20 Individual Debts - This is INSANE

28:49okay you have auto payment ready to go not yet set it up set it up 250 bucks probably ish about yeah they're about four point it's either 4.2 or 4.5 percent okay but set up that auto payment it's gonna hit in just a couple weeks so 250 bucks probably ish somewhere around there any other day i think i saw firms and i saw tools tools tools is done good don't fall under that every single person that works on cars that has been on this channel goes into endless tool debt yeah the tools i have is all i need and i don't need anything more thank you so please don't fall into the fancy truck that pulls up it is it is definitely a trap at times but i i've paid all that off and they are just as evil in my opinion as that one credit card just the way they just many people ended up going into terrible debt for him.

29:45Okay, and affirm. This is a real good story about Bronx and his dad Ryan, real United Airlines customers. We were returning home and one of the flight attendants asked Bronx if he wanted to see the flight deck and meet Captain Andrew. I got to sit in the driver's seat. I grew up in an aviation family and seeing Bronx kind of reminded me of myself when I was that age. That's Andrew, a real United pilot. These small interactions can shape a kid's future. It felt like I was the captain. Allowing my son to see the flight deck will stick with us forever. That's how good leads the way. I do have an Amazon purchase with Affirm.

30:21How much did you pay it off? Right now I want to say it's probably about $197. $197. Give or take. And how many more payments until it's paid off? I think it's just I think I had that one set for a year term. at the time. So I had to check. It was a grand total of like two something I've only been paying for about a month or two. I had$21 each month. And there's also another firm that just kicked in. What's the balance? $600.

31:01$60 a month. You've been watching the channel. Why? Actually, that one was before I even found you. So I didn't even think about it at the time. Madam Producer, may you please go get the scissors for us. We have an exercise that we must do. How was the relationship at home between you and the wifey? I'd have to say the relationship at home in general just kind of stale me at the time because I get up so early, go to work, come home, change, go to work, get home, go to bed. How finances impact the relationship? As far as I could tell, it's nothing crazy. I definitely kind of control what she spends as far as at least my debit card goes.

31:52We need to be very communicative. Oh, my gosh. And sitting down on a monthly basis and saying, here's our goals, here's our intentions, here's what we're trying to do, so this is why we're not spending, not controlling. Because that's not going to have long-term effects. because all of a sudden she has control again of the credit card at some point, then boom, we're in a hole. So it's not a long-term solution. We're going to have an honest communication. We used to just do a lot of make lunches for me so I can not spend out. And for a good period of time when she was working, that just wasn't happening, and I have a bad habit not making it myself.

32:26So I was going out to eat almost every day. But we've gotten back on the schedule where I take my lunches, I bring my own drinks. so I don't use the vending machine at work or anything. So a lot of that's calmed down from outside source spending. I don't visit taquito shop anymore. Oh, they're a bit goopy. Dog food or something. Use the dope in the packs. But they work. They work. Sharp enough. So you're ready? Yeah. You're ready to do it? Oh, yeah. This is all your credit cards? Every single one? Let me see. If you have access to them. Here's one I haven't used in like a year. Put it in the pile.

33:16Big Lots. Of all credit cards. That one I got for the discount, and I just immediately paid it off almost the next day. My goodness. My goodness. That's it. And there's more, right? somewhere. In this lovely bag of trinkets, I have a stack. Fuck me. Nope, that's not it. Nope. Okay, she has other stuff in here. Yes, okay, go through and make sure there's things there's not things. Okay. That is all of them. Hold them front facing like this towards the camera because I don't want any private information even though you're closing them. I don't want any private information to be shown. So, front facing only towards the camera.

33:59You're gonna have to do I don't think you can do the whole look at that that's impressive I say there's a few credit cards here needless to say that's ridiculous I think when I counted it up there was like 13

34:18gross gross indeed credit card is dangerous don't fall for the tricks again facing the front front towards the camera I don't want any private information and shown. At least this one doesn't have a name on it. There's one of many.

34:41One. Two.

34:51Three.

34:56Four.

35:02five. She was on board with this too, so at least I got to give her props for that one. Good. I lost count already, so. Way too many. That's the answer. Way too many, indeed. This one I wanted to keep because I was actually debating on switching over to the checking account for them because they have a... You can have your lovely checking account at some point. We don't need that. Yeah, they have like a 5 % APR savings account right now, I believe. It's done. they're killed almost there they don't exist anymore almost there you're free I'm putting this on my Instagram story by the way feel free to follow for behind the scenes I don't know how many people have chopped up this many credit cards on this show but uh try and beat my limit oh you've beyond beating the limit that is it okay well that's good I'm very proud of you for this um this is good start it's a start It's an insane pile.

36:02Yeah. Let me hear it just so we can see it. Just look at that. Just absolute chaos. Look at that. Bonfire. Right there. Look at all of that. Oh, that's crazy. And it's gone. It's done. It's done. So no more spending on credit cards. No more opening credit cards. We're done, my dude. We're done. Credit promise tries, but I keep denying it. I keep walking away from it. I don't want that kind of pressure on me. Well, you just got to not sign up for it. I think I use credit karma all the time. I've never signed up for a credit card once to them. Yeah. All right, let's get rid of those once and for all.

36:40They're done. No more. No more. Checking out. 2063 sitting in there. That's good. Started with a little less than$1 ,000, but yeah. Again. Yep. I don't really understand the point. Like, okay, you made progress. That was good. You did that. But you weren't even spending on the credit cards anyway. All your f***ing around and going crazy was in this checking account. All the money that could have been going to paying off the debt. It makes no sense. Inland Truck, Shipley Donuts. Inland Truck's my pay. Krispy Kreme. She was supposed to be making money from there. Not you're right. You're right. Sorry.

37:23That actually came in. But she was supposed to be making money from Krispy Kreme. But no, we're spending money there instead. McDonald's, fucking toys. Again, O 'Reilly's supposed to be giving you money. You spent money there. Some Ubering, vending out money. Ruby, some restaurant. Coca-Cola vending machine, probably. What's Zeebit? What is Zeebit? Zeebit is... Is that one of the cards? No. No, it's not. What is Zeebit? Zeebit is paid for. It's kind of like a finger in a way. Instead of monthly payments, it's a weekly payment. Oh, God. Well, Riley's supposed to be giving you money, not you them.

37:58Murphy getting some taquitos there and cash-apping out money, selling out money, and Taco Bell. Depending on the gas amount at the gas station, that's – We do the cheap ones. Well, a lot of the 10, the double digits is me filling the motorcycle up because it only takes like 12 bucks to fill up. That's why I've been driving that. Cycle gear, jack-in-the-box, Uber. Amazon. O 'Reilly's supposed to be giving you money, but you gave him$50.96. Amazon. Amazon. Favorite Torchy's and Applebee's. The Young Men's. That was daycare. What's except draft check? I don't know. That one is my car payment. Hulu.

38:43Taco Bell. SP. 8th. Upgrade. Isn't that another debt? Upgrade? Yes. We didn't have that. I believe that was the one I couldn't get a statement for. What is that? There's more debt? Okay.

39:02What's going on here?

39:06Unearthing it from its tomb. Biometric. It's going to be over the nine. Do you have any more debt other than this? No. This is the last one. The last one. We've gone through. 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17. This is your 17th debt If I remember correctly I believe that one's like$920 Upgrade? Yeah Okay,$920 minimum monthly payment That one is I think I've been paying It was not$29 I believe A month Interest? 29 Percent? Yeah Almost all my credit cards are 29 30 % Doesn't even make sense Doesn't even make sense Vending machine getting some storage. We don't need extra storage right now.

39:55Jack in the box. The storage fee. Yeah. That's where my couch is that my grandparents gave me. Sentimental. Just put it in your place. I don't care. I won't fit. My apartment has huge rooms but no living room. Weird. O 'Reilly's what's to give you when you're not done. McDonald's, Disney Plus, McDonald's, Uber, Macy's. That was the auto payment and the vending machine and some perfume. No, no, no, my perfect resume. Probably for her, okay. My perfect resume was actually me trying to readequate my resume and put it on a deed just to see if there was anything. The holidays mean more travel, more shopping, more time online, and more personal info in more places that could expose you more to identity theft.

40:41But LifeLock monitors millions of data points per second. If your identity is stolen, our U.S.-based restoration specialists will fix it, guaranteed, or your money back. Don't face drained accounts, fraudulent loans, or financial losses alone. Get more holiday fun and less holiday worry with LifeLock. Save up to 40 % your first year. Visit LifeLock.com slash podcast. Terms apply. Try to get more money. Yeah. Prime and Apple bills. The Apple bills were actually trying to fight because it has been an ongoing issue where they won't allow her access to the account to shut that one off. And Prime and Microsoft Ultimate and Amazon and Jack in the Box.

41:20And there was your Mac Tools, which you said is done now. Zelling out money. Some taquitos. O 'Reilly not paying you. You paying them. There's your Upstart. Upstart. What's Upstart? That's also different. Upstart should have been one of those statements I sent. Let me see. Nope. So there's an 18th debt. An 18th debt. An 18th debt. Go ahead and pull that up, but guess what? More O 'Reilly spending in Fake Connection, Subway, public storage,$100, Naver, Ready Fresh, Waffle House, Domino's, O 'Reilly giving them money, Playrix, there's the f***ing gems. We're getting some gems again. Some more Google payment of something.

42:09ZBit spending money at O 'Reilly and taquitos and giving Krispy Kreme money in 7-Eleven. And trust me, I love my Krispy Kreme, but guess what? Uh-uh. And Amazon, Affirm, Uber, Texas Roadhouse, Mac Tools, Venmoing out$100, Hetson Law, Hetson Law. What's Hetson Law? I'm in the middle of a lawsuit right now. Of what? A PayPal credit card. Oh, my God. And it was cheaper for me to just pay the$1 ,000 that I'm currently paying for the lawyer versus the$1 ,500 that PayPal wants.

42:48$1 ,700

42:54$1 ,703.17 and if you didn't get that one that means you probably didn't receive my other two other two what? personal loans what's the minimum monthly payment on this? one is 100 which is the upstart the other one is 145 well the 100 is because I pay higher principal It's normally just 75 on that one. What are the interests on these? That one I don't really know. You're a brave man for walking into this room with this. A brave man. Yeah. I respect that. I've used it for a couple titles, and I might use it for this, but I think you literally have more individualized debt than any other human being has ever had in the face of the planet.

43:40This is insanity. It's pretty bad. 20? 20? Is that what we're up to? Okay, so Upstart. What are the interest rates? So we have$100 minimum payment on one and$145 on another. I'm pulling the$145 right now. They're also Upstart? No, this one's Mariner Finance. I got in a motorcycle accident a couple years ago. Well, what does that tell us? I kind of pulled one of these because I was out of work and had no vacation time to cover it. Yeah, it's actually$148.83. Oh,$32.25 for the Mariner one. With a... Do you have another personal loan? You said you have two other personal loans, right? I have one more after that one.

44:20How much is on the marina? The marina is to pay off$3 ,321.76. The last one... You guys took the American going into debt trend... To a whole new level. It's not even close. People always ask me what high yield savings account do I use for my own money? Some of you know by now it's SoFi. I love them. It's great for my checking account needs. It's great for my high yield savings account needs. And right now I'm getting 4.5 % interest on my monies. I love that rate on my monies. So if you want to get a great rate like that on your monies, just check out the link in the description below. I have a paid affiliate link there.

45:06You can get bonuses all the way up to$250 and I took advantage of that and you should too. and yet you have all these debts and yet guess what we've gone through three pages of pink lines of bull and there's still another every line is pink bull and guess what I'm not going to read them all but there's like tolls and panda express and anti and and a bunch of other chilies and cobble bobs and here's another one that's the end of it and there's more and it's taco bell and finger hut and peacock and microsoft Last personal one is 2280 ,603.

45:46With a minimum payment of 145.74. And I think a lot of the times with those ones, I was trying to consolidate my credit card payments at the time. That's why some people are... Okay, I'm going to cut you off. That's why some people are against credit card consolidation because then they'll just go into credit card. I'm not a credit card person. That's why I cut them up. I tried to be. I failed. 2 ,800 and a 401k. Is that all the retirement for the household? That's the only retirement I have through that company. Inland is something I can't have complete access directly to because I want to say there's about 12 ,000 in there.

46:25Good. That one is something that it's an employee stock ownership program, so we don't get to buy in. It's every year at the end of the year. they take a percentage of what we may total with no cost to us and put it in that account for us. Car payments are 11.7 % of your spending. Yeah. Spending. This is not your income, by the way, because your spending is well above what your income is. Well above what your income is. $5 ,000 a month? No, this is well above that. Bullshit. 8.3 % of your spending. Bullshit. Extra miscellaneous bull$529. Other large purchases, let's see what those were. 22.6 % of your spending.

47:13Housing, 18.8 % of your spending. Now, again, that's spending, so that's not income. So that sounds like a good percentage, but of your income, that is a terrible amount. Yeah. Of almost$19 ,000. $1900. We've actually been trying to see possibly about getting a smaller place at a cheaper rent. Yes. It must happen. In this area, it's just really hard. Yeah, we're going to pinballs and finger hut and all these extra things. And there's your law thing. You're f***ing around, dude. You're f***ing around. You guys have just lived on debt.

47:50What's your rent? After the fee, it's$16.11. Utilities and the internet? $95 for the electric. $55 for the internet. Gas will come in the winter. We don't have gas. The 1611 is actually included with the water and sewer. Okay, but you have electric heating? It's going to be expensive in the winter. Okay. Phone bills? I managed to get it down to$220. down from what it was 240 we're financing phones aren't we i have one phone financed okay you're not paying for the groceries for this dude that's living in your place right he pays for his own okay i provide for me my wife and kid i'm doing a thousand for groceries honestly we've been kind of doing i think we've been doing about $200,$300.

48:54She just went to the store yesterday and spent like only$75 for probably about a week and a half, two weeks of food. You eat out every second of your life, so no. I mean, but that's not going to be a realistic budget. You eat out every second of your life. So food, we're going to do$750. Adjusted as needed, but we're just, we're trying. The way we do this, and it's going to be very boring, and your kid's going to complain, we're meal prepping essentially twice a week, like on a Sunday and on a Thursday. It is difficult for us to feed her because she does have autism. So she also has a food sensitivity issue.

49:30Oh, sure. And we also have to watch out for soy because she's allergic to soy. So it's a lot of nitpicking items to make sure she actually eats something on a daily basis. Totally reasonable. So you guys are going to do what you need to do for that. But then for you two, we're budgeting down. We're meal prepping essentially like four days at a time. We've been buying bulk chicken recently to kind of just season it how we want. Cook it all up front. You warm it up on a daily basis, and it's just like chicken and rice. It's boring. Well, we do healthy. We don't do anything that's going to harm us.

49:59And then you do what you have to do for her. So with autism, is there medication with that? No, it's more of just that she wasn't therapy, but they dropped her insurance because I started making too much. What about your insurance? If I add her on my insurance, it comes out to almost$700 a month. She needs to have health insurance. It's not really an option. Well, we actually were fighting the system on that one, and they failed to tell us that she was actually eligible for the CHIP program, which we're trying to get her back onto. That way the state can at least cover that. well you don't make bad money you don't make bad money I mean net on a yearly basis is 60 ,000 bucks you guys are probably making it as a household before taxes the median household income of Austin so you don't need to rely on that but if that's a program that's meant for somebody in a situation then okay that's fine so total paper when I was essentially trying to calculate in what therapy would cost what she has a medication for her insomnia I think that comes out like$6 a month or so.

51:10Okay, so toilet paper, things to keep the house in order, makeup, blah, blah, blah, all this stuff, and things that she might need for school, stuff like that, we're going to do$200 a month. Some months will be higher, some months will be lower. That includes the medication. So everything else needed to keep the house in order. Gas, how much are we spending between the two of you on gas? Probably about$150 a month. I do... $150, that seems a little. Well, she doesn't drive very far. The school is only about three miles, maybe a six-mile round trip. And she doesn't really go anywhere. So her gas usually lasts longer in her tank than mine.

51:47That's why I've been taking the bike, too, because it's a lot cheaper and I could get more out of it. We got$213. I guess we're busier one month than the other. Well, prices are high right now. That's true, yeah. I'll do$175. It's me in the middle. Yeah. Okay. Let me add up your minimum monthly payments. This is about to harm me. And the crazy part about you having this bad, this many debts as your minimum of the payments are just stacking, dude. Absolutely stacking. Yeah. I think I'll probably be one of the few that are actually in the red most of the time. Or nearly. Oh, trust me, that is quite a common thing on here at least.

52:31Because my roommate was paying$400 a month for rent, But right now he's not paying anything. Almost half. Almost half of the money that comes in on a monthly basis goes to just minimum monthly payments. Almost half. So debt.

52:49And that's including the student loan payment? $2 ,049.83. Yeah, that's what we do when we just go into 20, 21 different debts just for everything in our lives. And we're just financing everything. It's really bad. That's what happens when we prioritize spending money on bull**** every month instead of paying them off. Okay. Car insurances and motorcycle, all that stuff combined. What are we looking at? Motorcycle is$78 a month, and the car payment is actually going to be reset because it renews next month to$284. For both cars? Yep. It was$310. $362. I've been trying to find cheaper auto insurance, but this area is just horrible right now.

53:38Okay. Anything else you guys have to take care of on a monthly basis? What am I forgetting? Honestly, that's about all I can think of right now. We have rent. We have utilities. We have phone. We have food. We have just around the house, medication, all that stuff. We have gas. We have debt. We have car insurance. Renters insurance will call like 10. Renters insurance is 32. Oh. Okay. Okay. So this is the total rent, right? This isn't... Yeah, that's total rent. Yeah, that's the high end of it. All right. You're in the red$374. And that's your budget to survive. That's a conservative budget. That's not you going eating out anymore.

54:21So that's without you f***ing around. So, okay. Are you going to stop? Are you guys not going to eat out once? ever? We've cut out eating out just after the end of the month from last month we haven't touched eating out except for one day today. So this is what I need you and her to do together or else there's no plan that can be made. With you and her combined I need an extra$2 ,000 a month to come in for there to be any hope. Any hope. If there's not we're in this forever. We're dying in poverty and we're never retiring. which I'm sorry I'm sorry that that's so negative but that's the reality and it would be irresponsible of me not to be forward and real about your situation you're in the red 374 on the most conservative budget possible there's no option but to go make more money it's getting a better job, her working more you guys are working all the time and I understand when I be home with the kid and all that stuff but we're just working when the other person's not you know maybe she's working all night it's hard it's hard but the sacrifices need to be made now and you cannot be the only one making and you need to get on your roommate you were helping him out I just got on him today about it too good you give him probably a couple weeks because again I know he can go get a chill not a chill but a lower paid job to at least get some money rolling in like okay maybe give him a little bit of a discount as he's doing it but if he doesn't have anything within a few weeks man you need to tell him that's it yeah I've already told him he pretty much has until the end of the month and otherwise he's living in his car.

56:01Which he's still paying for. It's hard, but those are the tough conversations we need to have in the reality of life. In the system we're in. So that's it, man. So with $2 ,000, the thing that I would do for all these, I would save up a one month emergency fund. I'd rather do two, but it's just going to take too long. One month emergency fund to like two and a half months at that point once you guys bring in that extra $2 ,000. Nah, like three months. Sorry, excuse me. And then I need you to pay off in a few months that America First or American First, whatever, loan. That has to be taken care of immediately because the interest rates are 106%.

56:47The rest, I think, what makes sense for you because the minimum of the payments are what's killing you. From there, you just have to do the smallest to the largest. So we're starting with a little avalanche. that's taking care of the highest interest, but then whatever the smallest, largest balance are, except for the student loans, leave out the student loans. Okay. You take and you pay them off. Student loans, you can minimum monthly pay them until they're paid off if you want to. If you want to pay them off, you can. But buddy, even with that extra$2 ,000 a month, it's going to take a long time.

57:15Yeah. We can go through the whole process and figuring out how long it's going to take to pay off, but that doesn't really matter because right now we're losing$374 a month. I don't know how much money you guys are going to bring in, so we're going to be going full hypothetical. You guys need to bring in as much money as possible. Take care of this. And I think what you can, except for a couple of the higher balances, a lot of these balances you can knock out pretty quickly. And I do, motorcycle needs to be gone. After 21 debts, PayPal included, maybe it's 22, I don't know. It's a loss and a mess.

57:50You need to get rid of it that we cannot have that minimum monthly payment. Yeah, there's about three payments left on that law, the Heston Law one. But even still, I would rather you just fully get rid of it. Get rid of it. Because even if you're profiting a bit and to throw that at the – like, okay, you fully pay that off, then you sell your motorcycle, and then you throw that at other debts. I'd rather you do that because it's just your responsibility if we don't need it right now. We need to get out of debt now. Because you guys are not retiring. You're living in debt forever. Then you're – it's – And I don't want that to be an option for you.

58:24So that's why I would also borrow the difference, and sell that more expensive, newer car and get a$10 ,000 checked out, reliable, safe car. For shorter drives even. I mean, because as you said, that car is not used very much. We don't need it to be a$20 ,000 debt at 12%. We're never opening up another credit card again. You guys are attacking this. If you guys go bring home the money, you can get out of this two, three, four years. But if you don't, you're in this for the rest of your life. And I'm sorry that it's going to just a more dire no. but there's no point of going into hypotheticals.

58:59Most important right now, you guys need to go make more money, and that's likely going to be from her working. I'm sorry, man. I wish I had better news. No, this is kind of what I needed to hear.

59:16It kicks a fire under, and I didn't realize I was that deep in. You were shocked to hear the minimum monthly payments that you owed on a monthly basis. You should know that. Everyone should know that and the fact that you don't scares me. So take this. Take this as a wake-up call and go and turn your life around. Let's meet again in a year, and you should have made a bunch of progress, bunch of progress. Out of this completely? No, probably not, but you should have made a bunch of progress. You're 29. By your mid-30s, you'll have a fully funded emergency fund, no bad debt, and you'll be contributing a good amount to your retirement and you guys can have fun.

59:54Those stressors that exist in your life from this will not exist anymore. That's if you take action now. Now. It really can't be a choice, but it is a choice. So do you have any final thoughts? It's just, it's a little, it's hard to swallow. though. I just never expected to be this deep in. Yeah, I'm kind of just lost for words. I really don't have much else to say on that part. I mean, you know it. I know it. That's a Hammer Financial score, 0 out of 10. That's a hard one. They just need to bring in some monies right now, and then they can start aggressively paying it off. I wish I had a more optimistic ending, but check out all the resources linked in the description below.

1:00:44They are what I use or would use in specific situations. If you want to be in an episode of Financial Audit and you're able to make it down to Austin, Texas, fill out the survey in the description below.