WEBVTT - Friday Flight - College Cost Cutting, Predictive Credit Scores, & Work Perk Pruning #1134 0:00:00.120 --> 0:00:03.320 Welcome to had the Money. I'm Joel, I'm Matt. Today 0:00:03.400 --> 0:00:07.560 we're talking college cost cutting, predictive credit scores, and work 0:00:07.600 --> 0:00:27.800 perk pruning. Yeah, Joel. 0:00:28.040 --> 0:00:29.760 The thing with pruning is I don't think a lot 0:00:29.760 --> 0:00:33.240 of people. Nobody likes pruning, right, but oftentimes it does 0:00:33.360 --> 0:00:35.519 lead to healthier long term. 0:00:35.320 --> 0:00:37.280 Results if you prune it the right time. 0:00:38.240 --> 0:00:39.640 Yes, if you punt at the right time, if you 0:00:39.680 --> 0:00:41.240 don't over prune, see some yard guys. 0:00:41.280 --> 0:00:43.680 If you do it methodically, pruning too late in the season, 0:00:43.760 --> 0:00:46.080 you're like, no, no, man, you just the blooms are 0:00:46.080 --> 0:00:48.120 already on the flout or on the bush, like, don't, 0:00:48.159 --> 0:00:51.320 don't trim now. But yeah, it's I've always been amazed too, 0:00:51.360 --> 0:00:54.360 and how far you can prune certain things back and 0:00:54.400 --> 0:00:57.080 then how beastly they'll grow the next season. Still I'm 0:00:57.160 --> 0:00:58.800 just like, oh my god, you took it down to 0:00:58.840 --> 0:01:00.920 the nubs and it's still got huge. You're thinking of 0:01:01.040 --> 0:01:03.200 my hydrangees are like that, Well, yeah, they're made to 0:01:03.240 --> 0:01:03.760 be print back. 0:01:03.840 --> 0:01:06.160 Hydrangees creat myrtles in a similar way where you're just like, 0:01:06.280 --> 0:01:08.440 that's not going to live. Yeah, and then next year 0:01:08.440 --> 0:01:10.280 you're like, oh my gosh, which I want to print 0:01:10.280 --> 0:01:11.920 them back even more. Thought you tuned into the lawn 0:01:11.959 --> 0:01:14.840 and Gardens show, didn't get everybody before you know, yeah, 0:01:14.880 --> 0:01:17.120 we'll start talking about this old house territory. 0:01:17.440 --> 0:01:20.200 No, you want to talk about soccer. I just I 0:01:20.280 --> 0:01:23.800 just well, it's been fascinating to see. I just saw 0:01:23.880 --> 0:01:26.840 there was there are US tickets to the next US 0:01:26.880 --> 0:01:31.120 match in I forget what city they're going to be in, 0:01:31.440 --> 0:01:33.959 but there's still there's still tickets available. Do you want 0:01:33.959 --> 0:01:35.880 to know why they're still tickets available even though everyone's 0:01:35.920 --> 0:01:38.560 rabbit about this World Cup in North America because they're 0:01:38.560 --> 0:01:41.600 two dang expensive, super high prices and the World Cup 0:01:41.680 --> 0:01:44.400 man like FIFA just they're they're trying to see how 0:01:44.480 --> 0:01:47.320 much money they can make on this. The other fascinating thing, 0:01:47.319 --> 0:01:50.600 people are spending so much money on World Cup tickets 0:01:50.800 --> 0:01:54.880 that they're reticent to spend big money on lodging when 0:01:55.040 --> 0:01:57.920 they're going to a town to watch some soccer. And 0:01:58.000 --> 0:02:01.080 so what I thought, like, low, where we live, we're 0:02:01.120 --> 0:02:03.120 gonna have some matches. I was like, man, this is 0:02:03.160 --> 0:02:05.800 gonna be It's gonna be awesome for anybody who wants 0:02:05.880 --> 0:02:08.079 is in the short term rental game. Yeah, the Airbnb game, 0:02:08.160 --> 0:02:10.119 and apparently it's not panning out as well as they hope. 0:02:10.120 --> 0:02:12.960 There was an article that I saw about hosts feeling 0:02:13.040 --> 0:02:15.280 the pain. They've put a lot of money into upgrading 0:02:15.320 --> 0:02:18.440 their place listing and making a great listing and thinking, 0:02:18.520 --> 0:02:21.079 oh man, I'm gonna cash in during the World Cup 0:02:21.080 --> 0:02:23.440 and then I'll just keep keep this this place around 0:02:23.480 --> 0:02:27.119 for the long term afterwards. But they're crickets in terms 0:02:27.160 --> 0:02:30.200 of booking their place because people are just reticent to 0:02:30.200 --> 0:02:33.200 spend that much money on especially when the tickets cost 0:02:33.280 --> 0:02:34.560 so much. So I don't know if they're going to 0:02:34.600 --> 0:02:37.880 like pitch their tent in downtown, like near the arena 0:02:37.960 --> 0:02:39.799 or something like that, but for those last minute deals 0:02:39.800 --> 0:02:42.400 maybe yeah. I'll be curious to see what happens. And 0:02:42.600 --> 0:02:45.440 I just wish that these events were not such a 0:02:45.560 --> 0:02:47.480 money grab and that people could go watch some great 0:02:47.520 --> 0:02:50.480 soccer and not you know, have to fork over their 0:02:50.480 --> 0:02:52.240 retirement savings to make it happen. I get it. 0:02:52.280 --> 0:02:53.520 Do you think any of this has to do with 0:02:53.600 --> 0:02:55.280 just the uncertainty in the world as far as like 0:02:55.320 --> 0:02:58.720 the war? Maybe straight of horror moves, which, to be honest, 0:02:58.720 --> 0:03:00.240 I feel like we haven't heard much about folks. 0:03:00.360 --> 0:03:02.480 Folks have kind of moved on from them. They're like, Okay, 0:03:02.480 --> 0:03:04.680 what's the next big story. It's not dominating the headlines 0:03:04.680 --> 0:03:06.680 like it was, but yeah, you know, there's still it 0:03:06.720 --> 0:03:08.480 still leads to a lot to be watching over. 0:03:08.400 --> 0:03:11.320 There business uncertainty, which I think does trickle down to 0:03:11.760 --> 0:03:15.240 main Street, right where folks feel that uncertainty, aren't totally 0:03:15.280 --> 0:03:17.239 sure what's going to be going on. So maybe I 0:03:17.280 --> 0:03:19.960 should keep my money, you know, in my bank account 0:03:19.960 --> 0:03:23.280 and watch the soccer on TV. Perhaps, just yeah, I 0:03:23.280 --> 0:03:26.120 mean with travel costs, the cost of gasoline, you know, 0:03:26.240 --> 0:03:29.040 back back at all time highs jet Field, Yeah, I 0:03:29.360 --> 0:03:30.040 don't know, which. 0:03:29.880 --> 0:03:33.240 We talked about on Wednesday with Kyle Potter and that's right. Yeah, man, 0:03:33.320 --> 0:03:35.440 so much good information if you're like, I'm trying to 0:03:35.440 --> 0:03:37.280 travel this summer and I want to do so cheaply. 0:03:37.640 --> 0:03:41.440 Kyle's pretty throber in his assessment thrifty traveler. Yeah, they 0:03:41.480 --> 0:03:42.240 know what's up over there. 0:03:42.520 --> 0:03:45.000 All right, let's talk about higher education because we've been 0:03:45.840 --> 0:03:47.800 I feel like we've been questioning the value of a 0:03:47.880 --> 0:03:49.400 college degree more in recent years. 0:03:49.480 --> 0:03:51.560 For sure here on the show. 0:03:52.120 --> 0:03:55.800 When costs rise significantly, it's I think it's smart to 0:03:55.880 --> 0:03:58.240 question whether it's still worth a price, and in many 0:03:58.240 --> 0:04:01.000 cases it still is, but it's just not nearly as 0:04:01.040 --> 0:04:03.720 clear cut a decision as it used to be. And 0:04:03.880 --> 0:04:08.000 one way to steer the choice in your favor, specifically 0:04:08.000 --> 0:04:11.320 when you're looking at your personal finance, is to reduce 0:04:11.360 --> 0:04:13.560 the cost as well as the time that it takes 0:04:13.600 --> 0:04:14.320 to get your degree. 0:04:14.360 --> 0:04:16.559 Time is money, Matt, That's that's what they say. 0:04:17.080 --> 0:04:20.200 Some schools are offering a three year bachelor's degree now, 0:04:20.600 --> 0:04:23.680 which is going to appeal to many folks, But a 0:04:23.680 --> 0:04:24.679 lot of folks are calling. 0:04:24.480 --> 0:04:28.200 This degree hacking, most overused word in the English language US, 0:04:28.360 --> 0:04:31.599 but still we've been using it to describe anything I 0:04:31.640 --> 0:04:34.080 feel like for the past eight years in particular. But 0:04:34.680 --> 0:04:36.040 this is apparently a thing. 0:04:36.279 --> 0:04:41.200 Some online universities are now allowing people to take unlimited classes, 0:04:41.480 --> 0:04:44.799 leading to some folks who enter the program to finish 0:04:44.800 --> 0:04:49.160 their coursework in months, not years. So the University of 0:04:49.200 --> 0:04:51.640 Maine is one of the leaders who is offering this. 0:04:52.279 --> 0:04:56.040 It's this they're calling it your Pace program, and they've 0:04:56.080 --> 0:04:58.640 reported that some folks are even finishing it in eight weeks, 0:04:58.960 --> 0:05:00.560 which makes me think that. 0:05:00.720 --> 0:05:03.160 I'm not totally sure if it's sinking in much did 0:05:03.200 --> 0:05:04.240 you really learn? Yeah? Yeah? 0:05:04.279 --> 0:05:06.640 How much did you actually use chat to do all 0:05:06.680 --> 0:05:09.880 of your coursework for you? This is an argument for 0:05:10.000 --> 0:05:12.680 the Hey, a degree is not the same thing as 0:05:12.720 --> 0:05:15.719 an education, right, Like, you are there on one hand, 0:05:15.760 --> 0:05:18.799 you're getting credentials, but what we're looking for here is competence. 0:05:19.000 --> 0:05:20.400 And I think there's a whole lot of folks who 0:05:20.920 --> 0:05:26.200 maybe entering the workforce or feeling like they're there. Certainly 0:05:26.240 --> 0:05:30.440 are investing in their careers, but are they more competent. 0:05:30.480 --> 0:05:30.920 I don't know. 0:05:31.000 --> 0:05:33.479 To me, it feels a lot like cramming for a 0:05:33.560 --> 0:05:36.840 test and just being able to regurgitate the information as 0:05:36.839 --> 0:05:40.160 opposed to being able to engage with the ideas, right 0:05:40.200 --> 0:05:42.280 like where you're grappling with some of the concept that 0:05:42.400 --> 0:05:45.159 concepts that you've learned and thinking through how can I 0:05:45.160 --> 0:05:48.200 apply these principles to better myself, better my company, better 0:05:48.240 --> 0:05:48.560 the world. 0:05:48.640 --> 0:05:50.480 I think when most folks go back to get a 0:05:50.560 --> 0:05:54.000 higher education, they are looking for competence. They're not just 0:05:54.000 --> 0:05:56.240 looking for the credential. They're not just looking for the 0:05:56.320 --> 0:05:58.560 degree and more of the letters after their name. But 0:05:58.600 --> 0:06:02.240 I do think some people just want the credential and yeah, 0:06:02.600 --> 0:06:04.360 that makes sense, Like I kind of understand that. So 0:06:04.440 --> 0:06:06.080 you have to just understand what it is that you're 0:06:06.080 --> 0:06:09.760 looking for. You know, we've talked about how teachers can 0:06:09.880 --> 0:06:12.800 make more money. Let's say if they have a master's 0:06:12.800 --> 0:06:17.200 degree to their name versus just an undergrad and hey, 0:06:17.440 --> 0:06:19.920 if I can get that done in eight weeks, just 0:06:19.960 --> 0:06:24.240 like going hard, I care more about the credential potentially 0:06:24.240 --> 0:06:26.480 in that case, I don't. I'm just like, not everyone 0:06:26.520 --> 0:06:28.960 is looking for the same thing, and so I think 0:06:28.960 --> 0:06:31.000 it's kind of cool this exists that you can save 0:06:31.040 --> 0:06:32.920 a lot of time and money and still get that degree. 0:06:33.160 --> 0:06:35.880 But it's certainly it's certainly not for everyone. And I 0:06:35.920 --> 0:06:39.400 am curious to see if maybe some of these universities 0:06:39.440 --> 0:06:41.680 look into maybe they were like not expecting people to 0:06:41.680 --> 0:06:44.159 finish that that fast, and they're like, maybe throw some 0:06:44.160 --> 0:06:44.760 more guardrails. 0:06:44.800 --> 0:06:49.880 This is not what we intended. But congrats, I'm setting 0:06:49.920 --> 0:06:52.000 a course record, is. 0:06:52.000 --> 0:06:55.320 Againness world record. Congratulations. Well, and if you graduated a 0:06:55.360 --> 0:06:58.120 while back and you have student loan debt, you're you're 0:06:58.120 --> 0:07:00.599 obviously not alone, right, This is a regular feature of 0:07:00.640 --> 0:07:04.960 modern American life and refinancing into a private student loan 0:07:05.040 --> 0:07:08.760 has always come with big potential pitfalls. It's something we 0:07:08.800 --> 0:07:12.000 don't talk about a lot because for most people, especially 0:07:12.080 --> 0:07:16.440 during the pandemic and the years of not needing to 0:07:16.440 --> 0:07:18.600 make a payment, it didn't make any sense, right, it 0:07:18.640 --> 0:07:22.440 was like just completely it wasn't worth discussing. But the 0:07:22.440 --> 0:07:26.800 benefits for some might outweigh the downsides. Right now, some 0:07:26.920 --> 0:07:30.880 lenders are advertising rates as low as three percent, actually 0:07:30.880 --> 0:07:33.320 some even a touch below three percent on private student 0:07:33.320 --> 0:07:36.520 loans the twos, which is crazy. It's impressive. Who thought 0:07:36.520 --> 0:07:37.720 you were going to see a rate like that, right, 0:07:37.760 --> 0:07:42.320 it feels like it feels so twenty eighteen, But federal 0:07:42.400 --> 0:07:44.120 rates are close to six and a half percent. So 0:07:44.160 --> 0:07:46.880 it just shows what a disparity there is. That's like 0:07:47.080 --> 0:07:50.480 somewhat misleading though, because most people don't qualify for the 0:07:50.520 --> 0:07:54.480 best rates many often there's like one guy that qualifies 0:07:54.520 --> 0:07:54.800 for those. 0:07:54.920 --> 0:07:57.200 Yeah, it's like for the rates as low as two 0:07:57.200 --> 0:07:59.480 point six five, there's this one guy called one guy. 0:08:00.080 --> 0:08:01.960 So you need to know that, Hey, those headline rates 0:08:01.960 --> 0:08:04.560 are not always widely available, right, and so you have 0:08:04.600 --> 0:08:06.920 to have you have to be a highly qualified borrow 0:08:06.960 --> 0:08:09.200 in order to get there. So often you need a 0:08:09.560 --> 0:08:12.960 highly qualified co signer to get the best rock bottom rate, 0:08:13.200 --> 0:08:16.200 So maybe we would not if if your mom called 0:08:16.240 --> 0:08:17.960 us and was like, hey, should I co sign, we 0:08:18.040 --> 0:08:20.440 might tell her to think again. But if you can 0:08:20.480 --> 0:08:22.600 find someone who's highly qualified to co sign with, you 0:08:22.640 --> 0:08:25.360 could help you get the best rates, and you know, 0:08:25.600 --> 0:08:28.320 a REFI could be a brilliant move if you can 0:08:28.440 --> 0:08:30.800 qualify for some of those rates. You're gonna need great 0:08:30.840 --> 0:08:33.720 credit right a low DTI ratio. You're also gonna need 0:08:33.720 --> 0:08:35.520 to choose a shorter loan, so you're gonna to be 0:08:35.559 --> 0:08:38.160 able to pay back that loan more quickly. But it is, 0:08:38.240 --> 0:08:40.280 i will say, for the first time in a long time, 0:08:40.679 --> 0:08:44.040 worth looking into, especially if you like don't owe a 0:08:44.080 --> 0:08:45.760 ton more on your student loans and you're looking to 0:08:45.760 --> 0:08:48.280 get rid of them as quickly as possible. Reducing the 0:08:48.320 --> 0:08:51.560 interest rates significantly by opting for a private student loan 0:08:51.880 --> 0:08:55.400 could make sense. Again. Yeah, there's borrow protections that you lose, 0:08:55.480 --> 0:08:57.600 know the trade offs before you commit, but it's just 0:08:57.679 --> 0:09:00.200 interesting to see this space come alive for the first 0:09:00.200 --> 0:09:01.240 time in a long time. Yeah. 0:09:01.280 --> 0:09:03.440 Well, you mentioned having a great credit score and how 0:09:03.480 --> 0:09:06.959 important that is. Let's continue that thread because more states 0:09:07.000 --> 0:09:11.559 are considering eliminating the use of credit scores in determining 0:09:11.800 --> 0:09:16.840 insurance premiums. So a few states Iowa, New York, Pennsylvania, 0:09:16.960 --> 0:09:20.680 and Oklahoma. They are all weighing bills that would eliminate 0:09:21.160 --> 0:09:23.800 credit based scores from being allowed to determine how much 0:09:23.920 --> 0:09:27.960 your premium is only a couple states or a few 0:09:28.040 --> 0:09:32.720 so California, Massachusetts, and why only those three states currently 0:09:32.800 --> 0:09:35.559 banned the practice of not taking credit scores into account 0:09:35.880 --> 0:09:38.760 and insurance companies they use credit scorses as part of 0:09:38.760 --> 0:09:41.199 their modeling right. They use it as part of their 0:09:41.240 --> 0:09:44.920 methodology for determining risk across most of the country, but 0:09:45.520 --> 0:09:48.920 that ends up creating disparity, and folks with low scores 0:09:49.120 --> 0:09:51.400 they pay far more in premiums. There's a report and 0:09:51.440 --> 0:09:53.600 it shows that there is a sixty nine percent difference 0:09:53.800 --> 0:09:56.720 between having a good versus bad credit score in what 0:09:56.760 --> 0:09:58.960 you're going to pay, which is in your premiums. Man, 0:09:59.000 --> 0:10:01.440 it's just a bad credit score or you talk about well, 0:10:01.480 --> 0:10:04.480 instead of paying thirty two hundred dollars, you know, every 0:10:04.520 --> 0:10:07.000 six months or annually for my car insurance, I'm paying 0:10:07.720 --> 0:10:09.920 fifty one hundred dollars and that's that's just a lot 0:10:09.960 --> 0:10:11.960 more money. Yeah, so this is one of the reasons 0:10:11.960 --> 0:10:17.040 we talk about maintaining a healthy high credit score, and 0:10:17.080 --> 0:10:19.240 we'll keep our eyes on whether these bills pass. But 0:10:19.280 --> 0:10:21.720 no matter what your your credit score, it still matters, 0:10:22.200 --> 0:10:25.559 even if insurance companies in your state might no longer 0:10:25.600 --> 0:10:28.640 be allowed to consider that when they're assessing risk, which 0:10:28.679 --> 0:10:31.040 then begs a question, right, like, how are they going 0:10:31.080 --> 0:10:34.040 to assess risk? Because even though this may may not 0:10:34.080 --> 0:10:36.959 be a perfect system, it's still a known way for 0:10:37.000 --> 0:10:39.079 you to pay attention to the some of the factors 0:10:39.120 --> 0:10:41.679 that that they're going to take into account when when 0:10:41.679 --> 0:10:43.920 they're trying to try to determine whether or. 0:10:43.920 --> 0:10:46.400 Not they can stay afloat. Essentially, right, when you look 0:10:46.400 --> 0:10:49.520 at the quotes from people in the insurance space, they're like, 0:10:50.000 --> 0:10:52.080 this isn't good for us, Like we need this data. 0:10:52.080 --> 0:10:54.480 Would you like us to continue to operate in your state? 0:10:54.559 --> 0:10:55.920 If so? So? 0:10:56.040 --> 0:10:59.760 I mean, that's one of the potential knock on downstream 0:10:59.760 --> 0:11:03.199 off of not being able to take credit score into account. 0:11:03.480 --> 0:11:05.520 I mean, and again, they're gonna look at other things. 0:11:05.720 --> 0:11:07.600 I'm guessing they're probably going to be more likely to 0:11:07.640 --> 0:11:10.439 look at some of the instances on your clue report, right, 0:11:10.520 --> 0:11:13.199 like how often do you file acclaim? When it comes 0:11:13.240 --> 0:11:16.120 to property homeowners insurance, They're probably going to be sending 0:11:16.160 --> 0:11:18.560 more drones out right, and it's like, oh, I hate 0:11:18.559 --> 0:11:20.120 the drones. I hate that they're telling me what to do. 0:11:20.200 --> 0:11:22.200 And it's just like, well, they got to find a 0:11:22.200 --> 0:11:24.760 way to make sure that everyone is paying their fair 0:11:24.800 --> 0:11:26.679 share essentially, so yeah, we'll. 0:11:26.480 --> 0:11:30.480 See and yeah, the most highly qualified folks in those 0:11:30.480 --> 0:11:34.920 states are likely to see their premiums go up meaningfully, 0:11:34.080 --> 0:11:37.400 and so yeah, it's really is a pick your poison 0:11:37.440 --> 0:11:40.280 sort of mentality here. How do you want your insurance 0:11:40.320 --> 0:11:43.640 premium formula to come about? And I do think the 0:11:43.679 --> 0:11:46.800 credit score is helpful and it makes sense. And of course, 0:11:47.200 --> 0:11:49.160 yet you might be like Joel, you're so naive, like 0:11:49.160 --> 0:11:51.600 the of course the insurance company wants to be able 0:11:51.640 --> 0:11:53.560 to use credit scores, but I understand why they do, 0:11:53.640 --> 0:11:56.520 like it is a piece of data that that does 0:11:56.600 --> 0:12:01.200 tell us something about you as a person. And so yeah, 0:12:01.720 --> 0:12:04.400 we'll see what happens there. And speaking of credit scores, 0:12:04.640 --> 0:12:07.720 Fanny and Freddie are not using predictive credit scores to 0:12:07.760 --> 0:12:12.840 determine mortgage loan eligibility. These scores taken into account a 0:12:12.920 --> 0:12:16.920 wider range of activity than kind of the normal old 0:12:16.920 --> 0:12:20.720 school scores, including stuff like on time rent payments and 0:12:20.800 --> 0:12:24.560 whether you pay your utility bill. As agreed, I like this. 0:12:24.640 --> 0:12:28.760 I like having more information shoved into the credit score 0:12:29.080 --> 0:12:31.880 and still using the credit score right as a helpful barometer, 0:12:32.000 --> 0:12:35.160 but just having more inputs that have to deal with 0:12:35.800 --> 0:12:38.320 maybe less archaic stuff like did you pay your rent 0:12:38.360 --> 0:12:40.720 on time? Like that is a pretty good indicator. 0:12:40.760 --> 0:12:43.040 That include surveys of like your best friend be like, hey, 0:12:43.080 --> 0:12:44.360 did he pay you back on time? 0:12:44.480 --> 0:12:47.560 Right? Did he cover drinks last night? Oh? 0:12:47.600 --> 0:12:49.520 Man, he's such a generous person, Like he gets a 0:12:49.800 --> 0:12:52.480 if they starts crossing over from like just financial to 0:12:52.600 --> 0:12:55.400 like social score, like the Black Mere Episodeka a little. 0:12:55.240 --> 0:12:56.880 Bit, well yeah, I mean I'm even thinking like if 0:12:56.880 --> 0:12:58.679 they had data about whether or not you used a 0:12:58.760 --> 0:13:01.280 gambling app. They're not, this is not included, but think 0:13:01.320 --> 0:13:03.000 about how helpful that would be if you're trying to 0:13:03.040 --> 0:13:06.080 determine privacy. But to get into privacy issues, yes, so, 0:13:06.320 --> 0:13:08.960 I mean we know this. We talked about this regularly. 0:13:09.000 --> 0:13:12.319 The credit scoring model is not always intuitive, and a 0:13:12.320 --> 0:13:15.240 lot of folks assume that just doing the basics well, 0:13:15.240 --> 0:13:17.720 like paying their rent on time every month will improve 0:13:17.800 --> 0:13:20.800 their score. But for the longest time, it hasn't. That 0:13:20.840 --> 0:13:24.720 stuff isn't included. It doesn't impact how their know, how 0:13:24.720 --> 0:13:27.040 their credit score goes up, or what it looks like. 0:13:27.160 --> 0:13:30.880 It's I think we should be adjusting the scoring models, 0:13:31.240 --> 0:13:34.840 not on purpose to make unqualified buyers look better, but 0:13:34.880 --> 0:13:38.520 we should be incorporating more information that indicates whether individuals 0:13:38.559 --> 0:13:41.960 tend to pay bills and debts on time and so. Yeah, 0:13:42.120 --> 0:13:44.520 I think the use of these predictive credit scores is 0:13:44.520 --> 0:13:47.000 actually going to be a good thing. Buy Now, Pay 0:13:47.080 --> 0:13:49.520 Later is going to be more incorporated too. That's not 0:13:49.559 --> 0:13:52.040 going to help everyone, but it will provide a clearer 0:13:52.080 --> 0:13:54.200 picture when we're talking about risk assessment. 0:13:54.360 --> 0:13:57.040 Yeah, especially as more folks are using buy Now, Pay Later, 0:13:57.080 --> 0:13:59.559 even though it's not our favorite, it's like, Okay, you're 0:13:59.559 --> 0:14:01.880 gonna start considering the data from that. I see now 0:14:01.960 --> 0:14:04.360 how that might actually end up being able to not 0:14:04.400 --> 0:14:06.640 only serve individuals, but then some of these companies as well, 0:14:06.640 --> 0:14:07.760 who are trying. 0:14:07.440 --> 0:14:08.200 To assess risk. 0:14:08.520 --> 0:14:10.800 The fact that you that they're calling this the predictive 0:14:10.840 --> 0:14:14.520 models made me think of the pre cogs from Minority Report. 0:14:14.520 --> 0:14:16.240 Did you ever watch that? Yeah, we talked about. 0:14:16.000 --> 0:14:18.960 That before, so that's you know, and I mentioned that 0:14:18.960 --> 0:14:21.400 the Black Mirror episode, right, Like, that's where it actually 0:14:21.440 --> 0:14:23.960 does start feeling a little dystopian a little bit, where 0:14:23.960 --> 0:14:25.640 it's just like, oh, we're going to use this data 0:14:25.720 --> 0:14:28.000 and project into the future whether or not you're going 0:14:28.080 --> 0:14:31.320 to do what you've intended, and where do you draw 0:14:31.400 --> 0:14:33.080 the line? So like, I don't know if folks haven't 0:14:33.080 --> 0:14:35.920 seen the movie what like, they end up getting rid 0:14:35.960 --> 0:14:40.360 of that program because of the ethical moral dilemma of like, well, 0:14:40.360 --> 0:14:42.920 they didn't actually do it yet, so even though they 0:14:42.920 --> 0:14:46.200 were pre cogging, you know, telling the future that actually, no, 0:14:46.280 --> 0:14:49.160 you were going to commit and there's commit murders, there's yeah, 0:14:49.160 --> 0:14:51.720 there's one thing about pre cogging someone like you were 0:14:51.720 --> 0:14:53.160 going to commit that crime. It's like, yeah, but I 0:14:53.160 --> 0:14:56.120 haven't committed it yet. But it's another thing to say, well, 0:14:56.240 --> 0:14:59.200 let me look at some of your path you've actually done, 0:14:59.280 --> 0:15:00.840 so I can determine and whether or not I should 0:15:00.880 --> 0:15:03.840 loan you lots of money for this house you're looking 0:15:03.840 --> 0:15:05.080 to buy or this car you're looking at. 0:15:04.960 --> 0:15:07.560 It's called due diligence. That's due diligence, like you just 0:15:07.680 --> 0:15:09.520 you have to have a system like that, or ultimately 0:15:09.520 --> 0:15:11.200 what's going to happen is people aren't going to be 0:15:11.240 --> 0:15:14.800 able to access some of the modes of debt that 0:15:14.840 --> 0:15:17.800 they've gotten accustomed to using. And I don't know, in 0:15:17.800 --> 0:15:19.880 some ways that would be ultimately better for a lot 0:15:19.920 --> 0:15:23.720 of people who have too much rope to hang themselves. 0:15:23.800 --> 0:15:25.640 Right, But that's amount that. Yeah, that's when that's when 0:15:25.640 --> 0:15:27.400 you're like, well, this is why we can't have nice things. 0:15:27.760 --> 0:15:27.960 Yeah. 0:15:28.360 --> 0:15:30.720 And I'll also say there's a big difference between committing 0:15:30.760 --> 0:15:34.120 murder and paying your utility bill. Ye, right, one of 0:15:34.160 --> 0:15:37.720 these is much more frowned upon in our society than 0:15:37.760 --> 0:15:39.200 the other. You don't go to you know, go to 0:15:39.280 --> 0:15:40.680 jail for not paying your rent. 0:15:40.760 --> 0:15:44.160 No, no, you don't. Uh, okay, let's talk about scams 0:15:44.160 --> 0:15:48.120 about the FTC had a few helpful pressure releases recently, 0:15:48.120 --> 0:15:51.440 that one about credit cards. One was to warn people 0:15:51.520 --> 0:15:55.320 against like completely ridiculous offers to lower your credit card 0:15:55.360 --> 0:15:58.040 interest rate. Basically, if you had a call from a 0:15:58.080 --> 0:16:00.480 helpful person who wants to lower the interest on your 0:16:00.520 --> 0:16:02.640 credit card, just hang up on them. It's a scammer. 0:16:03.120 --> 0:16:04.920 You might think It might sound like it's someone from 0:16:04.920 --> 0:16:08.200 your credit card company, but it's not. It's basically they're 0:16:08.240 --> 0:16:11.160 after personal information or they're trying to get you to 0:16:11.200 --> 0:16:14.160 pay them money with promises to help reduce your debt 0:16:14.240 --> 0:16:18.400 or your interest rate. It's totally fake. The flip side 0:16:18.400 --> 0:16:20.360 of this, Matt, is that you actually might be able 0:16:20.360 --> 0:16:23.000 to get your interest rate lowered on your credit card. 0:16:23.040 --> 0:16:25.840 And I'll tell folks, if you call your credit card company. Yeah, 0:16:25.880 --> 0:16:27.680 so you're just speaking of the wrong person when the 0:16:27.680 --> 0:16:30.200 scammer calls. You call your credit card company. Don't wait 0:16:30.240 --> 0:16:33.200 for them to come to you, because that's the wrong person. Yes, 0:16:33.280 --> 0:16:35.960 you need to be the proactive party here. And I 0:16:36.000 --> 0:16:38.360 love the idea we've talked about just credit card interest 0:16:38.400 --> 0:16:42.040 rates going up like clockwork, which has definitely been the 0:16:42.040 --> 0:16:43.920 case over the past five or six years. But you 0:16:44.000 --> 0:16:46.680 really might be able to legitimately get an APR reduction 0:16:47.320 --> 0:16:49.880 just by asking, just by calling up. We want you 0:16:49.920 --> 0:16:52.720 to pay off your debt quickly, but asking for a 0:16:52.800 --> 0:16:55.240 real lower rate directly from your credit card company, that 0:16:55.240 --> 0:16:57.360 could help you make more progress faster. Yeah. 0:16:57.440 --> 0:17:00.760 The problem is that I think the type of behaviors 0:17:00.840 --> 0:17:03.840 that would cause someone to do that right, being proactive, 0:17:04.760 --> 0:17:07.800 like coming up with the plan, finding the number to 0:17:07.920 --> 0:17:10.320 call the bank or the credit card company, and navocate 0:17:10.320 --> 0:17:13.360 for yourself. Those same behaviors. I feel like we tend 0:17:13.359 --> 0:17:15.680 to see folks away from getting into credit card debt. 0:17:15.600 --> 0:17:16.240 In the first place. 0:17:16.359 --> 0:17:19.240 So it's unfortunate that the folks who probably need it 0:17:19.280 --> 0:17:22.760 the most of who who would be best served, unfortunately 0:17:22.760 --> 0:17:24.640 aren't the folks who are naturally doing that to begin 0:17:24.720 --> 0:17:28.040 most likely prey unless you've been asleep at the wheel 0:17:28.119 --> 0:17:32.479 of your personal finances, and we would say, oh, welcome 0:17:32.520 --> 0:17:35.760 to the party, and this is called how to money. 0:17:35.880 --> 0:17:37.960 This is how you do it, and we would encourage 0:17:38.000 --> 0:17:41.120 you to make sure that you don't steer your car 0:17:41.160 --> 0:17:44.040 into this oncoming cliff. Yes, that you've been barreling towards 0:17:44.080 --> 0:17:47.120 with you down without even realizing it while we're talking 0:17:47.119 --> 0:17:48.879 about scams. Well that we hate credit cards, but just 0:17:48.920 --> 0:17:50.480 like if you if you have a way that you've 0:17:50.480 --> 0:17:52.840 been put it down, yeah, yeah, yeah. I feel like 0:17:52.840 --> 0:17:54.760 we need like a David Goggin sort of like wake 0:17:54.840 --> 0:17:56.520 up call for these people, like what are you doing. 0:17:56.560 --> 0:17:59.639 You're just sitting there in your comfy soft chair and 0:17:59.680 --> 0:18:01.840 these are out working. You man, they're out out there. 0:18:01.880 --> 0:18:04.360 They're taking your money. Gosh, they are, and they are. 0:18:04.440 --> 0:18:06.760 I mean, that's that's what's what's going on, and you 0:18:06.800 --> 0:18:10.679 need to not being a slave some plastic. I was 0:18:10.680 --> 0:18:13.199 gonna say, we're talking about scams, but the FTC they 0:18:13.200 --> 0:18:17.720 also had a warning about expiring rewards or the different 0:18:17.720 --> 0:18:20.040 points that folks are running. More and more folks are 0:18:20.040 --> 0:18:24.480 getting texts about their rewards expiring soon. You're sent a 0:18:24.520 --> 0:18:27.640 link to quote unquote savior points. But of course it's 0:18:27.640 --> 0:18:29.679 a phishing scam. It looks like a real sight, but 0:18:29.680 --> 0:18:33.360 it's not. They're attempting to get your personal information from you. 0:18:33.720 --> 0:18:34.680 And you know, like we. 0:18:34.600 --> 0:18:37.520 Talk about scammers, they are winning the battle against young 0:18:37.560 --> 0:18:41.639