So Money with Farnoosh Torabi

Episode 1923: Ask Farnoosh – How to Get Financially Unstuck (Debt, Work, Retirement)
Date: December 26, 2025 (Original Ask Farnoosh segment from April 26, 2024)

Episode Overview

In this engaging "Ask Farnoosh" episode, Farnoosh Torabi dives into some of the most pressing financial dilemmas sent in by listeners. With empathy and candor, Farnoosh addresses feeling stuck in debt, facing burnout in a high-paying job, and weighing the possibility of early retirement in a shaky job market. The episode is filled with actionable advice, encouragement, and a reassuring reminder that personal finance is as emotional as it is practical.

Key Discussion Points and Insights

1. Escaping High-Interest Credit Card Debt

(Segment Begins: 02:45)

• Question from Jude:
  Jude, single with no children and earning $98,000, is struggling with major credit card debt at a 30% interest rate and a credit score of 654. Jude feels overwhelmed, ashamed, and is unsure whether to consolidate, declare bankruptcy, or seek other options.

• Farnoosh’s Initial Reassurance:

  • "Drop the shame because debt happens. Just ask the millions of people in this country that have it..." (03:40)
  • Farnoosh acknowledges the emotional weight of debt, emphasizing that Jude is not alone and the situation is highly relatable.

• Practical First Steps:

  • Consult a Non-Profit Credit Counselor:

    • Organizations like the National Foundation for Credit Counseling (NFCC) or Money Management International provide free or low-cost services.
    • "Anyone who promises that they're going to help you wipe out your debt in a month or a year, I would not trust them." (06:05)
    • These organizations can create a 'debt management plan', advocate for lower interest rates, and help restructure payments.

  • Lifestyle and Spending Review:

    • Since Jude is single with no dependents, Farnoosh encourages evaluating housing and recurring expenses. Side hustles or taking on additional work can make a big difference.
    • Farnoosh shares her own experience:

      “In my twenties I didn't have six figures worth of debt, but I had $30,000... my cure for that was to bring in multiple revenue streams ... I brought in money through babysitting and pet sitting and freelance writing and I brought collect about $500 to $1,000 extra dollars a month and help to knock down that debt.” (09:10)

  • Directly Negotiating with Creditors:

    • Call your credit card company to ask about lower rates or hardship programs.
    • Even small reductions from 30% can make a difference.

  • Debt Consolidation and Loans:

    • Research personal loans for consolidating debt at a lower interest rate. While Jude’s credit isn’t ideal, Farnoosh notes it is "not terrible" and better terms may be available than 30%.
    • Visit sites like Nerdwallet or Bankrate.com for up-to-date options.
    • "Just be careful applying for too much credit because that can also bring down your credit score." (13:20)

  • Big Picture Advice:

    • Stay proactive and avoid shame; work with trustworthy resources and take incremental steps.

2. Burnout and Taking a Break from Work as the Breadwinner

(Segment Begins: 14:44)

• Question from Claudia:
  Feeling burned out after 13 years in a high-paying, dead-end job, Claudia wants to take a 6-month break. Her husband’s salary will cover 70% of expenses, and she has enough emergency savings for about 5-6 months. Claudia is fearful of becoming financially dependent on her partner and worries about re-entering the workforce at 40.

• Understanding the Emotional and Financial Factors:

  • Farnoosh empathizes deeply, acknowledging how common this predicament is, especially among women:

    "I just want to say I so relate to this ... especially like maybe I don't know if she's a parent here, but even if not... she's the breadwinner in her relationship and she's burned out." (15:16)

• Possible Approaches Before Resigning:

  • Consider a sabbatical or part-time arrangement instead of quitting outright.
    • “Is there a way to cut back to 20 hours a week, to take a sabbatical, even without completely leaving this job, this company?” (16:00)
  • Have a candid conversation with your employer about your situation—sometimes flexibility is possible.
  • Assess whether the company itself (not just the role) contributes to dissatisfaction.

• Job Market Realities and Financial Runway:

  • Mid- to senior-level job seekers are currently facing slower hiring cycles.
    • “...people who are mid to senior level, who get laid off or quit, are needing time to get back in the workforce...employers are taking their time to hire.” (17:10)

• Mindset and Communication:

  • Farnoosh normalizes the fear of dependence:

    "This fear of being dependent on somebody else I think is natural... you have earned this decision. You have worked hard. You are entitled to this..." (19:31)

  • Staying honest with both one’s partner and oneself about spending is vital during this period.

• Host's Own Experience:

  • Farnoosh shares her personal journey of shifting priorities and taking intentional time away from the relentless pursuit of higher income:

    “Scaling my revenue is not as important as scaling my health, my time, and my relationships.” (20:28)

• Final Encouragement:

  • Give yourself permission to pause:

    “We need to give ourselves permission to do that. So I'm giving you permission, Claudia. I hope you'll take it.” (21:40)

3. Should I Take an Early Retirement Package?

(Segment Begins: 22:03)

• Listener’s Dilemma:
  A listener (unnamed) is considering an early retirement package at work, but needs to continue earning and feels uncertain about the job market.

• Key Factors to Assess:

  • What are the full details of the offer? (How many months’ pay/benefits, etc.)
  • How long will this stretch your finances?
  • Will this truly provide enough runway for the next step, or is it purely an emotional escape from burnout?
  • Is staying longer with the company a better financial choice due to promised long-term benefits or bonuses?

• Strategic Steps:

  • Financial Readiness:
    • Review your retirement situation—are you actually ready to stop working? Use retirement calculators for baseline estimates.
    • Consider paying for one or two sessions with a certified financial planner for personalized advice.
  • Assessing the Industry and Employer:
    • Companies offering voluntary packages may be struggling and future layoffs could be inevitable.
    • “A layoff may be inevitable for companies where they're offering this employment early leave package to certain employees. Just keep that in mind that your job could be at risk.” (25:02)
  • Job Transition:
    • Factor in the likelihood of job opportunities at the same salary/level and what retraining or upskilling may be required.
    • Evaluate your own willingness and ability to work part-time or shift industries.

• Memorable Story:

  • Farnoosh shares a real-life example of someone who weighed an early retirement package against waiting for a significant milestone bonus at her employer, ultimately staying and benefiting financially.

Notable Quotes & Timestamps

• On Shame and Debt:

  "Drop the shame because debt happens. Just ask the millions of people in this country that have it..."
  (Farnoosh, 03:40)

• On Overcoming Burnout:

  "Scaling my revenue is not as important as scaling my health, my time, and my relationships."
  (Farnoosh, 20:28)

• On Permission to Pause:

  "We need to give ourselves permission to do that. So I'm giving you permission, Claudia. I hope you'll take it."
  (Farnoosh, 21:40)

• On Early Retirement Risk:

  “A layoff may be inevitable for companies where they're offering this employment early leave package to certain employees. Just keep that in mind that your job could be at risk.”
  (Farnoosh, 25:02)

Important Timestamps

• 02:45 – Jude’s credit card debt question
• 03:40 – Addressing shame and starting the debt conversation
• 09:10 – Farnoosh’s personal debt repayment story
• 13:20 – On credit applications and credit score impact
• 14:44 – Claudia’s burnout and career break question
• 16:00 – Considering a sabbatical or part-time work
• 17:10 – Realities of re-entering the job market
• 19:31 – On the fear of financial dependence
• 20:28 – Scaling health, time, and relationships over income
• 21:40 – Granting permission to pause careers
• 22:03 – Early retirement package dilemma
• 25:02 – Layoff risk at companies offering early exit packages

Tone and Takeaway

The episode is packed with Farnoosh’s trademark blend of practical wisdom and empathetic reassurance. She de-stigmatizes financial struggle and career transitions, encourages informed action, and reminds listeners that their well-being should be at the heart of every money decision.

Summary

If you're stuck in debt, burned out at work, or at a crossroads with retirement, this episode offers both comfort and clear next steps. Farnoosh's guidance is rooted in lived experience and a deep understanding of financial (and emotional) reality. Whether you need tactical resources or simply permission to pause, Farnoosh delivers actionable advice straight from the heart.