25-Year-Old Has Over 20% Interest Car Debt | Financial Audit

My name is Matthew Collier. I'm based. out of San Marcos Texas. I'm from. Austin, Texas. 25 years old and this is financial. audit. 25 years old. So, what do you do in San. Marcos, Texas for a living? Uh so, I. actually work in Austin, Texas. Okay, okay. Yeah, so I'm a endoscopy. technician. Okay, okay. So. work at a surgery center down there. Oh, very cool. What do you bring in on a. yearly basis? Um so, I'm actually not. doing that right now. I just finished. that job. It's It's It's a weird. situation. You just finished a job.

Yeah, so. So, what do you do right now for money? So, I just literally got my acceptance. letter today for a technology sales. position. So, it'll be It'll be a remote. position. Ooh, those can bring in money. If you do well, if you're a good. salesman, those can bring in money. Exactly. Yeah. What were you making at. this previous position? So, staff as a. endoscopy tech I was bringing about. 3150. So, I think that's 60 something. thousand dollars. What, 3150 an hour? Yeah. Oh, okay. Um. and then previously last year I was.

doing traveling for the same position. and then I was bringing about 10k net. Okay. Now, what is this new position? What's. their base pay and then what does the. commission look like? So, the salary is. about 45k year. So, it's pretty pretty. fat pay decrease and the commission is. about 1% of all sales. It's a uh 1%? Okay. Now, what are these products. you're selling? Uh telemedicine software. to different micro clinics, small clinics around the area, hospitals, things of that nature. So,

I'm not exactly sure. area? Yeah, so we're we're working in. the area for now, but we're expanding. out to Austin. Yeah. Yeah. Oh. You're a little nervous going to a. startup. Super nervous. So, why are you doing. this? What was the job change? Um I just. I got really burned out from what I was. doing and I really wanted to do. you doing it? Uh pretty much since. straight out of high school. Okay. Um. kind of was in the medical field, got. really burnt out of doing it and um,

yeah, so I finally decided it was time. for a change. I wanted to I wanted my. income to be based off of my own work. and really start pulling in more money. instead of kind of trading my time for. uh, money, if that makes sense. Mhm. And. if you don't want to get burnt out in. life, uh, make sure to click that. subscribe button as it is a cure for all. things and we're trying to get to. 250,000 subscribers. Thank you for. everyone who has so far. You're one of. them. I am. Thank you. This new position, are you excited then? Super excited. Um, just nervous about.

never really did like a big commission. thing. I worked at Finish Line for maybe. a few months, but I'm not. think you're going to be a salesperson? So far I can already tell you you're. soft-spoken, that's not necessarily a. bad thing when it comes to that, but I'm. very curious what you think you're going. to be in terms of sales. Um, I I I I I know I'm going to do good. because I'm going to make myself do. good, right? So it's a skill that I have. to learn and you know, I'm going to. learn it in as best as I can in order. to, you know, really just try to change. my situation around, so I'm really not. giving my choice uh, myself a choice to. fail at it, so. Got you.

Well, I'm glad you're excited. I'm glad. you're going to this, it's definitely. going to be a hustle. This is. you know, you're kind of your own. business essentially when you're a. salesperson. You are getting actually a. relatively chunky base pay for sales. When I first started in sales it was. 32,500. You know, so you're. making more than $10,000 over that, but. uh, you know, the commission was really. good. We'll see what 1% looks like. I'm. very curious. For sure. Very curious. Um, so when do. you start that? Um, so.

tomorrow, really. Oh. Yeah, so I I meet. with the vice vice president of client. development um, tomorrow and we're just. going to talk about as far as like. orientation and and really dive into, you know, what I'll be doing day-to-day. and what the commission and everything. is look really going to look like. And are there extra bonuses on top of. that by hitting goals? Um, not too sure, to be honest. You're not too sure. Yeah. Mhm. I. again when we talk with him, we're just. going to hammer him with all those. questions. Probably should have And you. put in your two weeks already? Yeah.

Yeah, so I I did this a couple weeks. ago. So. Even though you haven't hammered all the. questions? Yeah. Yeah. Curious. All. right. I was I'm I'm I'm super I'm all about. just head head first just jumping into. things, so. Well, yeah. I mean, there could be lots. of wins with that, but there's always a. risk attached to it. right. Before we dive into your financial. situation and some of the. chaos Yeah. that there is within that. stack of papers, I want to hear from. your perspective, where do you think. your financial situation is now? Uh. pretty pretty terrible. Yeah, I've I've.

Since high school, I've made a lot of. really bad decisions as far as you know, trying to. help people out and also trying to keep. up with the Joneses. And so, I kind of. just landed myself in a pool of of mess. that you know, now I'm really trying to. like genuinely learn how to work myself. Good. Well, I'm glad you're starting. that process. What is the The keeping up with the. Joneses makes sense. When it comes to you said you've been. helping people, what does that look. like? Um so, it's pretty much since.

uh 18, I've been co-signing on cars, Oh. um. um paying off paying or giving people a. bunch of money even up until recently. and putting. you're like drowning in an ocean of. debt? Yeah. Yeah. I I've I've always kind of had like a. I'm really big about like taking care of. family and trying to help. Yeah, I love the heart. I love the heart. and and you know, the emotions around. that and what you've done, but not the emotional pressure, but like.

I love the heart that you have, the. caring attitude, that's fantastic, but. imagine the position you'd be able to be. in to actually truly help people in a. long-term more sustainable way if you. yourself were already in a good place. Yeah. Yeah. Just imagine that. You'll be able to. help people so much more if you buckle. down for a little bit and take care of. yourself. Yeah. And you know, when I. finally like kind of turned my financial. situation around and I brought in a like. a big chunk of change, it it felt like a. lot better to be able to give and not.

really worry about it. Um but now that. I'm I kind of put myself back in this. position, now I'm starting like to. really realize like, you know, what was. I what was I doing? Why was I doing it? What was the wake-up call? Um. pretty in recent weeks just really like. going from making kind of all that money. last year to now like hardly having a. thousand dollars in my bank account and. just like, you know, what did I do with. it? I have relatively nothing to show. for it. except you know, debt.

So. Yeah. All right. Well, let's all good to know. before we jump into your finances. So, let's jump in. Let's take a look. Now, interesting thing here is we were. supposed to meet quite a while ago, but. you know, winter storm and then just a. few other things. So, I've looked at this, but I've also. looked at so much since this that I'm. almost going to be looking at this new. again. So, it'll be interesting. I'm. very curious. All I do all I remember is. that it was a troublesome.

Okay. We have a. We have two balances. Mhm. Account two. two different accounts different. balances. We have a safe balance banking. banking 24 thou. $24. Wow, it's a struggle already. And. then Advance Plus Banking $329, which I. assume that's your main checking. account. Yes. And the Safe Banking used. to be a savings account, but I did so. many uh withdrawals in and out that it.

Just you just drained it. What was it at. its at its max? Um. when I was making a bunch of money like. 13,000. Man. Yeah. 13,000 to $24. Yeah. And 329. it can be a bit of a dangerous balance. on a checking account. Mhm. Yeah. Because automatic withdrawals. depending on how you have it set up. Mhm. So. Okay. In terms of deposits, it was mostly just. transfers. What are you transferring.

from? Um kind of reason why they uh stopped. giving me a savings account and swapped. it to a checking account cuz I was just. transferring so much money, but um. I have a really bad habit of kind of. just letting everything go into savings. account and then if I need it, I'll just. transfer it out. Just because I'm kind. of. been in so much like trouble in the. past, I get kind of scared that oh, here's we're going to take 500 bucks and. now I don't have 500 bucks. So. Yeah. Cuz this is endless transfers, endless. transfers. So showing them on screen, this is endless transfers. Then Apple.

Cash came in, did someone come and help. you for $576? Um no, that was uh rent from my uh. roommate. Okay. Yeah. Now, when it comes to spending for. someone who has a self-diagnosed issue. with spending, you know, we have all these Apple bills and. McDonald's and I I Okay, I need to know. exactly what this says first before we. go all through all this cuz this pops up. constantly. The Quad Pay Anywhere.

Yeah. Uh Zip pay split in four payments. Yeah. So you're just going around and. financing these payments in like a split. in four payments? What are you doing? So. what are what are you what are you. possibly buying that is like we need $28. here, $49, $49. So you're doing. something like 150 bucks. What are you. what are you purchasing cuz these show. up constantly? Sometimes it'd be. groceries, sometimes it'd be Groceries. Um. Honestly, I don't even know. I have.

nothing to show for it. Um but it's it's. it's it's less I can honestly say it's. less like trying to like buy clothes and. things like that, but it's obvious it's. probably not anything that's super Quad. Pay is a. needed anyway. endlessly through here. And then we're also just going to. McDonald's and Wine Bros and just Apple. Pay, Apple Pay, or Apple Cash and. Pluckers, and another ongoing Apple. bill, and then you're paying off your. credit cards, which good, or at least. you're paying to your credit cards, and. then yeah, and then McDonald's and more.

Quad Pay and Loba Santa and McDonald's. Quad Pay and Apple Cash and. Cash App-ing out money and Quad Pay, Panda Express, love it, but come on. Church's Chicken, Panda Express, Quad. Pay, McDonald's. I mean, just to think. of more Quad Pay down here. Just think. of what you are financing constantly. You're just endlessly financing just any. and every purchase. D Local Denny's food, and. that was like a fraud thing.

Okay. There's like a few in there for. like just random amounts, and I got that. cleared up, but Okay. And. we also have like. Flixfy and Raising Cane's and Apple Cash. and. Quad Pay more, La Chula. It's just it's. crazy, this financing thing you're. doing. Now, Course Careers. So Course Careers is a. 3-month, 2-week to 3-month, depending on.

how how how fast you do it, it's a. technology sales course, so kind of. teaches you Oh, so you did their. technology sales course? Yeah. Okay. And that's how I ended up breaking into. the industry with this job. So I took. that course and And you recommend it? Yeah. Yeah, 100%. I think it's a it's a. really good course. It's very. informative, and it really kind of take. you step by step on like what you need. to do in order to like really break into. it, so. And the sponsor of this video is Course. Careers, so let's jump into that. conversation real quick. I want to take.

a brief moment to thank today's sponsor, Course Careers. If you want to start a. high-paying career in the technologies. industry, but you don't have the. experience or the degree, Course Careers. is here to help. They're replacing. college as the modern way people are. starting careers, and it's so simple. All you need to do is go through an. affordable online course where you learn. everything required to actually do the. job. Then they help you land a position. by partnering with companies who drop. their degree and experience requirements. to hire Course Careers graduate into.

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previous experience. And make sure to. use the code hammer50 to get $50 off on. the full course, and all of this is. linked in the description below. Thank. you again to Course Careers for. sponsoring this episode. So, back from the fun of Course Career, which I'm glad you did it, and now. you're getting a technology sales. position, that's awesome. What I don't. like is we're just. doing these multi-payment financing. things, which is most basic things, and. we still barely have money in here, and. we're putting money to credit cards that. are not paid off, and this is.

What are What are we What are we doing, man? I don't know. This is just Why are. you spending all the Why are you going. out to eat so much if you have. self-diagnosed I'm bad with money? Um. So, so uh actually, a lot of those cash. payments and Apple payments were for a a. habit that I quit cold turkey. What? Um that fed me into What was the habit? reasons, I don't really want to say, but. it it fed me to like really want to eat. a lot, if that makes sense. Okay. Mary. Jane. Oh, okay.

Yeah, but. Well, that shouldn't impact any jobs. unless they're like Yeah, I mean, they're not strict about it, but you. know, I mean, you never know, so. It's 2023. I mean, I don't do it cuz I. personally don't like it, but like. who gives a crap? And you know, and. that's that's why I quit cold turkey. because I saw it was kind of feeding. into a lot of I'm glad you did because. there are depending, especially the way. you do it, long implications as well. Yeah. A lot of recent studies have been. showing that, so we don't want any. long-term health issues. And then here's.

the money that you mostly transferred. through Mhm. because. started with 19 cents. Mhm. And 5,439. came in, 5,109 came out. That was mostly. just putting into that other checking. account that we just took a look at. Mhm. So. you have keep keep the change is coming. in here, which I wouldn't do that in. your situation. It doesn't make sense. It just rounds up and puts money in, right? So, uh we need to we need you to. budget. Yeah. Now, the. things like that, and then yeah, you're.

just transferring all the transfers to. the other checking account were in here, so. And that's and that's why I say like if. you. This is where pay came into. Yeah. Yeah, I'm sorry. I I if you um. if you need to see like my most recent. spending, I can pull that out cuz I feel. like a lot of that shit's showing like. the transfers. Oh, okay. Yeah. Okay. Well, maybe we can, but usually if. we just take from any month, it'll still. give us a good average snapshot. Okay. So. but we do have debts. I want to know.

before we go into these pretty bad. debts, do you have savings anywhere? Do. you have money anywhere? Do you have. retirement anywhere? What is that. looking like? Uh no. So for 7 years ish, you were at this. company. You weren't contributing to a. 401k or anything? Um I was jumping I was. doing the same job, just jumping around. between companies. I had a 401k with the. job, took it out, spent the money. You. withdrew from your 401K? Probably wasn't. much, but even still. Yeah. Why? Um just at the time that I think this is.

probably 2020. I was just I wasn't even. really struggling cuz this I had a job. Oh. And I just. keeping up with the Joneses again, so. What are you trying to keep up What are. you What are What are you trying to keep. up? What are you spending on that you're. trying to keep up? Uh couldn't tell you. right now. I couldn't like look back and. I don't have nothing to show for it. You. know, I. um I. thrust myself into social media. I got. pretty popular. And uh What does that. mean? How popular and where and what? Uh. like between TikTok and Instagram. I.

have. 100,000 120-something thousand on. TikTok, 11,000 on Instagram. Okay. It's. linked in the description or in the. Yeah, description. So, yeah, just you. know, wanting to be that influencer, you. know, that guy for lack lack of a better. word. over 100,000 followers on TikTok. I don't spend money on things to keep. up. Yeah. And look pretty. Yeah. I wear the same like 10 shirts. Yeah. I. promise you can do it without spending a. lot of money. I believe you for sure. No, then again, I don't know I don't.

know what your content was. Maybe it. they could be more geared to that. But. either way, if we're doing that and. we're investing kind of money into that. essentially, we need to make sure it's. giving you any kind of return. Has it. returned in any way? TikTok doesn't pay. anything. I've I've gotten a couple. brand deals. I think altogether I've. netted about 4 grand. You think that. covers all the money you've spent? No. No. I don't even have 4 grand. anymore, obviously. So. No. Yeah. What's. in your checking account at this exact. second? Um. 900 bucks. 900?

Yeah. Oh, so it went up. Still below. 1,000, but. went up. We have a Discover credit card. Mhm. $1,815. balance at the time of this statement. And oh, well, yeah, it was just very extremely recent. so. 41 you okay, so you paid 30 73 dollars, which is more than the minimum payment. 57 dollars. Well, actually maybe it was.

73. I it depends. I don't know. It. depends I guess what the balance was, but you were accruing right now 41. dollars 57 cents in interest. Essentially, you only do the minimum. monthly payment, which you're pretty. much doing this a thousand eight hundred. fifteen you'll be paying a total of four. thousand three hundred seventy-eight. dollars in eleven years, but if you paid. off in three years by doing 73 dollars, which is look like where you following. that recommendation? That's the money. you put towards it. You'll still be. paying two thousand six hundred thirty. dollars and still instead of a thousand.

seven hundred eighty-three dollars. Why why why'd you go to that instead of. like all right, let's go crazy? Um so at. first I was actually doing really good. with the credit card. It was a Discover. IT card. So I put my I want to say my Netflix. bill on it, cut the card up, threw it. away, and then had it on auto payment. for about. eight months to a year. Auto payment of. like minimum monthly payment or paying. it all off? Paying it all off every month. And. I got a limit increase, felt really.

good. Yeah. Kind of got the card. Just you just spent more? And just made. me spend more. Yeah. Yeah. 27.24%. interest. So thing is. not great and it's not an insane balance. as far as credit card balances go. I. mean it's bad of course and you're. losing money with it, but. And you know. no reason why when you were making. 60-70,000 dollars a year, this was not. paid off. It makes no sense. Why why'd you not prioritize this at.

all? Um card card debt and Yeah, we'll. get to that. That's. Okay. Honestly, just knowing myself, if I had. a bigger limit, it'd probably be a lot. worse. So, it's the fact that I was. restricted at only $1,800 is is why I. didn't really I'm glad you're. restricted. Yeah. Cuz we'd be having a very different, painful conversation right now. Mhm. And we have another Capital One. Mhm.

Oh, sorry. That was your Discover. Yeah, that was Discover. $2,000 essentially. Mhm. Rounded it down. Mhm. 62 bucks is what you paid. New minimum. monthly payment $69, so Mhm. Interest charge, 50 bucks, rounded. Mhm. You're just losing 50 So, you're losing. basically a hundred bucks between these. two cards on a monthly basis. You're. losing, so. How's that make you feel? $1,200 a year. gone, stripped from you because you have. balances. Yeah, it it it it doesn't feel.

good, for sure. And that's kind of the. same situation with that. I My credit. finally went up because of the. cuz I I guess quote unquote good job I. was doing with the Discover card. I got. approved for that one. I felt like I was good with credit. cards. Obviously wasn't the case, and. that's the case with that, so. Minimum monthly payment, which is all. you're doing, 13 years it'll take and. $5,738. on that 2,000 Mhm. is what you'll be. paying total.

Get up it to 84 bucks a month, which. isn't that much of an increase, but. it'll pay it off in 3 years, which is. still disgusting. Paying a total of an. additional thousand dollars on your. balance right now. Mhm. So, this is bad. We need to get this. taken care of. Good news, you're not. making purchases on these cards. That is. the only positive takeaway. Okay, this is the car, isn't it? Is this the car through Capital One? Yeah. Yeah, it it is through Capital. One. Oh, okay. Yeah, here it is. And the big the big one. The big one.

$29,000. $89. and 9 cents. With Oh my gosh. This minimum monthly payment is insane. Insane. $774.7. in late fees. $19 of late fees. So, we're not So, oh no. Oh. Wait, what's the normal Oh. Current.

Oh. Current total due right now, $1,567.44. because current payment due, past due, plus late fee. Dude. And you only paid 300 What is this car? Tesla Model 3. Why did you get a Tesla Model 3 making. $60,000 a year? So, I I got the car when.

I was making doing my traveling job and. making about the 10K or whatever and 10K. what per? Month. Okay. Or. yeah, about 2,500 per week net. So, that's that's when I got the car. I. put $13,000 on down on it. And yeah, it's it's really and honestly, I'd sell the car today, but it's I'm so. underwater on it. I can't I can't really. do that. So, Cuz you owe 3 Wait, so if. you sold a Model 3 right now, you.

wouldn't get more than $30,000? No, it's 2018. It's about 100,000 miles. on it. I bought it at 80,000 miles. 100,000 miles. Yeah, you've been. driving. Yeah. And you know, I I. initially bought the car to you know, travel in cuz I I. I convinced myself. um. to buy the car cuz I was like, you know, I don't have to fly. I can just drive. everywhere. I'll be doing this job for. however long. And then, you know, a year. later Killing yourself. Yeah.

Killing yourself with this is What could. you sell it for today? Have you checked? Um, I think I can sell it like I've gone. to CarMax. They offered me about 22 23. and you know what? Yeah, but that's. CarMax. What if you private sell? People. are especially around here they'll buy a. Tesla. Yeah, I I haven't looked into it. super recently but um it's something now. that I have like a remote job I don't. necessarily need a car. Um, it's it's Even if you did you did. not need a this car. Yeah. You could. have gotten it easily a $15,000 $20,000.

car. What was the purchase price of this. stupid thing? Um, 33 after a $13,000. down payment. Well, they're a lot cheaper than they. are today aren't they? Yeah. Why? What's different about them? I don't even like the car anymore to be. honest. Why? It's just not. it's it's I had had way higher. expectations for it than you know. And um. you know it's it's funny before I. actually came back to Austin while still.

in Michigan I got a offer for it for. about two grand more than I would have. paid for it. Didn't go through. When was that? Uh. November. That just happened so. W. So this wake up call only literally just. happened. Yeah. Yeah. Yeah. Now let's check out the value of this. car. Do you have your VIN by chance? Uh I can pull it up on my. app. That'd be cool. Sure.

100,000? Yeah. Okay, I can tell you the exact. How many. miles can a Tesla go to? They're supposed to be million-mile cars. {quote} {unquote} but I mean they don't. have all the other crap that It's. 105,492. Interesting. Yeah. And I bought it at 80 80 something. thousand miles. Oh, you bought it used? Yeah. Yeah. Oh, okay. during like when car. prices were just absolutely jacked to. the max, so. Standard equipment?

Interior? Yeah, autopilot and. everything else. What color? Doesn't. matter, but And that the metallic gray. or something. Two more keys? Yeah, two keys. Any damage? No. Not nothing? No. I mean, uh wear and. tear, but as far as like, you know, road. bumps and scrapes or. rocks and stuff, but nothing like. on the side? No. Yeah, you're underwater. Yeah. Okay. You probably couldn't sell this.

for very much. Mhm. But this minimum monthly payment's going. to kill you, or you might have to do a. situation where you get out of it. anyway. Mhm. When is this What's the. term? How much longer? Well, $30,000. left, so it's going to take forever. What was the term you got? 72. When did you start it? Uh March 20 last year, March last year. Okay, so Yeah, we're going to have to. get out of this. We pretty much have no. other choice. Yeah.

All right, well, I did see you could get. private sale for about CarMax isn't. going to give you what. you saw there anymore, but probably. about like $21,000 is what you're going. to get for it now. Mhm. Which sucks, because. Do you have credit card around your. phone? Well, actually, we have a credit. score here, so it doesn't matter. 591, so it's going to be. It's going to be Okay. Okay.

Do do do do do do So, this is the complication. This makes no. sense for your situation. No sense for. your situation, especially since. typically with sales, it's it's going to. be slow for a little bit until you fully. learn. It might take you a few months. to, you know, really get up there. And if it's even right for you, again, you're very soft-spoken. I don't know, maybe you are a salesperson, I don't. know. I haven't picked up the vibe, no. offense. It's not a bad thing not to be. a salesperson, but I honestly have not. picked up the vibe that you're a. salesperson. Yeah. Yeah.

And you know, it's car is going to be up. like of your post-tax income on just. your base is going to be like a fourth, almost a third of your take home. Mhm. Can't afford that. And we already have. all these debts. No, it's going to be a. third. Yeah. So, we got to get out of this. Okay. So, usually the best situation to get. out of a car that you're completely. underwater on, it's going to take years. and years to pay off and you cannot. afford the minimum monthly payment cuz. you basically cannot. Mhm. It's being. demonstrated as such. Mhm.

Is you sell it, you get the $21,000, you. borrow $8,000. Honestly, if I can even do that with my. uh. Look, well, the. my current credit situation. There's a couple things. The credit score sucks, so I don't even. Yeah, I don't know if you could either. I mean, you could, it'll just be a. ridiculous interest rate. What's the. interest rate on this Tesla? Um I want to say in the 20s. In the 20s? Did Okay. Did you know anything about.

money a year ago? No. Okay. No. Um It's fine. I will not. freak out. I kind of grew up pretty pretty. impoverished as far as like finances and. everything, so. when I got this opportunity to like. finally start making all this money, I. still haven't really learned anything. about money, so I just kind of continued. making those same mistakes just with a. higher income. And you know, leading me to a higher. amount of. this situation. Yeah. And. yeah. So.

Where interest rates are and where your. credit score is, I don't. Yeah. Trust me. But even if you borrowed. $8,000 at that same interest rate you're. at now, which I think you could at least. get that. I would rather you pay off $8,000 at. that interest rate than $30,000. for the next four. five years whatever it is whatever comes. out to think four. So that might be the option.

But problem number two. Pretty much anywhere outside of San. Francisco, New York City. Chicago, you kind of have to have a car to. survive unless you live in the downtown. area. How much do you need a car? This is a. work from home job. What what would you. do if you did not have a car for a bit? Um. Honestly just stay home. There's a. Target down the street. Grab a bike. Grab a backpack and just start doing it. that way. Good. Good. That's all the fact that you.

have even a slight amount of confidence. that you don't are not forced to be car. dependent then I am extremely confident. that you could live without a car. So. plan is then. private sell this bad boy 21,000 bucks. Maybe 20 20 or 21,000. I don't know. If. you can get more that's fantastic. Maybe. take it to CarMax again. It's probably. going to be lower now but it might be. worth trying cuz yeah from November. you're right. We've we've been. continuing to tumble in the car market. So. Okay. You do that. And you know I've.

I've actually been thinking about like. uh or kind of moving on a small plan to. start like a mobile detailing business. and just using that to pay off. or at least pay the the the monthly. No. I'm okay with. budgeting a new things based on more. income that's coming in but essentially. okay. I mean that's yes, sure. Get it so. you can pay off the debt faster but. either way the over when we're over 20%.

interest on a $30,000 car for five years. we can't justify that at all. I mean that's a stupid decision even if. you're a multi-millionaire. It's a. stupid decision with money. It makes no. sense. So, we either have to pay it off. now or get rid of it, and you cannot pay. it off now. Mhm. So, even if you could make the minimum. monthly payments a little more. comfortable, even if they're closer to. the 8% of your post-tax, it would still. be stupid money. Mhm. So, I think.

you try get qualified for an $8,000. loan. Interest rate's going to suck. Know that. you can do that. Sell it for the. $21,000. Pay off this loan immediately. And then, that clears up the next First of all, that clears up so much money on a. monthly basis. Just with that minimum. monthly payment, your other two things. are gone in just like 5 months. Mhm. But, you put everything towards it. You. don't go to You do not go to grocery or. sorry, you do go to grocery stores. You.

don't spend much money there. But, you. don't go to Wendy's and all that crap. you're doing. No more No more Pluckers, and I love Pluckers. No more Panda, and. I love Panda. But, you're not doing that. anymore because you cannot afford it. anymore. And. with the. um. like $2,750 that'll come in post-taxes. on a monthly basis now, maybe $3,000, you know? What's your rent? Uh total is $2,000. Uh my roommate's paying 600. I'm paying.

13, 14, the rest. Dude. Dude. Why are you getting the most expensive. things? When did you sign this lease? When is it. done? Uh the lease was signed in. September. Bad. I don't know what else to say other than. that. Just. Okay, so. Say it again. What's your portion? Uh. 1350. That's it.

Is that plus utilities? Uh no. So, my roommate pays the. utilities. I pay the internet. Internet's about $100. 1450. All right. Cuz I'm not even going to talk about cuz. you're not going to be able to you're. not probably going to bring in much. commission for the next few months, to. be completely honest. Mhm. And you're probably bringing in. So you're probably bringing in like. maybe like 3,500. post taxes on a monthly basis. What's. your base pay again?

It's 45 a year. I. I I did something very wrong. Never. mind. I lied. You're probably bringing in. like $3,000 a month. Post taxes. Okay. Okay, maybe I didn't do something Okay, whatever. Either way. So 50% of your income goes to rent. Then almost a third of your income goes. to the car. That makes no sense. So car has to be. gone. It's not even in the picture. anymore. It has to be gone. You have to. borrow the thing. Yeah. You It's It's.

really not a part of this conversation. anymore. And unfortunately, you can't do. anything right now, but. cuz I wouldn't want to risk breaking a. lease, ruining credit. And you have a roommate that you would. screw over and everything. Mhm. If you can, I would get out of there. But either way, in a more real-world. scenario, you are downgrading your living. situation. quite drastically next year. Let's see where the commission's at at. that point, but still, if it's anywhere. like it is now, even at $60,000 a year.

after commission, 70, no. Like you'd. have to be getting closer to like 80, 90, 100 for this to be comfortable. Mhm. And you know, that I I think that's what. happened. You know, I I was making. making that 120. um. Cuz you got burnt out, so you left? Why didn't you find something that was. more comparable before you left though, instead of just. Uh jumping in the ocean? like earlier we said I I kind of dive in. head first. I got really uh depressed. I.

missed home, and um a lot of the things. that I was doing just didn't feel like. worth. Where's home? Here. And I was in Michigan for about 9 months. and then before that I was in Arizona. for 6. Oh, sorry. I thought you said you. traveled to Michigan. So, okay. Okay. Okay. Okay. Okay. So, that was that's. where I was doing the contract. I'm totally good with the job change, but I wish you could have found. something more comparable using the. skills you had. Find something in the similar industry. that's comparable potentially and you. know. I did like a lot of like thinking about. that as well and you know, the kind of. the conclusion that I gave myself was um.

that was kind of the cap of my income. If I ever wanted to make any more, um it it wasn't possible. with that cuz that 120 was on the far. end of for myself. I would rather you make closer to 90. than this. Yeah. Yeah. The commission might be great, but we'll. just have to see. I don't know what the. price of these products are that you're. making 1% on. Mhm. Either way, car's gone and then what is. this is insane.

You're going to do like $300. cuz you'll have gas now. You'll have a. gas, but I'll just say after groceries. and everything, you need a budget. You. probably haven't budgeted a single. second in your life, have you? Okay, you're downloading. I've tried. any budgeting app. Okay. Mint, you need a budget, I don't. care. Doesn't matter. They're all good. apps. You budget. no more than $300 on groceries. So, this. 1450 after gas and or after rent and. your portion of the utilities Mhm. and. your portion of the rent. Everything else that you spend money on.

from groceries to anything like that, you'll divvy up the percentages, but it. cannot be more than $550. So, after rent and after all those. necessities, $2,000. Now, you'll have these card. minimum monthly payments on that. Bring. it like an extra 100, extra 120. You'll. probably have about $850 left. $850 you put towards on the first month. after you get this car towards the. Discover. And you do it again the next. month and it's paid off. It's done. Then. you chop it up and you never use it. again cuz you have proven you are not a.

credit card person and that is okay. Some people are, that's fantastic. I am, you are not. Maybe at some point you. will be again, but you've proven that. you cannot use it and it's more of a. detriment to you than it is a benefit. Agreed? Agreed. Okay, beautiful. So you. chop it up, you never use it again. Good. Then. you'll have closer to like $900 at that. point on a monthly basis extra. It may. be commission starting to come in at. this point, that'd be great. Every. commission you throw everything towards. this. In 2 and 1/2 months, Capital One's gone. So I don't know how long it's going to. take to get this car sold, get this.

loan. You should get out on that. immediately. Take all the nicest. pictures you can. Upload it Craigslist, Facebook. Marketplace, everywhere. Try to get the. best offer you can. And I think and Tesla even has like. don't they have like used inventories? I. don't know maybe not through private. sale though, maybe it's through. dealerships, I don't know. All the. options you can, just look. Research it. all, do it immediately and then start um. you know, look for a personal loan or. something like that that you can do for. this $8,000, $9,000, whatever it has to. be. Make sure you qualify and enable to.

actually get it though before you sell. this car. We don't want you to get into. a terrible situation. For sure. What you could do. technically you could sell the car, throw it all towards the the Capital One. debt and then pay off the rest as quick. as you can. But I think it would make more sense to. get it into a personal loan and then. attack the personal loan. So now you'll. have an $8,000 loan. You'll have an extra $1,000 a month now. to go towards that. 8 months. You paid it off just a little.

over with any kind of interest. So maybe. like 8 to 9 months. Throw all everything. extra towards it. This is going to be like a year process, but think about what it looks like on. the other side of a year. You don't owe money on a car. I I I daydream about it. If you daydream. about it then do it. But what sucks is. you just you don't have fun that costs. money. You don't go out to restaurants. You don't go do crazy things. Other. people can pay for things, that's. fantastic, and you can do a lot of free. fun as well. You're just getting.

groceries, and you're just I would pick. up side jobs if I can. Anything you can, any extra remote stuff, I don't care, because obviously you won't have a car. to drive around. But, pretty much after that. and for the next couple months, also. they're incredible, by the way, you no. longer have insane. minimum monthly payments. Hopefully. commission is flowing at this point, so. about a year from now. For the next. couple months, save up a few thousand. bucks to set aside for an emergency. fund, like $3,000 to just to start. And. then you probably save up $10,000 as.

quick as you can, and get a $10,000 car. in cash. You know, probably private. sale. Take it to a trusted mechanic or. build that relationship. Make sure they. give the thumbs up that yeah, it'd be. worth this. Yes, it's in good condition, and it'll last you for years to come. And you do that. And then you build your. emergency fund to probably like $15,000. after that. Now we're talking 1 and 1/2. years, 2 years of just going crazy. But, at that point then you're actually. in a decent financial position. You're. You're behind on investing, but that's.

okay. At least at this point, you have. the security of not You have a car, you. don't have debt on it. You're able to. pay your rent and everything, which is. still ridiculous. Hopefully at that. point, again, you're making more money. or you downgrade rent. Cuz we're only talking 2 years from now. But, you also have an emergency fund, which. is something you don't have now, which. is going to be critical to the future. financial stability of your life. Thoughts on all that? Um you know, I I I feel like I've. thought about all of like doing all this.

for like quite some time, but it was. just like the actual like having to do. it that's really held me back, because. it's again, you know, trying to. uh be this person that obviously that. I'm not, you know, as far as like. financial and everything. Um What's. going to be different about this time? Um just I can't live like this anymore. You know, I I I wake I before I make any. purchase I'm checking my bank account. You know, every time. I'm I'm what a small emergency away from.

You are very small. And you know, I just I I actually want. to like live comfortably throughout the. rest of my life. I don't want to be like. you know my parents were you know. taking out payday loans at you know 40. and everything like that. I don't want you to have that life and. you don't have to have that life. All that is required is temporary. sacrifice. Two years doesn't sound. temporary or it will feel like a. lifetime in the middle of it. But when it comes to the hopeful 80 90.

plus years you live. a couple years of sacrifice is nothing. and that's what people often forget. You know, I've always had like this oh. it's you know, 300 bucks. I'm 20 now. It. doesn't matter. Who cares? You know. And. that's where a budget's going to come. in. You just have to not just track where. you're spending money but you have to. put caps on different categories and say. where does your money go every single. cent. You need to know where it's going. and you're not overspending on. categories. It'll take a month or two to.

you know, fully flush it out and know. what you're actually spending and where. you should put caps on. And yeah, I've. I've I've really gotten better at it. as far as like you know, you know, wake. up like the real wake up call came. recently but before that you know, I was. spending money on like clothes all the. time and buying shoes buying like $600. shoes and things like that just. completely cut. You know, I'm cutting. out habits that cost money like you. know, the the smoking and everything. like that. I'm cooking more. Can't go.

out to eat. You can't go out to eat. Everything is cooked. Cannot go out to. eat. It's a bad use of money versus. shopping cheaply which can be done. Some. people think it can't be but. Whole Foods is not a necessity, I. promise. Okay. Well, I really. hope you do for your future. What are. you behind right now for the What is. total due on this Tesla loan at this. moment? Um so, I paid half. Um I have the other. half. Um I. I'm always in like this crisis mindset.

of what if something happens and I need. the other half or, you know, maybe I can. just put it off for 2 weeks and then pay. it. Well, you're not completely wrong with. that mindset. But still, okay. And but you only have. $900. How much is due? Uh 3 387. To be current? Yeah. Pay 387. on there. Okay. If a major crisis. happens, I don't think the $200 is or. the couple hundred bucks is going to. make a difference a big difference. Yeah. Will you sell it? Absolutely. Are you. going to look at that tonight?

Absolutely. Good. Good lad. Okay. Well, that's pretty much it. Any. final thoughts? Uh thank you for having. this conversation with me. I think. honestly, um. one of the real reasons why I really. wanted to come on the show is like just. really have that like kind of really put. myself like hold myself accountable in. front of like your audience, right? So, it's either it's either do or die at. this point. We'll follow up in 6 months and see what. happens, but get your together, sir.

Absolutely. Will do. Thank you, man. For Matthew, obviously. not a good financial situation, but. really sounds like he's ready to get the. fire lit under his butt and get this. taken care of. And I hope he does. We'll. follow up with him in about 6 months and. see where he is in this process, but. those credit cards should be gone. uh ish and uh the car should be gone. Probably the only thing left is that. personal loan. And at that point, he. should just be. steaming forward and taking care of. that. But for now, Hammer's financial.

score is definitely not the worst we've. had, um but it's not even close to the best. Two out of 10. Make sure to check out all the fun. things in the description like his links. and my socials, Instagram and Twitter, and don't forget to subscribe. Thanks.