Podcast Summary: How to Money

Episode: Ask HTM - Avoiding the Credit Card Burn, Timing a HELOC, & Solar to Retire Sooner #1045
Hosts: Joel & Matt
Date: October 6, 2025

Episode Overview

This episode of How to Money is an "Ask HTM" installment, where Joel and Matt answer listener questions on practical personal finance issues. Main topics include:

• How to use credit cards for rewards without accruing interest
• Strategic timing for opening a Home Equity Line of Credit (HELOC), especially before a job change
• Whether investing in solar panels can help accelerate retirement plans
• Bonus: Engaging with parents about smart financial decisions, and the best cell phone plan options for wearable devices

As always, their tone is casual, personable, and packed with real-life anecdotes.

1. Key Discussion Points and Insights

Avoiding Credit Card Interest While Earning Rewards

Listener (Ben from Grand Rapids, 10:12): He uses his Capital One Venture card like a debit card, always pays in full, but wonders if he needs to pay both the statement and current balances to avoid interest or if auto-paying the statement balance is enough.

Takeaways:

• Auto-paying the statement balance is sufficient to avoid credit card interest, provided you always pay in full and on time.
• Credit cards have significant advantages—including fraud protection and rewards—when used responsibly.
• Manually paying the full current balance can also benefit your credit utilization rate, potentially boosting your credit score.
• Paying manually (vs. auto-pay) can create more spending awareness, but setting up auto-pay provides a crucial safety net against missed payments.

Memorable Quotes:

• "If I just let the auto pay handle the statement balance, does it ensure that I'll never be charged interest?" — Ben (11:11)
• "I do love though that you are using your credit card like a debit card. You know, he's got a general healthy skepticism towards his credit card, which I think is a good, healthy approach." — Matt (11:44)
• "Most folks...know about the rewards... but I think most people don't understand the value of fraud protection that credit cards can provide." — Joel (12:26)
• "You will avoid the downsides of credit card if you allow that auto pay to go through." — Matt (17:09)

Timestamps:

• [10:12] Listener Ben's question
• [11:44 - 13:38] Benefits of credit cards & fraud protection
• [16:04 - 18:48] Statement vs. current balance; practical credit card tips

Timing a HELOC Before Losing Income

Listener (Corinne from Upstate NY, 25:33): She's expecting to be laid off, feels financially secure (Money Gear 7), and wonders if she should get a HELOC now or wait, given her hazy home renovation plans and pending loss of high income.

Takeaways:

• It’s wise to secure a HELOC before losing steady W2 income, as lenders offer better terms to actively employed applicants.
• HELOCs generally cost little or nothing if unused: open one for flexibility, even if a renovation is years away (or never happens).
• Use a HELOC prudently: ideally, pay off any draw within five years to limit risk.
• Shop around—credit unions often offer better HELOC terms.

Memorable Quotes:

• "It is very rare that you hear someone say, 'I'm probably going to get laid off in a few months, but no biggie.'" — Joel (26:58)
• "I would love to see many more homeowners out there having access to a HELOC, but opting not to use it." — Matt (28:37)
• "Why not, while the sun is shining, open the account?" — Joel (29:30)

Timestamps:

• [25:33] Corinne's HELOC question
• [27:04 - 28:37] Value of financial prep and HELOC pros/cons
• [31:34 - 33:54] More on HELOC flexibility and shopping for rates

Should I Pay Cash for Solar Panels to Retire Earlier?

Listener (Jacob from Western PA, 34:34): Weighing whether to use $50k in cash (after tax credits) to install solar and cut utility costs—hoping it would hasten retirement—or if he should finance it, keep the money invested, or self-manage the install.

Takeaways:

• With tax credits expiring in 2026, it’s recommended to act now; the installation must be completed before year end to qualify.
• Paying cash (instead of financing) is ideal: avoids high-interest solar loans, offers a guaranteed return equal to the interest avoided, and still leaves Jacob with a strong liquidity buffer.
• Financing stretches the break-even to ~20 years and incurs interest—avoid unless necessary.
• If self-managing the project (“self-GC-ing”), beware: saving money could mean missing the tight tax credit timeline; getting a reputable installer may be safer.
• Solar boosts home resale value—don't overlook that.
• Keep detailed records to show buyers future savings if you sell.

Memorable Quotes:

• "Given the known reality of no more solar tax credits starting in 2026, I think pouncing now is really important." — Joel (38:24)
• "I'd rather take the guaranteed number, which is paying cash and not paying the 9% interest, than hoping I earn more in the market." — Joel (39:22)
• "It literally shades your home to where it creates this energy passive system...so...you need to use even less energy to actually cool your home." — Matt (44:25)

Timestamps:

• [34:34] Jacob's situation and numbers
• [37:07 - 38:24] Solar tax credit urgency
• [39:22 - 41:52] Cash vs. financing; solar and home value
• [42:56 - 43:32] Risks of DIY install amid tight deadlines

How to Talk Your Parents Out of a Bad Financial Move

Listener: “Boaty McBoatface Esquire” (48:29): Parents (77 and 75) want to fund a new HVAC system using a home equity loan at high interest. Should he convince them to use retirement funds instead, and how?

Takeaways:

• Offering unsolicited financial advice, especially to parents, is delicate—often best to approach with curiosity, not judgment.
• Ask open-ended questions (e.g., about why they've chosen a home equity loan, if they're aware of the rates, etc.) rather than dictating what they should do.
• This isn’t a disastrous financial move (like a scam or high-cost payday lending), so it’s probably best to let them make their own decision—unless you see self-destructive behavior.

Memorable Quotes:

• "Typically, inserting yourself into that scenario when it's not been asked for leads to hurt feelings...Maybe curiosity instead of judgment." — Joel (51:34)
• "It's not like your folks are looking to take out a payday loan...If that was the case, I would say, hey, you probably do need to seriously intervene." — Matt (51:34)
• "Maybe they know things that you don't...you can let your parents cut them some slack on this and let them do their thing." — Joel (52:41)

Timestamps:

• [48:29] Listener scenario
• [50:33 - 51:34] Parent-finance advice dynamics

Bonus: Cheapest Cell Phone Plans for Wearables

Listener (Jordan): Wants a budget-friendly phone plan with support for kids’ GPS watches.

Takeaways:

• US Mobile is best-in-class for flexibility and price, with wearable-specific plans starting at $6.50/month (annual prepaid).
• If you need an Apple Watch with cellular, be sure to buy the correct (“+cellular”) model (not all are cellular-enabled).
• MVNOs like US Mobile let you switch between the major networks for the best possible coverage, even month-to-month.

Memorable Quotes:

• "US mobile is our current favorite for most folks in the cell phone and in the smartwatch space." — Matt (55:26)
• "The network flexibility with the MVNO specifically with US Mobile, man, it blows my mind. I think it's just like the best thing since sliced bread." — Matt (57:25)
• "I don't know what kind of like shady deals they got going on in the background where they are allowed to do this...But it sure seems like US Mobile is going to be able to take over the world." — Joel (57:35)

Timestamps:

• [53:47 - 58:15] Wearable phone plan advice

2. Notable Quotes & Memorable Moments

• "Don't be stressed, but we do want you to think about it." — Matt, on healthy credit card habits ([11:44])
• “If you can use [credit cards] in a healthy way...they are just another reason that we like credit cards as a method of payment.” — Joel ([13:38])
• "Having one [HELOC] is no excuse to not have gone through the money gears and amassed a decent chunk of savings." — Matt ([28:37])
• "While the sun is shining, open the account." — Joel, on setting up a HELOC while employed ([29:30])
• "I think pouncing now is really important." — Joel, on installing solar before the tax credit ends ([38:24])
• "Approach them with curiosity instead of judgment." — Joel, on giving financial advice to parents ([51:34])
• “US Mobile is our current favorite for most folks…” — Matt, on best phone plans ([55:26])

3. Timestamps for Important Segments

• [10:12] Avoiding Credit Card Interest – Listener question & deep dive
• [25:33] Timing a HELOC – Listener scenario & strategic advice
• [34:34] Is Solar Worth It for Early Retirement? – Case study & calculations
• [48:29] Convincing Parents on Financial Decisions – Navigating generational advice
• [53:47] Best Phone Plans for Wearables – Kids’ smartwatches & MVNO versatility

4. Episode Language & Tone

Joel and Matt keep things light, friendly, and approachable. Their financial insights are always practical, peppered with personal stories and laughter, and free of jargon. They punctuate advice with empathy, especially when discussing relationships and money.

5. Conclusion

This How to Money episode delivers actionable wisdom for real-world financial dilemmas, from using credit cards safely and tapping home equity proactively to making large clean-energy investments and navigating tricky family conversations. Each answer is rooted in everyday experience, with an emphasis on empowerment, preparation, and open communication.

For show notes and resources mentioned, visit howtomoney.com.