Episode Overview

Podcast: Optimal Finance Daily
Host: Diania Merriam
Episode: 3304 – 2 Things You Absolutely MUST Do If You Want to Get Out of Debt
Original Author Featured: Jackie Beck (JackieBeck.com)
Date: October 3, 2025

In this episode, Diania Merriam presents Jackie Beck’s advice on escaping debt, focusing on the fundamental mindset and behavioral changes required. Diania also answers a listener’s question about whether to prioritize paying off a car loan or continue investing, sharing her own financial journey and practical recommendations. The tone throughout is motivational, straightforward, and full of actionable tips for anyone serious about financial independence and eliminating debt.

Key Discussion Points and Insights

1. The Two Essential Steps to Get Out of Debt

[01:29 - 07:50] Jackie Beck insists that before diving into debt payoff strategies (debt snowball, avalanche, or interest rate reductions), two core actions are absolutely vital:

Step 1: Stop Borrowing

• Mindset Shift:

  • Many people struggle with wanting to get out of debt while still borrowing for emergencies or lifestyle expenses.
  • Jackie notes:

    "I can't tell you how often I borrowed on one hand while struggling to pay off debt with the other, never realizing what was actually holding me back and I was by no means alone." (02:28)

  • Using debt should not be the go-to solution. She stresses:

    "Remember, debt is not a solution, it's a problem." (03:07)

  • The analogy:

    "When you're in a hole and want to climb out, the first step is to put down the shovel." (03:27)

• Social Support:

  • Find a group of like-minded people and define your ‘why’ for becoming debt-free.
  • Partner alignment is essential, especially for couples:

    "It's hard to get out of debt when you're frantically trying to climb out of the hole, but the other person is pouring dirt in on top of your head." (04:28)

Step 2: Stick to Your Guns

• Perseverance and Resilience:

  • Debt elimination is a long process that requires continued effort, even when setbacks occur.

    "You can't give up when life throws the inevitable curve balls at you... stick to your guns and get it done." (05:10)

  • Mistakes are natural; learning from them is key.

• Emergency Fund and Backup Plans:

  • Build an emergency fund (recommendation: at least $1,000 to start) to prevent future borrowing.

    "Any emergency fund is better than nothing." (06:20)

  • Budget for all types of expenses—expected and unexpected.

Most Important Takeaway

• The biggest lesson is that “there are always alternatives to borrowing,” and these choices become easier with each small success. (07:25)

2. Listener Q&A: Balancing Debt Payoff and Investing

[09:01 - End]

Diania reads a thoughtful query from a listener debating between paying off a car loan ($24,000 at 3.49% interest) versus maintaining cash investments for flexibility.

Listener’s Dilemma

• Two main options:
  1. Cash out investments to settle the car loan, then rebuild cash.
  2. Pause investing and redirect that monthly money to accelerate car loan payoff.

Diania’s Advice

• Do Not Cash Out Investments:
  • Risks include lost momentum from compound interest and incurring capital gains taxes.

    "My first thought is to not sell your investments. There's a bigger opportunity cost here in losing momentum on compound interest and selling means you'll most likely incur capital gains taxes which would eat into the money you plan to use to pay off the car." (09:27)

• Maintain an Emergency Fund:
  • Keep some cash available to avoid new debt in case of emergencies.
• Combine Debt Payment and Investment:
  • Suggests a balanced approach, splitting extra money between car payment and investments.

    “Why not do both? ... Let's say $635 towards each. That alone will cut down your four-year timeline on the car…” (10:07)

• Flexibility is Key:
  • If circumstances change (e.g., higher income), the plan can accelerate.
• Personal Anecdote – The Case Against Expensive Cars:
  • Diania shares her regret about buying a brand new car:

    “I bought a brand new car once and I will never do it again… The next car I bought was for $6,000 cash and I really love not having a car payment.” (11:01)

Notable Quotes & Memorable Moments

• Jackie Beck:

  • "You have to quit borrowing in order for any get out of debt method to work." (03:07)
  • "Quit debt cold turkey… it helps to know that you're not alone." (03:50)
  • “Stick to your guns and get it done... setbacks are normal and no fun but you'll get through them.” (05:10 – 05:32)
  • "There are always alternatives to borrowing. It's just up to you to find them." (07:25)

• Diania Merriam:

  • "There's a bigger opportunity cost here in losing momentum on compound interest..." (09:27)
  • “…I really love not having a car payment.” (11:14)

Timestamps for Key Segments

• 00:00–01:28: Ad reads and brief intro (skip)
• 01:29–07:50: Jackie Beck's “2 Things You Absolutely MUST Do If You Want to Get Out of Debt”
• 09:01–12:00: Listener question: car loan versus investing, Diania’s advice, and personal story

In Summary

This episode distills Jackie's no-nonsense philosophy: stop borrowing and stay committed until the job is done. Diania reinforces this wisdom with practical advice on balancing debt paydown with investing, and injects her own lived experience to make the lessons real and highly relatable. The episode’s tone is supportive, pragmatic, and empowering—offering listeners both the motivation and practical steps to finally break the debt cycle.