She's Going To Die In Poverty

0:28Americans told Washington what they want. 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. But 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. My name is Dani. I'm 26 and I'm based in Tulsa, Oklahoma and this is Financial Audit.

1:05What do you do in Tulsa for a living? I'm a dog groomer. Oh, my dog literally needs that right now. You have absolutely no idea. There's so many stickers stuck in this long fur. It's the season. Oh my goodness. Okay, very cool. What are you bringing in? Not very much right now. I moved from Washington to Tulsa. Washington State, D.C.? Yeah, Washington State. Okay. And I was making almost$3 ,000 a month. I was in a higher volume salon. Now I'm doing my own self-employment between two different salons. So I'm bringing in post-tax, like maybe$1 ,700 right now. A month? Yeah. Whew, that's hard. Okay, geez.

1:55Now you're W-2'd, so. I know, I'm 1099. So that's after putting a little bit aside. Yeah. Which, if there's income, I mean, it's not going to honestly have to be much in terms of taxes. Yeah. But, yeah. Wow. Well, right off the gate, what's your rent? We split it, so my rent is$600. Who do you split it with? With my partner, Jaden. Oh, okay, cool. So$600. Well, I'm glad Tulsa's apparently insanely cheap. It's not too bad. We're not in the best neighborhood, but it is what it is. Is it safe? Are you safe? yeah there okay and i mean that's what matters as long as you're safe then i'm good with living in a cheap place for a bit that's 35 of your take home so that's definitely more than we want we want 30 to be the extreme max in like a proper financial ecosystem of life and you are beyond that yeah but we obviously need to gather the whole picture of your financial situation see where your life is at and then see what we can do.

2:57So like what brought you here? What is your financial situation look like today? What's up? Um, well, what brought me here was my partner. Um, he was living here. So I moved here, um, to be with him. And then my financial situation is terrible. It's been terrible for years now okay um i would give myself like a zero really okay why is it a zero um my spending habits are not good um i've had debts that i had during um i'm bipolar so i had episodes that i didn't know were episodes and so it's all kind of now that i'm medicated and doing all of the leg work there um it's just biting me in the ass now so the yeah we actually had someone on just a couple weeks ago i don't know if you saw that episode someone who also struggled with bipolar disorder and that's drive them into a lot of you know struggling financial situations that they're now trying to call them claw themselves out of how long have you uh been receiving help and everything um not very long i was diagnosed in february of this year this year yeah it's only a few months ago i got on meds went to psychiatrist went to therapy um how has it been since then it's been amazing oh good it's been so much better i'm so sorry that it's taken so long yeah it sucks yeah as someone who deals with mental health struggles myself i definitely get at mine's more on the anxiety side and like a panic disorder is you know it can be crippling and I couldn't even imagine bipolar has to be one of like the hardest things that exists so yeah it can be hard good for you for getting help and getting uh taken care of and now looking at your entire financial situation and trying to do better yes okay definitely I have goals in mind that I would like to get to um but I need to fix my situation first we'll we'll talk about those goals I'm curious and then we'll see how we can kind of get there and pull ourselves out of this financial situation.

5:03So zero out of 10s, would you give yourself? Yes, absolutely. I want to take a brief moment to thank today's video sponsor, SoFi. SoFi is a mobile first finance company that helps you with your banking, borrowing and investing needs. And as we know on this show, there are people in endless credit card debt. The bad part of these credit card debts is you can see interest rates in the 30 % now. People are being drowned in their minimum monthly payments across multiple credit cards and these insane interest rates. And as we've talked about in multiple episodes, sometimes taking out a personal loan to consolidate these terrible credit cards can be a really good decision.

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6:59Thanks again to SoFi for sponsoring this episode. So in the overall financial picture of your life, like here in the documents I have, I have a credit builder, two checking accounts and a savings account. Do you have debts? Yes, I have debts. I don't have the paperwork on them. Oh, well, let's hear about these debts. Okay, give me the first one. So the first one is a car that is now has been repoed. It's a Mitsubishi Lancer. It was repoed? yes okay um i owe about 30 um sorry um just under 4 000 oh 4 000 sorry yeah it was a stupid buy um i could afford it at the time because i was in an episode so i was working three jobs for no reason so I could afford it at the time.

8:01No, really? Yeah. So now that life changed drastically so I couldn't afford it anymore. So about $4 ,000 on that. I have my current vehicle. So are you trying to? Okay, go ahead. This episode is brought to you by NBA On Prime. This Tuesday at 8.30 Eastern, it's the Emirates NBA Cup Championship game On Prime. This year's quest for the Cup has been building to this, the championship game live from las vegas not a prime member sign up for a 30-day free trial to get started today the emirates nba cup championship game this tuesday at 8 30 eastern only on prime restrictions apply see amazon.com slash amazon prime for details current vehicle my current vehicle is a 2012 vw jetta um and i only owe like 30 i just made another payment so 3200 Okay, you get me with the 30s.

8:58It keeps scaring me. Okay,$3 ,200. What's the minimum monthly payments on that? $200. Oh, wow. Must have been on. Okay. What was the purchase price? When did you get it? I got it last August. The purchase price was, I think, a little over$7 ,000. What's the interest rate on that? I actually don't know. I'm trying to get a hold of the papers. Do you have credit card on a download on your phone? I do. The thing is, is the car was purchased through a friend. This is a personal loan through a friend? Through a friend, yes. Did they borrow the money or did they lend you the money from their own pile of money?

9:38They purchased the vehicle and I pay them. Okay, but the loan is under their name? Yes. Okay, I'm curious. Yes, so I've been trying to get a hold of that paperwork, but they haven't gotten back to me about the APR. And what are you doing about the repo situation? I'm making payments on it. Okay, what's that payment? It's$100 a month. What was the interest? You're going to be mad at me. It was 21%. Oh, that's death. Yeah. Not mad at you, but the interest rate is what scares me. I'm typically not mad at the individual unless they do something. That's in the past, but I am just mad at the interest rate for existing on a car.

10:23Like I said, it was a very stupid purchase. I shouldn't have gotten that vehicle. That was back in, I want to say, 2018. And that vehicle was purchase price of$10 ,000. Okay. When was it repoed? It was repoed last year. Have you been in contact with them? I wasn't for a long time until it went into collections. So that's in collections. Yeah. So I contacted them. Wait, wait, wait. It's in, wait, okay. Who are you paying? Are you paying them or the collections agency? I'm paying the collections agency. That has interest on it still? Not that I know of. Okay. And what are you paying them? I'm paying them the$100 a month.

11:22And$100, it's only$4 ,000, but yeah, you don't make anything. Because that$100 is going to take forever before you can even... Where's this car? I don't know. Like, that's going to take 40 months. Is that even worth it? Because I've never had a car refund. I've never had anyone in my life reposed. Basically, they take it and they sell it off. and then I pay because there was... No, I mean, I know how it works. I'm just trying to figure out if you've been in contact with them in terms of any negotiations because, you know, it's typically like you pay it off in full then you might be able to get it back but it's in the collections.

12:04No, it's been sold and it's off. So now you're just trying to pay off the... I'm just paying off the... Basically, I'm paying off the debt for something that doesn't exist. Yeah, because there was damage to the vehicle at the time. So I'm basically paying off that damage that I didn't get fixed in time. Kill me. Okay. Yeah. I assume there's another debt? Yes. From how this conversation's going? Let me grab my phone. I have a list. Oh, okay. A list. I'm terrified. If you have a list of things on your to-do docket today, one of those should be subscribe because we're trying to get to 750 ,000 subscribers.

12:45So she's pulling up a list. Well, she pulls up a list. You subscribe. Okay, so I have As close as you can Dental credit Of$875 Ode to who? A collections agency Everything's in collections Oh, everything's in collections? Except for my Jetta, yeah How many miles is on that Jetta? 2012. It just hit almost$156 ,000. So you might... How's the condition of this car? It's decent. Okay. Okay. Okay. Okay. Okay. But probably in a few years, you'll need a new one, right? Absolutely. Yeah. Okay. Okay. Okay. Dental? What do we have? We have a Banfield debt. What was that? Oh, Banfield? Like the pet hospital?

13:42Yeah, the pet hospital of$682. Okay. And I'm actually making payments to them right now,$50 a month. Okay. And then I have two things of medical debt, one at$1 ,698 and then one at$1 ,114. Okay. And then the last one Last one Is a credit card That is like Six years old now At$1 ,296 Have you been making payments? I haven't made payments When's the last time that's had a payment? I couldn't even tell you So probably that entire six years? Yeah What was the balance on that? $1 ,296 This might be the first time on this show Where we talk about just letting it fall off your credit Because you're almost there Right, yeah You're almost there Besides the seven years, how old is this other Or besides the six years of that What's the oldest one besides that And how long is that The oldest one is probably the Banfield How old is that Probably about the same About six years You've been paying on that though I just started payments.

15:06Ah, you just started. Just started. Well, that ruins it. So there's been activity on that account. Yeah. So that will have to be paid. Okay, besides that, what's the oldest besides Banfield? That would be the Mitsubishi. And that is how long? That was 2018. It doesn't matter. You're making payments on it. Yeah. Okay, medical debt. How old is the medical debt? Medical debt is just a couple years old. And dental? Um, dental is about six, six or so. Have you been paying that? No, I have not. I am not a fall off the credit kind of person, but this could be the play.

15:53It will fall off your credit report in seven years. More close to that. Statue of limitations on the debts though, in terms of them still hounding you. Are you being hounded? um since i started making payments to the two yes they've been calling me good so you started making payments and then they called you yeah thrilled yeah but the other ones haven't no then i wouldn't worry about the statute of limitations in terms of pursuit either and i if i'm not mistaken those varies on the debts as well um but it'll at least fall off within the seven years which will help your credit, which is despite what many people.

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17:04You know, underwriting is such a pain in the ass. It's kind of hard to find. Having good credit makes the rest of life so much easier. Yikes. But, so what's going to fall off is that credit card again, right? Yeah. Credit card's falling off. And the dental is going to fall off? Yeah. How'd you get into this collections in the first place? because what... I'm just afraid. If you've done... 26 years old? Yes. Dude, this is insane by 26 to have that many accounts and collections. Yes. No matter what we do, how are we preventing you from going into one, two, three, four, five, six, seven accounts of collections again in the future?

17:48I would say that I've already started learning my lesson about it because it's biting me in the... already and I've been making payments perfectly with my Jetta and the insurance payments and everything. And I'm medicated now. So that has been a huge help in keeping me from going into episodes to where I'm not. So you'd say all these were episodic? Yes. Not that that's an excuse. in the banfield well sorry that that's incorrect um the dental was because i needed a wisdom tooth removed okay which is very fair but why did you then not pay it so basically because i just ignored it and i'm just gonna say that um so why did you ignore it i just want to make sure we are not ignoring payments in the future why did you ignore it why'd you choose that um because my My life was pretty insane at the time, and I had a bad habit included into my episodes of ignoring bills.

18:55Okay. And just ignoring normal adult things. So I'm glad life's become more stable and we're medicated now, but life is unpredictable. We still might be medicated in the future, but what if life goes wild again? Even though you will be medicated and receiving help, what if life goes wild again? What's preventing us from, oh, I'm not going to pay rent this month. Okay. Or the next month or the next month. I mean, honestly, I have my partner to be a good rock for me. Married? No. That's not guaranteed. It's not even guaranteed with marriage, but at least there's legal backing. I mean, honestly, I don't know what to say then because I can't really foresee the future and what kind of episodes I'll go into.

19:45I'm not saying that will happen. I'm obviously not saying I hope that happens. I hope it doesn't happen. And I just want to make sure that because we ignore bills, because life is crazy, that when or if life gets crazy, you know, a different kind of crazy, same kind of crazy, who knows, that we don't fall into that habit again. Because then you're going to spend years digging out of that hole. Exactly. And like I said, I am in a completely different spot than I have ever been in. Right. And I have learned that that is not okay to not make payments. And that's all I really can say because I can't guarantee that.

20:33Oh, I just, the stupid, the stupid repo. Yeah. I want to get this clear make sure I didn't mishear this the one that's repoed that was under your name right? not your friend's name? yes that one's under my name yeah alright well let's continue getting the full picture of your account we have four different accounts to look at here yes in paper this one's a credit builder credit builder yeah are you familiar with it? well there's lots of credit builders some can be good some can be bad I usually because credit builders cost money I'm good with them once usually we're out of debt because we're trying to minimize minimum monthly payments so this one is one that i put in money from my checking account through chime and i only get the amount that i put in yeah so i basically use it like a debit card though they don't have a fee i believe okay i'm gonna fact check i might be wrong very good and it actually has helped my credit it took it from a 490 to to a 565 yeah no when these collections either fall off or get off because we're gonna pay some of them then yeah that's the big thing yeah i mean yeah so obviously there's some of these debts that we need to pay for correct yeah there's debts that we're needing to pay for why are you getting taquitos to the gas station well mind spot what is my mind spot is not therapy is it mind spot is therapy good that's fantastic it's eight dollars so i was skeptical that it was therapy so my copay is only four dollars um and i was just paying two then obviously i'm down for that that's fantastic so for therapy in my meds i spend a total of twelve dollars a month incredible we're obviously gonna put that in the future budget because we are not negotiating i mean that's incredible i'll probably recommend that for people going forward okay i'll take a look into it first but what is dgx because that's everywhere that is dollar general dude okay dollar general dollar general what's penis systems pns star lc systems um can i see

22:4535 oh that is the $50 payment to collections gotcha do we really be going to Sonic Drive Thru when we need to pay off some of these collections do we really need to be going to Taco Bell do we need to be going to that dollar store Elo Cafe and Cater do we need to be doing that do we need to be going to Taco Bell do we need to be going back to the dollar store is that stuff and it's not like they're overly important purchases $3 here $27 or$10 there come on they add up though yeah they add up so do we need to be doing that no when there's collections and I'm glad that at least with the credit builder the money that you put in is with the money that I spent but on this next account we started with $4.38 to be fair I don't really use this account anymore I don't care it still happened It's still happening.

23:41Don't really use this account anymore. What do you mean we don't really use this account anymore? There were purchases all over the place. You mean you don't use this account anymore as in like a week ago? No. So my main money goes into my chime. Only$200 or so goes into the U.S. bank. As of like a week ago or something? Because it's not like this wasn't. I mean, this was still going through May. Through May, it was just a little bit of money here and there. Okay. Well, guess what? overdraft because negative$4.38 and we ended even though$744 came in we ended with a negative $1.12. Two overdrafts with also Netflix payment which we're canceling immediately.

24:23Fun fact. Congratulations. Some debit card purchase from a store based out of Rose Rock in Michigan and Brom's store and Popeye's and Rezor's Rezor's is groceries. That's okay then. I've just never heard of it. Sandoz and the Rose Rock and Audible. Well, Audible's good, but we're going to a library while we're trying to pay off debt. I canceled that. Good. Google Storage and PFXL. That is the gym. Okay, then we're good with that as well. And then paying for like renting a movie or something on YouTube. I don't know. But premium, maybe? Yeah, YouTube premium. Okay. A lot of, we definitely don't need to be going to the Sandoz and wherever that thing on a Rose Rock and then Popeyes and Netflix.

25:07No. We're not doing that when we're trying to get out of debt. We're especially not doing that when we start the month with negative and when we end the month with negative. See, this comes back to my point earlier where I was a little nervous of going in the future. That was a month ago and we ended negative. If we're not managing at that point, I'm just, I'm glad that you don't have any open credit cards right now, right? No, no. That isn't that credit card builder, so. Yeah. That makes me nervous going forward. I know I'm not a credit card person. I don't think I'll ever have another credit card.

25:45Good. Yeah. It's fine if you aren't. The majority aren't. And that's okay. But guess what? Another thing that makes me nervous. Chime checking account started negative$4.63. Started negative. Two accounts out of the four accounts and started negative. Two of the checking accounts. There's only two checking accounts and both started negative. It ended positive with$7.

26:11This is why I'm nervous. American AI, Captain Scripps office. So that was when I went, I was at the airport when I went to go visit my family. I didn't pay for the plane ticket or anything. I just paid for a couple things for food. Okay. Okay. You eat a sandwich before because normally I wouldn't care, but we're trying to get out of collections. And even more importantly than that, the two chicken accounts that we have started negative. Do we be eating food from airports at that point? No. Dollar Store General, Apple Bill, Apple Bill. I don't know what Ropong is or Pop. Well, I know what Popeye's is.

26:49And there's an Albert thing. And then and Dildi with Paypal and Jaden House. Andy I'd, that is a payment for my insurance payment to my friend. Good. Yeah. I pay her$200 and then$80. So many services and stuff that I've never heard of on yours, ever before in my life. But still, again, the Popeyes and the Roponji and the Apple Bill, Apple Bill, Albert and Jaden House and Captain Scrimp's office and American AI and... The Jaden House one is usually for rent or bills. So many things that I've never heard of before. This is so weird. And then the dollar store. Then an Apple bill. Another Jaden House, hopefully bills.

27:33and then that and die thing. So again, a lot of unnecessary payments, even though some of those, okay, they made sense that they're called out, still a lot of unnecessary payments when we're starting with negative and we're ending another one with negative and we're only ending that one with$7. If you didn't go to that stupid place to eat in the airport, you would have had double the ending balance. Double the ending balance. Yeah. And then in savings. I mean, it just really rounds up. And it's a 2 % yield anyway. I mean, I wouldn't use that. Well, okay. I try not to plug too much, but I just, I like them because of their savings account.

28:14But come on, you'll be getting like 4.3 % with SoFi's high yield savings. Okay. Like, I mean, we may as well double our rate, right? Fair. So you can check out my description for that. But either way. Yeah. There's only$159 in here anyway. There is more in there now. How much? Let me look. There's$356.13. Do you feel fully dependent on your partner? Yes, I do. Yeah, I bet. $1 ,700 a month, all these bills, rent 35 % of your income, then we're not even talking about utilities or any of the debt minimum payments that you've done. The rent is including utilities. It is? Really? We pay$1 ,200 including utilities.

29:08Okay. That is wild. All the food going out to eat that we could calculate in the unnecessary spending,$411. Wow. $411. $60 in gas. Yeah, I don't spend much in gas because I work like five minutes away from my job. Good. So gas, 60. And then utilities was, rent and utilities was 600, right? Yes. Does that include internet? Yes. Good. Wow. Very good. Car payment is 200. 200, yeah. Car insurance is what? 80 is 89.

29:55That's also good. Yeah. um now this hundred dollars that you're paying towards the repo card and the fifty dollars towards banfield is that what you negotiated with them or is that just you trying to make progress no it's what i negotiated with them for monthly payments okay i wouldn't have done that i would have tried to save up a chunk of money then negotiate to like pay half so you're pretty much committed to that then yes i'm going to try and save up money and maybe try and renegotiate with them but as of right now yeah what happens if you don't pay the minimum monthly payments i don't know well because it's already in collections i mean i might just stop they'll hound you if you're okay with being hound no we're stopping that for now we're taking away yeah we're stopping that for now okay both of them the hound you and yeah okay

30:53Okay, very good. Now, how do you guys do groceries? We split groceries. I spend about$200 a month. Perfect. That's the number I was going to give.

31:06And I'm going to give you for hair, skin, toothpaste, all that good stuff,$75 a month. Toilet paper, all that good stuff. Yeah, that's fine.

31:19Any other minimum monthly expenses you can think of that you are forced to pay? I would say the gym. I pay monthly$25. Good. That is definitely worth it. And same with the therapy with the$12. Oh, yes. Yeah, that too. That's fantastic. Anything else? Not that I can think of. Let me double check here. Nope, that's it. That I'm forced to pay.

31:46Okay. So, your minimum monthly expenses in order to survive is relatively cheap compared to a lot of people, especially a lot of people on this show. $1 ,261. With$1 ,700, you have an additional$439 left on a monthly basis. And we're not doing the$150 towards those collections. Okay. So, we have$439 left. You have$365 saved up. Yeah. month number one just okay obviously save up as much as you can this month but we're just going to talk as July is month number one end of July you put that $4.39 with your$3.56 and savings brings you to $7.95 that's what you're doing the month of July you're following the budget you're not spending a single cent outside of that if your partner wants to take you out to eat that's fantastic yeah a lot of other things you're not paying for fun you're not doing anything you're canceling netflix i don't care you're digging down going crazy in a good way then august month so month number two saving up another saving up another 493 getting you to 1234 perfect so month number one month Number two, you're putting all that extra money aside.

33:10Okay. And it's aside. It's perfect. You have a fully funded emergency fund. Oh, no, not even close. I can't believe I just said that. No, that's not close. You have the starter emergency fund. You have your one month emergency fund. Okay. Lovely. Now the goal, and you don't know the interest rate on your own car. So you're paying your fund. That's killing it. I know. I'm trying. I can't believe your friend even allowed that with your history. But either way. say thank you every day to that friend. I do. I've known her since sixth grade. And we're basically family. Again, I don't think we're worrying about the credit card that's in collections.