WEBVTT - Your Debt Doesn't Define You

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<v Speaker 1>Hello, my name's Santasha Nabananga Bamblet. I'm a proud yor

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<v Speaker 1>the Order Kerni Whalbury and a waddery woman. And before

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<v Speaker 1>we get started on She's on the Money podcast, I

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<v Speaker 1>would like to acknowledge the traditional custodians of the land

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<v Speaker 1>of which this podcast is recorded on a wondery country,

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<v Speaker 1>acknowledging the elders, the ancestors and the next generation coming

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<v Speaker 1>through as this podcast is about connecting, empowering, knowledge sharing

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<v Speaker 1>and the storytelling of you to make a difference for

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<v Speaker 1>today and lasting impact for tomorrow.

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<v Speaker 2>Let's get into it.

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<v Speaker 3>She's on the Money, She's on the Money.

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<v Speaker 2>Hello, and welcome to She's on the Money, the podcast

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<v Speaker 2>that's here to remind you that, no matter what's happening

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<v Speaker 2>in your bank account, your self worth is more important

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<v Speaker 2>than your net worth. My friends, if we haven't met before,

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<v Speaker 2>my name is Victoria Devine, and today I wanted to

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<v Speaker 2>use my solo Saturday episode to talk to you about

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<v Speaker 2>something a little bit personal. The D word, No, not

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<v Speaker 2>that D word. I am talking about debt. And it's

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<v Speaker 2>one of those topics that can feel like a little

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<v Speaker 2>bit of a dirty word, right but here's the thing.

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<v Speaker 2>Debt is so common. In fact, I got in a

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<v Speaker 2>lot of debt. And I mean, I've been thinking, I

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<v Speaker 2>know plenty of incredibly successful people who have dealt with

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<v Speaker 2>debt at some point or another in their lives, right

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<v Speaker 2>including me. I at one point got myself into some

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<v Speaker 2>pretty serious personal debt. I was in more than forty

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<v Speaker 2>thousand dollars worth of personal debt between a personal loan

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<v Speaker 2>that I probably shouldn't have been approved for and a

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<v Speaker 2>credit card. And the reason I did was because I

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<v Speaker 2>was living beyond my means and at the time I

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<v Speaker 2>was so ashamed of it. I was so overwhelmed by it.

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<v Speaker 2>I literally would like to my housemates at the time

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<v Speaker 2>about it. And I can tell you now, it was

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<v Speaker 2>eight hundred and fifty three dollars each and every single

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<v Speaker 2>month that I had to pay back. That was the

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<v Speaker 2>minimum amount, and at that point in time, like I

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<v Speaker 2>was earning just over that amount. So I was earning like,

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<v Speaker 2>I think about sixty thousand dollars a year, and it

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<v Speaker 2>was absolutely financially crippling. I just I couldn't see a

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<v Speaker 2>way out of it, and I judged myself and was

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<v Speaker 2>so ashamed of how I got here. I thought it

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<v Speaker 2>was a reflection of who I was as a person.

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<v Speaker 2>I thought that it made me a terrible human being.

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<v Speaker 2>And I mean, at that time, I lacked a lot

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<v Speaker 2>of financial literacy and I just didn't understand it. And now,

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<v Speaker 2>looking back, I just want to scoop up past me

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<v Speaker 2>and go, well, you were just doing the best that

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<v Speaker 2>you could with the tools and the resources that you

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<v Speaker 2>had at the time, and you made some decisions. They

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<v Speaker 2>weren't bad decisions, but you made some decisions that weren't

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<v Speaker 2>in line with your values because you didn't know how

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<v Speaker 2>to live life in line with your values, because you

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<v Speaker 2>didn't have the financial literacy you deserved. And to me,

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<v Speaker 2>looking back on past Victoria, all she did was spend

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<v Speaker 2>more than she earned. That didn't ever make me a

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<v Speaker 2>bad person. That didn't ever mean I wasn't smart or intelligent.

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<v Speaker 2>It didn't have anything to do with myself worth. But

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<v Speaker 2>that's how it felt, right. And I mean, you're probably

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<v Speaker 2>thinking at the moment, like vuhy, you're ruining my Saturday

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<v Speaker 2>with a story about debt and you historically not being

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<v Speaker 2>very good at money. But debt is not exactly a

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<v Speaker 2>feel good topic, right, But I want to flip the

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<v Speaker 2>narrative on that today, I want to empower you when

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<v Speaker 2>it comes to debt. I'm not saying go get you more.

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<v Speaker 2>But debt isn't just a financial weight, right. It can

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<v Speaker 2>weigh heavily on your emotions, and it can weigh really

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<v Speaker 2>heavily on your self worth. And as I said before,

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<v Speaker 2>I have been there. Debt has this way of making

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<v Speaker 2>us feel like we have messed up. But here's the

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<v Speaker 2>real truth. Debt does not define your worth. Repeat after me.

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<v Speaker 2>Debt doesn't define your worth. And also wealth doesn't define

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<v Speaker 2>your worth. Right Like, rich people or people with heaps

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<v Speaker 2>the money in their bank are not worth more than

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<v Speaker 2>other people, So why would people in the opposite position

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<v Speaker 2>be worthless? Debt can feel, I guess, really heavy because

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<v Speaker 2>of the emotional baggage that it often carries. It's more

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<v Speaker 2>than just a number in your bank account. It's more

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<v Speaker 2>than just like that debt statement that you get in

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<v Speaker 2>the mail or in your emails. It can feel, genuinely,

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<v Speaker 2>and I say this from an empathetic point of view,

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<v Speaker 2>it can feel like a personal failure, especially when society

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<v Speaker 2>loves to put so much pressure on us being financially perfect.

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<v Speaker 2>But spoiler rella. Literally, nobody is perfect. We all are

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<v Speaker 2>on our own financial journeys, and if debt is a

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<v Speaker 2>part of that, that's cool. That's fine. I feel like

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<v Speaker 2>we go through seasons in life, and right now, if

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<v Speaker 2>you're in debt, that's just a season of your life

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<v Speaker 2>that you are going through. And that's cool because if

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<v Speaker 2>you're in the middle of winter and it feels really cold,

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<v Speaker 2>you can zoom out a little bit, as you know,

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<v Speaker 2>I love to say when in doubt, zoom out, but

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<v Speaker 2>you can zoom out a little bit, and you just

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<v Speaker 2>know that someone's coming. And like, if there's no rain

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<v Speaker 2>during the winter, the flowers aren't going to bloom in summer.

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<v Speaker 2>There have been numerous studies that have highlighted the undeniable

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<v Speaker 2>connection between debt and mental health. I don't know why

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<v Speaker 2>more people aren't talking about this, and the results are

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<v Speaker 2>consistently painting a very upsetting picture. Right Financial debt doesn't

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<v Speaker 2>just impact your wallet or your ability to create wealth

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<v Speaker 2>or buy a house or move in with your partner.

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<v Speaker 2>It seeps into every single corner of your life with

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<v Speaker 2>significant impact on your mental and physical health. So whether

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<v Speaker 2>it is stress or anxiety or even depression, the weight

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<v Speaker 2>of debt can be overwhelming, and research across the board

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<v Speaker 2>says that the more debt people seem to accumulate, the

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<v Speaker 2>worse off their mental health outcomes seem to be. So

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<v Speaker 2>let me give you an example. In twenty nineteen, there

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<v Speaker 2>was a study that found that individuals with high levels

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<v Speaker 2>of debt reported significantly higher levels of stress and anxiety.

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<v Speaker 2>Another study was done at about the same time showed

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<v Speaker 2>that unmanageable debt often led to depression, and it highlighted

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<v Speaker 2>that it's actually not just the amount of debt, but

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<v Speaker 2>help people perceive their ability to manage it that can

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<v Speaker 2>actually trigger serious mental health issues. So debt doesn't just

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<v Speaker 2>impact your mood either. It can disturb your sleep. And

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<v Speaker 2>I can attest to this, like literally, when I was

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<v Speaker 2>in debt, I used to stay up all night and

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<v Speaker 2>I didn't know why at the time, Like obviously I

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<v Speaker 2>was thinking about my debt, and I was stressed about

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<v Speaker 2>my debt, and I was wondering how I was going

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<v Speaker 2>to pay it off, and like if I wanted to

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<v Speaker 2>do something, I was like, oh my gosh, how am

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<v Speaker 2>I going to afford my debt payment? And this, But

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<v Speaker 2>there was a study in twenty twenty that linked financial

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<v Speaker 2>stress to disrupted sleep patterns, which often worsen anxiety. I mean,

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<v Speaker 2>everything's worse at three am. Right. Relationship strain is also

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<v Speaker 2>really common when you are in debt. It's the number

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<v Speaker 2>one thing that couples fight about, right because emotional struggles

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<v Speaker 2>can actually lead to being emotionally distant and even fighting

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<v Speaker 2>with your partner. And some people that are in debt

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<v Speaker 2>actually turned to very unhealthy coping mechanisms. They might get

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<v Speaker 2>involved in substance abuse. And it was actually highlighted in

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<v Speaker 2>a study that linked financial stress to an increased likelihood

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<v Speaker 2>of using alcohol and drugs and all of this. It

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<v Speaker 2>actually just shows us and distills down the relationship between

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<v Speaker 2>debt and mental health, and it shows us that it

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<v Speaker 2>is a very in vicious cycle, and it's one that

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<v Speaker 2>affects more than just the dollars in your bank account. Right.

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<v Speaker 2>But let me tell you right now, as I said before,

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<v Speaker 2>debt does not define you. And I know that if

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<v Speaker 2>you're listening to this, you're like, yeah, but why do

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<v Speaker 2>I still feel like trash about it? V? I get it,

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<v Speaker 2>I've been there. Having debt actually doesn't make you an

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<v Speaker 2>irresponsible human being. It doesn't mean that you're bad with money.

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<v Speaker 2>I think there's a massive misconception that if you are

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<v Speaker 2>in debt, you must be bad at managing money, and

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<v Speaker 2>that is actually not the truth. Like for some people

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<v Speaker 2>it might be let's be honest, but it's not actually

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<v Speaker 2>the truth. It's not a reflection of your car. It's

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<v Speaker 2>just a financial tool. And if you haven't been good

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<v Speaker 2>at using those tools, because no one taught you how

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<v Speaker 2>to use the tools, I can teach you how to

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<v Speaker 2>use the tools and you can get back in control

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<v Speaker 2>and you can control your life instead of that feeling

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<v Speaker 2>of being in debt controlling your life. So let's talk

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<v Speaker 2>about some numbers for a hot second. Did you know

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<v Speaker 2>that here in Australia, consumer debt is actually in the trillions,

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<v Speaker 2>not billions, trillions. That's credit cards, personal loans. Obviously mortgages

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<v Speaker 2>fall into a part of that. Honestly, debt is a

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<v Speaker 2>part of life for most Australians. So if you're feeling

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<v Speaker 2>like you're the only ones struggling with it, and you're

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<v Speaker 2>a bit like past Victoria and you're like I don't

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<v Speaker 2>want to talk about this, you're definitely not alone. Life happens, right,

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<v Speaker 2>and we can't control it. And I mean over the

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<v Speaker 2>last few years going through COVID, we literally have seen

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<v Speaker 2>it play out for us, whether it's medical bills or

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<v Speaker 2>trying to put yourself through university to give yourself the

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<v Speaker 2>best possible chance to create the life that you deserve

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<v Speaker 2>or you wanted to, you know, invest in homes you've

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<v Speaker 2>got a mortgage debt is often just part of that journey. Debt.

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<v Speaker 2>It's not actually good or bad. It's actually very neutral.

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<v Speaker 2>It's a tool, and it's a bit like a hammer, right,

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<v Speaker 2>and what you do with that tool is what matters.

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<v Speaker 2>So think about, like I guess, your hex debt or

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<v Speaker 2>you know, any debt you went into to study and mortgages.

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<v Speaker 2>These are often called and I often refer to them

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<v Speaker 2>as good debts because they're actually helping you build something.

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<v Speaker 2>So whether that is your education or it's your home,

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<v Speaker 2>you're kind of investing in your future. And these are

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<v Speaker 2>what I would call, I guess examples of debt that

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<v Speaker 2>is opening doors for you. I mean it might feel

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<v Speaker 2>all consuming and overwhelming, but like skip ahead thirty years.

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<v Speaker 2>If you have a really good education, it is very

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<v Speaker 2>likely that you are going to have a higher income.

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<v Speaker 2>It's not to say that you have to have a

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<v Speaker 2>really good education to have a high paying job. We

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<v Speaker 2>see on money diaries all the time people absolutely killing

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<v Speaker 2>it without an education. We also see people purchasing homes

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<v Speaker 2>and their mortgages stressing them out of their brains. But

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<v Speaker 2>if they've bought in a really good area and they

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<v Speaker 2>pay off their mortgage over you know, a thirty year period,

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<v Speaker 2>they're not paying it off earlier, but like that thirty

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<v Speaker 2>years of paying back a mortgage is really stressful. They

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<v Speaker 2>pay it back, they're in a really secure financial position.

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<v Speaker 2>They own the roof over their heads. Right. But sometimes

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<v Speaker 2>we take on debt that we have to take on

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<v Speaker 2>because we're going through a really rough patch. So maybe

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<v Speaker 2>there was a whole heap of unexpected costs, or you

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<v Speaker 2>really needed a credit card to cover an emergency. That's

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<v Speaker 2>actually okay, Like I get it. There is no such

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<v Speaker 2>thing as being financially perfect. It doesn't make you any

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<v Speaker 2>less capable or any less responsible. Life happens, and sometimes

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<v Speaker 2>debt is just part of life happening, And it's actually

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<v Speaker 2>our plan to deal with debt that is going to

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<v Speaker 2>change the trajectory of our lives, not necessarily whether we

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<v Speaker 2>have it or not. I mean, I don't want to

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<v Speaker 2>talk about myself too much, but I was in forty

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<v Speaker 2>thousand dollars worth of personal debt. It felt all consuming, overwhelming,

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<v Speaker 2>and I think if you look at what I've done,

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<v Speaker 2>obviously I am an absolute outlier and what I have

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<v Speaker 2>done is very different to the norm. But like, I

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<v Speaker 2>managed to get myself out of that hole with good

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<v Speaker 2>financial literacy, and at that time I had still a

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<v Speaker 2>sixty thousand dollars income. I did get a pay rise

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<v Speaker 2>at that point. I think I was earning clusive at

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<v Speaker 2>eighty thousand dollars. But I got out of that debt.

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<v Speaker 2>I saved up for my first home deposit with my partner,

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<v Speaker 2>having not made any of the money that I've made.

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<v Speaker 2>Throusella and Cheese on the money, Like, life happens, and

0:11:33.440 --> 0:11:35.079
<v Speaker 2>we can create a plan that puts you in the

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<v Speaker 2>best possible position. You don't have to have something that

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<v Speaker 2>is life changing to change your life. Right, And let's

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<v Speaker 2>talk a little more about this idea of good versus

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<v Speaker 2>bad debt. Right, So a mortgage that helps you to

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<v Speaker 2>build equity in your home, or like your hex debt

0:11:50.320 --> 0:11:52.559
<v Speaker 2>that sets you up for a better career in the future,

0:11:52.640 --> 0:11:54.840
<v Speaker 2>are really good examples of good debt because they lead

0:11:54.880 --> 0:11:57.400
<v Speaker 2>to I guess, long term gains. But on the other hand,

0:11:57.400 --> 0:12:00.559
<v Speaker 2>you've got bad debt, I suppose, so those high interest

0:12:00.559 --> 0:12:03.640
<v Speaker 2>credit cards where you're purchasing things that you don't really

0:12:03.679 --> 0:12:07.040
<v Speaker 2>need and you have the ability, and a lot of

0:12:07.040 --> 0:12:10.160
<v Speaker 2>people do to spiral out of control if you're not careful.

0:12:10.200 --> 0:12:12.480
<v Speaker 2>And I mean I have not met one person, and

0:12:12.559 --> 0:12:15.000
<v Speaker 2>there are hundreds of thousands of you in our shoes

0:12:15.040 --> 0:12:17.679
<v Speaker 2>on the money community. I've not met one person that said,

0:12:17.800 --> 0:12:20.400
<v Speaker 2>Victoria Devine, I got a credit card because I just

0:12:20.520 --> 0:12:23.360
<v Speaker 2>really liked the idea of spiraling out of control and

0:12:23.400 --> 0:12:25.800
<v Speaker 2>spending beyond my means. I just one day wanted to

0:12:25.840 --> 0:12:27.880
<v Speaker 2>wake up with an amount of debt that's dropped me

0:12:27.920 --> 0:12:30.760
<v Speaker 2>from sleeping well, enjoying life and you know, having a

0:12:30.760 --> 0:12:33.200
<v Speaker 2>good relationship with money. Not one person says that no

0:12:33.240 --> 0:12:37.440
<v Speaker 2>one gets a credit card with the intention of misusing it, right,

0:12:37.760 --> 0:12:40.840
<v Speaker 2>No one does that. But even if you ended up

0:12:40.840 --> 0:12:42.840
<v Speaker 2>in that position, there's usually a reason for it, and

0:12:42.880 --> 0:12:44.480
<v Speaker 2>the best way to get back on top of that

0:12:44.679 --> 0:12:48.600
<v Speaker 2>is to deep dive into why, when, where, how, and

0:12:48.720 --> 0:12:51.880
<v Speaker 2>not judge yourself for it, because even if you have

0:12:52.160 --> 0:12:54.480
<v Speaker 2>bad debt, It's not the end of the world. It's

0:12:54.520 --> 0:12:58.000
<v Speaker 2>just that other chapter in your financial story. And with

0:12:58.080 --> 0:12:59.800
<v Speaker 2>the right plan, you can manage it. We can get

0:12:59.840 --> 0:13:02.120
<v Speaker 2>out of debt. We can, you know, create a plan.

0:13:02.320 --> 0:13:03.880
<v Speaker 2>We can see the light at the end of the

0:13:03.920 --> 0:13:06.760
<v Speaker 2>tunnel together. But I think so many times when you

0:13:06.840 --> 0:13:10.160
<v Speaker 2>are spiraling out of control, you just overlay this idea

0:13:10.200 --> 0:13:11.920
<v Speaker 2>that you are terrible at money and that you're not

0:13:12.040 --> 0:13:13.880
<v Speaker 2>very good at it, and what you need to do

0:13:14.160 --> 0:13:16.880
<v Speaker 2>is just bury your head in the sand and not

0:13:16.960 --> 0:13:19.200
<v Speaker 2>deal with and that's actually the worst thing that you

0:13:19.240 --> 0:13:21.880
<v Speaker 2>can do. So we've talked about debt and how it

0:13:21.960 --> 0:13:24.520
<v Speaker 2>doesn't define your worth, and I hope that you listen

0:13:24.559 --> 0:13:26.960
<v Speaker 2>to me about that, but don't get it twisted. It

0:13:27.040 --> 0:13:30.560
<v Speaker 2>is just a financial tool. Money is neutral. And I

0:13:30.600 --> 0:13:34.040
<v Speaker 2>guess people in our community and you, my friend, you

0:13:34.120 --> 0:13:36.120
<v Speaker 2>are not going to let debt define you. And if

0:13:36.160 --> 0:13:38.160
<v Speaker 2>you feel like it is defining you right now, we

0:13:38.200 --> 0:13:40.000
<v Speaker 2>are going to change that narrative and we're going to

0:13:40.040 --> 0:13:42.520
<v Speaker 2>change it today. So I guess the question now is

0:13:42.600 --> 0:13:45.479
<v Speaker 2>what do you do when you've got debt that feels overwhelming.

0:13:45.520 --> 0:13:47.760
<v Speaker 2>I don't just want a motivational talk from victoria that

0:13:47.800 --> 0:13:49.920
<v Speaker 2>says it doesn't define me, that it's neutral. That doesn't

0:13:49.960 --> 0:13:52.680
<v Speaker 2>help anybody, right, I mean it might get you interested

0:13:52.720 --> 0:13:55.600
<v Speaker 2>in changing, but like, we need some tools, So stick around.

0:13:55.640 --> 0:13:57.120
<v Speaker 2>I'm going to go to a really quick break and

0:13:57.160 --> 0:13:59.520
<v Speaker 2>on the flip side, I'm going to tell you exactly

0:13:59.600 --> 0:14:07.360
<v Speaker 2>how to change that narrative. Welcome back, my friends. Now

0:14:07.520 --> 0:14:10.240
<v Speaker 2>let's have a chat about managing debt without the shame,

0:14:10.360 --> 0:14:13.480
<v Speaker 2>because that's seemingly where a lot of us end up

0:14:13.480 --> 0:14:17.320
<v Speaker 2>getting stuck. When debt feels overwhelming and all consuming. It

0:14:17.440 --> 0:14:20.760
<v Speaker 2>is so easy to feel so powerless. But my friends,

0:14:20.840 --> 0:14:24.440
<v Speaker 2>here's the thing. Tackling debt can actually be, or I

0:14:24.480 --> 0:14:28.000
<v Speaker 2>think it can actually be really empowering because you're not

0:14:28.120 --> 0:14:30.760
<v Speaker 2>just managing I guess a responsibility that you have, your

0:14:30.800 --> 0:14:34.320
<v Speaker 2>taking control of your financial journey. You are putting few

0:14:34.360 --> 0:14:36.880
<v Speaker 2>to you in the best possible position, and I promise

0:14:36.960 --> 0:14:39.840
<v Speaker 2>she's gonna thank you for that. Like, can you imagine

0:14:39.880 --> 0:14:42.760
<v Speaker 2>if today you're looking back on your journey and you're

0:14:42.800 --> 0:14:45.560
<v Speaker 2>like far out, Like I cannot believe that I was

0:14:45.920 --> 0:14:48.760
<v Speaker 2>so good to current me because I paid off all

0:14:48.760 --> 0:14:50.720
<v Speaker 2>that debt and I'm not in it right now. That's

0:14:50.760 --> 0:14:53.720
<v Speaker 2>such a win, and you're putting yourself in that position.

0:14:54.320 --> 0:14:56.840
<v Speaker 2>I would say, and I've said it before on the podcast,

0:14:56.960 --> 0:14:59.920
<v Speaker 2>I believe that looking after your finances is the highest

0:15:00.080 --> 0:15:03.800
<v Speaker 2>form of self care that can exist. So taking steps

0:15:03.840 --> 0:15:06.920
<v Speaker 2>to handle your debt, whether it is small steps like

0:15:07.080 --> 0:15:10.600
<v Speaker 2>creating a budget, or big steps which feel overwhelming, like

0:15:10.680 --> 0:15:14.960
<v Speaker 2>negotiating with creditors, or just being really proactive, it's a

0:15:14.960 --> 0:15:18.840
<v Speaker 2>way of looking after yourself and looking after your future.

0:15:19.000 --> 0:15:23.600
<v Speaker 2>Because I promise once you take that step, you'll realize

0:15:23.640 --> 0:15:26.920
<v Speaker 2>it's not as big and scary as it currently feels.

0:15:27.280 --> 0:15:29.280
<v Speaker 2>And I know that you've got this. I know that

0:15:29.400 --> 0:15:33.080
<v Speaker 2>you are able to do this, and I'm here, our

0:15:33.080 --> 0:15:35.720
<v Speaker 2>community is here. You're not alone in this process. You're

0:15:35.760 --> 0:15:39.080
<v Speaker 2>not doing it by yourself. So if it is feeling

0:15:39.240 --> 0:15:40.600
<v Speaker 2>like if you're listening to this and you're like V

0:15:40.800 --> 0:15:43.520
<v Speaker 2>it's actually insane, Like I actually can't deal with this,

0:15:43.520 --> 0:15:45.840
<v Speaker 2>this is all too much, you know what I do?

0:15:46.200 --> 0:15:49.280
<v Speaker 2>I'd start by calling our friends at the National Debt Helpline.

0:15:49.320 --> 0:15:52.680
<v Speaker 2>I'll obviously put their number in the show notes. It's

0:15:52.720 --> 0:15:55.320
<v Speaker 2>a not for profit service that I have worked with before.

0:15:55.560 --> 0:15:58.440
<v Speaker 2>I love them. I think that they are absolutely incredible.

0:15:58.480 --> 0:16:01.800
<v Speaker 2>They are people just like you and me. They provide free,

0:16:01.800 --> 0:16:06.080
<v Speaker 2>independent and confidential support to help people tackle their debt problems.

0:16:06.400 --> 0:16:09.680
<v Speaker 2>I promise they are not lenders and they don't have

0:16:09.760 --> 0:16:12.120
<v Speaker 2>anything to sell or they don't make money from you.

0:16:12.200 --> 0:16:15.560
<v Speaker 2>They are legitimate professional financial counselors that are there to

0:16:15.600 --> 0:16:18.880
<v Speaker 2>offer you guidance and practical advice on managing debt, and

0:16:19.120 --> 0:16:22.280
<v Speaker 2>they have seen it all. I promise going to them

0:16:23.120 --> 0:16:25.760
<v Speaker 2>it shouldn't be embarrassing going to them and laying it

0:16:25.800 --> 0:16:27.760
<v Speaker 2>all out on the table. They'll go, yep, no worries,

0:16:27.800 --> 0:16:30.680
<v Speaker 2>what else? And when you say no, that's it, you'll

0:16:30.680 --> 0:16:32.200
<v Speaker 2>be like, oh, it's not as bad as I thought

0:16:32.200 --> 0:16:35.360
<v Speaker 2>it was going to be. So don't be afraid of them.

0:16:35.440 --> 0:16:37.560
<v Speaker 2>I promise. They are just like you and me, and

0:16:38.080 --> 0:16:40.040
<v Speaker 2>you know what, they're probably better than me. They spend

0:16:40.080 --> 0:16:44.040
<v Speaker 2>their entire life working for a company that helps people

0:16:44.200 --> 0:16:46.880
<v Speaker 2>just like you get out of debt. Like they're on

0:16:46.920 --> 0:16:49.760
<v Speaker 2>your side. They're not going to crucify you for where

0:16:49.760 --> 0:16:51.960
<v Speaker 2>you've been. They're just going to help you create a

0:16:52.000 --> 0:16:55.000
<v Speaker 2>bright future. The other thing I would say here, which

0:16:55.080 --> 0:16:58.120
<v Speaker 2>can feel really overwhelming, is don't be afraid to reach

0:16:58.160 --> 0:17:00.000
<v Speaker 2>out to creditors. I mean, at the end of the

0:17:00.320 --> 0:17:03.480
<v Speaker 2>what's the worst they can say no, feeling intimidated. I

0:17:03.560 --> 0:17:06.960
<v Speaker 2>get it, But many creditors are very willing and very

0:17:07.000 --> 0:17:09.760
<v Speaker 2>able to work with you on new payment plans that

0:17:09.840 --> 0:17:12.600
<v Speaker 2>are way more manageable. Or if you're struggling with a

0:17:12.640 --> 0:17:15.080
<v Speaker 2>heap of debts, you might want to consider, and you've

0:17:15.119 --> 0:17:18.600
<v Speaker 2>probably heard about this before, debt consolidation, and this can

0:17:18.640 --> 0:17:21.920
<v Speaker 2>really simplify things by pulling all your debts together into

0:17:22.000 --> 0:17:26.080
<v Speaker 2>one payment, often with a lower interest rate, that feels

0:17:26.359 --> 0:17:29.320
<v Speaker 2>less overwhelming. One of the key things I want you

0:17:29.359 --> 0:17:31.600
<v Speaker 2>to tackle when it comes to your debts is also

0:17:31.760 --> 0:17:34.920
<v Speaker 2>to understand the different types of debts you have. It's

0:17:35.000 --> 0:17:37.359
<v Speaker 2>so often that I talk to people and I'm like, oh,

0:17:37.359 --> 0:17:39.119
<v Speaker 2>are you in debt? They're like, yeah, it's so bad.

0:17:39.480 --> 0:17:41.199
<v Speaker 2>And then I hear they've got a mortgage, and I'm like,

0:17:41.359 --> 0:17:44.520
<v Speaker 2>that is a wealth creating debt. Not all debts, my friend,

0:17:44.640 --> 0:17:47.840
<v Speaker 2>are created equally, So things like credit card debt with

0:17:47.960 --> 0:17:51.560
<v Speaker 2>high interest rates are very different to a mortgage, which

0:17:51.600 --> 0:17:54.320
<v Speaker 2>could have a lower interest rate over a long period

0:17:54.320 --> 0:17:57.120
<v Speaker 2>of time. That helps you create wealth. And understanding what

0:17:57.160 --> 0:17:59.840
<v Speaker 2>you owe and why is going to help you make

0:18:00.200 --> 0:18:03.640
<v Speaker 2>much better decisions moving forward. So one of the things

0:18:03.640 --> 0:18:05.600
<v Speaker 2>I also wanted to talk to you about was interest

0:18:05.640 --> 0:18:07.960
<v Speaker 2>free loans, and I have spoken about them on the

0:18:07.960 --> 0:18:11.160
<v Speaker 2>podcast before, but often they could seem like a great deal.

0:18:11.320 --> 0:18:13.320
<v Speaker 2>I have met so many people and spoken to so

0:18:13.359 --> 0:18:15.879
<v Speaker 2>many people in our community who think that this is

0:18:15.920 --> 0:18:17.439
<v Speaker 2>going to be the answer to their problems. You can

0:18:17.480 --> 0:18:19.600
<v Speaker 2>take all of your credit cards with high interest rates

0:18:19.640 --> 0:18:22.240
<v Speaker 2>and you can transfer them to this, you know, interest

0:18:22.280 --> 0:18:25.280
<v Speaker 2>free loan. But more often than not, there is a

0:18:25.320 --> 0:18:29.680
<v Speaker 2>catch because even though you're only making minimum repayments set

0:18:29.720 --> 0:18:32.880
<v Speaker 2>by the lender, you might not be in a position

0:18:32.960 --> 0:18:35.680
<v Speaker 2>to clear the debt before the interest free period ends,

0:18:35.760 --> 0:18:38.080
<v Speaker 2>and then they're literally setting you up for failure in

0:18:38.119 --> 0:18:40.600
<v Speaker 2>the long term. And even though you might be like me,

0:18:40.840 --> 0:18:43.520
<v Speaker 2>but like my interest rate's seventeen percent, if you read

0:18:43.520 --> 0:18:46.160
<v Speaker 2>the fine print on a lot of these interest free loans,

0:18:46.680 --> 0:18:49.200
<v Speaker 2>after twelve months or after twenty four months, it jumps

0:18:49.200 --> 0:18:53.000
<v Speaker 2>to like twenty two percent interest and that's worse for you, Like,

0:18:53.040 --> 0:18:56.040
<v Speaker 2>that's going to absolutely cripple you. So what I would

0:18:56.119 --> 0:19:00.120
<v Speaker 2>be doing is everything literally to avoid surprise interest charge,

0:19:00.680 --> 0:19:03.840
<v Speaker 2>and I would take control. So let's have a look

0:19:03.840 --> 0:19:07.600
<v Speaker 2>at debt consolidation. Maybe we can actually use an interest

0:19:07.640 --> 0:19:10.840
<v Speaker 2>free loan to our advantage. But please make sure that

0:19:10.880 --> 0:19:13.040
<v Speaker 2>you're either able to pay off the balance before the

0:19:13.080 --> 0:19:17.520
<v Speaker 2>period closes, or you're able to increase your monthly contributions

0:19:17.560 --> 0:19:20.680
<v Speaker 2>to that debt to wipe them in time. And when

0:19:20.840 --> 0:19:23.160
<v Speaker 2>it comes to borrowing any type of money, I think

0:19:23.240 --> 0:19:26.600
<v Speaker 2>my biggest call out here is please, please please always

0:19:26.720 --> 0:19:30.240
<v Speaker 2>read the fine print. Now let's talk about by now,

0:19:30.240 --> 0:19:32.400
<v Speaker 2>pay later. You guys know how I feel about this.

0:19:32.840 --> 0:19:35.480
<v Speaker 2>Say you're using after pay to buy a two hundred

0:19:35.640 --> 0:19:37.639
<v Speaker 2>dollar handbag that you've got your eye on. It's on

0:19:37.680 --> 0:19:40.439
<v Speaker 2>the iconic and you're all over it. In most of

0:19:40.480 --> 0:19:42.919
<v Speaker 2>our brains, the math is, all right, well, that's actually

0:19:42.960 --> 0:19:45.719
<v Speaker 2>just like four payments of fifty dollars, and that's so

0:19:45.920 --> 0:19:49.760
<v Speaker 2>much more palatable. But your brain actually, and this is

0:19:49.800 --> 0:19:54.159
<v Speaker 2>scientifically proven, your brain actually anchors to the smaller amount

0:19:54.160 --> 0:19:56.880
<v Speaker 2>of fifty dollars and it makes you feel like that's

0:19:56.920 --> 0:20:00.040
<v Speaker 2>all you're spending. And if you have been in the

0:20:00.200 --> 0:20:03.439
<v Speaker 2>after pay traps before, I can almost guarantee that if

0:20:03.520 --> 0:20:05.840
<v Speaker 2>I asked you what that dress you bought was, or

0:20:05.880 --> 0:20:08.280
<v Speaker 2>what that bag was, or whatever you put on after pay,

0:20:08.800 --> 0:20:11.040
<v Speaker 2>I can almost guarantee you don't remember the full price.

0:20:11.080 --> 0:20:13.920
<v Speaker 2>You just remember what payment came out, and that's what

0:20:13.960 --> 0:20:17.600
<v Speaker 2>anchoring is. And before you know it, you add another

0:20:17.680 --> 0:20:19.960
<v Speaker 2>cute top to the cart as well, because what's the

0:20:19.960 --> 0:20:22.920
<v Speaker 2>difference between fifty and seventy dollars? Right? So only seventy dollars.

0:20:23.000 --> 0:20:26.280
<v Speaker 2>That's not that much. And after pay his own website

0:20:26.480 --> 0:20:29.200
<v Speaker 2>actually brags. So if you go to the after pay

0:20:29.240 --> 0:20:31.920
<v Speaker 2>website and then go to like I'm a small business

0:20:32.200 --> 0:20:35.520
<v Speaker 2>and have a look, they literally brag to potential merchants

0:20:35.960 --> 0:20:40.439
<v Speaker 2>that work with them, the average order increases by eighteen percent.

0:20:40.960 --> 0:20:44.000
<v Speaker 2>They know that you're going to spend more because you're

0:20:44.040 --> 0:20:47.600
<v Speaker 2>not spending your own money. So while this might be

0:20:47.800 --> 0:20:50.240
<v Speaker 2>interest free and you might go this is a really

0:20:50.240 --> 0:20:54.040
<v Speaker 2>good tool for MeV where a costs more is actually

0:20:54.080 --> 0:20:56.720
<v Speaker 2>in the amount that you're justifying to spend. And I

0:20:56.760 --> 0:20:59.600
<v Speaker 2>think that just understanding these things can help you make

0:20:59.640 --> 0:21:02.639
<v Speaker 2>better choices. And some people might be listening to this

0:21:02.720 --> 0:21:05.680
<v Speaker 2>and going the I'm actually really good at after pay.

0:21:05.720 --> 0:21:07.320
<v Speaker 2>I use it as a cash flow tool, and I've

0:21:07.320 --> 0:21:09.399
<v Speaker 2>also spoken about this as a lot before as well.

0:21:09.800 --> 0:21:11.840
<v Speaker 2>Then the great this tip is not for you, and

0:21:11.880 --> 0:21:14.600
<v Speaker 2>that is fine. But there are people who don't know this,

0:21:15.040 --> 0:21:17.640
<v Speaker 2>and there are people in our community who after pay

0:21:17.720 --> 0:21:20.199
<v Speaker 2>just doesn't work for And I'm one of those people.

0:21:20.560 --> 0:21:24.080
<v Speaker 2>I know that anchoring works very well on me. I

0:21:24.080 --> 0:21:27.480
<v Speaker 2>think it's very related to being a little bit neurospicy,

0:21:27.920 --> 0:21:30.320
<v Speaker 2>where that's the first number I saw, that's all I'm

0:21:30.359 --> 0:21:33.160
<v Speaker 2>going to remember and moving forward, that number actually makes

0:21:33.160 --> 0:21:35.720
<v Speaker 2>me feel a lot better about myself than two hundred.

0:21:35.920 --> 0:21:38.679
<v Speaker 2>So I know what I'm going to anchor too, and

0:21:38.720 --> 0:21:42.119
<v Speaker 2>I know that to have the best financial health personally,

0:21:42.640 --> 0:21:45.320
<v Speaker 2>something like after pay or any by now pay later

0:21:45.480 --> 0:21:48.040
<v Speaker 2>is just not going to fit into my financial plan

0:21:48.240 --> 0:21:51.320
<v Speaker 2>or my financial modeling. Right. The other thing we need

0:21:51.359 --> 0:21:54.040
<v Speaker 2>to get really real about is your finance habits or

0:21:54.040 --> 0:21:57.679
<v Speaker 2>your money habits. And I'm actually here talking about just

0:21:57.680 --> 0:22:00.960
<v Speaker 2>being brutally honest with yourself and be really hard. Like

0:22:01.000 --> 0:22:03.359
<v Speaker 2>I remember coming to the conclusion that I'm just not

0:22:03.400 --> 0:22:05.399
<v Speaker 2>good at money and debt, and this is before I

0:22:05.440 --> 0:22:08.720
<v Speaker 2>became a financial advisor. I wasn't good at handling money.

0:22:08.800 --> 0:22:12.359
<v Speaker 2>And how do you handle money? Are you super self

0:22:12.400 --> 0:22:15.280
<v Speaker 2>aware about how you make money choices or are you

0:22:15.320 --> 0:22:18.320
<v Speaker 2>a bit head in the sand, Like, are you able

0:22:18.359 --> 0:22:21.240
<v Speaker 2>to avoid going further into debt and start gaining control

0:22:21.280 --> 0:22:22.879
<v Speaker 2>of your life? And that can be a big shift

0:22:22.960 --> 0:22:26.720
<v Speaker 2>because often that involves complete lifestyle shift. So if you're

0:22:26.760 --> 0:22:28.800
<v Speaker 2>going into debt because you're spending more than you earn,

0:22:29.200 --> 0:22:33.160
<v Speaker 2>often that is reflective of you living a lifestyle that's

0:22:33.200 --> 0:22:35.720
<v Speaker 2>actually beyond your means. You might go there. I don't

0:22:35.720 --> 0:22:37.679
<v Speaker 2>really want to change that, Like I love brunch with

0:22:37.720 --> 0:22:40.800
<v Speaker 2>my girlfriends, like I love going and buying new activewear,

0:22:40.960 --> 0:22:42.840
<v Speaker 2>Like this is just for me. I'll work it all

0:22:42.880 --> 0:22:47.359
<v Speaker 2>out later. Like it does involve being brutally honest with yourself,

0:22:47.440 --> 0:22:49.800
<v Speaker 2>and that can sometimes be a little bit painful, but

0:22:49.840 --> 0:22:53.000
<v Speaker 2>I promise by doing that, you're putting yourself in the

0:22:53.040 --> 0:22:57.040
<v Speaker 2>best possible situation. Let's talk about credit card debt as

0:22:57.080 --> 0:23:00.720
<v Speaker 2>an example. So, like a zero percent balance trans to

0:23:01.480 --> 0:23:04.640
<v Speaker 2>somebody who is like me might seem like a golden ticket,

0:23:04.720 --> 0:23:08.479
<v Speaker 2>but it only works if you transfer the balance and

0:23:09.359 --> 0:23:11.840
<v Speaker 2>take to that card with a pair of scissors and

0:23:11.960 --> 0:23:14.680
<v Speaker 2>stick to that repayment plan and pay it off during

0:23:14.680 --> 0:23:17.800
<v Speaker 2>that interest free period. And people in our community have

0:23:17.800 --> 0:23:20.240
<v Speaker 2>done that. It's been a brilliant strategy for them. But

0:23:20.320 --> 0:23:22.960
<v Speaker 2>if you're prone to spending and you're just gonna justify

0:23:23.040 --> 0:23:25.200
<v Speaker 2>to yourself, which we've all done, like, oh my gosh,

0:23:25.200 --> 0:23:28.080
<v Speaker 2>actually I I'm going to keep this card in my

0:23:28.160 --> 0:23:31.160
<v Speaker 2>wallet just in case, for just in case splurges. This

0:23:31.240 --> 0:23:33.679
<v Speaker 2>is I promise you, this is going to spiral you

0:23:33.840 --> 0:23:37.080
<v Speaker 2>out of control. And I know that this sounds a

0:23:37.080 --> 0:23:39.520
<v Speaker 2>little bit lame, but maybe if you're not ready to

0:23:39.560 --> 0:23:43.080
<v Speaker 2>cut the credit card up completely, you do that thing

0:23:43.240 --> 0:23:45.439
<v Speaker 2>where you put it in a container of water and

0:23:45.520 --> 0:23:47.560
<v Speaker 2>chuck it in the freezer, so the card still exists

0:23:47.560 --> 0:23:49.640
<v Speaker 2>but you can't really access it. Maybe that would work

0:23:49.680 --> 0:23:51.800
<v Speaker 2>for you, so that the card still exists but you

0:23:51.840 --> 0:23:54.439
<v Speaker 2>can't really use it, and if you want to use it,

0:23:54.440 --> 0:23:56.720
<v Speaker 2>it's going to take you some serious thought about how

0:23:56.760 --> 0:23:59.040
<v Speaker 2>to get back to it at some point. All right,

0:23:59.119 --> 0:24:02.080
<v Speaker 2>let's pivot away from that and talk about two of

0:24:02.119 --> 0:24:05.040
<v Speaker 2>the most popular methods for paying down debt. Right, so

0:24:05.080 --> 0:24:07.159
<v Speaker 2>you've probably heard about them in our community. It's the

0:24:07.240 --> 0:24:09.919
<v Speaker 2>snowball and then the avalanche methods, and both can be

0:24:09.960 --> 0:24:13.639
<v Speaker 2>super effective, but they work in completely different ways and

0:24:13.680 --> 0:24:16.800
<v Speaker 2>are actually suitable for different people. And I think this

0:24:16.840 --> 0:24:18.639
<v Speaker 2>is where you need to know yourself you need to

0:24:18.680 --> 0:24:21.159
<v Speaker 2>know your personality type and who you are and what

0:24:21.280 --> 0:24:23.560
<v Speaker 2>might work now. I don't think it will come as

0:24:23.560 --> 0:24:27.639
<v Speaker 2>a surprise. I am an instant gratification girly at heart,

0:24:27.920 --> 0:24:29.760
<v Speaker 2>which is why this first method that I'm going to

0:24:29.800 --> 0:24:33.640
<v Speaker 2>talk about, the Snowmall method, that's for me, so let's

0:24:33.680 --> 0:24:35.800
<v Speaker 2>talk about it. It's all about quick wins and it

0:24:35.880 --> 0:24:39.000
<v Speaker 2>is perfect for people who need a little extra motivation

0:24:39.400 --> 0:24:42.560
<v Speaker 2>to stay in the game. The idea is relatively simple.

0:24:42.760 --> 0:24:45.200
<v Speaker 2>What the plan is is you focused on your smallest

0:24:45.200 --> 0:24:48.040
<v Speaker 2>debt first and then just throw every extra dollar that

0:24:48.080 --> 0:24:49.880
<v Speaker 2>you have at it. So we're not going to worry

0:24:49.880 --> 0:24:52.359
<v Speaker 2>about our interest rates for now. We're actually going to

0:24:52.400 --> 0:24:55.320
<v Speaker 2>think about psychological wins or the fact that you're going

0:24:55.400 --> 0:24:58.359
<v Speaker 2>to get instant gratification, because what you're going to do

0:24:58.480 --> 0:24:59.760
<v Speaker 2>is you're going to take your debts and then you're

0:24:59.760 --> 0:25:03.080
<v Speaker 2>going to list them in smallest balance to largest balance,

0:25:03.400 --> 0:25:05.119
<v Speaker 2>and then you're going to make minimum repayments on all

0:25:05.160 --> 0:25:06.640
<v Speaker 2>of them. So we're not going to stop paying back

0:25:06.640 --> 0:25:09.840
<v Speaker 2>our debts, but we're not going to make just minimum

0:25:09.880 --> 0:25:12.360
<v Speaker 2>repayments on the smallest one. For the smallest one, you're

0:25:12.359 --> 0:25:14.800
<v Speaker 2>actually going to take any additional money that you have

0:25:15.240 --> 0:25:17.920
<v Speaker 2>and pay it off as quickly as you possibly can.

0:25:18.280 --> 0:25:20.840
<v Speaker 2>And then once that first stet is gone, you're going

0:25:20.880 --> 0:25:23.160
<v Speaker 2>to take that money that you were using to pay

0:25:23.359 --> 0:25:26.159
<v Speaker 2>that debt off and you're going to pay the next

0:25:26.200 --> 0:25:28.919
<v Speaker 2>smallest debt. And it's kind of like building a snowball

0:25:29.000 --> 0:25:31.960
<v Speaker 2>of momentum, and bit by bit you keep adding what

0:25:32.080 --> 0:25:34.400
<v Speaker 2>you were paying before to the next one in line,

0:25:34.440 --> 0:25:37.640
<v Speaker 2>and boom, your debt actually starts disappearing bit by bit.

0:25:37.760 --> 0:25:41.159
<v Speaker 2>And for me, it's such a satisfying feeling that every

0:25:41.240 --> 0:25:43.080
<v Speaker 2>time you pay something off, it's kind of like a

0:25:43.160 --> 0:25:45.480
<v Speaker 2>victory lap that keeps you going. Like I'm the type

0:25:45.480 --> 0:25:49.640
<v Speaker 2>of person that instant gratification works for, So if you're

0:25:49.680 --> 0:25:53.120
<v Speaker 2>somebody who like me, I just thrive on seeing results

0:25:53.200 --> 0:25:57.040
<v Speaker 2>quickly and I need a consistent sense of accomplishment to

0:25:57.040 --> 0:26:00.000
<v Speaker 2>stay on track. This snowball method, my friend, is for you.

0:26:00.359 --> 0:26:03.480
<v Speaker 2>I think it's actually perfect if you're just really overwhelmed

0:26:03.520 --> 0:26:07.280
<v Speaker 2>by debt, because knocking out those smaller balances I think

0:26:07.320 --> 0:26:10.560
<v Speaker 2>really builds confidence. But it's also not too technical, like

0:26:10.560 --> 0:26:13.480
<v Speaker 2>there's no maths involved. You just look at which one

0:26:13.600 --> 0:26:16.520
<v Speaker 2>is the smallest and start paying that off aggressively. But

0:26:16.800 --> 0:26:19.280
<v Speaker 2>if you're a bit more of an efficiency girly and

0:26:19.320 --> 0:26:22.080
<v Speaker 2>you're all about cutting costs and putting yourself in arguably

0:26:22.119 --> 0:26:25.639
<v Speaker 2>the best possible position, then the avalanche method might be

0:26:25.760 --> 0:26:28.960
<v Speaker 2>more on your page. So this one actually focuses on

0:26:29.080 --> 0:26:31.760
<v Speaker 2>paying off the debt with the highest interest rate first,

0:26:31.960 --> 0:26:34.159
<v Speaker 2>which is obviously going to save you the most amount

0:26:34.160 --> 0:26:36.560
<v Speaker 2>of money in the long run. As I said, this

0:26:36.600 --> 0:26:40.560
<v Speaker 2>one is arguably the quote better method. But for me

0:26:40.840 --> 0:26:43.520
<v Speaker 2>when I was paying back my debts, the snowball method

0:26:43.560 --> 0:26:47.119
<v Speaker 2>worked better for me because again, instant gratification curly. So

0:26:47.560 --> 0:26:49.280
<v Speaker 2>how do you do the avalanche method? What you're going

0:26:49.359 --> 0:26:51.600
<v Speaker 2>to do is, instead of focusing on what the smallest

0:26:51.600 --> 0:26:53.560
<v Speaker 2>debt is, you're actually going to list your debts from

0:26:53.600 --> 0:26:56.480
<v Speaker 2>the highest interest rate to the lowest interest rate, and

0:26:56.520 --> 0:26:59.520
<v Speaker 2>we're going to go after the most expensive debt first.

0:27:00.080 --> 0:27:01.760
<v Speaker 2>So once you've got your list, you're going to make

0:27:01.760 --> 0:27:04.240
<v Speaker 2>minimum payments again on all your debts. We're not going

0:27:04.320 --> 0:27:06.800
<v Speaker 2>to not pay any off except for the one with

0:27:06.880 --> 0:27:09.440
<v Speaker 2>the highest interest rate, and that one you're going to

0:27:09.480 --> 0:27:12.080
<v Speaker 2>throw all your extra cash at it until it has gone.

0:27:12.359 --> 0:27:14.880
<v Speaker 2>It might take a little bit longer to get that

0:27:14.960 --> 0:27:19.280
<v Speaker 2>first debt knocked out completely. But financially, this one actually

0:27:19.320 --> 0:27:21.359
<v Speaker 2>makes the most sense because you're cutting down on all

0:27:21.359 --> 0:27:24.880
<v Speaker 2>of those sneaky interest charges. When that I guess first

0:27:24.960 --> 0:27:27.639
<v Speaker 2>high interest debt is paid off, then you're going to

0:27:27.680 --> 0:27:29.280
<v Speaker 2>take the money that you were using to paid off

0:27:29.359 --> 0:27:31.600
<v Speaker 2>and roll it into the next high interest debt and

0:27:31.640 --> 0:27:34.520
<v Speaker 2>you just keep going from there. It might not feel

0:27:34.520 --> 0:27:37.439
<v Speaker 2>like you're making progress as fast as the snowball method,

0:27:37.640 --> 0:27:40.040
<v Speaker 2>but you'll be saving a lot more over time. So

0:27:40.080 --> 0:27:43.040
<v Speaker 2>if you're somebody who is more motivated by saving money,

0:27:43.160 --> 0:27:46.160
<v Speaker 2>and you know, having the most control you could say,

0:27:47.000 --> 0:27:49.240
<v Speaker 2>and you can actually handle the patients it takes to

0:27:49.320 --> 0:27:51.320
<v Speaker 2>focus on the long game, then I would say this

0:27:51.400 --> 0:27:54.320
<v Speaker 2>one's definitely for you. It's also the best option if

0:27:54.320 --> 0:27:57.520
<v Speaker 2>you've got a really high interest debt, like maybe a

0:27:57.560 --> 0:28:00.960
<v Speaker 2>big credit card balance, because that interest up really fast.

0:28:01.000 --> 0:28:02.680
<v Speaker 2>But when you're picking the method, I think the most

0:28:02.680 --> 0:28:05.080
<v Speaker 2>important thing that you do is actually think about you

0:28:05.119 --> 0:28:07.960
<v Speaker 2>and your personality and what's going to motivate you. So, yes,

0:28:08.040 --> 0:28:10.719
<v Speaker 2>you might save a bit more interest in the avalanche method,

0:28:11.160 --> 0:28:14.200
<v Speaker 2>but even the fact that you are considering a method

0:28:14.240 --> 0:28:16.800
<v Speaker 2>to pay off your debt means that you're going to

0:28:16.840 --> 0:28:19.440
<v Speaker 2>save money in the long term. For me, the Stoneball

0:28:19.480 --> 0:28:21.399
<v Speaker 2>method made sense. I'm sure if I went back and

0:28:21.440 --> 0:28:24.520
<v Speaker 2>calculated it, I could have saved some interest charges. But

0:28:24.720 --> 0:28:27.760
<v Speaker 2>like I see that as the payment for actually finding

0:28:27.800 --> 0:28:30.320
<v Speaker 2>the motivation and getting it done. Like, I don't think

0:28:30.359 --> 0:28:32.119
<v Speaker 2>I missed out on that. And if you wanted to

0:28:32.119 --> 0:28:34.679
<v Speaker 2>get technical, yes I could have left out money. The

0:28:34.680 --> 0:28:37.359
<v Speaker 2>Avalanche method might have been better. But at the end

0:28:37.359 --> 0:28:39.000
<v Speaker 2>of the day, I got out of debt and that

0:28:39.200 --> 0:28:41.360
<v Speaker 2>was the main goal, and that is what I'm most

0:28:41.400 --> 0:28:44.960
<v Speaker 2>proud of. I'm running out of time here really quickly,

0:28:45.400 --> 0:28:47.560
<v Speaker 2>so I just wanted to, I guess touch on something

0:28:47.600 --> 0:28:49.440
<v Speaker 2>a little bit fluffier, and it's more of like a

0:28:49.480 --> 0:28:52.600
<v Speaker 2>little reminder for you. You are more than your debt.

0:28:52.960 --> 0:28:55.320
<v Speaker 2>It is actually just a number on a piece of paper.

0:28:55.640 --> 0:28:58.239
<v Speaker 2>It doesn't define who you are or what you're capable of,

0:28:58.640 --> 0:29:00.880
<v Speaker 2>or your thoughts, your feelings, you're belief your values. It

0:29:00.880 --> 0:29:03.840
<v Speaker 2>doesn't define who you are or what you're going to

0:29:03.920 --> 0:29:07.840
<v Speaker 2>create with this life that you've been given. Every single

0:29:07.920 --> 0:29:12.920
<v Speaker 2>person's financial journey is so different, and having debt doesn't

0:29:12.960 --> 0:29:15.920
<v Speaker 2>take away from your value or your potential or the

0:29:15.960 --> 0:29:19.840
<v Speaker 2>ability to be successful in the future. I was forty

0:29:19.960 --> 0:29:23.880
<v Speaker 2>thousand dollars in debt. I was up to my eyeballs.

0:29:23.960 --> 0:29:26.200
<v Speaker 2>I would cry about it all the time. Eight hundred

0:29:26.200 --> 0:29:28.560
<v Speaker 2>and eighty three dollars I was paying back each and

0:29:28.600 --> 0:29:32.680
<v Speaker 2>every single month, and I had nothing extra Like that

0:29:32.840 --> 0:29:36.360
<v Speaker 2>was a chapter for me, a chapter that was really sad,

0:29:36.480 --> 0:29:39.280
<v Speaker 2>and I didn't feel my best, and I felt like

0:29:39.320 --> 0:29:42.080
<v Speaker 2>it defined me. But I feel like I'm a very

0:29:42.080 --> 0:29:45.680
<v Speaker 2>good example of coming out the other side. So does

0:29:45.760 --> 0:29:48.320
<v Speaker 2>being in debt define who you are? Absolutely not. I

0:29:48.320 --> 0:29:50.600
<v Speaker 2>think what matters the most is actually how you're planning

0:29:50.640 --> 0:29:54.760
<v Speaker 2>on moving forward. It's not about perfection or creating a

0:29:54.800 --> 0:29:58.200
<v Speaker 2>debt free life tomorrow. It's actually about understanding that debt

0:29:58.720 --> 0:30:01.760
<v Speaker 2>is just part of your financial story to chapter, and

0:30:01.920 --> 0:30:04.800
<v Speaker 2>you actually have the power, like the complete power to

0:30:04.840 --> 0:30:08.560
<v Speaker 2>write the next chapter in a different font. So be

0:30:08.680 --> 0:30:12.240
<v Speaker 2>kind to yourself, show yourself some compassion, and know that

0:30:12.480 --> 0:30:16.640
<v Speaker 2>tackling your debts, I would say it's very brave, but

0:30:16.760 --> 0:30:19.840
<v Speaker 2>it's also a really important step and one going in

0:30:19.840 --> 0:30:22.959
<v Speaker 2>the right direction. I think that being in debt it

0:30:23.000 --> 0:30:25.719
<v Speaker 2>can be overwhelming and all consuming, but I promise it

0:30:25.760 --> 0:30:29.360
<v Speaker 2>doesn't define who you are. I have run out of

0:30:29.400 --> 0:30:32.160
<v Speaker 2>time now, so I'm going to stop going on about it.

0:30:32.240 --> 0:30:34.600
<v Speaker 2>But I think that you are brilliant. I think that

0:30:34.640 --> 0:30:37.000
<v Speaker 2>if you have listened to this entire episode, hopefully it

0:30:37.040 --> 0:30:39.920
<v Speaker 2>resonated with you. And if it did strike a chord

0:30:40.080 --> 0:30:42.960
<v Speaker 2>with you, please don't forget to subscribe because it helps

0:30:43.000 --> 0:30:46.000
<v Speaker 2>me to continue to bring this content to you on

0:30:46.040 --> 0:30:48.920
<v Speaker 2>a weekly basis. And I hope you have a beautiful

0:30:48.920 --> 0:30:51.320
<v Speaker 2>weekend and I will see you bright and early on

0:30:51.480 --> 0:31:00.960
<v Speaker 2>Monday for a money diary. Bye. Shared on She's on

0:31:01.000 --> 0:31:03.680
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0:31:03.720 --> 0:31:07.640
<v Speaker 2>your individual circumstances. She's on the Money exists purely for

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<v Speaker 2>educational purposes and should not be relied upon to make

0:31:10.680 --> 0:31:13.960
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0:31:13.960 --> 0:31:17.240
<v Speaker 2>buy a financial product, read the PDS TMD and obtain

0:31:17.280 --> 0:31:21.720
<v Speaker 2>appropriate financial advice tailored towards your needs. Victoria Divine and

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