back that you receive on a project or something

156
00:07:01,720 --> 00:07:04,480
Speaker 1: that you're working on. If you take that feedback and

157
00:07:04,560 --> 00:07:07,400
Speaker 1: you then modify your behavior and that allows you to grow.

158
00:07:07,600 --> 00:07:09,920
Speaker 1: What's It's a positive thing. It's about gaining knowledge and

159
00:07:10,040 --> 00:07:11,880
Speaker 1: learning from our mistakes. And yeah, like you said, you

160
00:07:11,960 --> 00:07:15,760
Speaker 1: hopefully that's what folks can do from listening to this podcast. Yeah, man,

161
00:07:15,920 --> 00:07:18,840
Speaker 1: I think I used to feel guilt over buying really

162
00:07:18,920 --> 00:07:22,559
Speaker 1: nice beer, and now I just don't anymore. It's because

163
00:07:22,600 --> 00:07:25,400
Speaker 1: it's something that I've prioritized highly and something that I've

164
00:07:25,440 --> 00:07:27,920
Speaker 1: made an important line item in my budget. And so

165
00:07:27,960 --> 00:07:29,840
Speaker 1: I think that's another way that people can approach it.

166
00:07:29,840 --> 00:07:31,720
Speaker 1: And so Matt, speaking of beer, the beer that we're

167
00:07:31,720 --> 00:07:34,680
Speaker 1: having on the show today is barrel aged Yetti Imperial

168
00:07:34,680 --> 00:07:37,640
Speaker 1: Stout by Great Divide Brewing and the kind folks at

169
00:07:37,640 --> 00:07:40,040
Speaker 1: a Great Divide in Denver, Colorado, they sent this beer

170
00:07:40,040 --> 00:07:42,280
Speaker 1: our way. I'm really excited to have the barrel aged

171
00:07:42,400 --> 00:07:44,880
Speaker 1: version of their Yetti Imperial Stout on the show with

172
00:07:44,920 --> 00:07:47,240
Speaker 1: you today, my friend. Yeah, this is our last one

173
00:07:47,240 --> 00:07:50,200
Speaker 1: by them, we've had them for the past few episodes now.

174
00:07:50,320 --> 00:07:53,240
Speaker 1: So man, Great Divide, y'all are fantastic. You make some

175
00:07:53,360 --> 00:07:55,880
Speaker 1: awesome beers like you always have. And yeah, we'll get

176
00:07:55,880 --> 00:07:58,000
Speaker 1: to our tasting notes on this one at the end

177
00:07:58,000 --> 00:08:00,040
Speaker 1: of the episode. All right, Matt, let's get into the

178
00:08:00,080 --> 00:08:01,800
Speaker 1: topic at hand. We're talking today on the show. We're

179
00:08:01,800 --> 00:08:04,720
Speaker 1: talking about creating a debt payoff plan. And let me

180
00:08:04,760 --> 00:08:06,880
Speaker 1: ask this question to our listeners at the very beginning

181
00:08:06,880 --> 00:08:08,480
Speaker 1: of the episode, and it might be a little awkward,

182
00:08:08,760 --> 00:08:13,360
Speaker 1: how's your debt situation? And does that question itself cause

183
00:08:13,400 --> 00:08:16,240
Speaker 1: a lump to rise in your throat? Well, personal levels

184
00:08:16,240 --> 00:08:19,040
Speaker 1: of indebtedness are a major issue in our country, but

185
00:08:19,080 --> 00:08:21,160
Speaker 1: lots of folks feel like they're stuck in quicksand up

186
00:08:21,160 --> 00:08:23,400
Speaker 1: to their midsections and they don't know how to navigate

187
00:08:23,440 --> 00:08:25,720
Speaker 1: themselves out of the problem that they put themselves in.

188
00:08:26,120 --> 00:08:27,680
Speaker 1: We need a plan to help us get out of

189
00:08:27,760 --> 00:08:29,840
Speaker 1: debt and to get our feet set in the right

190
00:08:29,840 --> 00:08:32,440
Speaker 1: direction this year. And so when we see headlines Matt

191
00:08:32,480 --> 00:08:35,440
Speaker 1: like we've seen lately eight six percent of millennials overspent

192
00:08:35,520 --> 00:08:38,240
Speaker 1: on Christmas gifts, well, we know what that means. That

193
00:08:38,280 --> 00:08:39,960
Speaker 1: means that a lot of those folks have put that

194
00:08:40,000 --> 00:08:42,959
Speaker 1: extra spending on plastic on credit cards and this time

195
00:08:42,960 --> 00:08:44,720
Speaker 1: a year they're getting that statement in the mail and

196
00:08:44,760 --> 00:08:47,000
Speaker 1: they're a little shocked. They didn't know that they spent

197
00:08:47,080 --> 00:08:48,920
Speaker 1: that much, and they didn't realize that they wouldn't be

198
00:08:48,920 --> 00:08:50,600
Speaker 1: able to afford the bill, and now they need some

199
00:08:50,640 --> 00:08:52,720
Speaker 1: help to tackle that debt, not to mention the other

200
00:08:52,800 --> 00:08:54,480
Speaker 1: death they might be caring right now, so it doesn't

201
00:08:54,480 --> 00:08:56,520
Speaker 1: get even further out of hand. Well, Joel, you're talking

202
00:08:56,520 --> 00:08:58,640
Speaker 1: about debt, and I feel like I'm super a d

203
00:08:58,720 --> 00:09:02,240
Speaker 1: D today because you mentioned quicksand and I started thinking

204
00:09:02,240 --> 00:09:04,520
Speaker 1: about quicksand why is why is like why would we

205
00:09:04,600 --> 00:09:07,360
Speaker 1: When we were kids everything was quicksand like Mario Brothers

206
00:09:07,360 --> 00:09:09,600
Speaker 1: to head quicksand like even as kids playing it's like

207
00:09:09,720 --> 00:09:11,839
Speaker 1: watch out for the quicksand like quicksand was this real thing,

208
00:09:11,920 --> 00:09:13,280
Speaker 1: like this real problem that we had to watch out for.

209
00:09:13,320 --> 00:09:15,319
Speaker 1: When I think about quicksand I think about the Princess Bride,

210
00:09:15,920 --> 00:09:18,760
Speaker 1: you know, I mean to me that's strongly correlated. Yes,

211
00:09:18,760 --> 00:09:21,400
Speaker 1: it's like late eighties, early nineties quicksand was everywhere. Now

212
00:09:21,440 --> 00:09:24,000
Speaker 1: everything's lava, like the kids have moved on to lava,

213
00:09:24,120 --> 00:09:26,760
Speaker 1: like it used to be quicksand now it's lava. Alright, Well, sorry,

214
00:09:26,800 --> 00:09:28,600
Speaker 1: a little side with old school reference. We're gonna stick

215
00:09:28,600 --> 00:09:31,760
Speaker 1: with quicksand floors lava. All right. Let's get back to

216
00:09:31,840 --> 00:09:33,960
Speaker 1: debt a little bit. Though. Here's the thing. Here's a

217
00:09:33,960 --> 00:09:37,240
Speaker 1: fact for you. Outstanding student loan debt, Joel, it has

218
00:09:37,280 --> 00:09:40,760
Speaker 1: reached an all time high last year. We hit one

219
00:09:40,800 --> 00:09:45,360
Speaker 1: point four one trillion dollars of Americans have credit card debt,

220
00:09:45,360 --> 00:09:48,319
Speaker 1: and the average outstanding balance it's just over six thousand dollars,

221
00:09:48,280 --> 00:09:52,120
Speaker 1: while consumer debt as a whole stands at fourteen trillion.

222
00:09:52,640 --> 00:09:54,439
Speaker 1: It's not just I covered my ears there because it

223
00:09:54,520 --> 00:09:56,600
Speaker 1: just got so horrendous. Way can you say it again? Dude?

224
00:09:56,600 --> 00:09:59,360
Speaker 1: It's terrible, and not only is it just an incredible

225
00:09:59,360 --> 00:10:02,439
Speaker 1: amount of mon but it's also how we're going about

226
00:10:02,480 --> 00:10:05,280
Speaker 1: getting this debt. Car loans they've gotten longer, with some

227
00:10:05,320 --> 00:10:07,440
Speaker 1: folks not just taking out sixty months of payment, but

228
00:10:07,520 --> 00:10:10,959
Speaker 1: seventy two and eighty four month long loans, and then

229
00:10:11,280 --> 00:10:13,080
Speaker 1: you know, they end up trading their cars and while

230
00:10:13,080 --> 00:10:16,000
Speaker 1: they're upside down, or taking out debt for smaller and

231
00:10:16,040 --> 00:10:19,400
Speaker 1: smaller purchases as well. Everyone out there, like all the

232
00:10:19,400 --> 00:10:22,079
Speaker 1: different retailers, offer a payment plan now, and it spans

233
00:10:22,160 --> 00:10:25,080
Speaker 1: from you know, services at home like your h VAC too,

234
00:10:25,600 --> 00:10:27,400
Speaker 1: urban outfitters if you just want to, you know, pick

235
00:10:27,440 --> 00:10:31,000
Speaker 1: up some shoes. We are funding our lifestyles through the

236
00:10:31,040 --> 00:10:34,480
Speaker 1: accumulation of more and more as well as riskier debt.

237
00:10:34,679 --> 00:10:37,760
Speaker 1: It's just become easier to take on debt for anything now.

238
00:10:37,800 --> 00:10:40,000
Speaker 1: Like you go to the dentist and you can take

239
00:10:40,000 --> 00:10:42,480
Speaker 1: out a payment plan on that new artificial tooth or

240
00:10:42,520 --> 00:10:44,600
Speaker 1: whatever surgery you had to undergo. Yeah, I gotta think

241
00:10:44,600 --> 00:10:47,880
Speaker 1: that that is the absolute least fun loan to pay on. Yeah,

242
00:10:48,160 --> 00:10:50,040
Speaker 1: paying on my root canal still, I'll give you a

243
00:10:50,040 --> 00:10:52,400
Speaker 1: three loan on that root canal, Matt. But that's just

244
00:10:52,440 --> 00:10:54,000
Speaker 1: the kind of day and age we live in. Easy

245
00:10:54,040 --> 00:10:57,160
Speaker 1: access to debt for almost anything. Yeah, your local small

246
00:10:57,200 --> 00:11:00,800
Speaker 1: business electrician probably has the ability to offer you alone

247
00:11:00,840 --> 00:11:02,960
Speaker 1: on that new age fact. I mean, it's just kind

248
00:11:02,960 --> 00:11:05,720
Speaker 1: of almost gotten preposterous. And then we end up sinking

249
00:11:05,720 --> 00:11:08,840
Speaker 1: ourselves in a hole, even if it's zero percent, Even

250
00:11:08,840 --> 00:11:11,319
Speaker 1: if it's zero percent for multiple years, we'll take out

251
00:11:11,320 --> 00:11:13,040
Speaker 1: the debt and then ultimately we just don't have the

252
00:11:13,040 --> 00:11:15,120
Speaker 1: money to meet those obligations. So we have to change

253
00:11:15,120 --> 00:11:17,800
Speaker 1: our relationship to debt and how we consider taking it on.

254
00:11:18,120 --> 00:11:20,040
Speaker 1: But Matt also too, I think it's important to mention

255
00:11:20,080 --> 00:11:22,600
Speaker 1: before we get into the specifics of creating a debt

256
00:11:22,600 --> 00:11:26,040
Speaker 1: payoff plan that we don't think all debt is terrible,

257
00:11:26,120 --> 00:11:28,800
Speaker 1: Like we're not anti every single kind of debt out there.

258
00:11:29,160 --> 00:11:31,720
Speaker 1: Not all debt is bad debt. Some debt can be

259
00:11:31,800 --> 00:11:35,120
Speaker 1: used effectively, and there are reasons worth accruing debt, for example,

260
00:11:35,160 --> 00:11:37,240
Speaker 1: going to get an education or starting a business, or

261
00:11:37,240 --> 00:11:39,440
Speaker 1: buying a home, and we kind of discussed that in

262
00:11:39,440 --> 00:11:43,080
Speaker 1: more detail and episode one. But just because you're considering

263
00:11:43,080 --> 00:11:45,280
Speaker 1: one of those good debts doesn't give you a free

264
00:11:45,280 --> 00:11:47,480
Speaker 1: pass to blindly take out loans in order to go

265
00:11:47,559 --> 00:11:49,920
Speaker 1: to a fancy school or to pursue your dream of

266
00:11:49,920 --> 00:11:52,320
Speaker 1: owning your own restaurant, or to buy more house than

267
00:11:52,360 --> 00:11:55,000
Speaker 1: you can afford. You still have to take value into

268
00:11:55,080 --> 00:11:58,640
Speaker 1: the equation when you're thinking about what debts you take on. Yes,

269
00:11:58,720 --> 00:12:01,480
Speaker 1: we we need to take value in account because you know,

270
00:12:01,559 --> 00:12:04,960
Speaker 1: not having massive amounts of debt is important, and so

271
00:12:05,120 --> 00:12:07,480
Speaker 1: I mean, I'll not note. You might be asking like, well, well,

272
00:12:07,520 --> 00:12:09,920
Speaker 1: why is getting out of debt? Why is that actually important?

273
00:12:10,000 --> 00:12:11,720
Speaker 1: The biggest reason that we're gonna share that getting out

274
00:12:11,760 --> 00:12:15,760
Speaker 1: of debt is so stinking paramount is because debt is expensive.

275
00:12:16,040 --> 00:12:18,640
Speaker 1: In the moment, it doesn't feel expensive to pay with

276
00:12:18,640 --> 00:12:21,280
Speaker 1: the credit card or maybe to take out alone. If anything,

277
00:12:21,280 --> 00:12:24,120
Speaker 1: it feels like free money, right, And it's really easy

278
00:12:24,200 --> 00:12:26,800
Speaker 1: to gain access to that credit, which is why in

279
00:12:26,840 --> 00:12:29,079
Speaker 1: a recent episode MAUT we talked about cash, debit or

280
00:12:29,120 --> 00:12:32,800
Speaker 1: credit like how we spend using credit cards is in particular,

281
00:12:32,840 --> 00:12:35,400
Speaker 1: the biggest downside is the ease abuse, and that's what

282
00:12:35,440 --> 00:12:37,400
Speaker 1: causes us to use them more frequently. Even though it's

283
00:12:37,400 --> 00:12:39,920
Speaker 1: a smooth transaction. Even though we like credit cards, it

284
00:12:40,000 --> 00:12:42,640
Speaker 1: can be away for us to spend money that we

285
00:12:42,679 --> 00:12:45,240
Speaker 1: don't have exactly. Yeah, but here's the thing at the

286
00:12:45,280 --> 00:12:48,000
Speaker 1: core of it, though, Like using your credit cards as

287
00:12:48,000 --> 00:12:50,040
Speaker 1: a tool, that's not the problem because it really is

288
00:12:50,080 --> 00:12:52,200
Speaker 1: just a tool. It's when we don't pay off the

289
00:12:52,200 --> 00:12:54,960
Speaker 1: balances and the interest begins to accrue. It's when we

290
00:12:55,080 --> 00:12:58,560
Speaker 1: use these tools incorrectly. And so when we're paying interest

291
00:12:58,640 --> 00:13:01,000
Speaker 1: on a balance, we're paying way too much money for

292
00:13:01,000 --> 00:13:03,280
Speaker 1: the things that we likely shouldn't have purchased in the

293
00:13:03,280 --> 00:13:06,040
Speaker 1: first place. So, for example, if fitsing thousand dollar car

294
00:13:06,600 --> 00:13:08,400
Speaker 1: like that could easily end up costing you closer to

295
00:13:08,520 --> 00:13:10,840
Speaker 1: twenty dollars because you took out a car loan and

296
00:13:10,840 --> 00:13:13,800
Speaker 1: you're paying interest, and so effectively you're paying way more

297
00:13:13,800 --> 00:13:15,360
Speaker 1: than you should have for that vehicle. And it's hard

298
00:13:15,400 --> 00:13:18,400
Speaker 1: to reach your financial goals when you're constantly over paying

299
00:13:18,400 --> 00:13:20,680
Speaker 1: for things. Yeah, Matt, having a lot of debt puts

300
00:13:20,720 --> 00:13:23,079
Speaker 1: you on just not solid footing. It puts you in

301
00:13:23,120 --> 00:13:24,760
Speaker 1: this kind of quick sand thing, right, I mean, let's

302
00:13:24,760 --> 00:13:26,360
Speaker 1: get back to the Quicksand it puts you in this

303
00:13:26,440 --> 00:13:29,400
Speaker 1: scenario where you're not as financially flexible as you could

304
00:13:29,400 --> 00:13:31,800
Speaker 1: be if you didn't have that debt in your life.

305
00:13:32,040 --> 00:13:34,319
Speaker 1: The more debt you have, the weaker position that you're

306
00:13:34,320 --> 00:13:37,000
Speaker 1: in and the less freedom you have. And when we're

307
00:13:37,120 --> 00:13:39,800
Speaker 1: constantly overpaying for pretty much everything in our lives, it's

308
00:13:39,800 --> 00:13:41,719
Speaker 1: also it's hard to get ahead and to reach any

309
00:13:41,720 --> 00:13:44,440
Speaker 1: of those financial goals that we have. The going is slow.

310
00:13:44,520 --> 00:13:47,800
Speaker 1: When we have interest payments working against us. It feels

311
00:13:47,800 --> 00:13:50,080
Speaker 1: like all the cards are stacked against us, and that

312
00:13:50,080 --> 00:13:52,720
Speaker 1: can be really discouraging. And instead, we want to be

313
00:13:52,760 --> 00:13:55,400
Speaker 1: on the receiving side of interest, and that means like

314
00:13:55,520 --> 00:13:58,240
Speaker 1: having a high interest savings account. That means our investments

315
00:13:58,480 --> 00:14:01,560
Speaker 1: essentially making money for us while we sleep. Instead of

316
00:14:01,600 --> 00:14:04,960
Speaker 1: interest working against our money, it's working for us and

317
00:14:05,000 --> 00:14:08,040
Speaker 1: it's allowing us to quickly achieve our goals. That's when

318
00:14:08,080 --> 00:14:10,480
Speaker 1: it allows us to build wealth. We're using interest in

319
00:14:10,520 --> 00:14:13,600
Speaker 1: the positive frame. We're using returns in the positive sense

320
00:14:13,800 --> 00:14:16,439
Speaker 1: as opposed to everything we buy having a much larger

321
00:14:16,480 --> 00:14:19,120
Speaker 1: price tag based on the fact that we have interest

322
00:14:19,160 --> 00:14:21,920
Speaker 1: payments going alongside of it. Yeah, that's the difference between

323
00:14:21,960 --> 00:14:24,480
Speaker 1: paying interest versus receiving interest. Right, And I got a

324
00:14:24,520 --> 00:14:27,320
Speaker 1: quick illustration for you. Imagine have you ever been to

325
00:14:27,600 --> 00:14:29,520
Speaker 1: a store where there's like a second floor, or maybe

326
00:14:29,520 --> 00:14:31,680
Speaker 1: e've been to a mall, a movie theater perhaps, Right,

327
00:14:31,720 --> 00:14:35,360
Speaker 1: where there's an escalator. So imagine you're on level one

328
00:14:35,560 --> 00:14:37,640
Speaker 1: and level two. That's where you're trying to get to

329
00:14:38,120 --> 00:14:40,280
Speaker 1: level two, Joel. That's where your financial dreams and hopes

330
00:14:40,320 --> 00:14:43,800
Speaker 1: are in front of you. You've got two escalators. You've

331
00:14:43,800 --> 00:14:45,440
Speaker 1: got one that's coming down. At least, it's not like

332
00:14:45,440 --> 00:14:48,560
Speaker 1: a sky skyscraper that I have to climb, you know. Yeah,

333
00:14:48,600 --> 00:14:50,640
Speaker 1: but on one side you've got an escalator coming down.

334
00:14:50,720 --> 00:14:52,600
Speaker 1: On the other side, you've got an escalator going up.

335
00:14:52,880 --> 00:14:55,440
Speaker 1: And when you have debts, that is when interest is

336
00:14:55,480 --> 00:14:58,360
Speaker 1: working against you, right, That is you trying to get

337
00:14:58,400 --> 00:15:00,640
Speaker 1: to the second level by going up the side of

338
00:15:00,640 --> 00:15:03,040
Speaker 1: the escalator that's coming down. When you're doing that, you're

339
00:15:03,040 --> 00:15:05,880
Speaker 1: working crazy hard. It takes way longer, and you know what,

340
00:15:05,920 --> 00:15:08,200
Speaker 1: at some point you might even actually give up because

341
00:15:08,240 --> 00:15:10,000
Speaker 1: it's too hard. I probably could have done it really

342
00:15:10,040 --> 00:15:13,200
Speaker 1: easily when I was twenty five, Matt, But even still, like, yes,

343
00:15:13,240 --> 00:15:15,160
Speaker 1: I agree, right, like I've I've done that before as

344
00:15:15,200 --> 00:15:17,840
Speaker 1: a kid, But it's still a lot harder versus when

345
00:15:17,840 --> 00:15:20,640
Speaker 1: you have interest working for you. When you're receiving interest,

346
00:15:20,760 --> 00:15:22,760
Speaker 1: it's like you're getting on the correct side and you're

347
00:15:22,960 --> 00:15:25,160
Speaker 1: you know, you're writing that interest up. If you want,

348
00:15:25,360 --> 00:15:27,520
Speaker 1: you can only rely on that interest and you can

349
00:15:27,520 --> 00:15:29,560
Speaker 1: just stay in there. But if you continue to work

350
00:15:29,600 --> 00:15:31,880
Speaker 1: a little bit, imagine how quickly you're gonna get to

351
00:15:31,960 --> 00:15:34,240
Speaker 1: that next level walking while you're on an escalator. It's

352
00:15:34,240 --> 00:15:36,480
Speaker 1: like the best feeling I know. I mean, how quickly

353
00:15:36,480 --> 00:15:38,360
Speaker 1: do you get from like one level to the next

354
00:15:38,400 --> 00:15:40,320
Speaker 1: just by doing that. It's amazing. And so maybe the

355
00:15:40,320 --> 00:15:42,200
Speaker 1: next time you're thinking about taking out a car loan

356
00:15:42,280 --> 00:15:44,480
Speaker 1: or some other consumer debt, some credit card debt, picture

357
00:15:44,520 --> 00:15:46,560
Speaker 1: that illustration, because like that truly is what it's like.

358
00:15:46,600 --> 00:15:48,480
Speaker 1: It's like, like you said, being in quicksand and you're

359
00:15:48,480 --> 00:15:50,680
Speaker 1: trying to trying to hop out of that quicksand it's

360
00:15:50,720 --> 00:15:52,680
Speaker 1: so difficult to do that. It's so difficult to make

361
00:15:52,720 --> 00:15:56,080
Speaker 1: any progress when we're bogged down with that interest working

362
00:15:56,120 --> 00:15:58,200
Speaker 1: against us. Yeah, no doubt. And we have to get

363
00:15:58,200 --> 00:16:01,000
Speaker 1: to these specifics for folks that are writing that down

364
00:16:01,120 --> 00:16:02,880
Speaker 1: escalator and they want to get off, they want to

365
00:16:02,880 --> 00:16:04,320
Speaker 1: get out of debt, and they want to make their

366
00:16:04,320 --> 00:16:07,160
Speaker 1: money work for them. Well, let's get to the specifics

367
00:16:07,200 --> 00:16:09,520
Speaker 1: of how to create a debt payoff plan right after

368
00:16:09,560 --> 00:16:20,400
Speaker 1: this break, all right, Jill, we're back and we're talking

369
00:16:20,400 --> 00:16:22,280
Speaker 1: about creating a debt payoff plan. By the way, did

370
00:16:22,280 --> 00:16:24,480
Speaker 1: you like my my little illustration about the escalator? That

371
00:16:24,560 --> 00:16:26,680
Speaker 1: was a great illustration another one I was thinking of two.

372
00:16:26,680 --> 00:16:28,480
Speaker 1: I was just like, okay, what about like headwinds and

373
00:16:28,800 --> 00:16:30,560
Speaker 1: wins that you're back. I'm like, I was gonna say

374
00:16:30,560 --> 00:16:32,400
Speaker 1: an example of you know, when you're up at the

375
00:16:32,400 --> 00:16:33,960
Speaker 1: tea box and you're playing disc off and you're getting

376
00:16:33,960 --> 00:16:36,200
Speaker 1: ready to throw your driver, but you've got that strong headwind,

377
00:16:36,360 --> 00:16:37,840
Speaker 1: it's gonna be a lot harder than if you had

378
00:16:37,840 --> 00:16:39,680
Speaker 1: to win at your back, right, True, It's true. Yeah,

379
00:16:39,760 --> 00:16:42,160
Speaker 1: that's another great illustration and one that makes sense to me.

380
00:16:42,320 --> 00:16:44,240
Speaker 1: But I feel like most folks have probably been on

381
00:16:44,440 --> 00:16:47,160
Speaker 1: escalator is more often than they've actually thrown a disc off.

382
00:16:47,320 --> 00:16:49,400
Speaker 1: It's probably true for most folks out there, sadly, because

383
00:16:49,440 --> 00:16:51,520
Speaker 1: disc golf is a great sport. All Right, We're gonna

384
00:16:51,560 --> 00:16:53,520
Speaker 1: talk now, though about what steps that you need to

385
00:16:53,520 --> 00:16:55,680
Speaker 1: take when it comes to creating a debt payoff plan.

386
00:16:56,120 --> 00:16:57,920
Speaker 1: These are the steps that we're going to actually help

387
00:16:57,960 --> 00:17:00,720
Speaker 1: you to make real substantial progress this year. The first

388
00:17:00,720 --> 00:17:02,720
Speaker 1: thing that you need to do is to make a

389
00:17:02,800 --> 00:17:05,160
Speaker 1: list of all your debts. The first step in any

390
00:17:05,160 --> 00:17:07,760
Speaker 1: plane of action is to get organized, and so making

391
00:17:07,800 --> 00:17:09,520
Speaker 1: sure that you're aware of all the debts that you

392
00:17:09,600 --> 00:17:12,040
Speaker 1: oh is a really important fort step on your path

393
00:17:12,119 --> 00:17:14,560
Speaker 1: to crushing debts. Yeah. Man, I mean we've used this

394
00:17:14,640 --> 00:17:17,640
Speaker 1: illustration before, but if you're planning a road trip, you're

395
00:17:17,680 --> 00:17:19,720
Speaker 1: going to make the dots along the wave where you

396
00:17:19,720 --> 00:17:21,800
Speaker 1: want to stop. You kind of want to know the layout.

397
00:17:21,880 --> 00:17:23,199
Speaker 1: How long is it gonna take me to get here

398
00:17:23,240 --> 00:17:24,879
Speaker 1: and there, especially if you got kids, Like where are

399
00:17:24,920 --> 00:17:26,840
Speaker 1: we gonna stop to pete? Where we're gonna stop to eat?

400
00:17:26,920 --> 00:17:30,120
Speaker 1: There's all these questions that come with a big, major trip, right,

401
00:17:30,160 --> 00:17:31,960
Speaker 1: And so I think the same thing, like paying off

402
00:17:32,000 --> 00:17:34,080
Speaker 1: your debt is this big trip and you want to

403
00:17:34,119 --> 00:17:36,040
Speaker 1: plan the points along the way you want to you

404
00:17:36,040 --> 00:17:38,440
Speaker 1: want to know exactly what's in store so that nothing

405
00:17:38,560 --> 00:17:41,080
Speaker 1: hits you terribly by surprise. Yeah, you don't just throw

406
00:17:41,080 --> 00:17:42,960
Speaker 1: everybody in the car and just start driving. That's a

407
00:17:43,080 --> 00:17:45,360
Speaker 1: terrible plan. Like lick your fingers sticking up in the air,

408
00:17:45,480 --> 00:17:48,720
Speaker 1: decide which way then we're gonna go east. Let's do it.

409
00:17:49,000 --> 00:17:51,000
Speaker 1: We'll see where we end up. Yeah, Yeah, that's not

410
00:17:51,040 --> 00:17:52,480
Speaker 1: a good way to go. So, yeah, making a list

411
00:17:52,520 --> 00:17:54,119
Speaker 1: of all your debts helps you at least get the

412
00:17:54,160 --> 00:17:55,840
Speaker 1: lay of the land. And then you need to pick

413
00:17:55,880 --> 00:17:58,840
Speaker 1: your approach. And then we've talked before about the debt

414
00:17:58,960 --> 00:18:01,720
Speaker 1: snowball approach for is the debt avalanche approach and which

415
00:18:01,760 --> 00:18:04,400
Speaker 1: one people should consider, And we went into a lot

416
00:18:04,400 --> 00:18:07,320
Speaker 1: of detail on how you decipher which plan is better

417
00:18:07,359 --> 00:18:09,800
Speaker 1: for you in episode eighty six. But do you need

418
00:18:09,920 --> 00:18:12,960
Speaker 1: or just want some more emotional rewards along the way,

419
00:18:13,080 --> 00:18:14,840
Speaker 1: or do you just want to pay these debts off

420
00:18:14,840 --> 00:18:17,399
Speaker 1: as quickly as humanly possible while paying as a little

421
00:18:17,440 --> 00:18:20,240
Speaker 1: interest as you can. Either way, he'll focus hard on

422
00:18:20,280 --> 00:18:23,719
Speaker 1: completely obliterating one debt while paying the minimums on the others.

423
00:18:23,920 --> 00:18:27,480
Speaker 1: In both approaches. Maintaining a high level of focus is

424
00:18:27,480 --> 00:18:29,720
Speaker 1: the key to success, because once you know that lay

425
00:18:29,720 --> 00:18:31,800
Speaker 1: of the land mat it's really important to kind of

426
00:18:31,880 --> 00:18:34,879
Speaker 1: choose which approach you're gonna take and then sticking to it.

427
00:18:35,119 --> 00:18:36,719
Speaker 1: If you've come up with a strategy, do you think

428
00:18:36,760 --> 00:18:39,040
Speaker 1: it's gonna work for you? Looking at the strategies that

429
00:18:39,119 --> 00:18:41,720
Speaker 1: might potentially work for you and then picking one and

430
00:18:41,760 --> 00:18:43,960
Speaker 1: sticking to it is going to be crucial to your

431
00:18:44,520 --> 00:18:47,159
Speaker 1: probability of success. Yeah, Joel, you know. And one thing

432
00:18:47,200 --> 00:18:50,040
Speaker 1: I'll say is that I think for folks especially who

433
00:18:50,040 --> 00:18:53,640
Speaker 1: are listening to this podcast, they're thinking, no man, debt avalanche,

434
00:18:53,640 --> 00:18:55,520
Speaker 1: that's the way to go. Look at the numbers, do

435
00:18:55,640 --> 00:18:58,720
Speaker 1: the math. But the older I get, I realized that

436
00:18:58,920 --> 00:19:02,240
Speaker 1: so much of our money is not just knowing the

437
00:19:02,240 --> 00:19:04,960
Speaker 1: correct information, isn't just seeing the numbers right. Because we

438
00:19:05,000 --> 00:19:08,760
Speaker 1: don't operate as robots, we don't always make the rational decision.

439
00:19:09,040 --> 00:19:11,960
Speaker 1: Our emotions play such a huge role when it comes

440
00:19:12,000 --> 00:19:14,320
Speaker 1: to how we handle our money. And because of that,

441
00:19:14,400 --> 00:19:16,720
Speaker 1: I think the debt snowball needs to be considered my

442
00:19:17,000 --> 00:19:19,480
Speaker 1: way more people than it actually is, because you are

443
00:19:19,720 --> 00:19:22,840
Speaker 1: receiving that feedback more quickly. You're able to quickly pay

444
00:19:22,880 --> 00:19:24,320
Speaker 1: off a debt and then quickly move on to the

445
00:19:24,359 --> 00:19:27,280
Speaker 1: next one, and that feels good, and when it feels good,

446
00:19:27,280 --> 00:19:29,359
Speaker 1: that's something that you will continue to do. Exactly. The

447
00:19:29,400 --> 00:19:31,399
Speaker 1: best plan that we can create is the plan that

448
00:19:31,440 --> 00:19:33,600
Speaker 1: we can stick to. Yes, it's not just the best

449
00:19:33,600 --> 00:19:35,600
Speaker 1: plan in theory, it's the one that we can actually

450
00:19:36,040 --> 00:19:40,040
Speaker 1: accomplish in real life. And just quick example, Matt, for me,

451
00:19:40,520 --> 00:19:42,320
Speaker 1: for a lot of years, I wasn't fully funding my

452
00:19:42,359 --> 00:19:44,800
Speaker 1: wrath I r A, and I was just investing a

453
00:19:44,840 --> 00:19:46,760
Speaker 1: lot more in my four owing K because it was

454
00:19:46,800 --> 00:19:48,919
Speaker 1: a lot easier for me to click the button that

455
00:19:49,080 --> 00:19:50,920
Speaker 1: up the percentage point coming out of my paycheck. I

456
00:19:51,000 --> 00:19:53,680
Speaker 1: barely felt it than it was to actually increase that

457
00:19:53,720 --> 00:19:57,720
Speaker 1: automatic draft amount from my bank account into Vanguard to

458
00:19:57,960 --> 00:20:00,240
Speaker 1: fund my wrath. And so it literally took more work

459
00:20:00,280 --> 00:20:02,280
Speaker 1: for you to up your wrath I RA versus your

460
00:20:02,280 --> 00:20:04,640
Speaker 1: four own case. Yeah, and really the work is the same.

461
00:20:04,880 --> 00:20:07,600
Speaker 1: It's the mental It's a mental hurdle I couldn't overcome.

462
00:20:07,640 --> 00:20:09,000
Speaker 1: And so I think that's a huge thing that we

463
00:20:09,040 --> 00:20:11,200
Speaker 1: do need to consider. What what what's the easiest mental

464
00:20:11,240 --> 00:20:13,680
Speaker 1: mental hurdle for us to overcome? And again, the plan

465
00:20:13,760 --> 00:20:15,359
Speaker 1: that we can stick with is the one that we

466
00:20:15,400 --> 00:20:17,719
Speaker 1: need to commit to. So true man, all right, So

467
00:20:17,800 --> 00:20:19,159
Speaker 1: now you've made a list of all your debts, you've

468
00:20:19,160 --> 00:20:21,760
Speaker 1: gotten organized, you've picked your approach. You know, you thought

469
00:20:21,840 --> 00:20:24,520
Speaker 1: about which strategy is gonna work for you. The next

470
00:20:24,560 --> 00:20:28,080
Speaker 1: step is we want you to look at your timeline

471
00:20:28,080 --> 00:20:29,960
Speaker 1: a little bit. This is when you are going to

472
00:20:30,040 --> 00:20:32,320
Speaker 1: do some math and you want to calculate how much

473
00:20:32,400 --> 00:20:35,560
Speaker 1: monthly income you can put towards your debts and and

474
00:20:35,600 --> 00:20:37,199
Speaker 1: actually figure out how long it will take you to

475
00:20:37,240 --> 00:20:39,520
Speaker 1: be rid of it all. It is important to know

476
00:20:39,600 --> 00:20:42,000
Speaker 1: how long this will take in order to manage your

477
00:20:42,000 --> 00:20:45,160
Speaker 1: own expectations. If you don't take the step, you might

478
00:20:45,160 --> 00:20:47,280
Speaker 1: think you'll knock out your debt, let's just say by

479
00:20:47,280 --> 00:20:49,800
Speaker 1: the end of the year, and then maybe October rolls

480
00:20:49,840 --> 00:20:52,400
Speaker 1: around and you realize that you're not even close. If

481
00:20:52,640 --> 00:20:55,119
Speaker 1: you are not realistically approaching your debt path plan, it

482
00:20:55,160 --> 00:20:58,200
Speaker 1: can be easy to lose hope and basically just burn

483
00:20:58,280 --> 00:21:00,639
Speaker 1: and fizzle out. Yeah. It reminds me of our conversation

484
00:21:00,680 --> 00:21:03,360
Speaker 1: with J. D Roth not too long ago, and he

485
00:21:03,480 --> 00:21:06,679
Speaker 1: specifically mentioned he gave a very vivid picture of his

486
00:21:07,920 --> 00:21:10,119
Speaker 1: when he was in the bath. Okay, he was like,

487
00:21:10,320 --> 00:21:12,000
Speaker 1: this is how I came up with my debt payoff plan.

488
00:21:12,240 --> 00:21:14,159
Speaker 1: I was in the shower. I had this epiphany. He's like,

489
00:21:14,200 --> 00:21:15,800
Speaker 1: I ran out, I didn't dry off, I had a

490
00:21:15,800 --> 00:21:17,800
Speaker 1: towel around me, and I sat at the table for hours,

491
00:21:18,040 --> 00:21:20,040
Speaker 1: and I came up with this debt payoff plan. What

492
00:21:20,760 --> 00:21:23,040
Speaker 1: I know, Yeah, I know, I totally picture. I can

493
00:21:23,080 --> 00:21:25,720
Speaker 1: totally picture it was. It was maybe too vivid, and

494
00:21:26,160 --> 00:21:28,520
Speaker 1: he said he realized it was gonna take thirty six

495
00:21:28,560 --> 00:21:30,440
Speaker 1: months for him to pay off his debt after kind

496
00:21:30,440 --> 00:21:33,480
Speaker 1: of calculating it out, and this timeline helped him track

497
00:21:33,560 --> 00:21:37,200
Speaker 1: his progress. Knowing that timeline helped him have a realistic

498
00:21:37,280 --> 00:21:40,040
Speaker 1: expectation in mind for how long it was going to

499
00:21:40,160 --> 00:21:42,719
Speaker 1: take him to be rid of all his debt. And

500
00:21:42,720 --> 00:21:44,679
Speaker 1: that's really important step for us to take in this

501
00:21:44,720 --> 00:21:48,399
Speaker 1: process is to map out the length of time that

502
00:21:48,440 --> 00:21:50,560
Speaker 1: it's going to take us to go from a bunch

503
00:21:50,560 --> 00:21:53,479
Speaker 1: of debt to no debt, because that can help us

504
00:21:53,560 --> 00:21:55,159
Speaker 1: stick with it. If we know that it's going to

505
00:21:55,240 --> 00:21:57,000
Speaker 1: take three years, well there's light at the end of

506
00:21:57,040 --> 00:21:59,760
Speaker 1: the tunnel. If we have no idea and we just

507
00:22:00,200 --> 00:22:02,680
Speaker 1: or aimlessly attempting every month to put more money towards

508
00:22:02,720 --> 00:22:04,879
Speaker 1: our debt, but we don't have a time frame in mind,

509
00:22:05,040 --> 00:22:06,600
Speaker 1: well then it can just be a little more difficult

510
00:22:06,600 --> 00:22:08,400
Speaker 1: to actually stick with it. It's like the difference between

511
00:22:08,440 --> 00:22:11,639
Speaker 1: running a marathon versus like a sprint, Like you need

512
00:22:11,680 --> 00:22:13,680
Speaker 1: to know the distance because if you start running a

513
00:22:13,720 --> 00:22:16,840
Speaker 1: marathon like you're running a Fodre sprint, well, guess what

514
00:22:17,040 --> 00:22:19,359
Speaker 1: you're gonna burn out and you're gonna completely give up.

515
00:22:19,680 --> 00:22:22,440
Speaker 1: And so yeah, having that and goal in mind and

516
00:22:22,680 --> 00:22:25,119
Speaker 1: knowing that time frame is is so important. And there

517
00:22:25,119 --> 00:22:26,719
Speaker 1: are tools that can help, by the way, and well

518
00:22:26,760 --> 00:22:28,720
Speaker 1: link to those in the show notes, whether you're taking

519
00:22:28,720 --> 00:22:31,439
Speaker 1: the snowball approach or the avalanche approach, will link to

520
00:22:31,440 --> 00:22:32,720
Speaker 1: a tool that can kind of help you as you

521
00:22:32,760 --> 00:22:35,480
Speaker 1: plug in your information, it can give you that timeframe

522
00:22:35,680 --> 00:22:37,359
Speaker 1: so that you're not just doing pen and paper. You

523
00:22:37,359 --> 00:22:39,680
Speaker 1: can actually plug it into a spreadsheet and then you've

524
00:22:39,680 --> 00:22:42,720
Speaker 1: got breadsheets. You can share it with your significant other

525
00:22:43,160 --> 00:22:45,840
Speaker 1: or your partner, and it's this kind of perfect opportunity

526
00:22:45,880 --> 00:22:47,240
Speaker 1: to be on the same page, to be looking at

527
00:22:47,280 --> 00:22:48,959
Speaker 1: the same numbers, and it can kind of just kind

528
00:22:48,960 --> 00:22:50,400
Speaker 1: of help you plot your path. Well, you know, I'm

529
00:22:50,400 --> 00:22:52,359
Speaker 1: all about the spreadsheets. I know you are, buddy. Yeah,

530
00:22:52,480 --> 00:22:54,439
Speaker 1: And so another step we want you to take is

531
00:22:54,520 --> 00:22:59,200
Speaker 1: essentially to create a debt slaying identity. Basically, what I

532
00:22:59,240 --> 00:23:00,760
Speaker 1: want you to do if you're in debt and you're

533
00:23:00,760 --> 00:23:02,119
Speaker 1: looking to get out of it, is I want you

534
00:23:02,160 --> 00:23:05,240
Speaker 1: to say to yourself this year, I am all about

535
00:23:05,280 --> 00:23:07,480
Speaker 1: paying off that debt. It's like your alter ego, Yes,

536
00:23:07,560 --> 00:23:09,640
Speaker 1: like that that's just who you are. What this means

537
00:23:09,760 --> 00:23:12,399
Speaker 1: is not saving for a vacation, not saving for that

538
00:23:12,480 --> 00:23:15,160
Speaker 1: new car that maybe you wanted. Instead, it means throwing

539
00:23:15,200 --> 00:23:18,680
Speaker 1: all of your weight behind that one singular goal. This

540
00:23:18,760 --> 00:23:21,120
Speaker 1: is a crazy powerful approach, and anyone who has paid

541
00:23:21,119 --> 00:23:24,080
Speaker 1: off large amounts of debt quickly will attest to the

542
00:23:24,119 --> 00:23:26,560
Speaker 1: power of this type of focus. And again, you want

543
00:23:26,560 --> 00:23:29,760
Speaker 1: to make sure to prioritize that top debt while you

544
00:23:29,800 --> 00:23:33,040
Speaker 1: pay minimums on everything else, regardless of what approach you take,

545
00:23:33,040 --> 00:23:34,960
Speaker 1: whether you take the debt snowball or whether you take

546
00:23:34,960 --> 00:23:37,280
Speaker 1: the debt avalanche. All right, we've referenced Batman in this

547
00:23:37,280 --> 00:23:40,959
Speaker 1: podcast before, Matt, but so basically Batman is this perfect

548
00:23:40,960 --> 00:23:43,760
Speaker 1: representation of creating an alter ego. It's it's not that

549
00:23:43,840 --> 00:23:46,000
Speaker 1: he has these special powers. I mean, sure he's got

550
00:23:46,040 --> 00:23:48,359
Speaker 1: a cooler vehicle and like a grappling hook or whatever,

551
00:23:48,640 --> 00:23:51,960
Speaker 1: but he can't actually fly or do anything super duper special.

552
00:23:52,240 --> 00:23:54,760
Speaker 1: He's just creating an alter ego that helps him to

553
00:23:54,760 --> 00:23:56,520
Speaker 1: fight crime. It's almost like when he puts on the suit,

554
00:23:56,560 --> 00:23:58,760
Speaker 1: he becomes a different person. And I think that's kind

555
00:23:58,760 --> 00:24:01,160
Speaker 1: of how we need to appre coach paying off debt

556
00:24:01,160 --> 00:24:04,199
Speaker 1: in our lives is to create this alter ego, to

557
00:24:04,240 --> 00:24:06,840
Speaker 1: put ourselves in this new state of mind, in this

558
00:24:06,880 --> 00:24:09,480
Speaker 1: new superhero suit, if you will. And I think that

559
00:24:09,600 --> 00:24:12,199
Speaker 1: that just kind of mental shift in telling ourselves that

560
00:24:12,240 --> 00:24:14,960
Speaker 1: we are someone who can pay off a large amount

561
00:24:14,960 --> 00:24:17,200
Speaker 1: of debt, who can make a change in our life,

562
00:24:17,240 --> 00:24:19,680
Speaker 1: who can shift our habits. That's a that's a really

563
00:24:19,680 --> 00:24:21,960
Speaker 1: powerful thing for us as we step up to the

564
00:24:22,000 --> 00:24:24,960
Speaker 1: plate in order to vanquish the debt that has become

565
00:24:25,000 --> 00:24:31,000
Speaker 1: the bane of our existence. That's a nerd bad guy reference.

566
00:24:31,040 --> 00:24:33,920
Speaker 1: I love it. The next step is basically to move

567
00:24:33,960 --> 00:24:36,080
Speaker 1: on to debt number two. Once you've done all of

568
00:24:36,119 --> 00:24:38,560
Speaker 1: that and you've crushed that first debt, move on to

569
00:24:38,640 --> 00:24:41,360
Speaker 1: the next debt on the list. Again, regardless of which

570
00:24:41,400 --> 00:24:44,399
Speaker 1: method that you're taking. After that first debt is eliminated,

571
00:24:44,520 --> 00:24:47,000
Speaker 1: you're gonna have more money. It's blast that next debt

572
00:24:47,000 --> 00:24:49,320
Speaker 1: on your on your list. You might notice that it's

573
00:24:49,320 --> 00:24:52,320
Speaker 1: a little bit easier to attack that next debt that

574
00:24:52,359 --> 00:24:54,520
Speaker 1: you have on your lists. Right, Like interest is still

575
00:24:54,520 --> 00:24:57,520
Speaker 1: working against you because you still have debt, but it's

576
00:24:57,560 --> 00:25:00,560
Speaker 1: not working against you quite as hard. Going back to

577
00:25:00,600 --> 00:25:03,320
Speaker 1: the escalator analogy, like you're still going up the wrong escalator,

578
00:25:03,480 --> 00:25:06,160
Speaker 1: but maybe the escalator has slowed down a little bit.

579
00:25:06,400 --> 00:25:08,200
Speaker 1: And not only has this slow down, Jill, you've also

580
00:25:08,280 --> 00:25:11,000
Speaker 1: gotten stronger because now you have more money to throw

581
00:25:11,280 --> 00:25:14,359
Speaker 1: and to attack that next debt with. Yeah, it's incredible

582
00:25:14,400 --> 00:25:17,880
Speaker 1: how this process, the debt payoff plan becomes easier after

583
00:25:17,880 --> 00:25:21,119
Speaker 1: that first debt is removed, whether you're going avalanche or snowball,

584
00:25:21,320 --> 00:25:24,439
Speaker 1: having one fewer debt, it just increases your ability to

585
00:25:24,480 --> 00:25:26,800
Speaker 1: attack debt number two. It's a beautiful thing. Yeah, you've

586
00:25:26,800 --> 00:25:28,840
Speaker 1: got more money and it's just easier to focus as well,

587
00:25:28,840 --> 00:25:30,680
Speaker 1: because guess what, if you've got six different debts that

588
00:25:30,720 --> 00:25:32,680
Speaker 1: you know that you want to pay down, it might

589
00:25:32,720 --> 00:25:35,520
Speaker 1: take a lot of mental capacity to focus on that

590
00:25:35,560 --> 00:25:37,160
Speaker 1: one debt when you know you've got these other ones

591
00:25:37,160 --> 00:25:39,280
Speaker 1: that you're just paying minimums on, right, But guess what,

592
00:25:39,400 --> 00:25:41,120
Speaker 1: you knock out one of those and now you've only

593
00:25:41,240 --> 00:25:43,800
Speaker 1: you've only got five, so you're paying against one of them,

594
00:25:43,840 --> 00:25:45,320
Speaker 1: and there's just four of them that that are kind

595
00:25:45,359 --> 00:25:46,639
Speaker 1: of sitting there, and then you know, the number just

596
00:25:46,680 --> 00:25:49,120
Speaker 1: gets smaller and smaller. There are so many reasons why

597
00:25:49,359 --> 00:25:52,680
Speaker 1: focusing on a singular debt is so the way to go. Yeah,

598
00:25:52,760 --> 00:25:55,960
Speaker 1: and Matt, I think another important thing to say on

599
00:25:56,760 --> 00:25:58,719
Speaker 1: when we move on to another debt is it it's

600
00:25:58,720 --> 00:26:01,720
Speaker 1: important to give ourselves a little reward along the way

601
00:26:01,760 --> 00:26:04,960
Speaker 1: with each major milestone that we achieve. We discussed this

602
00:26:05,040 --> 00:26:08,240
Speaker 1: recently in the gamification episode, but small rewards along the

603
00:26:08,240 --> 00:26:10,840
Speaker 1: way can give us a renewed hope to pause and

604
00:26:10,880 --> 00:26:14,560
Speaker 1: realize that we're doing it. Well, that's huge, and then

605
00:26:14,760 --> 00:26:16,800
Speaker 1: we can start to rent and repeat and kind of

606
00:26:16,800 --> 00:26:20,679
Speaker 1: continue along in the process. But once we've appropriately celebrated

607
00:26:20,840 --> 00:26:23,520
Speaker 1: knocking out a credit card debt or a car loan,

608
00:26:23,920 --> 00:26:27,080
Speaker 1: then start setting your sights on the next debt to crush.

609
00:26:27,520 --> 00:26:30,639
Speaker 1: Maybe student loans are next on the hit list. But

610
00:26:30,680 --> 00:26:32,640
Speaker 1: however you're doing it, make sure that you do give

611
00:26:32,680 --> 00:26:35,040
Speaker 1: yourself like a little reward along the way. It can

612
00:26:35,080 --> 00:26:38,679
Speaker 1: really increase that positivity and continue to fuel you in

613
00:26:38,720 --> 00:26:42,040
Speaker 1: that superhero esque pursuit of paying your debt off. Yeah. Man,

614
00:26:42,080 --> 00:26:45,560
Speaker 1: we're emotional creatures and to have that positive feedback is

615
00:26:45,600 --> 00:26:48,240
Speaker 1: so important. And I think that's one way too that

616
00:26:48,280 --> 00:26:50,560
Speaker 1: we can reward our So it's not even by spending money,

617
00:26:50,600 --> 00:26:53,240
Speaker 1: but there's ways that we can reinforce that behavior, even

618
00:26:53,320 --> 00:26:55,280
Speaker 1: just with sharing it with others. If you've told some

619
00:26:55,320 --> 00:26:57,720
Speaker 1: friends about your financial journey or like your plan to

620
00:26:57,800 --> 00:26:59,879
Speaker 1: pay down some debt and you tell them, hey, guess what,

621
00:27:00,040 --> 00:27:02,240
Speaker 1: you know those three credit cards that I'm planning to

622
00:27:02,320 --> 00:27:05,239
Speaker 1: knock out, one of them is completely done with. Like,

623
00:27:05,280 --> 00:27:08,280
Speaker 1: that's huge, and hopefully you know, if you've talked about

624
00:27:08,280 --> 00:27:10,040
Speaker 1: your money with these folks, these are friends who can

625
00:27:10,080 --> 00:27:12,560
Speaker 1: then celebrate with you and encourage you and they become

626
00:27:12,600 --> 00:27:15,440
Speaker 1: like your cheerleaders, like encouraging utically. And if you don't

627
00:27:15,440 --> 00:27:17,240
Speaker 1: have these these type of friends, we would encourage you,

628
00:27:17,240 --> 00:27:19,840
Speaker 1: you know, a to talk about money with your friends

629
00:27:19,840 --> 00:27:22,880
Speaker 1: and family, but also check out Facebook. Within our group,

630
00:27:23,000 --> 00:27:25,440
Speaker 1: folks are often posting their winds and then how they're

631
00:27:25,440 --> 00:27:28,000
Speaker 1: succeeding with their money, and we would suggest jumping in

632
00:27:28,040 --> 00:27:30,359
Speaker 1: there encouraging those folks. And then when the time comes

633
00:27:30,400 --> 00:27:32,320
Speaker 1: for you to knock out some of your big debts

634
00:27:32,400 --> 00:27:34,720
Speaker 1: or meet some of your financial goals, you can share

635
00:27:34,720 --> 00:27:36,160
Speaker 1: that in there as well, and it will be folks

636
00:27:36,160 --> 00:27:38,200
Speaker 1: in there who will be pumped for you. And guess

637
00:27:38,240 --> 00:27:41,200
Speaker 1: what that costs you? Nothing? Yeah? Man, sharing those wins

638
00:27:41,200 --> 00:27:43,000
Speaker 1: with other people that you don't even have to like

639
00:27:43,000 --> 00:27:45,800
Speaker 1: treat yourself to something super fancy, but honestly, even just

640
00:27:45,840 --> 00:27:49,560
Speaker 1: that encouragement from people around you that are rooting for you,

641
00:27:49,800 --> 00:27:52,600
Speaker 1: that's enough of a reward oftentimes for us to keep going.

642
00:27:52,640 --> 00:27:55,840
Speaker 1: That can really be a big motivation for us and Matt. Now,

643
00:27:55,880 --> 00:27:58,920
Speaker 1: if we are kind of in this debt playing superhero mindset,

644
00:27:59,480 --> 00:28:02,480
Speaker 1: a question pops up, well, how can we accelerate this

645
00:28:02,680 --> 00:28:05,480
Speaker 1: debt payoff plan process? Well, there are ways that we

646
00:28:05,480 --> 00:28:07,800
Speaker 1: can potentially earn extra money and then other ways that

647
00:28:07,840 --> 00:28:10,520
Speaker 1: we can cut back in our spending, and those things

648
00:28:10,560 --> 00:28:13,359
Speaker 1: can accelerate the amount that we're able to put towards

649
00:28:13,359 --> 00:28:15,640
Speaker 1: that debt to kind of make that thirty six month

650
00:28:15,640 --> 00:28:17,639
Speaker 1: plan let's say a thirty three month plan. And that's

651
00:28:17,680 --> 00:28:19,159
Speaker 1: kind of fun too. Yeah, that's right. We need to

652
00:28:19,200 --> 00:28:21,560
Speaker 1: address both sides of the equation, right. We talked about

653
00:28:21,560 --> 00:28:24,280
Speaker 1: this last week on our episode on frugality, how frugality

654
00:28:24,320 --> 00:28:26,480
Speaker 1: doesn't always cut it, but we need to address our

655
00:28:26,640 --> 00:28:28,680
Speaker 1: big expenses as well as some of the big ways

656
00:28:28,680 --> 00:28:30,760
Speaker 1: that we can increase our income. Yeah, totally. So, on

657
00:28:30,800 --> 00:28:33,400
Speaker 1: the note of cutting back, will choose a specific few

658
00:28:33,400 --> 00:28:36,280
Speaker 1: areas that are meaningful for you to be able to

659
00:28:36,280 --> 00:28:40,680
Speaker 1: still enjoy life. Don't stop drinking craft beer altogether necessarily,

660
00:28:40,760 --> 00:28:43,560
Speaker 1: but make it maybe a special treat. And that act

661
00:28:43,600 --> 00:28:45,880
Speaker 1: of cutting back, well, it can help you to achieve

662
00:28:45,960 --> 00:28:49,440
Speaker 1: this quote unquote no bad debt status far more quickly.

663
00:28:49,680 --> 00:28:51,760
Speaker 1: And if you can continue it after this debt payoff

664
00:28:51,760 --> 00:28:54,520
Speaker 1: plan is complete, it's gonna help you build savings and

665
00:28:54,560 --> 00:28:57,800
Speaker 1: have money to invest for your future at the same time. Yeah, Joe,

666
00:28:57,800 --> 00:29:01,000
Speaker 1: So that's addressing expenses, right, if we're able to cut back.

667
00:29:01,280 --> 00:29:03,880
Speaker 1: And on Money's episode, we talked about earning more money,

668
00:29:04,120 --> 00:29:06,760
Speaker 1: you know, through entrepreneurship, through starting your own small business.

669
00:29:06,920 --> 00:29:08,840
Speaker 1: We had an interview there with Vincent, so we'd recommend

670
00:29:08,920 --> 00:29:11,280
Speaker 1: checking that one out if you're looking to address that

671
00:29:11,360 --> 00:29:13,720
Speaker 1: side of the equation. But either way, you can accelerate

672
00:29:13,760 --> 00:29:17,000
Speaker 1: the process by focusing on your expenses, by focusing on

673
00:29:17,040 --> 00:29:18,760
Speaker 1: your income. You want to make sure that you're doing

674
00:29:18,840 --> 00:29:21,000
Speaker 1: both of those. We're gonna continue to talk about creating

675
00:29:21,000 --> 00:29:23,600
Speaker 1: a debt payoff plan, and after the break, we're gonna

676
00:29:23,600 --> 00:29:27,600
Speaker 1: talk specifically about some different practical advice and some different

677
00:29:27,600 --> 00:29:30,360
Speaker 1: tactical steps that we can take in order to pay

678
00:29:30,400 --> 00:29:32,320
Speaker 1: down our debt. Faster. We're gonna get to those right

679
00:29:32,360 --> 00:29:42,760
Speaker 1: after the break. All right, now, we're back to break,

680
00:29:42,880 --> 00:29:45,680
Speaker 1: and we do have some practical and tactical things we

681
00:29:45,720 --> 00:29:48,640
Speaker 1: have to share in their galactical In this part of

682
00:29:48,640 --> 00:29:51,400
Speaker 1: the show about how people should approach their debt payoff plan,

683
00:29:51,480 --> 00:29:52,880
Speaker 1: we kind of went through all the steps, but there

684
00:29:52,880 --> 00:29:55,360
Speaker 1: are a lot of other things to consider, some tips,

685
00:29:55,640 --> 00:29:58,480
Speaker 1: some hacks, as the kids like to say, on how

686
00:29:58,520 --> 00:30:02,160
Speaker 1: to approach this plan that can help accelerate it. Beyond

687
00:30:02,320 --> 00:30:05,720
Speaker 1: just the ideas of earning more money, there are specific

688
00:30:05,880 --> 00:30:07,920
Speaker 1: things that we can take advantage of in order to

689
00:30:07,960 --> 00:30:10,040
Speaker 1: help us lower the interest rate or find the help

690
00:30:10,080 --> 00:30:12,960
Speaker 1: that we need in order to achieve our debt payoff

691
00:30:13,000 --> 00:30:15,120
Speaker 1: more quickly. So, Matt, I think one of the first

692
00:30:15,160 --> 00:30:17,760
Speaker 1: things that needs to be noted is we really need

693
00:30:17,800 --> 00:30:19,680
Speaker 1: to think long and hard about the things that led

694
00:30:19,760 --> 00:30:22,200
Speaker 1: us to to this state of debt in the first place.

695
00:30:22,560 --> 00:30:24,080
Speaker 1: One of the major things we need to come to

696
00:30:24,120 --> 00:30:26,800
Speaker 1: grips with is to think about our triggers, like what

697
00:30:26,960 --> 00:30:30,080
Speaker 1: caused us to spend money that we didn't have in

698
00:30:30,120 --> 00:30:33,520
Speaker 1: the first place. Knowing those triggers is the first step

699
00:30:33,640 --> 00:30:36,400
Speaker 1: to changing our habits, and that's a really crucial process

700
00:30:36,400 --> 00:30:38,840
Speaker 1: in this whole plan. So if your credit cards are

701
00:30:38,840 --> 00:30:40,960
Speaker 1: your arch nemesis and you just don't know how to

702
00:30:41,000 --> 00:30:44,080
Speaker 1: stop using them, will cut them up or freeze them,

703
00:30:44,080 --> 00:30:45,920
Speaker 1: put them in a freezer bag inside of your freezer,

704
00:30:46,000 --> 00:30:47,600
Speaker 1: like literally put them in a ziplock bag, fill it

705
00:30:47,640 --> 00:30:49,640
Speaker 1: with water, and stick in your freezer. Put that junk

706
00:30:49,680 --> 00:30:52,520
Speaker 1: on ice, exactly. Like, if that's your trigger, you have

707
00:30:52,600 --> 00:30:54,680
Speaker 1: to figure out how to make that stop, because even

708
00:30:54,720 --> 00:30:57,400
Speaker 1: as you're paying off your debt, you might be accruing

709
00:30:57,440 --> 00:30:59,640
Speaker 1: more along the way, and you're just kind of it's

710
00:30:59,680 --> 00:31:01,080
Speaker 1: this is your row some game if we don't know

711
00:31:01,120 --> 00:31:03,640
Speaker 1: the things that are actually triggering us to spend in

712
00:31:03,680 --> 00:31:06,280
Speaker 1: the ways that are hurting our finances and real quick

713
00:31:06,280 --> 00:31:08,160
Speaker 1: you mentioned like putting your credit cards in a block

714
00:31:08,160 --> 00:31:11,080
Speaker 1: of ice. Let's clarify, because that is literally one way

715
00:31:11,080 --> 00:31:13,800
Speaker 1: to freeze your credit cards. But there's I think sometimes

716
00:31:13,800 --> 00:31:16,560
Speaker 1: some confusion when people say I've freeze my credit. Well,

717
00:31:16,600 --> 00:31:19,000
Speaker 1: that's not freezing your credit. That's literally freezing your credit

718
00:31:19,000 --> 00:31:22,320
Speaker 1: cards to curb your behavior. But then you can actually

719
00:31:22,520 --> 00:31:26,720
Speaker 1: freeze your credit by going to trains, Union, Experience and Equifax,

720
00:31:27,000 --> 00:31:29,719
Speaker 1: and that actually puts a lock on your credit. That way,

721
00:31:29,840 --> 00:31:32,440
Speaker 1: nobody including yourself, is able to take out new credit

722
00:31:32,520 --> 00:31:34,959
Speaker 1: new credit cards unless they go on their first and

723
00:31:35,040 --> 00:31:38,640
Speaker 1: unfreeze it, typically temporarily. Yeah, And that's something that we recommend,

724
00:31:38,720 --> 00:31:40,360
Speaker 1: is is for folks to freeze their credit so that

725
00:31:40,400 --> 00:31:43,440
Speaker 1: other people can't take out credit lines in your name.

726
00:31:43,680 --> 00:31:46,080
Speaker 1: But freezing your credit card definitely a step to take

727
00:31:46,280 --> 00:31:49,080
Speaker 1: if that credit card has become this problem in your life,

728
00:31:49,080 --> 00:31:51,280
Speaker 1: this thorn in your side, yeah, man. And another thing

729
00:31:51,360 --> 00:31:54,120
Speaker 1: to note on at since we're speaking about your credit

730
00:31:54,160 --> 00:31:57,240
Speaker 1: score and freezing your credit, well, your credit score is

731
00:31:57,240 --> 00:32:00,280
Speaker 1: this awesome thing to monitor along the way while you're

732
00:32:00,280 --> 00:32:02,760
Speaker 1: involved in this debt payoff plan. And we really like

733
00:32:02,840 --> 00:32:04,880
Speaker 1: the website credit Karma. There are other sites out there

734
00:32:04,880 --> 00:32:06,800
Speaker 1: as well that can help you stay in touch with

735
00:32:06,840 --> 00:32:09,480
Speaker 1: your credit score. Discover has one as well, credit scorecard

736
00:32:09,520 --> 00:32:11,440
Speaker 1: dot com. If you check out sign up for one

737
00:32:11,440 --> 00:32:14,280
Speaker 1: of those services and you're staying familiar with what's going

738
00:32:14,280 --> 00:32:16,560
Speaker 1: on with your credit score, well, as you're paying your

739
00:32:16,560 --> 00:32:19,320
Speaker 1: debt off, it's going to have a direct positive benefit

740
00:32:19,680 --> 00:32:22,440
Speaker 1: on your credit score, and that is motivating as you

741
00:32:22,480 --> 00:32:25,520
Speaker 1: see that credit score balloon over time, as it continues

742
00:32:25,560 --> 00:32:27,680
Speaker 1: to rise from let's say it's at six a d.

743
00:32:27,800 --> 00:32:30,040
Speaker 1: Now you know, over six months you might be at

744
00:32:30,120 --> 00:32:32,600
Speaker 1: seven thirty, and that is going to help you achieve

745
00:32:32,760 --> 00:32:35,840
Speaker 1: these other goals of being able to potentially take out

746
00:32:35,840 --> 00:32:37,640
Speaker 1: a mortgage right. If you want to buy a house

747
00:32:37,680 --> 00:32:39,280
Speaker 1: and you have a really low credit score because you

748
00:32:39,360 --> 00:32:43,040
Speaker 1: have an overwhelming amount of debt, well attacking that increases

749
00:32:43,040 --> 00:32:46,000
Speaker 1: your score and not only means you have less debt

750
00:32:46,000 --> 00:32:48,680
Speaker 1: weighing you down, but also means the possibilities of taking

751
00:32:48,680 --> 00:32:51,840
Speaker 1: out positive future debt right of something like a house

752
00:32:52,080 --> 00:32:55,400
Speaker 1: are just greatly increased. Yeah, seeing that credit score boost

753
00:32:55,440 --> 00:32:58,840
Speaker 1: like that, that's an amazing secondary benefit of paying down

754
00:32:58,880 --> 00:33:02,120
Speaker 1: that debt. It's also talk about where not to go

755
00:33:02,760 --> 00:33:05,200
Speaker 1: if you're in debt over your head, if you're not

756
00:33:05,240 --> 00:33:07,880
Speaker 1: able to handle the payments currently on your debt, do

757
00:33:08,120 --> 00:33:11,440
Speaker 1: not sign up with a debt consolidation company. They charge

758
00:33:11,880 --> 00:33:14,920
Speaker 1: big money and they rarely live up to their claims.

759
00:33:15,080 --> 00:33:17,480
Speaker 1: Often you end up paying them, you know, a lot

760
00:33:17,520 --> 00:33:19,680
Speaker 1: of money, and they do little or nothing to help

761
00:33:19,720 --> 00:33:22,720
Speaker 1: you in your debt payoff pursuit. UH. In that case,

762
00:33:22,760 --> 00:33:25,320
Speaker 1: you're often better off on your own because at least

763
00:33:25,320 --> 00:33:27,560
Speaker 1: then you can toss more of that money towards your

764
00:33:27,560 --> 00:33:30,160
Speaker 1: debt and not going to the service that's not actually

765
00:33:30,160 --> 00:33:32,480
Speaker 1: providing any value. Yeah, if you hear an advertiser or

766
00:33:32,520 --> 00:33:35,040
Speaker 1: someone specifically tells you, yeah, if you just pay these

767
00:33:35,040 --> 00:33:38,000
Speaker 1: people a couple of thousand dollars, three or four thousand dollars,

768
00:33:38,240 --> 00:33:40,160
Speaker 1: they can help you consolidate your debt, they can work

769
00:33:40,160 --> 00:33:43,120
Speaker 1: with your creditors, they'll help you achieve your own debt

770
00:33:43,160 --> 00:33:46,560
Speaker 1: payoff plan. Well upfront payment for someone to do that

771
00:33:46,600 --> 00:33:49,160
Speaker 1: for you. When most of the things that these debt

772
00:33:49,200 --> 00:33:51,800
Speaker 1: payoff companies say they're gonna do, they either don't do

773
00:33:51,920 --> 00:33:53,880
Speaker 1: or you can do yourself. That's just not a smart

774
00:33:53,920 --> 00:33:56,240
Speaker 1: way to go. Yeah, that money upfront huge red flag.

775
00:33:56,560 --> 00:33:58,080
Speaker 1: So what you do want to go if you're debt

776
00:33:58,120 --> 00:34:01,480
Speaker 1: is overwhelming, is going to be your local affiliate of

777
00:34:01,520 --> 00:34:04,040
Speaker 1: the n f c C, which is the National Foundation

778
00:34:04,080 --> 00:34:07,600
Speaker 1: for Credit Counseling. They are a nonprofit and they are

779
00:34:07,640 --> 00:34:11,240
Speaker 1: full of helpful financial services like debt and budget counseling.

780
00:34:11,760 --> 00:34:13,840
Speaker 1: They have the power to help and kind of counsel

781
00:34:13,920 --> 00:34:16,680
Speaker 1: you along your debt journey. They do the things that

782
00:34:16,760 --> 00:34:19,160
Speaker 1: many of the debt payoff firms say that they'll do,

783
00:34:19,480 --> 00:34:22,080
Speaker 1: but then they don't in actuality. Yeah, that's true. The

784
00:34:22,160 --> 00:34:25,080
Speaker 1: NFCC is the only place I would tell someone who

785
00:34:25,239 --> 00:34:27,239
Speaker 1: is up to their eyeballs in debt and doesn't know

786
00:34:27,280 --> 00:34:29,600
Speaker 1: where to go and can't afford their debt payments. That

787
00:34:29,760 --> 00:34:31,400
Speaker 1: is the only place I would send them to. And

788
00:34:31,440 --> 00:34:34,799
Speaker 1: so yeah, NFCC dot org, find your local affiliate, meet

789
00:34:34,840 --> 00:34:38,160
Speaker 1: with someone there. That is your best path forward if

790
00:34:38,200 --> 00:34:40,640
Speaker 1: you're in debt that you can't manage. And Matt, let's

791
00:34:40,719 --> 00:34:44,080
Speaker 1: talk quickly about apps. There are apps popping up all

792
00:34:44,080 --> 00:34:46,960
Speaker 1: over the place that claim to help people with their

793
00:34:47,000 --> 00:34:49,680
Speaker 1: debt payoff. And there are some apps that I think

794
00:34:49,719 --> 00:34:52,120
Speaker 1: could potentially be helpful, but they come with a caveat.

795
00:34:52,320 --> 00:34:54,960
Speaker 1: There's one called coins q O I n S and

796
00:34:55,000 --> 00:34:57,960
Speaker 1: there's one called tally that offer to help, but they

797
00:34:58,040 --> 00:35:00,759
Speaker 1: charge you to do so as well. So you know,

798
00:35:00,800 --> 00:35:02,440
Speaker 1: you and I we prefer the D I Y no

799
00:35:02,600 --> 00:35:05,680
Speaker 1: fee approach. But these apps can be helpful for the

800
00:35:05,760 --> 00:35:09,160
Speaker 1: right person who has a tough time actually sticking to something.

801
00:35:09,520 --> 00:35:12,040
Speaker 1: And if these apps are going to help basically make

802
00:35:12,040 --> 00:35:15,160
Speaker 1: the process smoother for you, and that fee is basically

803
00:35:15,200 --> 00:35:17,960
Speaker 1: going to prevent you from defaulting on your debt. Well,

804
00:35:17,960 --> 00:35:20,200
Speaker 1: then what we would say is use one of those apps,

805
00:35:20,360 --> 00:35:22,680
Speaker 1: use it to its full potential, because, yeah, paying a

806
00:35:22,719 --> 00:35:25,640
Speaker 1: fee is is better than not doing it all together.

807
00:35:25,960 --> 00:35:27,840
Speaker 1: If that's gonna get you motivated, if that's going to

808
00:35:27,920 --> 00:35:30,120
Speaker 1: be the thing that helps you to actually stick to

809
00:35:30,160 --> 00:35:32,600
Speaker 1: a debt payoff plan, well then that's great. And those

810
00:35:32,600 --> 00:35:34,680
Speaker 1: are two worth considering. Yeah, man, those are some of

811
00:35:34,680 --> 00:35:36,520
Speaker 1: the different apps. And there's also some websites that can

812
00:35:36,560 --> 00:35:40,719
Speaker 1: help as well. I'm thinking of unburied me and undebt it.

813
00:35:41,239 --> 00:35:43,600
Speaker 1: And by the way, those are unburied dot me and

814
00:35:43,920 --> 00:35:47,320
Speaker 1: undebt dot it's I guess thattand's in Italy the I T.

815
00:35:48,280 --> 00:35:50,320
Speaker 1: I love how the different websites are using the different

816
00:35:50,480 --> 00:35:52,040
Speaker 1: I don't know what you call it, like the dot com,

817
00:35:52,040 --> 00:35:54,439
Speaker 1: dot net, like the postscripts or whatever, but they're working

818
00:35:54,480 --> 00:35:56,640
Speaker 1: them into the name of their site, which is I

819
00:35:56,680 --> 00:35:58,719
Speaker 1: love it. That's why we're changing the u r L

820
00:35:58,760 --> 00:36:00,360
Speaker 1: for our website from how the Money dot com to

821
00:36:00,480 --> 00:36:04,200
Speaker 1: how the Money dot listen to our podcast now how

822
00:36:04,239 --> 00:36:08,560
Speaker 1: the Money dot Beer. Actually I legit think there is

823
00:36:08,560 --> 00:36:10,840
Speaker 1: a beer. Yeah, I was gonna say that that's a

824
00:36:10,880 --> 00:36:13,640
Speaker 1: really oh my gosh. Either way, though, let's talk about

825
00:36:13,640 --> 00:36:16,840
Speaker 1: these websites unburry me and undebtit. They are both similar

826
00:36:16,880 --> 00:36:19,239
Speaker 1: and they can offer some help creating a debt payoff plan.

827
00:36:19,680 --> 00:36:23,040
Speaker 1: If you prefer a more digital interface, definitely give one

828
00:36:23,040 --> 00:36:25,319
Speaker 1: of these shot with the different graphs and you know,

829
00:36:25,320 --> 00:36:28,400
Speaker 1: the digital feedback it might help you to visualize your progress.

830
00:36:28,480 --> 00:36:30,239
Speaker 1: And and and you know, for that reason it can be

831
00:36:30,360 --> 00:36:33,000
Speaker 1: really valuable. But at the same time, we don't want

832
00:36:33,200 --> 00:36:36,680
Speaker 1: tech to keep you from actually getting a plan together

833
00:36:36,760 --> 00:36:39,800
Speaker 1: at all. Pen and paper can be really valuable, especially

834
00:36:39,840 --> 00:36:41,840
Speaker 1: when it comes to just tracking your progress. You know,

835
00:36:42,040 --> 00:36:44,799
Speaker 1: like it is pretty easy to create a little graph

836
00:36:44,840 --> 00:36:46,160
Speaker 1: and a little chart and you kind of fill it

837
00:36:46,160 --> 00:36:48,040
Speaker 1: in as you work your way up that notebook paper.

838
00:36:48,360 --> 00:36:51,440
Speaker 1: Just know yourself and participate in any of these different

839
00:36:51,440 --> 00:36:54,040
Speaker 1: little tips and strategies that you know will resonate the

840
00:36:54,040 --> 00:36:56,160
Speaker 1: most with you. Yeah, man, I agree. I think part

841
00:36:56,160 --> 00:36:58,560
Speaker 1: of it comes down to knowing yourself and knowing the

842
00:36:58,600 --> 00:37:00,880
Speaker 1: ways that your best going to be able to stick

843
00:37:01,040 --> 00:37:03,240
Speaker 1: to a debt payoff plan. And and and some people

844
00:37:03,360 --> 00:37:05,560
Speaker 1: they're on a computer all day and using a website

845
00:37:05,560 --> 00:37:08,360
Speaker 1: like unburied dot me or on debt dot it is

846
00:37:08,360 --> 00:37:10,160
Speaker 1: is going to be a massive help in the way

847
00:37:10,200 --> 00:37:12,680
Speaker 1: they approach paying off that debt. And for other people,

848
00:37:12,880 --> 00:37:15,160
Speaker 1: you know what, a pen and some paper that's gonna

849
00:37:15,160 --> 00:37:17,839
Speaker 1: be motivation enough. They don't need some sort of really

850
00:37:17,920 --> 00:37:20,759
Speaker 1: cute see graph and interface to help them tackle their debt.

851
00:37:20,920 --> 00:37:22,520
Speaker 1: So just kind of know your tendencies and that can

852
00:37:22,560 --> 00:37:24,920
Speaker 1: help you, and Matt, I feel like there are a

853
00:37:24,960 --> 00:37:27,439
Speaker 1: few more hacks that we really should mention to help

854
00:37:27,440 --> 00:37:30,560
Speaker 1: folks actually save more on interest payments and potentially pay

855
00:37:30,560 --> 00:37:32,560
Speaker 1: off their debt even more quickly once they have a

856
00:37:32,560 --> 00:37:35,480
Speaker 1: clear plan in place. A zero percent credit card transfer

857
00:37:35,520 --> 00:37:38,399
Speaker 1: can be a game changer for folks, especially if they're

858
00:37:38,440 --> 00:37:41,200
Speaker 1: on the fast track to eradicating debt. And this is

859
00:37:41,239 --> 00:37:44,279
Speaker 1: particularly useful, Matt, for folks that have a good credit score.

860
00:37:44,320 --> 00:37:46,800
Speaker 1: If they can qualify for a credit card with a

861
00:37:46,920 --> 00:37:49,160
Speaker 1: zero percent intro period of like let's say fifteen or

862
00:37:49,200 --> 00:37:51,200
Speaker 1: eighteen months, and they're ready to to pay off their

863
00:37:51,200 --> 00:37:54,279
Speaker 1: debt quickly, well, this can mean no interest payments on

864
00:37:54,520 --> 00:37:56,399
Speaker 1: the majority of that debt for a long period of time.

865
00:37:56,680 --> 00:37:58,840
Speaker 1: And so we just wrote an article about the best

866
00:37:58,920 --> 00:38:01,680
Speaker 1: balanced transfer credit cards. It's up on our site at

867
00:38:01,680 --> 00:38:04,160
Speaker 1: how to money dot com. For folks that specifically are

868
00:38:04,200 --> 00:38:06,120
Speaker 1: interested in a card like that, and we outline the

869
00:38:06,120 --> 00:38:08,080
Speaker 1: ones that are going to charge the fewest fees so

870
00:38:08,120 --> 00:38:11,200
Speaker 1: that when you make that transfer, your payments are working

871
00:38:11,200 --> 00:38:13,440
Speaker 1: to pay off your debt. They're not going towards the

872
00:38:13,440 --> 00:38:15,680
Speaker 1: bottom line of the credit card companies. And if you

873
00:38:15,880 --> 00:38:18,279
Speaker 1: currently have a credit card and that's one of the

874
00:38:18,320 --> 00:38:20,520
Speaker 1: major debts that you're looking to pay off, well, another

875
00:38:20,760 --> 00:38:23,320
Speaker 1: hack that you can do is to call your credit

876
00:38:23,320 --> 00:38:26,000
Speaker 1: card company and ask for help. Whether it's a credit

877
00:38:26,000 --> 00:38:28,960
Speaker 1: card company or another creditor, they're often procedures in place

878
00:38:29,280 --> 00:38:31,480
Speaker 1: for people they call and ask for help. Matt. We've

879
00:38:31,480 --> 00:38:34,440
Speaker 1: talked about asking for a discount before. This is asking

880
00:38:34,480 --> 00:38:37,480
Speaker 1: for potentially a lower interest rate on your debt, which

881
00:38:37,560 --> 00:38:38,600
Speaker 1: is going to help you to be able to pay

882
00:38:38,600 --> 00:38:40,680
Speaker 1: it off more quickly. And Matt, one example I wanted

883
00:38:40,680 --> 00:38:43,080
Speaker 1: to mention is let's say you've got a student loan

884
00:38:43,480 --> 00:38:46,480
Speaker 1: through a company like so FI, and one of the

885
00:38:46,520 --> 00:38:49,640
Speaker 1: coolest benefits that they offer is help if you lose

886
00:38:49,640 --> 00:38:53,080
Speaker 1: your job. Not only will they provide actual assistance for

887
00:38:53,200 --> 00:38:56,200
Speaker 1: you looking for employment, but what they'll do is they'll say,

888
00:38:56,239 --> 00:38:57,439
Speaker 1: you know what, you don't have to pay your loan

889
00:38:57,719 --> 00:39:00,000
Speaker 1: for the next six months while you're looking for employment,

890
00:39:00,000 --> 00:39:02,760
Speaker 1: it and so stuff like that. It's out there depending

891
00:39:02,760 --> 00:39:04,960
Speaker 1: on who you're doing business with and what sort of

892
00:39:05,000 --> 00:39:07,600
Speaker 1: programs are in place. It's just worth it to ask

893
00:39:07,840 --> 00:39:10,360
Speaker 1: whoever you have debt with to see if there's some

894
00:39:10,400 --> 00:39:12,600
Speaker 1: sort of way that they can can help you along

895
00:39:12,640 --> 00:39:15,719
Speaker 1: the process. Yeah. On the note of lower interest rates

896
00:39:15,719 --> 00:39:18,360
Speaker 1: as well, Man, we would recommend for folks to consider

897
00:39:18,520 --> 00:39:21,880
Speaker 1: checking out maybe some alternatives to credit cards. If you

898
00:39:21,920 --> 00:39:24,880
Speaker 1: have a home, you can consider a helock home equity

899
00:39:24,960 --> 00:39:26,920
Speaker 1: line of credits. You're going to be able to get

900
00:39:26,920 --> 00:39:29,720
Speaker 1: a lower rate. Obviously, there's going to be some risks

901
00:39:29,760 --> 00:39:32,160
Speaker 1: associated with that. You're taking your debt and you're tying

902
00:39:32,200 --> 00:39:34,760
Speaker 1: it to your property. That debt is now a secure

903
00:39:34,840 --> 00:39:39,360
Speaker 1: debt because your home is collateral. So if you are really,

904
00:39:39,440 --> 00:39:42,120
Speaker 1: really sure that you're going to knock out that debt,

905
00:39:42,520 --> 00:39:44,759
Speaker 1: then that might be something that you can do. But

906
00:39:44,840 --> 00:39:46,520
Speaker 1: this does not need to be something that you you

907
00:39:46,560 --> 00:39:49,200
Speaker 1: take on lightly. Yeah, because it's one thing to not

908
00:39:49,239 --> 00:39:50,960
Speaker 1: be able to pay off a credit card. There are

909
00:39:51,000 --> 00:39:52,600
Speaker 1: certain rights that you have. You're not gonna lose your

910
00:39:52,600 --> 00:39:54,239
Speaker 1: house or get thrown in prison. For not being able

911
00:39:54,239 --> 00:39:56,080
Speaker 1: to pay your credit card debt. But if you tie

912
00:39:56,120 --> 00:39:58,279
Speaker 1: it to your home, if you refinance or you take

913
00:39:58,280 --> 00:40:02,080
Speaker 1: out a helock, that cau are that homes on the line. Dude, Yeah, exactly.

914
00:40:02,120 --> 00:40:03,919
Speaker 1: And so if you're gonna have trouble paying it off

915
00:40:04,440 --> 00:40:06,880
Speaker 1: with a helock, even if it lowers your interest rate,

916
00:40:07,280 --> 00:40:08,879
Speaker 1: don't do it because you don't want to lose your

917
00:40:08,880 --> 00:40:11,359
Speaker 1: home over credit card debt you were unable to pay.

918
00:40:11,440 --> 00:40:13,920
Speaker 1: That's right. And another option to consider is you can

919
00:40:13,960 --> 00:40:17,759
Speaker 1: always borrow money, maybe from a family member. This is

920
00:40:17,840 --> 00:40:20,680
Speaker 1: something that it just depends on who you are and

921
00:40:20,719 --> 00:40:23,520
Speaker 1: what your relationships are with your you know, those in

922
00:40:23,560 --> 00:40:26,320
Speaker 1: your family, because it can get awkward. In many cases,

923
00:40:26,400 --> 00:40:28,880
Speaker 1: it isn't worth the possible harm that could come to

924
00:40:29,080 --> 00:40:31,919
Speaker 1: that relationship. But if your credit score is really low,

925
00:40:32,040 --> 00:40:35,280
Speaker 1: that might be your only option for lowering any super

926
00:40:35,360 --> 00:40:39,640
Speaker 1: high interest rates that you might have, So definitely consider that. Yeah, Matt.

927
00:40:39,680 --> 00:40:42,520
Speaker 1: If someone submitted and ask htm question for the shows

928
00:40:42,520 --> 00:40:44,480
Speaker 1: where we answer listener questions and said, hey, should I

929
00:40:44,520 --> 00:40:46,600
Speaker 1: loan money to a family or friend, I think we

930
00:40:46,600 --> 00:40:48,680
Speaker 1: would probably say don't do it? Or if you do,

931
00:40:48,920 --> 00:40:50,359
Speaker 1: know that there's a good chance that you don't get

932
00:40:50,400 --> 00:40:52,480
Speaker 1: paid back all together, and just kind of go into

933
00:40:52,560 --> 00:40:56,200
Speaker 1: that loan situation knowing that's the case. But if someone

934
00:40:56,400 --> 00:40:58,359
Speaker 1: has a really low credit score, if they don't have

935
00:40:58,400 --> 00:41:01,520
Speaker 1: that many options, this might be the best option for them,

936
00:41:01,560 --> 00:41:04,320
Speaker 1: if they have a good relationship with a friend or

937
00:41:04,320 --> 00:41:06,560
Speaker 1: family member that is willing to help them out in

938
00:41:06,600 --> 00:41:08,799
Speaker 1: this way. So, yeah, those are some ways that you

939
00:41:08,840 --> 00:41:12,800
Speaker 1: can approach lowering potentially your overall rate of interest, some

940
00:41:12,920 --> 00:41:15,160
Speaker 1: moves that you can make to help accelerate that debt

941
00:41:15,160 --> 00:41:17,879
Speaker 1: payoff plan, and yeah, crush that debt once and for all. Yeah,

942
00:41:17,880 --> 00:41:19,400
Speaker 1: And it's important to keep in mind as well that

943
00:41:19,440 --> 00:41:21,480
Speaker 1: these are things that you want to consider after you

944
00:41:21,520 --> 00:41:23,600
Speaker 1: have a solid plan in place, like these are these

945
00:41:23,600 --> 00:41:25,319
Speaker 1: are the little tweaks. Right, Like last week we talked

946
00:41:25,360 --> 00:41:27,080
Speaker 1: about frugality and how we need to focus on the

947
00:41:27,120 --> 00:41:29,480
Speaker 1: big things. Well, in this case, the big thing is

948
00:41:29,520 --> 00:41:33,239
Speaker 1: creating that plan and really getting after it. These these

949
00:41:33,280 --> 00:41:35,920
Speaker 1: little tips and tricks, these are the little tweaks. This

950
00:41:36,000 --> 00:41:38,640
Speaker 1: is the frugality aspect of paying down your debt. They

951
00:41:38,680 --> 00:41:41,200
Speaker 1: are certainly things that could make a pretty big impact

952
00:41:41,400 --> 00:41:44,200
Speaker 1: and really help you along and provide some encouragement and

953
00:41:44,239 --> 00:41:46,000
Speaker 1: make it possible for you to pay down that debt,

954
00:41:46,200 --> 00:41:48,520
Speaker 1: but first you do need to have a solid plan

955
00:41:48,600 --> 00:41:52,120
Speaker 1: in place for these additional pieces to kind of slot in. Yeah,

956
00:41:52,120 --> 00:41:54,160
Speaker 1: I completely agree. And you know what, for anybody out

957
00:41:54,160 --> 00:41:57,400
Speaker 1: there who is it's experiencing a load of debt that

958
00:41:57,600 --> 00:41:59,960
Speaker 1: is uncomfortable, well, best of luck to you and creating

959
00:42:00,000 --> 00:42:02,040
Speaker 1: a debt payoff plan. I feel like having this plan

960
00:42:02,160 --> 00:42:04,680
Speaker 1: sometimes can help you at least have this target to

961
00:42:04,680 --> 00:42:07,120
Speaker 1: aim at, and it can make a huge difference in

962
00:42:07,120 --> 00:42:09,839
Speaker 1: in helping you actually achieve being rid of it as

963
00:42:09,840 --> 00:42:11,920
Speaker 1: opposed to kind of feeling like you're in this quicksand

964
00:42:11,960 --> 00:42:13,920
Speaker 1: scenario and you don't know how to get out. The

965
00:42:14,000 --> 00:42:16,239
Speaker 1: plan is like the rope in Princess Bride that helps

966
00:42:16,280 --> 00:42:18,640
Speaker 1: you get out of the quicksand it is right, that's

967
00:42:18,680 --> 00:42:21,239
Speaker 1: exactly what that debt payoff plane is as you win.

968
00:42:23,200 --> 00:42:25,719
Speaker 1: All right, it's it's beer time. Let's take a back

969
00:42:25,719 --> 00:42:28,680
Speaker 1: to the beer. This episode, you and I shared a

970
00:42:28,880 --> 00:42:31,960
Speaker 1: barrel aged YETI Imperial Stouts. I want to say this

971
00:42:32,040 --> 00:42:35,200
Speaker 1: can it's it's brown and gold and it's like perfect

972
00:42:35,239 --> 00:42:37,319
Speaker 1: for for the way this beer tastes. And I want

973
00:42:37,320 --> 00:42:38,680
Speaker 1: to mention to you the way it poured, and it

974
00:42:38,760 --> 00:42:42,239
Speaker 1: poured pitch black, and at the same time, it had

975
00:42:42,320 --> 00:42:46,000
Speaker 1: this amazingly dark brown head. It looked like crema, Like

976
00:42:46,040 --> 00:42:48,839
Speaker 1: if you've ever gotten an espresso where you know the

977
00:42:48,840 --> 00:42:51,439
Speaker 1: the espresso bubbles, like the little cream at the top,

978
00:42:51,640 --> 00:42:54,719
Speaker 1: they call it crema. A little insider knowledge for you, exactly.

979
00:42:55,080 --> 00:42:58,560
Speaker 1: But I couldn't get over how richly brown that head

980
00:42:58,680 --> 00:42:59,840
Speaker 1: was on his beer. And every time I kind of

981
00:43:00,000 --> 00:43:02,120
Speaker 1: world it, it it almost had like some red notes in

982
00:43:02,200 --> 00:43:04,799
Speaker 1: it looked amazing. But yeah, what were your thoughts on

983
00:43:04,840 --> 00:43:07,080
Speaker 1: how this spear tasted? Man, this beer was so good.

984
00:43:07,120 --> 00:43:10,280
Speaker 1: It had these nice boozy barrel notes on an already

985
00:43:10,320 --> 00:43:13,479
Speaker 1: delicious stout. I felt like the stout was chock full

986
00:43:13,640 --> 00:43:17,000
Speaker 1: of bitter, dark chocolate vibes and that paired so well

987
00:43:17,080 --> 00:43:19,920
Speaker 1: with the sweetness coming through from the whiskey barrel that

988
00:43:19,960 --> 00:43:21,520
Speaker 1: it was aged in. So in my mind, if you

989
00:43:21,520 --> 00:43:24,640
Speaker 1: get the dark chocolate, bitter stout combined with aging in

990
00:43:24,640 --> 00:43:27,400
Speaker 1: whiskey barrels, it's that perfect pairing, it's that perfect marriage.

991
00:43:27,440 --> 00:43:28,759
Speaker 1: And that's what that's what this beer was. It was

992
00:43:28,760 --> 00:43:30,800
Speaker 1: so good. Yeah, it's really good. It was Asian whiskey

993
00:43:30,840 --> 00:43:32,440
Speaker 1: barrels and I feel like you could tell that it

994
00:43:32,480 --> 00:43:34,839
Speaker 1: wasn't Asian and bourbon barrels, because typically I think when

995
00:43:34,880 --> 00:43:37,680
Speaker 1: you get bourbon, it's a little bit sweeter, and this

996
00:43:37,800 --> 00:43:39,960
Speaker 1: stout drink a little dryer to me, like it had

997
00:43:40,000 --> 00:43:43,719
Speaker 1: a ton of flavor, but it wasn't. It wasn't overly sweet,

998
00:43:43,800 --> 00:43:45,400
Speaker 1: a little bit on the dry side, and so it

999
00:43:45,440 --> 00:43:47,399
Speaker 1: kind of reminds me of like that fancier chocolate where

1000
00:43:47,400 --> 00:43:49,319
Speaker 1: it's like eight percent caw cow or is that how

1001
00:43:49,360 --> 00:43:52,200
Speaker 1: you say it, you say calco cocoa. I don't know.

1002
00:43:52,239 --> 00:43:53,880
Speaker 1: It's a spelled like cal cow, and I don't think

1003
00:43:53,880 --> 00:43:55,719
Speaker 1: I use that word very often. I don't know either,

1004
00:43:56,719 --> 00:43:58,680
Speaker 1: But you know the fancy chocolate where it's there's zero

1005
00:43:58,680 --> 00:44:00,839
Speaker 1: sweetness going on at all. That's what I picked up

1006
00:44:00,840 --> 00:44:04,000
Speaker 1: out of it. It just had incredibly deep flavor notes

1007
00:44:04,440 --> 00:44:06,880
Speaker 1: and I really enjoyed it. All right, man, Well is

1008
00:44:06,880 --> 00:44:08,480
Speaker 1: that going to be it for this episode? That's gonna

1009
00:44:08,520 --> 00:44:10,200
Speaker 1: do it. Let's wrap it up, all right. For folks

1010
00:44:10,200 --> 00:44:11,880
Speaker 1: that want more money information, well, you can go to

1011
00:44:11,920 --> 00:44:13,680
Speaker 1: our website at how to money dot com and we'll

1012
00:44:13,719 --> 00:44:16,960
Speaker 1: also have show notes up for this episode. All right, man, Well,

1013
00:44:16,960 --> 00:44:20,040
Speaker 1: that's gonna do it, Joel until next time. Best friends out,

1014
00:44:20,080 --> 00:44:21,280
Speaker 1: best friends out,