Disgusting Degenerate Steals $40,000 From Everyone | Financial Audit

Summary

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Financial Audit Episode Summary

Podcast: Financial Audit
Host: Caleb Hammer
Episode: Disgusting Degenerate Steals $40,000 From Everyone | Financial Audit
Date: August 30, 2024

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Episode Overview

In this raw and revealing episode, Caleb Hammer sits down with Sierra, a 27-year-old accounts payable clerk based in Austin, Texas, who openly admits to disastrous financial habits. The conversation uncovers her pattern of overspending, irresponsible debt management, and the personal circumstances that led to her accruing over $40,000 in liabilities. Caleb provides tough love mixed with practical guidance as Sierra reflects on her mistakes, seeks accountability, and discusses plans to get her finances under control.

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Key Discussion Points & Insights

1. Background and Income Situation

• Sierra works as a temp accounts payable clerk earning $20/hour, projected to become a permanent employee at the same wage. She has no PTO and occasionally gets overtime.
  • “How do you feel living on Austin in that?”
    Sierra: “Not great.” (01:15)
• She identifies that Austin’s cost of living is high for her income.

2. 401(k) Withdrawals and Lost Retirement Potential

• Sierra has withdrawn $3,000 from her 401(k) over the past year, mainly to cover a car down payment.
  • Caleb: “That $3,000 was worth $72,628 at retirement… What’d you take it out for?” (03:41–04:25)
• She admits this isn’t the first time she’s tapped retirement funds, reducing her balance to about $300.

3. Autoimmune Disorders and Job Instability

• She left a higher-paying production job at Tesla due to an autoimmune disorder, which has left her fatigued and unable to work physically demanding jobs.
  • “I have an autoimmune disorder… it started really affecting my health.” (06:51–07:01)
• Plans to supplement income with a Starbucks job, despite health challenges.

4. Budgeting and Overspending

• Sierra is largely unaware of her monthly outflows:
  • Estimates spending $2,000, but actual monthly spend is $3,800 vs. $2,200 earned.
  • Caleb: “You spent double what you make… How do people not know this?” (08:33–09:06)
• Admits much of her overspending is on discretionary items, especially dining out (approx. 27% of income).

5. Debt Profile and Management Failures

• Multiple credit cards maxed out, several sent to collections. Fails to make even minimum payments.
  • Caleb: “You’re over the limit. By $200… Why aren’t you at least paying your minimums?” (21:31–22:13)
• Only recently began to confront her habits, prompted by upcoming therapy through an employer benefit.

6. Living Situation and Rent-to-Own Mobile Home Trap

• Sierra is joint on a 30-year, $30,000 rent-to-own trailer agreement in Corpus with her ex-fiancé, though she lives in Austin. Rent is $1,200/month, much of which is at risk due to her ex’s unreliable payments and inability to refinance the agreement.
  • “You’re gonna spend… $432,000 on a mobile home worth $30,000”
    Caleb: “That’s crazy.” (17:01–17:18)
• Trying to remove herself from financial liability with little progress.

7. Car Purchase and its Consequences

• After using insurance payout from hail damage and 401(k) withdrawal, Sierra financed a new 2024 Kia at 12% interest for 7 years, owing over $30,000.
  • Caleb: “This is an insane car for you!...Making $20 an hour, not making minimum monthly payments. How did you get qualified for a loan?” (37:36–41:20)
• Admits regret, especially as her former car payment was much lower.

8. Recurring Financial Self-Sabotage

• Ongoing non-essential spending (e.g., perfume on afterpay, TikTok shopping for pets, frequent dining out, streaming services, and even dating apps).
  • Caleb: “You blow it up…don’t even put payments on it…and allow it to go $200 over the credit limit.” (28:46–29:35)
• Openly acknowledges lack of discipline and pattern of avoiding bill payments.

9. Therapy and Behavioral Change

• Sierra recognizes a need for behavioral change and is planning therapy.
  • Caleb: “[Therapy] is one of those things almost like this conversation where people go…and they don’t do any work outside of therapy…you’re going to need to put in the work and discipline still.” (50:00–50:45)

10. Debt Totals and Outlook

• Debt includes at least $6,000 in student loans, multiple charged-off credit cards (e.g., Citibank $1,639, Amazon $725), and over $1,400 in unpaid tolls.
• Caleb: “There’s not one thing we’ve looked at that I can see a bright side to…everything so far has literally been your choice.” (44:26–44:48)

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Notable Quotes & Memorable Moments

• On 401(k) withdrawals:
  Caleb: “That is the last thing I would be smiling about in this entire world, my dude. Yeah, you’re taking from your 401k…This is your literal retirement.” (02:39–02:50)

• On spending habits:
  Caleb: “How was 35% or 27% [of your income] anywhere acceptable when you have payments you could have made three times this minimum payment on your going out to eat?” (24:15–24:48)

• On rent-to-own: Caleb: "You're gonna spend...$432,000 for something worth $30,000."
  Sierra: "That's crazy." (17:01–17:18)

• On minimum payments and irresponsibility:
  Caleb: "If you pay your minimums, you're not gonna go over the credit card limit…But you don't pay anything. You really don't. The woman who pays no bills. You literally just don't pay the bills that you have." (56:11–56:24)

• On self-discipline:
  Sierra: "There's...There. It's a discipline problem for sure." (24:59–25:05)

• On the extreme car note:
  Caleb: "This is an insane car for you...This makes no sense. Why did you think you needed a brand new car?" (40:06–41:20)

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Timeline of Major Segments

| Timestamp | Segment | Key Topic | |-----------|---------|-----------| | 01:01 | Introduction to Sierra | Overview of income/job | | 02:19–03:41 | 401(k) withdrawals | Early signs of financial mismanagement | | 04:25 | Car purchase backstory | Use of 401(k) for down payment | | 05:35 | Ongoing 401(k) withdrawals | Drained retirement account | | 06:47 | Income drop due to health | Leaving higher paying job | | 08:33–09:06 | Spending vs. earning | Start of budgeting issues | | 12:00 – 19:00 | Rent-to-own mobile home | Financial liability with ex-fiancé | | 21:18 | Credit card balances | Account over limit and charged off | | 24:15 | Eating out overspending | Disproportionate discretionary spend | | 34:25 | Spending justification | Self-reflection on choices | | 37:36 | Car loan deep dive | High payment, bad loan | | 44:26 | Financial choices summary | Tough love from Caleb | | 50:00 | Behavior and therapy | Commitment to change | | 62:18 | Frivolous spending | Spending on gifts, dating, and more | | 69:02 | Budget breakdown | Rent, bills, debt minimums | | 72:35 | Debt repayment strategies | Need for extra income, plan | | 77:35 | Focus on car as problem | Potential for car sale/trade-in | | 80:59 | Financial score summary | Reality check, 0/10 score |

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Caleb’s Final Assessment and Recommendations

• Score: Hammer Financial Score – 0/10 (Overspent, debt in collections, no emergency fund, no retirement, no true assets)
• Main Causes: “Everything so far has literally been your choice…There’s not one thing we’ve looked at that I can see a bright side to. I’m sorry.”
• Action Plan:
  • Immediate, radical spending cut—especially on discretionary items.
  • Secure and work a second job to increase income, despite health challenges.
  • Consider selling the car and buying a cheaper vehicle to reduce debt burden.
  • Focus on therapy and actionable steps; information and tools alone won't help—behavioral change is critical.
  • Use available resources (budgeting and investing tools) but understand only sustained action will drive change.
  • Continue to pressure ex-fiancé to remove herself from mobile home liability.
  • Stick to minimum payments on all debts, prioritize catching up, and avoid further borrowing.

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Takeaways for Listeners

• Awareness is the first step, but action and discipline are non-negotiable for financial recovery.
• Life situations can cause setbacks, but most poor financial situations are the result of choices that can be changed with hard work and accountability.
• Therapy, education, and budgeting tools are only as useful as the effort invested outside of those sessions/resources.
• Spending is often a bigger problem than income for many young professionals—the numbers don’t lie.

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“Want is a want is a want. I want to be skinny. But if I don’t go on a diet, if I don’t work out, I’m not going to get skinny…”
–Caleb Hammer (25:25–25:34)

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For More

• Full post-show available to podcast supporters and members.
• Resources, budgeting spreadsheets, and tools mentioned by Caleb are linked in the episode description.

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Transcript

[A]

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[B]

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[A]

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[B]

Of Financial Audit a week earlier. Check us out on YouTube. You're taking out of your 401k.

[A]

Yeah, I needed a little extra.

[B]

You know, if we went back time and we looked there, okay, maybe things were tighter and maybe you couldn't have fully made your payments, but I don't know, based on your spending, I don't believe that for a single second.

[A]

I like also treating myself. I mean, hopes. I also want to die. Hi, my Name's Sierra. I'm 27. I'm based out of Austin, Texas. And this is Financial Audit.

[B]

Welcome on the show. So what do you do for a living here in Austin?

[A]

I'm an accounts payable clerk. Okay, and what do we make, like 20 an hour. So is that like what, 40, 40 a year?

[B]

How do you feel living on Austin in that?

[A]

Not great.

[B]

Yeah, Austin's kind of a higher cost of living place to live. You get 40 hours a week?

[A]

Yeah. Yeah, sometimes I try to do overtime, though.

[B]

You get paid time off?

[A]

Not yet. I'm temp.

[B]

No, but really? Okay. How long have you been in this job?

[A]

About two months. Next month is my final month. Yeah. Oh, yeah.

[B]

Next month's your final month?

[A]

Yeah.

[B]

And then what?

[A]

And then I'm permanent. I've already. Yeah, I've already had conversation.

[B]

Oh, okay. It's official.

[A]

Yeah.

[B]

Permanent at what wage?

[A]

Still 20.

[B]

Okay.

[A]

I know.

[B]

Is this what you want to be doing?

[A]

Um, I do like it. I like it a lot, actually.

[B]

20 is not absolutely, you know, horrific or anything, you know, Definitely depends on the household situation. Depends on debt. Depends on the place you're living in. Okay. Now, what do you think came in through payroll in this last month?

[A]

Oof. Not much because I was.

[B]

That's not a number.

[A]

Okay, so I'm gonna say 3,000. Maybe. Maybe a little less. 2. 2,000. 2,600.

[B]

I'm gonna say 22. 35. Oh, does that sound normal?

[A]

Yeah, that. That kind of sounds about normal.

[B]

Now, There is an ACH deposit of 602 in. Where'd that come from?

[A]

I think it was from my 401k. Yeah. Sorry, what?

[B]

From your 401k, you're taken out of your 401k.

[A]

Yeah, I, I what? I needed a little extra.

[B]

That is the last thing I would be smiling about in this entire world, my dude. Yeah, you're taking from your 401k.

[A]

It's not my.

[B]

In the best decade of your.

[A]

It's not the first time. I'm sorry, Caleb.

[B]

Don't be sorry to me. This isn't about me. I don't. Who gives a about me? This is your literal retirement. How much have you withdrawn from your 401k total?

[A]

So within the past year, maybe like 3k. Half of it was to pay for my car.

[B]

But you have a 10 withdrawal. And over this last year, I mean when you started contributing in general, other than these last couple weeks, the markets has been up, up, up, up, up. Meaning you are paying capital gains. Sometimes short term capital gains on some of these.

[A]

Yeah.

[B]

So you're just getting.

[A]

Yeah, I know. I myself a little.

[B]

And this is the best decade of your life for compound growth, setting yourself up for retirement. Me. How much did you withdraw? 5,000.

[A]

No, 3,000.

[B]

Okay. So I'm gonna open up Moomoo. It's where I invest my money. It's a brokerage I use personally. I'm Gonna put that $3,000 in the S&P 500 for the next me 43 years. No, 32 years. To 69 and a half. 59 and a half when you can. To 59 and a half when you can withdraw that money penalty free. Okay, that $3,000 was worth $72,628. And what'd you take it up for?

[A]

So it was to put a down payment on my car because I didn't get the insurance money from the hail.

[B]

Store, storm insurance money from the hill. So. Okay, so hell, my first car and it made it undrivable.

[A]

It didn't make it undrivable. There was.

[B]

What am I getting into right now? Okay, so what, what did the hell do?

[A]

It damaged every single panel of my car of my Nissan Altima and it.

[B]

Also mistake number one. Nissan Altima.

[A]

Yeah, I hated it.

[B]

Okay.

[A]

It had a sunroof too, so it blew it in and okay, so you.

[B]

Would have had to replace glass.

[A]

Yeah, yeah.

[B]

But other than that it was just denting things. But nothing internal got messed up.

[A]

It was already kind of a car. How like it was, it was running rough. Like really rough. How it. I don't know, it just sounded rough. I'm sorry.

[B]

No, don't apologize to me. Okay, this isn't about me.

[A]

Okay.

[B]

But you didn't take it to a mechanic and have a mechanic say that, well, this car is rough. No, I'm gonna die. Okay.

[A]

If it helps, I also want to die. Just jokes. I promise. I promise.

[B]

So you gotta. You put a down payment on a new car? Yeah, I've seen this car loan. This car loan is not good.

[A]

No.

[B]

So you've. Now you're taking. Oh, so that ach inside bringing in was from your 401k. You're still taking more. What's your 401k at now?

[A]

Like 300? Yeah.

[B]

Oh, so literally you've drained it down to, like, one more withdrawal possible, and then that's like it.

[A]

Yeah.

[B]

Then what? And then what was your plan after that?

[A]

Well, I was gonna start contributing once I get, like, the permanent position. Because they offer 401k.

[B]

Yeah, but what changes? You're making the same amount of hours, same amount of pay. So what the. Was gonna be different.

[A]

I guess I was gonna try to also get a second job.

[B]

Why aren't you getting a second job today?

[A]

I actually have an interview tomorrow.

[B]

For what?

[A]

For a barista position at Starbucks.

[B]

Great. Absolutely. Wonderful. Fantastic. Okay, so you think it's an income problem?

[A]

It is. I think. I think it's an income problem because when I did get my car, I was making a little bit more.

[B]

Why are you making less today?

[A]

Because I left due to health reasons.

[B]

What?

[A]

Like, I was. I have an autoimmune disorder. And. Yeah. And it's really, really bad. And it started really affecting my health, and it was a physically draining job.

[B]

And you're about to be able to work two jobs now.

[A]

I can. I can do one of my jobs. I just pretty much sit at a desk all day. The other job would get.

[B]

What was the other job?

[A]

My. My previous job was I was a production associate at. Down the road or in Tesla. Or Tesla.

[B]

Oh, okay.

[A]

Yeah. Yeah.

[B]

Okay. So you just couldn't be on your feet? Couldn't be.

[A]

Yeah.

[B]

Doing all the manual labor.

[A]

Yeah, it was. It was a lot over time because I didn't. I developed my autoimmune while I was working.

[B]

What are the symptoms?

[A]

Like, I get really fatigued, like, standing long hours.

[B]

Has this been clinically diagnosed?

[A]

Yes. Yeah.

[B]

Okay. Unlike your mechanic thing that you didn't do. I can actually listen to this one.

[A]

Yeah. And I was underbody, and the cars were above us, so a lot of the times I had to keep my arms up majority of the time. And I would get really, like, nauseous I'd get fatigued and I'd feel okay.

[B]

So you went and found a job that worked for you.

[A]

Yeah.

[B]

Now, Starbucks is going to be very much on the feet. Not as manual as, obviously, car manufacturing.

[A]

Sure. I used to work at Starbucks before.

[B]

Yeah, but you've developed the autoimmune disease.

[A]

Yeah. Yeah.

[B]

So you didn't have that?

[A]

No.

[B]

Or at least as extremely. When you initially worked at Starbucks.

[A]

Yeah, that's.

[B]

So what's different now?

[A]

Um, well, I would be only working like, a few hours a week. Like maybe like four days a week.

[B]

Okay, so you think income's your biggest problem?

[A]

Yeah, and no. Well, it's my spending. It's my spending.

[B]

Oh. How much did you spend in this most recent month?

[A]

Ooh, I'm going to guess probably 2000. Is that. Is that right?

[B]

I'm $3800. How. How do you even not know this? How do people not know this? This. This will forever blow my mind. Forever blow my mind. Because you have decided in your life right now that income is your problem. You've decided that in order to decide that if I were to go. If I were to go decide that income is my problem because I can't keep up with expenses, I would know what my expenses are. Yeah, but you don't even know what went out this last month.

[A]

I don't.

[B]

So how in the world are you able to determine that it is an income problem and not a spending problem?

[A]

I guess I can't. I didn't.

[B]

So what is this gonna solve? This Starbucks isn't gonna catch up to that. It's not gonna double your income.

[A]

No, but I. I am. I've realized that I have a problem, and there's good gonna be a solution. Like, I'm gonna go to therapy, because that's offered also through my employee, my current employer.

[B]

Okay, so you've realized there's a problem.

[A]

Yeah. Yeah.

[B]

Why am I not seeing anything addressed in these statements then?

[A]

Um, because I only. Recently.

[B]

Everyone only decides they have a problem about two hours before they come on the show.

[A]

That wasn't true. It was like maybe like two weeks ago.

[B]

Okay. Nuh. None of your statements. So. So what's going to change from this conversation?

[A]

I'm going to get the resources and I have more drive.

[B]

The resources? What resources?

[A]

The ones that we give, I guess.

[B]

Well, yeah, we give you the budgeting program and the investing program, which are bundled at a lower price right now. And I definitely support that. But that's educational tools. Those are tools. It's Actions still that are required. It's not a magic pill. I'm not a magic pill. This conversation's not a magic pill.

[A]

Sure.

[B]

You still have to go in. You got to put in the action, got to stick to the discipline, Got to build your budget, Got to manage your budget, got to look at your budget on a monthly basis. Got to see what you're adapting in the next month in order to continue to improve it and stick to it. The class is not a magic pill.

[A]

No, no.

[B]

Just like getting education, you can go and sit in a class. If you don't participate, if you don't take the quizzes, if you don't actually put in the actions after it, it's nothing.

[A]

I understand that. Yeah. And I'm not. I'm not saying it's a magic pill or, like a band aid over a bullet wound, but I'm pretty much. It also just gives me, like, an insight, and I do need the tough love approach, for sure.

[B]

Yeah. No, I get that. So do I. That's. That's what works for me.

[A]

Yeah.

[B]

I don't know why people out there get upset by it. Like, don't come on the show. I mean, thank you for being here because you know what works for you.

[A]

Yeah.

[B]

But also, don't come on the show if it doesn't work for you instead of trying to be offended on other people's behalf like a weird mot. People are weird. But if you do want to come on the show, Caleb hammer.com apply. It's a good place. Check it out. Highly recommend it. All right. Where do you think you are on your financial skills? 0 being the worst, 10 being the best.

[A]

I'm gonna say zero. I did take the. The financial score, and I got zero.

[B]

Ah, that makes sense. If you want that scores in the description as well.

[A]

But I do have the. The house, so the. I have a house.

[B]

You own a home?

[A]

Kind of. It's rent to own, but I'm not really living there.

[B]

What? Wait, what the. Okay, we were about to go into your finances. What the are you talking about?

[A]

Okay, first, because now.

[B]

What the. How do you not live in a house that you own?

[A]

So I had an. A partner back where I moved from, so Corpus.

[B]

Okay.

[A]

And we were, like, engaged. And we were gonna.

[B]

Like, engaged. Okay.

[A]

We were engaged.

[B]

Wow.

[A]

Yeah. And I didn't want to stay in Corpus anymore, so it's one of the reasons why I moved to Austin and we broke up amicably.

[B]

Okay. Why did you guys break up? Going from engaged to break up. That's pretty big.

[A]

It is. I wanted. I wanted to do something more. And in Corpus. You really?

[B]

Oh, to move?

[A]

Yeah, I wanted to move.

[B]

So you had to break up to move?

[A]

Yeah.

[B]

He wasn't willing to leave Corpus.

[A]

No. Because he has a job that he likes there. But I didn't. I didn't want to stay there anymore.

[B]

The job overcame a marriage.

[A]

Yeah.

[B]

Wow. Okay.

[A]

And also, we weren't in the best financial situation either, so.

[B]

Yeah. Still.

[A]

Yeah. And I'm just kind of tired of living like that, so that's why I want to fix this.

[B]

So how does this mean you own it? So you. Did you guys buy a home together?

[A]

Yes. Sorry. We started renting, like, one of those trailer homes, which isn't the best. Best investment either.

[B]

Wait, renting?

[A]

Yeah, it was rent.

[B]

It was like you were renting a trailer park.

[A]

A trailer home? Yeah.

[B]

In a trailer park.

[A]

Yeah. So it's not even on, like, our own property or anything. And the. The.

[B]

So you rent the unit, and then you also rented the land, or was it all baked into one?

[A]

Kind of. There was two payments that we had to make, and one was significantly smaller, which was a lot rent.

[B]

So, yeah, you're renting, but you didn't own it.

[A]

No, but we're buying the actor. Technically, we are buying the. The house itself. Does that make sense?

[B]

House? You mean the trailer?

[A]

Yeah, the trailer itself.

[B]

No, it doesn't. You guys are. Instead of renting, you're now borrowing.

[A]

Yeah.

[B]

You're gonna take out a loan to get it.

[A]

Yes, we're renting to own. I don't know the.

[B]

Oh, rent to own.

[A]

Yeah.

[B]

That's okay.

[A]

Yeah. I tried to get out of it. I did. I tried to get my name out of it, but.

[B]

But.

[A]

So it's pretty crazy.

[B]

He's not willing to, like, whatever version of refinancing there would be to get you off of it and him permanently on it.

[A]

Only I don't think he has the greatest credit either. So I don't think the.

[B]

The rent to own.

[A]

Yeah.

[B]

What's the. Okay, what's the terms of this?

[A]

Like, 30 years?

[B]

Cause I don't. I don't have the debt for this. Yeah, 30 years. So it's like a mortgage.

[A]

It is. So, yeah, I'm trying to. I'm trying to get my name taken off of it.

[B]

But what's the rent?

[A]

The rent is like, 1200.

[B]

Oh, no, it's not.

[A]

It is.

[B]

Is this even decent?

[A]

It was. Yeah. No, it is.

[B]

Was. Is the.

[A]

The. The.

[B]

That's not cheap. Yeah, that's not cheap for 30 years. Baked in. And it's a corpus interest or is that baked in?

[A]

I think it's baked in. I'm not exactly sure though because I don't have the statements I asked.

[B]

Yeah. Why didn't you get statements?

[A]

I asked for it, but he's not able to get them to me.

[B]

Why?

[A]

He's working like a double today. So he's not.

[B]

You only tried today. We've been in conversation for a while.

[A]

I didn't know until like that you.

[B]

Were renting to own.

[A]

Yeah, I thought he. Okay, so we tried to take my name off.

[B]

This is happening. Hold on.

[A]

Wait, wait, wait, wait, wait. Okay, so basically I tried getting him to. Okay. I don't want to give too much information about him because he's not in my life really that much. So I tried asking him if he could get me the documents over the weekend.

[B]

Yeah.

[A]

Because I only found out about this like recently because we originally were supposed to get my name taken off of the. The contract.

[B]

Sure.

[A]

But when I asked the. The original landlady had passed away.

[B]

Okay.

[A]

And I thought he was gonna go ahead and get with the new landlady so we can start this whole process of getting my name taken off.

[B]

So why hasn't he.

[A]

I don't know.

[B]

Tell him to grow a pair, man up a little, put in a little bit of effort. What?

[A]

I will let him know.

[B]

Well, how is your guys relationship?

[A]

We're friends. We're friends.

[B]

Okay. How long have you been pushing to get off?

[A]

Eight months.

[B]

Oh, okay. He needs to become a big boy.

[A]

Yeah.

[B]

Is it rent to own through the owner or is it rent to own through a third party?

[A]

It's through the. Through the trailer park. So I guess the owner.

[B]

Wow.

[A]

Yeah.

[B]

This is wild.

[A]

Yeah.

[B]

Can. Are you guys able to like sell your rent to own to someone else?

[A]

I don't think he wants to because that's his property. He wants to stay there.

[B]

Not even. He doesn't even own the land. He owns four cheap walls.

[A]

Yeah.

[B]

What was the price of this?

[A]

30 something. 30? Yeah. That's why I want to get off. I. Yeah, I don't want to be on it anymore just because I. I.

[B]

Do I even need to tell you I don't.

[A]

You don't. You can just to say it because I know it's already a situation because.

[B]

You'Re going to spend if again, I don't have it here. I do not have the terms here, but according to everything you've told me, it's going to cost you $432,000.

[A]

That's crazy.

[B]

According to everything you told me. Again, unless the rental goes down, does the rent go down over the course?

[A]

I do believe so.

[B]

Okay, well, that changes it because right now, I mean, you're paying half the value of it in rent a year.

[A]

Well, I'm not paying for it. Like none of my money goes towards that house.

[B]

But what happens if he misses the payment? You're on it, aren't you?

[A]

Yes.

[B]

Okay, that'll f you.

[A]

Yeah, it will.

[B]

You. You know for a fact it is 30 years.

[A]

I don't.

[B]

Okay, well, you don't know anything.

[A]

I don't. I was trying to get the lease and it's been over five years since I've been on this.

[B]

Because I mean, that is completely different. Yeah, it is completely different. In terms of, okay, pay monthly rent, additional amount that goes, building a down payment for the home potentially. Well, they just equity over time. Monthly rent to own agreement is usually higher than the standard rent due to the additional payment. You have maintenance responsibilities. Option fee. At the start of the agreement, the tenant usually pays an upfront fee known as the option fee, which is between 1 to 7% of the purchase price. And it was only $30,000.

[A]

It's a trailer.

[B]

Milked you. I know. That's why I was so surprised when I heard. Twelve hundred dollars a month.

[A]

Yeah. It's a three bedroom, two bath.

[B]

Wow. Living in luxury. There's nothing wrong with living in that at all.

[A]

No.

[B]

But doing this to do. So.

[A]

Yeah.

[B]

It's like the worst thing we could ever do.

[A]

Yeah.

[B]

According to everything you've told me. That's okay. The. The typical is one to five years.

[A]

I don't know. I. I honestly couldn't tell you.

[B]

Why'd you give me 30? Because that would have been insane.

[A]

Because I think it was like a ridiculous.

[B]

Can I get him on the phone?

[A]

I can try, but I think he's at work right now.

[B]

You want to just send him a text real quick?

[A]

Yeah.

[B]

Because even if it's the five years, it's 72, 000 for a thirty thousand dollar thing. So I just want more information on this because I know you're not paying it right now. Right. Is that what you said?

[A]

That's correct.

[B]

Okay. But if he doesn't, for whatever reason.

[A]

That falls on me.

[B]

Yeah.

[A]

And I don't want that to fall on me.

[B]

Death even.

[A]

Yeah.

[B]

You know.

[A]

Yeah.

[B]

Something even extreme like that.

[A]

I just have to turn on my phone.

[B]

Okay. Now you can text them. Wow.

[A]

It's crazy. And that's kind of one of the reasons I wanted to make sure and I completely.

[B]

So what happens when the term is done? He just wants to keep it forever.

[A]

Yeah.

[B]

Something that's going down in value on land he doesn't even own. How does that make sense? And that means you just can't. Like, you're on the deed of this.

[A]

Yeah.

[B]

I want to give you free money right now. I partnered with different resources that will literally give you hundreds of dollars the moment you sign up for them. Check out my investing app of choice, Moomoo, where they give you up to 15 free stocks and 8.1% interest on your uninvested cash when you sign up with my link. Do you want a more traditional savings account? Check out where I keep my emergency fund, SoFi, where they'll give you 4.6% on your money and up to $250 for sign up with my link. Would you rather have automated investing? Sign up for acorns with my link and you'll get $20 right now instead of the usual $5 you'd get from your friend's referral. You can also sign up for our investing program and get $100 in cash deposited into your Moomoo account. This is the best way to learn what your investing profile looks like and what investing strategies to use based on that. All of this free money is linked in the resources section of the description below. So don't pass up the free money because I'll punch you if he sells it. Okay. What's the agreement then? If he's paying for all the payment right now, do you get anything if he sells it?

[A]

I don't think so. But even if we wanted to move it off of that, that in the trailer park, I guess it would be like 10,000 to 20,000 to move. I think that's the average amount to move a trailer home. We've looked into it when we were like, engaged, but.

[B]

Okay.

[A]

Yeah.

[B]

Let's get into these statements and we'll see if we can get in touch with him so I can learn more about that. Because that's insanity.

[A]

Can I go ahead and text him?

[B]

Yes.

[A]

Okay.

[B]

You have a capital one Walmart card?

[A]

I do.

[B]

Balance on here? $737.41. Not the most insane credit card balance, but I know higher cost of living state. And obviously you spend double what you make. What? Minimum the payment. $263. That doesn't make sense. Interest charge. It's because you're over the limits. You're over the limit. By 2, 200. How are you over the limits right now? Dude? What is happening? Why aren't you at least paying your minimums? If you pay your minimums, you're not gonna go over the credit card limit. You'll make a little bit of progress, even if not that much progress, but you'll make a little bit of progress. So what are we doing?

[A]

I lost my job.

[B]

What?

[A]

So I lost my job. When, like it was, it was a temporary job. It was like a attempt position.

[B]

When?

[A]

It was like three months ago.

[B]

Okay.

[A]

I was out of work for a month and I was, I was applying.

[B]

Okay.

[A]

I was applying like it was my full time job.

[B]

Good, I like that.

[A]

Yeah.

[B]

So now a few months have passed. Why have we not at least caught up on the minimum?

[A]

Because they got charged off. Because I wasn't able to make payments for a while. I was only making the bare minimum to like sustain life pretty much.

[B]

So are you saying this, has this been given to collections?

[A]

It has.

[B]

This has. If, if not, what's your credit score now?

[A]

It's not great.

[B]

That's not a number.

[A]

It's like low 600s, high five hundreds.

[B]

Oh, me bad. It's bad at 27.

[A]

Yeah, I, I kind of myself tremendously.

[B]

I think we have some, some of the credit karma in here. Well, this is insane. So you're, you know, for sure this has been given to collection? Sold off the collections?

[A]

I know one of them has. I think it's the quicksilver. I don't think it's that.

[B]

So it's not this one. So it's not even this one?

[A]

No, I, I have a couple credit cards.

[B]

Are you waiting for this to go to collections or what's your plan here? What, what are, what are we even attempting? You've made, you've made money. Not a huge amount of money, but you've made money over these past couple months.

[A]

Yeah.

[B]

And we haven't even attempted to catch up on it, so why.

[A]

Well, I was, I've been. I've been in a tough, a couple tough situations.

[B]

Is that true? What percentage of your spending? Which by the way, that spending was double what you come in bring, actually. Fine. How, how about this? What percentage of your income. Income did you spend going out to eat? Income. Income. What percentage of your income can you tell me? Are you able to give me a little, just a little, a little hint? 35, you say 35%, which, that's insane that that even came out of your mouth, but you're close. 27. How was 35 or 27 anywhere acceptable when you have payments you could have made three times this minimum payment on your going out to eat. Going out to eat three times your ketchup. Minimum monthly payment. And then the normal monthly payment is probably like 40 bucks.

[A]

Yeah.

[B]

So what the. This was a choice. This is a personal choice.

[A]

It was.

[B]

This isn't. That's not a. That's not an income thing. That's not an income thing. That's not an income thing. You spent more than a quarter of your take home pay going out to eat. An income thing. An income thing. I have people that just freak out and they're like, wah. Caleb, incomes are just poo, poo poo. And people can't just even survive. And for some people that is true. And for those people, I give them different kind of advice.

[A]

Yeah.

[B]

For you, you spent 25 on going out to eat. It's completely different.

[A]

Yes.

[B]

So what the are you doing? There's no responsibility.

[A]

No, there's. There. It's a discipline problem for sure. And then on top of that, why.

[B]

Has that not been addressed? If you can recognize it that I will never understand that you can come here and you can say, I recognize it. And that's why I'm here for help. That does not work for me. It doesn't. Because you have been doing this even at the time of knowing it's wrong. So why has there been no change? Why have you not put any actions into it and waited for this exact moment? Because if I don't know a little bit of insights on how you're living your life, how are we going to create a conversation, create a plan that that is actually going to work for you and get you to a good position. So why have you done nothing? Even though you recognize that it is bad?

[A]

So it kind of ties into the reasons why I got the credit cards. So when I first started moving or when I moved up here, I was, I was dating around a little bit and I was actually making a decent, decent income and I wasn't like worried about it.

[B]

Okay.

[A]

But then I met my ex. We just like kind of broke.

[B]

New ex after the ex fiance.

[A]

Yeah. Yeah, a new ex.

[B]

You just broke up, you said?

[A]

We broke up two months ago.

[B]

I'm sorry to hear that.

[A]

It's for the better, honestly. That's what every ex says, so. So basically he made more than I did. He made two times as much as I did, maybe three.

[B]

Sure.

[A]

And he constantly like told me about how his, his ex was like always asking him for Louis Vuitton Bags and everything else. And I was trying not to be like a gold digger, but I wasn't making enough.

[B]

How would you be a gold digger?

[A]

Because I didn't want to, like, constantly, like, rely.

[B]

Were you asking for Louis Vuitton bags?

[A]

No. No.

[B]

So how would you be a gold digger?

[A]

I wanted to be able to contribute a little bit more.

[B]

Sure. Okay.

[A]

I get that because I like. I like the idea of 50. 50, but our 50.

[B]

Is that what you said? You say that's why you opened your credit cards, though?

[A]

Yeah, because I was, like, buying Christmas presents and birthday presents.

[B]

But you weren't contributing. You were just putting. If you guys had a future, which obviously now we know you didn't.

[A]

No.

[B]

If you did, though, you were just putting both of you deeper in a hole.

[A]

It was more myself. He didn't really.

[B]

Yes. If you guys were together, though, if you were going into debt, if that partnership was to last, you wouldn't have been contributing. You were putting the future yourselves in a worst position.

[A]

Yeah. And I realize that now because even looking while I was getting all my statements and stuff, I realized majority of this was. Was like, spending on, like, food to go out to eat together because I didn't always want to make him pay or I was getting, like, little things for us and. And like, paying for things. Like, I think I put ACL tickets.

[B]

So you thought that if you covered things instead of him, that you were just like a gold digger, Sugar baby?

[A]

No.

[B]

Why? Like, he's not. But you weren't begging for things or asking for things. You're just.

[A]

No, but I also didn't getting a meal. I just didn't want him to, like, feel like he kept. I didn't want to burden him.

[B]

Did he suggest in any way whatsoever that he thought you were taking advantage of his financial position?

[A]

No, not. Not really.

[B]

Okay.

[A]

I don't think so. I wasn't trying to.

[B]

No, I know, but then. Okay, I get the concern. Is this maybe an overreaction? Especially if you have to go into debt for it. Listen, you're not a credit card person. No, I need to be as clear as possible. It doesn't matter that you're not. Your credit score is 544. Oh, it's horrendous. It's disgusting. It's vomit. Use the fizz card or a charge card. Like it. If you're going to use cards, okay? That's the kind of cards you can use. You cannot use a traditional credit card.

[A]

You.

[B]

You can't have access to money. You blow it up, then you don't spend. No, you blow it up. Then you don't even put payments on it. Then interest accrues, and then you allow it to go $200 over the credit limit. The credit limit on here was 550 bucks. You're 737. You didn't make a payment. Who would have thought? And then $19.91 of interest, minimum payment is probably 40 bucks. But right now it's at 263, because you got to catch up. Okay, now, you mentioned why you've gotten to the credit card. So you don't really answer my question, and I'll be a little more spec in the world. Why in the entire world is you going out to eat three times more important than this minimum payment? Mathematically? Why?

[A]

There is no reason.

[B]

That's. Nope, nope, nope. There will be an answer.

[A]

Okay.

[B]

There is still something in there, whether or not you fully recognize it or not. Okay. Is that what it is? So it's the want. It's the want of nice things that's going out to eat, though it's not even nice things.

[A]

Yeah, but I like restaurants.

[B]

Okay. Okay.

[A]

I do like food. I'm a kind of a foodie. Probably not. Probably shouldn't be for a while, but.

[B]

Well, obviously, yeah, you can't afford to be a foodie.

[A]

No, but that's kind of how my ex and I, like, bonded. We would go over to restaurants, and then I would pay. One. One date. And then he would go on. We would go on another date, and then he would pay.

[B]

No offense. You guys broke up. I don't think you can. Can sustain that.

[A]

Oh, no, that's. That's not exactly what I want to do anymore.

[B]

Or it's time to actually start going on those other dates and only have them pay for it, because that might be the only way you're able to afford a restaurant. People get triggered when I suggest that. I more mean that as a joke, but I don't.

[A]

I don't like doing that just because I don't like other people paying for food. What do you mean? Oh, like, dates. I just don't like people. I don't like giving off that impression.

[B]

Oh, it's just a personal thing.

[A]

Yeah. No, I get you. I get you.

[B]

Okay. Yeah. I mean, I always pay on the first date. Just I think traditionally, dudes usually pay on the first date. They don't have to.

[A]

No, they don't. So, I mean.

[B]

Okay. $737. It's ridiculous.

[A]

It is. It's not. Never Mind. I was gonna say it's not the worst one. Sorry.

[B]

32.24 interest rate. Okay. Was. Did you go to college?

[A]

No, I didn't want to go to. I did, but like, I. I dropped out. It was like family issues.

[B]

Okay, how. How many semesters did you do?

[A]

I think I did two.

[B]

Two semesters in what? Where was that? Mostly gen eds.

[A]

Yeah, it was mostly gen eds.

[B]

Did you want to go to college?

[A]

I do. I've been thinking about it, but, I mean, with the financial situation that I'm in right now, I don't think it's probably the smartest decision.

[B]

Yeah, maybe it depends on how you go about it because again, mathematically we can work out, you know, for some of these 30% interest rates, you know, maybe not, but if you could, you know, 2x your income via some community college and maybe a local state college, we might be able to. Mathematically, in a way, suggests that it is a better return on your investment.

[A]

Sure.

[B]

If we go from 20 to 40.

[A]

Yeah.

[B]

I don't know. What did you want to study? What did you want to do?

[A]

Well, I do, like, I was undecided for a really long time. I was thinking tech.

[B]

Classic. Yeah, okay.

[A]

Yeah, I was thinking tech, and then I was just like, probably oversaturated at this point in time.

[B]

The job market's a little harder, but.

[A]

But I do like what I'm doing now, which is like, accounts payable.

[B]

Okay. So in the world of accounting.

[A]

Yeah.

[B]

How about this? I'll gift you an accounting certification that you can go through for course. Cruise.

[A]

Okay.

[B]

Go through that. Dip your toes in the water a little more that way, and then maybe you can look at the full degree, if that's something you like.

[A]

Yeah, I think so.

[B]

Okay. That could be a way to boost our income. All right, so, you know, if you see Credit one, you know, if you see Credit one, you're already kind of at the bottom of the barrel, finances wise. Credit one is like the most disgusting credit card you can get. Borderline.

[A]

Yeah, I don't. I don't like that. I wish I never.

[B]

Why'd you get this?

[A]

Because I think it was actually the, the second one I got after the Walmart.

[B]

What, this is your second credit card?

[A]

Yeah.

[B]

Could you even find this in the mail? Probably.

[A]

Yeah.

[B]

Yeah, I got cut up. The cards that come in the mail, people, let me tell you. Why'd you accept it when it showed up? I mean, yeah, you got. But I think you got me yourself, though. You signed up for it. You did this and Then you're also the one who didn't put a payment towards it. You were the one. We already know how much you spend going out to eat. 47 of fees, interest 17 late fee. That was the 40 bucks. So again, and then an annual fee. You didn't get your. Yourself. I understand the going on getting off work thing. First of all, did apply for unemployment. Would that have counted?

[A]

Yes. And, and I got like one month of it.

[B]

Okay. You were only off of work for a month.

[A]

Yeah.

[B]

So there's no reason then we should have missed payments.

[A]

Yeah.

[B]

With your spending. That's why.

[A]

Yeah.

[B]

You know, if we went back in time and we looked there, okay, maybe things were tight, tighter, and maybe you couldn't have fully made your payments. Maybe that's the case. But I don't know. Based on your spending, I don't believe that for a single second you're someone that just around swipes their card.

[A]

Yeah, I, I do, I do. I like also treating myself. I didn't, I shouldn't have.

[B]

You don't get sweet treats right now. You don't. I'm sorry. It's just like literally, mathematically you can, you can if you want and then you just essentially prevent you for the rest of your life getting them.

[A]

Yeah.

[B]

Because you just continue down the cycle, get worse and worse, maybe go through bankruptcy, get into some more debt and continue going this through the cycle. Never get a car that you want, never get a home that you want, never be able to get the vacations you want, the retirement you want, the sweet treats you want. Like you can do that by continuing to around right now.

[A]

Yeah.

[B]

Or you can make a temporary sacrifice and actually better your life for the first time in your life.

[A]

And that's what I want.

[B]

That's what you want. But that's not anything what you're doing. There's no behavior in here to indicate that whatsoever.

[A]

No.

[B]

Want is a want is a want. I want to be skinny. But if I don't go on a diet, if I don't work out, I'm not going to get skinny.

[A]

Sure.

[B]

I want it. My behavior has to align with that goal without any action. Is you.

[A]

I have started some action though.

[B]

Go on.

[A]

So actually it wasn't really by, it was by choice. Okay. So I got like some fraud charge on my, on my, my card and I got locked out and like for three weeks I wasn't even able to use my debit card.

[B]

Okay. Again, that was forced. That's not you doing anything.

[A]

But it like also helped make me Realize that like there is an issue.

[B]

Okay.

[A]

Yeah. So.

[B]

So I guess you only. You just have to wait on others to do it for you.

[A]

Don't say that.

[B]

I mean that's what that is.

[A]

I know, but I don't want it, I don't want it to be like that.

[B]

It is like that right now. It doesn't have to be forever.

[A]

No.

[B]

But I'm gonna call it as I see it. And that's what it is right now.

[A]

That's fair.

[B]

What's the on this $500. And you're at? Oh, that was the previous balance. You're at $845 past due. 202 minimum is usually 82 it looks like. Okay, I think. But your actual minimum is 200. Actually looks like your normal minimum is about 40. But of course what you owe right now is 284 because you haven't been responsible. No, I. Listen, you lost a job and that sucks. And I sympathize with that. And things, emergencies can happen. People don't have an emergency funds and they go into credit card debt. And that's when once you get the job, once you have the ability to do so, you cut back on everything in order to pay it off. You got unemployment for the period that you're off work. And I know how much money you spend on bull. The thing is right now it's two $40 minute payments. I know. You could have made $80 of payments. There's no excuse. You're just being an irresponsible child financially.

[A]

Yes, I, I, I realize that now.

[B]

Okay.

[A]

Can I take a sip of water?

[B]

Yeah.

[A]

Okay.

[B]

Please hydrate, Ally. Allies are usually either savings or car. And this is a car. Okay. You have a 20, 24. I do you 20 bucks an hour. Not making minimum monthly payments. How do you even get qualified for a loan?

[A]

They ran it like six times.

[B]

Then Ally was the only one that accepted you, huh?

[A]

Yes, because I originally had a loan through them for my Nissan.

[B]

How much did you trade in your Nissan for?

[A]

So I had to pay off 7,000 of it.

[B]

Yes, but what did you get for it?

[A]

I got 11, but I had to put seven towards my.

[B]

Okay, so you rolled over $3,000 of equity.

[A]

Yeah.

[B]

So you actually did make money on the Nissan?

[A]

Yeah.

[B]

You should not have sold that. That made no sense. If they were able to take it for 11 000. It was not in that position.

[A]

No.

[B]

A dealership taking it for 11 000. Yeah. All right, well that's what I got.

[A]

For the insurance from My insurance because of all the damages. The hell yeah.

[B]

You said the hail didn't. The insurance didn't cover him.

[A]

No, they did.

[B]

You told.

[A]

Sorry. It was 11,000 that they gave me from the insurance and then that's what I used.

[B]

So why didn't we get a 10,000? Well, okay, so $7,000 rolled over. Okay. Even still, $3,000 down on a $10,000 car. Wouldn't you. What's the balance out on this? Okay, only three more days to reserve your spot in my free financial refresh challenge. And as fun as the show is, my ultimate goal is to split spread financial literacy. For five days, I'll be sharing video lessons on financial topics that I normally don't get a chance to talk about on this channel. Get my tips on allocating your money, cutting expenses, and creating long term and actionable financial goals. There's something in here for everyone, whether you're just getting started or have been on your financial game for years. I've never done this before and I don't get to do it very often. So I'm really excited to share these video lessons with you all. Click the link below or go to calebhammer.comchallenge to join for free. This is an insane car for you. Insane. This makes no sense. This makes no sense. This makes no sense. Do we have the value on this car? This makes no Sense. You owe $30,289 for your income situation. That's insane. Why did you think you needed a brand new car?

[A]

Well, my Nissan Altima, I. I already had issues.

[B]

I don't give a about the Nissan.

[A]

Wait, wait, wait, wait, wait. So the Nissan Altima had issues to begin with and it was a used car that I got, so I don't.

[B]

Even know what the issues were. You said it was making a noise.

[A]

Yes, but I didn't want to have any other maintenance issues, so.

[B]

We think new cars don't get maintenance issues. I bought my Jeep new. When I drove my Jeep around, that battery died like once a year. Sucked.

[A]

But that's cheap.

[B]

It's not the biggest bill in the world. I know, but things can always happen with cars. You can get more reliable cars. You can get less reliable cars. I'll tell you what's reliable and unreliable. You making your payments is unreliable across every debt and apparently on this one as well because you owe double the payment. Meaning, I'm assuming. Oh, and There's a late Charge 31, so we can't even pay our car bill. So, yeah, keep stuff for a few more months. Get A repo. And then you're just even more okay. Because then you don't even have your car. And then they sell it at an auction. And then you owe the difference between that and they probably don't even get something good from the auction. So then you owe money on a car you don't even have, and then you need another mode of transportation because we live in a car infrastructure world. What. What are you trying to do here? What was your thoughts? You bought this car. Okay. I didn't want maintenance. What was your plan?

[A]

My plan was to stick with the job for as long as I could because that's when I was getting like $23 an hour and three dollar difference.

[B]

I know. Does not make this car affordable. It really does not.

[A]

It did.

[B]

It.

[A]

It did at the time when I was making payments.

[B]

And then, I don't know, man.

[A]

I missed one payment on it. And that was because it was during the transition period of me having an actual income.

[B]

Now, mind you, the amount, your minimum payment here of 624.69, which of course you owe $1,280. You did.

[A]

Yes, I swear.

[B]

So you're up to date on this. Okay. Now you were behind on it for a month.

[A]

Yeah.

[B]

Now, mind you, that minimum payment is the amount of money you literally spent on going out to eat.

[A]

Yeah. I'm not.

[B]

I'm so. That's kind of a joke that you would ever miss this. Yes, you could grocery budget at 250 to 300 bucks a month with meal prepping a couple times a week using the meal plan we have in our budgeting program. Tweaking to your needs.

[A]

Sure.

[B]

Totally.

[A]

Yeah.

[B]

I mean, how much did you also spend on groceries? I bet you still spent money on groceries, didn't you?

[A]

I think so. There was definitely some. I. I bought groceries too.

[B]

Barely. It's 0.7%.

[A]

Okay. Yeah.

[B]

Okay. So how's the car? How's the car? This lovely car that you're driving now, Is it just great?

[A]

It's. It's great. But I did get Sideswipe. Sideswipe. Hold on. Sideswip.

[B]

Great. So now the value is even less.

[A]

Leaving the domain.

[B]

KBB Kelly Blue Book doesn't even accept your VIN. I don't know why. Well, we don't 100% know what it's worth on private market. I mean, we are seeing it listed between like 25 to 36,000. But with your Sideswipe and. I don't know. But the thing is, even if you could sell it for $20,000. And I don't know how you would borrow because I would want you to borrow 20,000 hours. Sell this for $20,000, use $10,000 of that to pay off the loan. Then use an additional 10,000 hours to get a $10,000 car.

[A]

Yeah.

[B]

So what I would do is save you $10,000 in debt, which is a lot for you in your situation. But I don't know how you would qualify for any kind of loan. Do you know what the interest rate on this is?

[A]

It's I think 12%.

[B]

I'm gonna kill myself. What? When did you get this?

[A]

October of last year.

[B]

Okay. October of last year. You saw 12%. You saw the minimum payment. You saw the overall thing. You're making 23 bucks an hour and you're like, I can afford this.

[A]

Yes. That's what I was pretty much thinking was because I was like, oh, that paycheck, you know, paycheck's fine.

[B]

When did the symptoms start? The symptoms of your autoimmune disorder?

[A]

Oh, sorry, you had to specify.

[B]

What other systems do you have?

[A]

December.

[B]

Okay.

[A]

I thought you meant up the car. I don't know why, I just. Sorry.

[B]

Gotcha. That's fine. And the term of this loan?

[A]

Seven years.

[B]

Dude. Dude, you've just. You've really signed up to get. Just. You're just. You're everything right now. There is not one thing we've looked at that I can see a bright side too. I'm sorry. This sucks. I know this sucks. But it's also like everything so far has literally been your choice.

[A]

Yes.

[B]

And I'm seeing there's been nothing put upon you here. Hail. Sure. Made into the last car. Sure. But you didn't take it to a mechanic. We don't know if anything was wrong with it even at all. It's like, okay, that was handed to you, but you didn't need a thirty thousand dollar car.

[A]

No.

[B]

You didn't need a seven year twelve percent interest rate.

[A]

I didn't need to choose the first car I drove.

[B]

And you, sir, as didn't need to get fast food over making your minimum payments. You're living the life of a child right now.

[A]

Yes.

[B]

To be as honest as possible. Oh my. These really just keep going. I see the word past due on this one as well. You owe it all. You owe it all the capital. One Quicksilver eleven thirty five dollars and two cents. And that's what you owe. They. They want their money. How long have you been past due? Has any of the past dues existed since before you got laid off or since your temp ended?

[A]

I think one of them did, and I think it might have been.

[B]

See, at that point, that's where it wasn't you losing your job. It wasn't. It was your behavior the whole time. If it was already starting before, then, yes. So why'd you blame that? Why'd you try to play victim on that instead of taking your responsibility for the one card?

[A]

The one card didn't have. I. I didn't.

[B]

Not with your spending. No, not with your spending. Was this. Is this the one in Collections?

[A]

There's a couple.

[B]

But what is the status of this card today?

[A]

It's closed. It's charged off.

[B]

It's closed.

[A]

It's.

[B]

It's closed. But has it been sold to Collections?

[A]

Yes.

[B]

You know for a fact I've been.

[A]

Getting people calling me for. For, like, from Capital One or from one from Citibank.

[B]

That's not Collect. It might be internal collections. That's not an elections agency. We're going to have to look at your credit because you just don't know. I mean, it's accruing interest, so it wouldn't have been sold to Collections at that point. If it's accruing interest, then I guess.

[A]

It hasn't been because it's. I'm still able to access the account.

[B]

Oh, guys, she made a $5 payment. Our entire financial situation has been saved. What was even the intent behind that? Never even. That's comedic.

[A]

I don't have a reasoning for it. I'm sorry. I tried to. I think I was just paying, like, barely anything.

[B]

Have you ever made a budget in your life? What. What is all that that you have written down there?

[A]

So this.

[B]

You have things written?

[A]

Yes, they're. They're. Sorry, I didn't mean to hit the table. There's like, basically the amounts that I have, especially for the three statements that I wasn't able to give you or two statements I wasn't able to give you.

[B]

There's more.

[A]

There's two more.

[B]

Two more. What's. What are they? Are they debts?

[A]

Yes, they're credit cards. I wasn't able to get the statements from them because they were sending it through paper and I don't know why. I asked them to send them through email, and they were getting mad at me, and I was like, dude, what?

[B]

Oh, my. There's more debt than we even know about. Yeah, they definitely did close this one. 30.49 interest and of course. Yep. 29 bucks being charged after pay. Wow. We're after Paying. Okay, we're just really collecting every debt we can possibly get. Is there a payday loan somewhere? At least you avoided that. Is there like a debt shark loan somewhere? Someone going to like break a leg. Okay, good. Those are like the next deaths to take out to Teent Inc. What is this for? Teent Ink.

[A]

Could I see that?

[B]

You're definitely right about your hammer financial score. How do you not even know what it's for? How are you taking out debt and you don't know what it's for? After pay is not a long sitting debt. That's usually a quick turnaround.

[A]

It's. It's. You're gonna yell at me?

[B]

It's a perfume debt to smell good.

[A]

Yeah, I don't want to be stinky.

[B]

Are you stinky without perfume?

[A]

No, no, no. But I want to smell extra good, you know?

[B]

Smell like what?

[A]

Smell like really good. Stop. I'm actually stress sweating. Don't.

[B]

I don't smell.

[A]

Don't smell me.

[B]

No, I don't smell good or bad.

[A]

Okay, well, I don't think maybe I should return it then.

[B]

Did you wear it today?

[A]

I did. It's. It's Jimmy Choo.

[B]

Do you smell my cologne?

[A]

No, I don't.

[B]

And we're both failing.

[A]

Okay? No, I know.

[B]

How much was this financing? Cologne financing? $86. What are we doing with our life? When did you get this?

[A]

A month ago.

[B]

Your spending's out of control. Your discipline's out of control. This is ridiculous. Again, this really is tendencies of a child who just got access to tens of thousands of dollars.

[A]

Yeah, that's why I'm gonna take advantage of a therapist and actually talk to them about.

[B]

That's good. They could probably. So, I mean, are you self assessing some potential addiction issues? Is that what you're trying to say?

[A]

I don't want to like say that. I think it's more just like I.

[B]

Didn'T not even gonna put this debt in there because it's gonna mature in.

[A]

About a week and I already made another payment on it, so I think there's only like.

[B]

I mean, yes, the therapist is great. I encourage that for everyone. And we'll put that in your budget. But again, therapy is one of those things almost like this conversation where people go to therapy and they fail at therapy all the time because they go there, they sit there, they do it, and they don't do any work outside of therapy. Therapy is usually something you have to put in a lot of work outside of therapy, lots of homework in your actual personal life. So if again, if you go there saying this is me making the change, you're not going to get anywhere. You're going to need to put in the work and discipline still.

[A]

Yeah. And that's. That's kind of where I want to. Because I have been living because of my spending. It's been taking. It's been, like, out of control where I've been living, like, paycheck to paycheck and, like, waiting for my next paycheck to hit my account.

[B]

You're not living paycheck to paycheck. You're spending all your money on.

[A]

But I did say due to my spending.

[B]

Okay, okay, let's still. Let's not call. Let's not call that paycheck to paycheck, though, because that discounts people that are actually living paycheck to paycheck. You're not.

[A]

I'm taking accountability and saying that because of my spending. That's the situation I've put myself in.

[B]

Good.

[A]

And that's why I want to take the steps and do the work with therapists and working on my budget to actually get this.

[B]

Well, we'll talk about the work here in a little bit.

[A]

Okay.

[B]

Apparently we gotta keep going through debt.

[A]

Sorry.

[B]

Text tag. Why are you going through tolls? You can afford tolls. You don't need to go through tolls in Austin to get places. You really don't need to.

[A]

It's fast.

[B]

It's faster. It's faster, but you don't need to. And you can't afford it.

[A]

You're right. I stopped taking the tolls. I didn't take the tolls here.

[B]

You didn't need to. We're not on a toll road, nor. Nor near one.

[A]

Okay, well, I haven't been taking the tolls this past week. Two weeks.

[B]

Oh, this past week. Thankful. Okay, great. Guys, I've been dieting for a week. I'm on a successful diet, so how that works.

[A]

No, no, no, wait.

[B]

Have you not been paying your tolls? You owe $1,425 to Text Tag?

[A]

Yes.

[B]

Oh, my. I just. I'm so confused. You don't make any payments. You just don't make any payments. If you owe money, you don't pay it. You just don't. I'm so confused. You just don't make payments. Like, I. I don't know. We're gonna have to do a total 180 here. Yeah, this isn't you making a change. It's a complete opposite because you literally do not make payments on anything. I. I'm blown away. How do we owe a thousand? $425.40 on text tag. When's the last time you've paid your tolls?

[A]

When I worked at Tesla.

[B]

When was that?

[A]

Last year?

[B]

You accumulated this much in a year?

[A]

I was driving from Round Rock, like on the tolls to get to Tesla.

[B]

Oh, okay. Yeah, that outer ring.

[A]

Yeah. And I would have to go like, super early in the morning.

[B]

Frontage roads, fronted road, stop lights, stop lights, slight delay, leave earlier, be an adult. 1,425. Are you on a payment plan or anything? Not that you would pay them anyway.

[A]

But I am gonna start a payment plan.

[B]

How much?

[A]

I was probably gonna do like a hundred dollars a month if I can.

[B]

Okay. Or at least, knowing you and just how you live your life, you're gonna rack up a hundred dollars a month in tolls anyway.

[A]

I know. Don't auto pay.

[B]

Huh?

[A]

Auto pay.

[B]

Yeah. You'll do a hundred dollars a month in tolls and then you're still paying off your old tolls.

[A]

I'm not gonna take tolls anymore.

[B]

On.

[A]

God.

[B]

Yeah. Wait until you see like, the amount of time you can save in rush hour. You're gonna be on that toll road. Okay. What are these other debts? Because we're about to go into collection.

[A]

So what do we have for my city bank card? I don't know. The interest or the. I guess the. Is it the APR?

[B]

Sure.

[A]

I don't know that.

[B]

What's the balance?

[A]

1639. 39.

[B]

Okay. Minimum monthly?

[A]

I don't know that.

[B]

Probably like 40 bucks. Okay. It's traditional credit card.

[A]

And then.

[B]

And your other debt. And are you behind on that?

[A]

It's charged off.

[B]

It's sold to collections.

[A]

You know for a fact it should be on there. Yes.

[B]

Okay. Next.

[A]

The next one is the Amazon store card.

[B]

That's a great card. I can't believe you ruined it. Yeah.

[A]

725.73. And that's also charged off.

[B]

And then. I see. Let's just. Why did you miss $121 from Progressive? Because now that's in collections. 100. Literally, $121 could have boosted your score significantly. Like, why allow yourself to have to play catch up your entire life?

[A]

Okay, so for a hundred times. I can explain that. I can explain that.

[B]

Go.

[A]

I didn't know that. I thought. Okay, so I originally had Progressive. Right. With my Nissan Altima.

[B]

Oh, sure.

[A]

I know. Back to the Ultima. And 121 was my last payment. And I thought they bundled it Together with the other one that I just opened or like, you know, does that make sense?

[B]

Why'd you think that?

[A]

Because the monthly payment for that month was higher.

[B]

Okay.

[A]

The other ones. And I was like, oh, they just added the last.

[B]

Are you saying you just forgot to pay this? It wasn't on auto pay.

[A]

That one wasn't on auto pay. But my progressive is now.

[B]

Yeah, I don't think you can live off auto pay. I don't think you're disciplined enough for that. Not yet.

[A]

Not yet.

[B]

You still can be, but just not yet. Okay. So that's why that collection, Penn Foster. What the was that?

[A]

That was my school.

[B]

Why do you owe money to them and why didn't you pay?

[A]

Because I. It was one of my school loans, I guess.

[B]

Through the school.

[A]

Yeah, through the school that I. I didn't pay because I honestly forgot about it. I know that was a reason, but you just.

[B]

You don't pay anything. You really don't. The woman who pays no bills. It could sound good. Could mean you don't have any bills. You literally just don't pay. The bills that you have. Should put that on your hinge. The woman who doesn't pay her bills. Let me see your credit karma, because I don't see those other ones on those two pages.

[A]

I had the credit card.

[B]

Yeah. Open up the app for me.

[A]

Okay.

[B]

And start a screen recording if you can. Well, also does not include anything that isn't relevant anyway.

[A]

I think I have to download it. Okay.

[B]

5:40. It's crazy. So you're dead? No, those others. Those others haven't gone to collections.

[A]

Okay, so not yet.

[B]

They're closed. They are closed. They don't want you to be able to spend more money.

[A]

Of course not.

[B]

But. Yeah, just the two things in collections is the one that. The ones that we saw. Yeah, I mean, your credit score, it just. It really sucks to see. Well, hold on. Department of Education Advantage. You have student loans, too?

[A]

Yeah, that was the student loans that I took when I lived in Florida.

[B]

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[A]

Yeah.

[B]

Okay. What else do you have that I don't know about? For sake. How much more debt do you have?

[A]

That's it.

[B]

How much do student loans? The balances are increasing. So that means you're not paying for that. Meaning you're either not paying for them like you like to do, or you're on like a deferment or income base.

[A]

A deferment, I think it was.

[B]

How much?

[A]

6,000 total.

[B]

You think?

[A]

Yeah.

[B]

I'd get on income based for that. Interest is going to accrue at some point. Some kind of forgiveness maybe down the road. Nephew, you make those payments for like, what is it, like 10, 20 years? But even still, it depends on the administration. 8,000?

[A]

No, seven, I want to say is max.

[B]

7,000. So I don't know, but okay. Checking account. $130. Okay, that's scary. Got an Adobe subscription to Microsoft. Subscription. Starbucks. They're supposed to giving you money, not you going to them. Snooze. That's expensive. You can't afford that. 18 bucks. Pop shelf. Amazon. 50 bucks there. 40 bucks to Amazon. 14 to Starbucks. $9 to Barnes and Noble. We have a great library here in Austin. Maybe go to it. More Starbucks coffee. Secret level stand. Alamo Restaurant.

[A]

Oh, is that secret level stand. 20 bucks.

[B]

40.

[A]

What that is?

[B]

Ven. Went out $6.22. Target. Never really know if that's groceries or whatever because you can get anything there. Ross Stores. Amazon, Amazon, Amazon. Another subscription. Sonic Drive in Amazon. Affirm. So you're affirming as well? I didn't have a statement for that.

[A]

I paid it off.

[B]

Yeah. Never do it again.

[A]

Gotcha.

[B]

You just can't. You live your life on minimum payments. You just. You can't. Amazon. Starbucks. Targeting. And we don't. We don't know. Chick Fil. A Starbucks. More Target. Tick Tock Shop. Tick Tock Shop. Two tick tock shops. 23.5, one each. What are you getting from Tick Tock Shop? You can't get anything from Tick Tock Shop. What, are you kidding?

[A]

It was stuff for my cat.

[B]

Your cat?

[A]

Oh, whoa.

[B]

Not really. But like, they don't destroy too much other than furniture. No carpets.

[A]

I don't want him to scratch the carpet. So I bought him a toy.

[B]

I know, but like with cats, you can usually typically get a toy and it will last for quite a while. Unlike a dog that will, like, chew through a toy immediately.

[A]

Yeah.

[B]

So no more spending on that. The cat food. I understand. Pet insurance. I understand.

[A]

That's it. That's what?

[B]

Well, no more.

[A]

No more.

[B]

More Coffee World Market. Ross. You go to Ross a lot? Bridgerton Tea.

[A]

It was an event here in Austin.

[B]

Yeah, it was $40. So you. You're literally not making your payments on things like. I don't really give a. It's an event. You're not making your payments. You're not getting Bridgerton Tea. I don't care. Are you kidding me? Cash app. You're not. 60 bucks, in and out. At least. Get real food, Bath and body works. More coffee better be good because you go there every day. Target. Nothing. Bunt cake. Great Pluckers. That's expensive. Happy birthday, Grandma. Maybe your granddaughter is gonna actually live a life where she's not dying under your bridge. Happy birthday. We're gonna pay off debt. Yeah, no, it sucks. It'll hurt them even more than not getting. What, the bunt cake?

[A]

Yeah, I guess. Yeah. I didn't have to. They told me I didn't have to, but I felt obligated.

[B]

Could have also just made a cake.

[A]

That's true. I do, like, a lot cheaper and cooking, but I just. I haven't. Hey, whoa.

[B]

Let me off. Like, legitimately, this is so stupid. It is stupid if you actually enjoy that. Like, for what it's worth, when I was budging, getting out of debt, trust me, I much prefer to eat out. Then cook. I hate cooking. I hate doing dishes. I hate that. But guess what? When I was going on debt, I made my sacrifice, and I did it for multiple years to do it. And guess what? Now I can afford to go out to eat, and I can budget it in, so I do. But you already like to cook. So just cook is less of a sacrifice for you than it would be for other people that hate cooking. So I'll do it again. Island Storm, Amazon, Netflix, Uber Eats. You can afford ubereats. Nutrition's essential. $104. Starbucks. Starbucks. I mean, you love burnt coffee. Target, Burlington Stores. Starbucks, ihop, Nothing. Bunt cake. Was it their birthday again?

[A]

It was my grandpa's birthday. They're like a week apart.

[B]

Well, apparently one of them mattered more than the other ones because that one was $4, the other one was 20.

[A]

Oh, no, no, no, no, no. That was a. Okay, never mind. I know what that is. It was a Buy one, get one.

[B]

Free coffee waves Target another subscription. Applebee's Hinge. Oh, she's a Hinge premium girl.

[A]

Not anymore. I canceled it.

[B]

You wouldn't even have to as, like, the. I think usually, like, the women on dating apps are, like, the product, and then the men are the customer. Like, I know. It's crazy, right? But, like, it's. That's how it's, like, built. It's, like, a play to win where, like, as guys, you have to, like, pay to, like, get the roses and be on the. You know, you gotta, like, boost yourself to actually be there for the swiping. It's kind of wild, like, but you're lucky enough to be in a position where I don't think because of your. That you have to pay for Hinge. Congratulations. You won that game. People finders who we find you.

[A]

Oh, geez.

[B]

An ex, Maybe you're from Minnesota. That was a very. Minnesota. Oh, geez.

[A]

No, I'm from Chicago.

[B]

Oh, okay. That's close enough. Yeah.

[A]

Yeah. So you're gonna see a couple of those subscriptions, I find.

[B]

Then you're vetting the hinge dates before you. Actually, yeah. You know, that's really not the worst idea.

[A]

I. I. Okay. I went on a date with a guy who was married, and I didn't want to deal with that again, so.

[B]

Yeah. Yeah, it's really not the worst idea. A lot of people have had bad experiences that are less than safe, so it's actually not the worst idea. I'd rather you be safe than.

[A]

Yeah, I don't want to be murdered.

[B]

Safe and getting out of debt a little slower versus Dying.

[A]

Sure.

[B]

There's a serial killer, Austin. He targets men, so you're safe.

[A]

Thanks. I guess.

[B]

You won that game again. Keep winning all the games. You just don't win the. Apparently, you don't win the intelligence game either, because you pay for Snapchat. And who the f. Pays for Snapchat?

[A]

Oh, I. It was a.

[B]

You restored a streak, didn't.

[A]

Yeah, it was stupid. I shouldn't have done that.

[B]

Oh, $25 for people finders there. Wow. How many people are you vetting?

[A]

It was the subscription. No.

[B]

You know what? We're gonna get more into the drama of the. The. The. The hinge life and the dating scene, and we'll get someone to review your profile and all this stuff. It'll be great. We'll do that in the post show because we're gonna stick to finances here.

[A]

Okay.

[B]

And we'll do the juicy stuff in the post show.

[A]

Oh, God. Okay.

[B]

Culinary drop of that place is $85.

[A]

It was for a friend's birthday.

[B]

Place isn't even good. It's kind of crappy. Starbucks concessions. Great. More adobe. Sweet Paris. I like the waffles there. But you get a half waffle for like 20 bucks. It's kind of crazy. Yeah, it's just way overpriced. And then Macy's again, you get shows. You get not shows. You get to get clothes and you go out to eat every second of your life. It's this and then. Yeah. 248 bucks in your 401k that you're probably gonna withdraw.

[A]

No, I'm not.

[B]

Okay.

[A]

Okay.

[B]

I'm just not based on like your literal entire existence. So like he also spent so 614 going out to eat. But then miscellaneous bull. They're just stopping and swiping your card and things that are just nothing. $420. So there you go. You could have made many more minimum payments with that. And then other large purchases. $215. The other large purchases were secret level stand the Code Academy. Venmoing out money cash app about money and Corsa Corsa Coursera.

[A]

Coursera. Yeah. It was because I was thinking about doing a tech certification.

[B]

That's why you did the Code Academy as well.

[A]

Yeah.

[B]

But you said you're not doing tech, though.

[A]

No, because I was thinking about it and then I started doing it and then I was talking to a friend and they're like, it's super oversaturated right now and you're probably not going to get a good position.

[B]

It's interesting whether it's oversaturated or job market. It's. That's an interesting conversation. There was just a lot of. A lot. A lot of hiring in the pandemic when money was cheap. And there was also a lot of competition to get the best talent at different areas. Typically where the big competition is being able to negotiate pay raises and open positions in the tech market. But for very, very highly skilled and experienced individuals in the world of AI right now. But even we're starting to see that get cut back as well. So you're right. I mean, the tech market is more competitive. Doesn't mean it's a market that you're not going to be able to make a living in.

[A]

No.

[B]

For an entirety of a career. So I mean, if that's something you're interested in, I would still pursue it if that's what you're interested in. It sounds like you like the accounting side Though I don't know.

[A]

I do like the. I didn't realize I liked the accounting side until I started working at, like, the job I'm working on now.

[B]

Okay, so, I mean, you spend 1,200 bucks on both. Just about.

[A]

Just gotta cut down on that bull.

[B]

That's a thousand two hundred. It's half your income. That's all. That's 40 of your income cutting back. That's not cutting back. That's like. That's going crazy.

[A]

It's a lot of bulk spending.

[B]

It is. Whether or not you can go from a thousand two hundred a month to zero is my big concern. But we're gonna make you a budget. And at least where you can start sticking to your rent is. What?

[A]

It's 900. I'm subleasing from a friend.

[B]

It's not bad.

[A]

Utilities included.

[B]

That's incredible.

[A]

Internet also included.

[B]

That's beyond incredible. Take advantage of this while you can.

[A]

Yeah, this started recently, so that's also another thing that happened with the job transition is that I moved out from my ex's place to.

[B]

You were living with the most recent. Exact.

[A]

Yes, we moved in.

[B]

You just like. How long are you guys dating?

[A]

A year and a half.

[B]

Oh, okay. I guess that the break of the engagement was.

[A]

Yeah.

[B]

Longer ago.

[A]

Yeah. Yeah, yeah, yeah.

[B]

Okay. I was very confused. You didn't get a horrible rent to own with your ex either.

[A]

He bought his own house. I was just living there and paying rent.

[B]

You're not on the mortgage, are you?

[A]

No. God, no.

[B]

Okay, so you like to do that?

[A]

No.

[B]

Okay. Your payroll. 2235.

[A]

I'm getting paid weekly, by the way.

[B]

So it doesn't really change how we're budgeting, but that's fine.

[A]

I just wanted to make sure.

[B]

So gas, electric, utilities, renters, insurance. No, I would get it.

[A]

Okay. Do you know any, like, ones that are like decent?

[B]

Lemonade's good.

[A]

Lemonade. Okay.

[B]

That's what I used. I'm gonna put 10 bucks a month. There might be like 15. Gas? Vroom, vroom. Drive. Drive. How much?

[A]

140.

[B]

Cool. Car insurance?

[A]

157.

[B]

Okay. It's not horrendous. Your debt, minimum payments again, Those other ones are not charged off, so I need to put like 40 next to them. Okay, 40. I don't know what to do for the quicksilver because you kind of just owe the whole package right now.

[A]

Yeah.

[B]

So what? Your normal minimum payments, and this isn't going to be exact because I'm having to do some guessing based on the fact that you owe a ridiculous amount just to catch up. But you're likely at some around 884.69, which is insane for your income. I mean, that's crazy. That's 40 of your income. And then you go and spend more than that on point out to eat. You probably have 15 of your income left, and then you still have to make a 900 rent. Like, are we really surprised you're spending double? No, but we're not making your payments.

[A]

The. The rent is split up to two payments a month. So it's.

[B]

But it's still 900.

[A]

Yeah, yeah, yeah, yeah. So.

[B]

Okay, I don't care.

[A]

Okay.

[B]

We're doing your month. What's your phone bill?

[A]

I get it through my family.

[B]

Good, good. Do helium when you get your own for 20 bucks a month.

[A]

Okay.

[B]

TP fund anything else you need to survive. This is makeup. This is whatever. 100 bucks a month, 300 for groceries. And do you have, like, ongoing. Okay, yeah. Therapy. What's going to be your copay?

[A]

I don't actually know yet, but I was trying to do betterhelp.

[B]

Okay, well, they don't do insurance.

[A]

Oh.

[B]

Through them. As far as I know, you do something more like sondermind. They connect you with therapists.

[A]

Can I get that, like, written down somewhere? Can I write it down?

[B]

Sonder mind? Yeah. You don't know what your co pays for. Specialists are on your health insurance. You haven't looked.

[A]

My copay is like 30.

[B]

No, for specialists.

[A]

Oh, for specialist. 60.

[B]

Okay. It'll probably be something like 60. Could be more, could be less. It depends on your insurance.

[A]

Okay.

[B]

How many do you. Do you want to see a weekly or bi weekly?

[A]

Probably bi weekly.

[B]

Okay.

[A]

Possible.

[B]

I'll put in 120 for now. We'll see.

[A]

Okay.

[B]

You have pet insurance for your cat?

[A]

I don't.

[B]

How old is your cat?

[A]

He's one.

[B]

35 bucks a month. Could save you a lot of money.

[A]

Yeah, because that was actually one of my questions.

[B]

How much for cat food?

[A]

Ooh, I'm gonna say 60 because I get wet food, too. I spoil him.

[B]

I can't speak on the health of the cat. I just don't think you should have got a pet until you could afford one. Well, I don't want to take away something that might be considered necessary. I haven't had a cat in a while.

[A]

He is my esa.

[B]

He's your esa and you're why he's going to be homeless soon.

[A]

No, don't say that.

[B]

Okay.

[A]

That's why I want to Fix this.

[B]

I want you to fix it as well. Unfortunately, at this point you're 6, you're 500 below. It wasn't an income problem, it was a spending problem. It was a spending problem, but you spent yourself into an egregious amount of debt.

[A]

Yeah.

[B]

And now you have no choice but to make more income.

[A]

Yeah.

[B]

So it's a combination now of income and spending. It wasn't an income problem. Your spending problem got you to the income problem. So you're right. You have to work this part time job. You're negative 571.69. You need to literally make that much after taxes just to break even. It's harder to give you a debt payoff strategy without knowing exactly how much is coming in. I would shoot for a minimum, bringing an extra thousand dollars a month net. That's so much easier said than done. You really probably need to work 70 hours a week.

[A]

Yeah.

[B]

80 hours a week even, which is unsustainable for a certain period of time. It's like a unique human who can do that ongoing because you probably need to make an extra $2,000 a month net. And that's basically doubling your work. And especially if you get a 15 an hour job or whatever, like yeah, you're to going gonna have to work minimum 40 at that. But the thing is, in order to just even catch up on your minimum payments, you kind of have no choice but to do that at least for a couple months. And even if you only then cut back to like an extra 30 hours a week, which is still insane, and you make like an extra $1,500 in that, then you only have a thousand dollars to put towards debt. And without getting rid of the key. And we couldn't even get the value of that without getting rid of the key. I mean that itself takes 30 months to pay off and that's a horrendous interest rate. We can't keep that there. And you're just at the beginning of a seven year thing. Then who knows what happens if your ex fiance, you know, bails and you all of a sudden have to start paying that. If you don't, this is a mess. If you want to take your investing to the next level, my new investing course is still on sale until July 1st. We're offering course for only $97, which is $50 off. You'll get over 55 lessons. The best budgeting spreadsheet known demand portfolio strategies, worksheets, retirement strategies, and I'll give you a $100 mumu cash reward when you sign up with Moomoo. Check out the link below for more. Stop buying sweet treats people and start investing. Luckily, a lot of these credit cards are at a small enough balance where if you bring in an extra fifteen hundred dollars a month after you catch up on your minimum payments, you can pay off all your credit cards. Seven months, about okay, six to seven months. If you bring in an extra fifteen hundred dollars a month net well after catching up on your minimum payments, which is going to cost also a couple thousand dollars because you're so far behind. About a thousand dollars. No, couple thousand hours because you have the quicksilver.

[A]

Oh.

[B]

And then it takes like six months and then with the, the Kia I I would try to check the value, see what you can get for private market. Okay, but you also need to carnating to see what you can qualify for in any kind of loan. Yeah, but if possible, what would save you an extra 10 months of work based on your hopeful income is literally again borrowing the difference. If you can sell it for 20 and then getting $10,000 for a car. But if you can sell for more, I don't know based on just what were was going for sale. They're online but you got sideswiped. I don't know. I don't know what you can get for it. It might be like 20,000 bucks and you might have to do that little configuration. Listen, one thing that might be worth focusing on is getting that accounting certification, building up your resume the best you can and trying to find an accounting job. Seeing if we can get closer to 2530 an hour. Let me look up some median statistics. Yeah. For entry level accountants In Austin, it's 2470 an hour and then you'll be able to get up to 30 pretty quickly over the course of, you know, a couple years or so. And that honestly might even be if we're able to just make minimum payments. Sorry, I'm really trying to think through this. This is, this is a complicated puzzle of a situation because the 30 interest rate on so many of those debts, the extra $5 an hours isn't going to make up for that in terms of return on our investment. So I think what you have to do unfortunately is aim to bring in that extra 1500 bucks a month, 2000 bucks a month by working 30 to 40 hours a week extra, which is insane. And with your health issues, I don't know if you even can. But also at the same time getting the certification in accounting, then once you get that, literally building resume, practicing interview Skills trying to get a 25 to 30 an hour job in the world of accounting in Austin, it's going to be more entry level, closer to the 25, switch that when you can and then still try to bring in that extra 1500 hours a month. But when you do that, if you're able to somehow maintain that while also cutting back to zero, which again, that is, and despite what some people say, I know is unsustainable for a long period of time. I talk about temporary sacrifice and give people stretch goals and you know, room here and there, but you're just not able to afford to survive right now. So it's just like you would have to cut back to zero, work 70 to 80 hours a week while getting the certification, while applying for jobs to get the better income. And it still takes three to four years to do this and get an emergency fund. So this is going to be a tough road ahead. This is going to be a tough road ahead. This is what you got into though. This is what you got into. And the thing is, the reason why it's going to take so long to pay off is the Kia.

[A]

Yeah.

[B]

Thing is, if you didn't have the Kia, a lot of this credit card debt though, you're behind and it's kind of gross how you've been doing it. The balances are low enough that we could get out of this and you know, year and a half if we really grind out.

[A]

Sure.

[B]

So I might, honestly, I might, I might call a dealership today and see what you can get for a trade in. Really on that. I really might. If we can get rid of this for even 25,000 and borrow 15,000, you need to see if you can qualify for 15,000, get a car and pay off the difference.

[A]

Okay.

[B]

That's gonna speed this up tremendously. Almost by twice. Student loans I'd get eventually once all this debt has gone on again on a traditional 10 year payment and pay it off within that and minimum three payments. Well, saving up for an emergency fund, but this car is going to be what's holding you back. So the quicker we can get rid of that somehow, okay, the better. If you're able to private sale it or trade it in for 25 000. Yeah, that'd be incredible. I, I don't know what the value is. Again, they were listed from anywhere from 25 to 35, 000 in dealerships here. Yeah, but I don't know what you could get for it.

[A]

Probably not 35, obviously. Like.

[B]

No, exactly. If you can get it for 25. I don't know. I need you to make some calls after this. There's going to be some work that needs to get in.

[A]

Yeah, of course.

[B]

And obviously the discipline side of things, but even so for you, the car is kind of the solution here and it also opens up a tremendous amount of your income. $624 of it.

[A]

And I, I will say I do regret getting the Kia because my, my Nissan ultimate payments were $257 a month.

[B]

Yeah.

[A]

And. Yeah.

[B]

And you were probably decently close to paying it off.

[A]

I was like 70, 80% off.

[B]

Allow this to be your learning mistake.

[A]

This.

[B]

I was gonna say for situations where it's so difficult and the income stretch is so large and the sacrifice is so long to get out of it, bankruptcy is sometimes an option. But for you, again, the car is the issue.

[A]

Yeah.

[B]

And you're not going to want to give that up during a bankruptcy likely through your situation. So again, the things that would be forgiven aren't even the things that are holding you back as much. So you need to look at getting rid of this car.

[A]

Okay.

[B]

But if it all of a sudden comes in, in like the value of 15,000, this is going to start becoming not worth it. And you're just gonna have to grind this out for like five years. And the reason you kind of have to is for your future.

[A]

Yeah.

[B]

Your self right now and through your early 30s if that's the worst case. And that's what you have to go down. You just have to remind yourself that it's literally for the next five, six decades of your life. That's why you're doing it.

[A]

Yeah.

[B]

But it will be a suffering of a few years. It really will.

[A]

Yeah.

[B]

Hopefully we don't have to do that though.

[A]

No, I'm gonna, I'm gonna make the calls as soon as I leave and then I'm gonna go ahead and meet up with, I don't know, see if I can get anything remotely close to the 25k for this.

[B]

Yeah. I mean you were correct about your Hammer Financial score. We're, I mean let's, let's change the mood. Let's have more juicy, fun conversations about of course, that stuff in the post show. So make sure you guys click the join button below or check out the link and join us for the post show and all the other member streams and things that we do help support the channel. But for your Hammer Financial score, I think you're completely correct. I mean you overspent on your budget, so zero debt you have collection. Zero Emergency fund. You have nothing. Zero Retirement, you're rejoined from that you're pulling from right at zero Real estate. Technically, you're on it, but you said even if he sells, you don't get anything. So it's a zero.

[A]

Yeah.

[B]

Hammer financial score 0 out of 10. Make sure to check out all the resources linked in the description below. They are what I use or would use in specific situations, including the best budgeting and investing program, which are now bundled at a lower price. Make sure to check those out now. Join us for the Post Show Today on the Financial Audit Post show here you can review my embarrassment of a profile right now.

[A]

I saw it. I don't want to see it again.

[B]

Oh, was it bad?

[A]

No, it's. It's not that bad.

[B]

Did you see it like in the wild?

[A]

Yeah, I did in the wild.

[B]

And you X on it?

[A]

Hey, I did an X on it. You never match back.

[B]

Oh, so you sound like. I'm sorry.

[A]

I was like, dang, it's kind of cute.

[B]

To watch the Financial Audit Post show, click the join button below.