She's Going To Die In Poverty | Financial Audit

Uh, my name is Danny. I'm 26 and I'm. based in Tulsa, Oklahoma and this is. Financial Audit. What 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 his. long fur. Jeez. Oh my goodness. Okay, very cool. What. are you bringing in? Um, not very much right now. I moved. from Washington to Tulsa. Washington. state DC? Yeah, Washington state.

Okay. Um, and I was making around almost. 3,000 a month. Um, I was in a high. higher volume salon. Now I'm doing my. own self-employment between two. different salons. Um, so I'm bringing in. post-tax, like maybe 1,700. right now. A month? Yeah. Woo, that's hard. Okay, jeez. Are you you're W-2'd? So. I'm 1099. So that's after putting a little bit.

aside. Yeah. Which with this 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? Um, we split it, so my. rent is 600. you split it with? With my partner, Jayden. Oh, okay, cool. Yeah. 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. it safe? Are you safe? Yeah. There? Okay. Um, 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 your is at, and then see what. we can do. So, like what brought you. here? What does 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 legwork there, um. it's just biting me in the ass now. Mm. So, the yeah. I actually had someone on just a couple. weeks ago. I don't know if you saw the. 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. been receiving help and everything? Um. not very long. I was diagnosed in. February. Of this year? year, yeah. It's only a few months ago. on meds, went to psychiatrist, went to. therapy. Um How has it been since then? It's been. amazing. Oh, good. Well, I'm glad. much better. I. sorry that it's taken so long. Yeah, it. sucks.

Yeah. As someone who deals with mental. health struggles myself, I definitely. get it. Mine's more on the anxiety side. and like a panic disorder is, you know, it can be crippling and I can't even. imagine. Bipolar has to be one of like. the hardest things that exist, so. Yeah, it can be hard. Good for you for getting help and. getting taken care of and now looking at. your entire financial situation and. trying to do better. Yes. Okay, good. Definitely. I have goals in mind that I. would like to get to, 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. So, zero. out of 10 is what you'd 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.

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episode. So, in the overall financial picture of your. life, you 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. I owe about. 30. um. Sorry. Just under 4,000. Oh, 4,000? Sorry, yeah. Oh, so that 30 scared me. That 30 scared. me. So, it's 4,000. no, no, no. It was a stupid buy. 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. No, really? Yeah. So, now that if life changed. drastically, so I couldn't afford it. anymore. So, about 4,000 on that. I have my current vehicle. you trying to Okay, go ahead. What's. your current vehicle? My current vehicle. is a 2012. VW Jetta. And I only owe like 30 I just made. another payment, so 3,200. Okay, you get. me with the 30s. It keeps scaring me.

Okay, 3,200. What's the minimum monthly. payments on that? 200. Oh, wow. Must have been a. Okay. What was the purchase price? When. did you get it? I I it last August. Um the purchase price was. I think a little over 7K. What's the interest rate on that? I. actually don't know. I'm trying to get a. hold of the papers. Um Do you have. Credit Karma downloaded on your phone? I. do. But the thing is is the car was. purchased through a friend. This is a.

personal loan through a friend? through a friend, yes. Well, did they borrow the money or did. they lend you the money from their own. like pile of money? They purchased the. vehicle and I pay them. Okay, but the. the loan is under their name? Yes. Okay. I'm curious. Yes, so I've been trying to. get a hold of that paperwork. Um but. they haven't gotten back to me about the. um APR. And what are you doing about the. repo situation? I'm making payments on. it. Okay, what's that payment? Um it's a hundred a month.

What was the interest? Um. You're going to be mad at me. It's it. was 21%. Oh, that's death. Yeah. Not mad. at you, but that that 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 like a existing. loan. it was a very stupid purchase. I. shouldn't have gotten a vehicle.

Um. that was back in. Uh I want to say. 2018. And that vehicle was purchased price of. 10,000. Oh. Okay. When was it repoed? Um it was a repoed. last year. Have you been in contact with them? Um I wasn't for a long time.

um until it went into collections. So. that's in collections. Um. Yeah. It so I contacted. wait wait wait. It's in col- Wait, okay. Who are you paying? Are you paying them. or the collections agency? the collections agency. That has interest on it still? Not that I Not that I know of. and what are you paying them? I'm paying. them the $100 a month. And $100 is It's only $4,000, but yeah, you don't make anything. You get that $100 is going to take.

forever before you can even. Where Where is this car? I don't know. Like. that's going to take 40 months. Is that. even worth it? Because. I've never heard of car repo. Um. I've never had anyone in my life repo. 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 cuz you know, it's. typically like you paid it off in full, then you might be able to get it back, but it's in the collections now. No, 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 damage. something that doesn't exist? Yeah, cuz there was damage to the. vehicle at the time. Yeah. Um 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. this conversation's going.

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 the 750,000 subscribers. So, she. She's pulling up a list. Well, she pulls. up a list, you subscribe. Um okay. So, I have. As close as you can, by the way. Dental credit um of $875.

Owed to who? Um a collections agency. Everything. everything's in collections. Oh, everything's in collections? Except for my Jetta, yeah. How many miles is on that Jetta? Um it. just hit almost 156,000. So you might How's the condition of this. car? It's decent. Okay. Okay. Okay. Okay, but probably in a few years you'll.

need a new one, right? Absolutely, yeah. Okay. Um okay. Okay, dental. What What. do we have? Um we have a Banfield debt. What was that? Oh, Ban- the like the pet. hospital? Yeah, the pet hospital of. $682. Okay. Um and I'm actually making payments to. them right now, $50 a month. Okay. Um and then I have two things of. medical debt. Uh one at.

1,698. And then one at 1,114. Okay. Um and then the last one The last one? The last one is a credit card um that is. like 6 years old now um at 1,296. Have you been making payments? I haven't. made payments on that one. When's the. last time that's had a payment? Uh. I couldn't even tell you. So probably. that entire 6 years? Yeah. How What What.

was the balance on that? Uh 1,000. 296. This might be the first time on this. show where we talk about just letting it. fall off your credit. Cuz you're almost there. Right, yeah. It's 7 years, right? Besides the 7 years, how old is this. other Or besides the 6 years of that, how old What's the oldest one besides. that? And how long is is. Um the oldest one is probably the. Banfields. How old is that?

Um, probably about the same, about 6. years. You've been paying on that though. I. just started payments. Ah, 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? Um, that would be the. Mitsubishi. And that is. how long? that was 2016. 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. But it will fall off your credit report. in 7 years. Well, close to that. Statute. 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 at least fall off within the.

7 years. Which will help your credit which is. despite what many people tell manual. underwriting is such a pain in the 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 these collections in. the first place? Cuz. what.

I'm just afraid. If you've done 26 years. old? Yes. Dude, this is insane by 26 to have that. many accounts in collections. Yes. No. matter what we do, how are we preventing. you from going into 1 2 3 4 5 6 7. accounts of collections again in the. future? I would say that I've already. started learning my lesson about it, cuz. it's biting me in the. um already, and I've been making.

payments perfect perfectly with my Jetta. um in the insurance payments and. everything. Cool. Um. and I'm medicated now, so that has been. a huge help in keeping me from going. into episodes to where I'm not. say all these were episodic? Yes. Not. Not that that's an excuse. Banfield like Well, sorry, that that's. incorrect. Um the dental was because I. needed a wisdom tooth removed. Okay, which is very fair, but why'd you then.

not pay it? So. basically because I just ignored it, and. I'm just going to 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. life was pretty insane at the time, um. and I had a bad habit includ- included. in into my episodes of ignoring bills. Okay. Um and just ignoring normal adult.

things. So. I'm glad life's become more stable and. you'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, you know, medicated and. receiving help. What if life goes wild again? What's. preventing us. Oh, I'm not going to pay rent this. month. Okay, or the next month, or the. next month. Um I mean, honestly, I have. my partner to be a good rock for me. Married? No. Um Well, that's not. guaranteed. It's not even guaranteed.

with marriage, but at least there's. legal backing. Um. I mean, honestly, I don't know what to. say then. Um because I can't really. foresee the future and what kind of. episodes I'll go into. Um. I'm not saying that will happen. I'm not. saying I'm obviously not saying I hope. that happen. I hope 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. Cuz 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. Um. And. I have learned that that is not okay to. not make payments. Um. and that's all I really can say, cuz I. can't.

guarantee that. Oh, I just the the stupid. the stupid repo. Yeah. I want to I want to get this clear. Make. sure I didn't mishear this. The one. that's repo, that was under your name, right? Not your friend's name. under my name. Yeah. All right. Well, let's continue getting. the full picture of your account. We. have four different accounts to look at. here. Yes. 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 cuz credit builders cost money, I'm good with them once you're usually. out of debt, cuz we're trying to I. 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 going to factor that. 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 going. to pay some of them, then 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. at the gas station? Well, Mind Spa is. Mind Spa is not therapy, is it? Mind Spa.

is therapy. Good, that's fantastic. It's $8, so I. was skeptical that it was therapy. So, my copay is only $4, um and I was just paying $2 at a time. I'm down for that. That's fantastic. for. therapy and my meds, I spend a total of. $12 a month. Incredible. We're obviously going to put that in the. future budget cuz we are not negotiating. on that. 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? Is that. everywhere? That is Dollar General.

Dude, okay. Dollar General, Dollar. General. What's penis systems? PNS. star. LC systems. Um can I see? 35 Oh, that is the $50 payment to um the. collections Okay. Got you. Yeah. Sonic Drive-In, do we really be going to. Sonic Drive-In 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, dollar store? E-Loft 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, 20. $27 here, $10 there. Yeah, 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 IS SPENT. BUT, on this next.

account, we started with $4.38 cents. To. be fair, I don't really use this account. anymore. I don't care, it still happened. It. still happened. Don'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. Um only $200 or so goes into you the US. Bank. As of like a a week ago or.

something cuz it's not like this wasn't. I mean this was still going through May. The statement was just. a little bit of money here and there. Okay, well, guess what? Overdraft cuz. negative $4.38 cents. And we ended, even. though $744 came in, we ended with a. negative $1.12 cents. Two overdrafts. with also Netflix payment which we're. canceling immediately, fun fact. Congratulations. Wrote some debit card. purchase from a store based out of Rose.

Rock in Michigan, and Bram's store, and. Popeyes, and Reesor's, and other one from Reesor's is. groceries. That's okay then. I've just. never heard of it. Sandoz in the Rose Rock, and Audible. Well, Audible's good, but we going to a. library while we're trying to pay off. that. Good. Google storage, and PF Excel. 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, Um you premium?

Maybe. Yeah, YouTube premium. A lot of We definitely don't need to be. going to the Sandos and whatever that. thing on a Rose Rock and then Popeyes. and Netflix. 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? That isn't that credit card builder. So, Yeah. That makes me nervous going forward just. ending. I know I'm not a credit card person. I. don't think I'll ever have another. credit card. Good. 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 has started negative.

Two of the checking accounts, there's. only two checking accounts and both. started negative. It all ended positive with $7. This is why I'm nervous. American AI Captain Scripts 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 with for food. But it. Okay. Okay. Is it You You ate a sandwich.

before? Because Because normally I. wouldn't care, but we're trying to get. out of collections and even more. importantly than that, the two checking. 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. Popeyes is and there's an Albert thing. and then Andildy. with payments to PayPal and Jaden House. Andy eyed that is.

a payment for my insurance payment to my. friend. Good. Yeah. I pay her $200 and then $80. that I've never heard of on yours ever. before in my life. But still again the. Popeye's and the Rap Angie and the Apple. Bell Apple Bell Arbor Arbor and Jaden. House and. Captain Scrim's office and American AI. and. The Jaden House one is usually for rent. or bills. So many things that just I've never. heard of before is just so weird. And.

then the dollar store. Then an Apple. Bell and other Jaden House hopefully. bills and then that Andy eyed thing. So again a lot of unnecessary payments. even though some of those okay they made. sense after 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. uh 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. I. Well, okay. I I try not to plug too much but I just. I I like I like them because they're. savings account but come on. You could. be getting like. 4.3% with Sofi's high yield savings. Okay. Like I mean let's. 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? Um let me look. There's $356.13. Do you feel fully dependent on your. partner? Yes, I do. Yeah, I bet. 1,700 bucks 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. is including utilities. It is, really? Yes, we pay. we pay 1,200 including utilities. Okay. That was wild. All the food, going out to eat that we. could calculate and like the unnecessary. spending, $411. Wow. $411. $60 in gas. Yeah. Yeah, I don't spend much in gas cuz I. work like 5 minutes away from my job.

Good. So, gas. 60. then utilities was. uh rent and utilities was 600, right? Yes. Is that including the internet? Yes. Good. Wow. Very good. Car payment is 200. 200, yeah. Car insurance is 20. It is. 89. It's also good. Yeah.

Um now, this $100 that you're paying. towards the repo card and the $50. towards Banfield, is that which 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.

if you don't pay the minimum monthly. payments? I don't know. Uh-huh. Well, because it's already in collections, I. mean, I might just stop They'll hound. you. If you're okay with being No, we're. stopping that for now. We're taking away. Yeah, we're stopping that for now. Okay. both of them? you and yeah. Okay. Okay, very good. Now, how do you guys do groceries? Um we. split groceries. I spend about 200 a.

month. Perfect, that's the number I was going. to give. And I'm going to give you a. for hair, skin, toothpaste, all that. good stuff, 75 bucks a month. Toilet paper, all that good stuff. fine. Any 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. Anything else? Um not that I can think of. Let me. double-check here. Nope, that's it. That I'm forced to pay. Okay, 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 bucks, 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. Okay. End July, you put that 439.

with your 356 in savings brings you to. 795. That's what you're doing in 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, 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 1,234. Perfect. So, month. number one, month number two, you're. putting all that extra money aside. Okay. And that's aside. It's perfect. You have. a fully funded emergency fund. Oh, no, no, not even close. I can't. believe I just said that. No, that's not. true. 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, paying your.

friend is killing you. I know. I'm trying to. believe your friend even allowed that. with your history, but. either way, say thank you every day to that friend. I do. She's I've known her since uh. sixth grade. and we're basically family. Again, I. don't think we're worrying about the. credit card that's in collections. I. think we're going to wait for that to. fall off and if they're not already. contacting you, I'd set your. limitations. We're just not worrying. about them. Same with the dental, they're not hounding. Who cares?

I mean, you know, there's I mean, there's the there's the moral thing. If. you if you want to pay for it, go for. it. I'm just thinking math and how do we. get you from A to B as quick as. possible. That's where my logic is right. now. There's the moral, yes, you. borrowed it. Maybe you should pay it, but I'm going to let you determine that. on your own. So, the collections that we want to deal. with is medical debt and the other. medical debt and then the repo car and. the Banfield. Oh, Banfield. What I'm going to do, okay, cool. Month number three, 439.

Save that up. Call up the collections of. the Banfield people. Like. I I saved up a little bit of money. I. have 400 $439. Let's just settle this. Come on. Be done with it. It's all I. have. I literally have nothing else. Okay. They'll say no. Call them back once. every week till they eventually say yes. Okay. And then pay it off. Uh just don't pay. them anything until that. Never give. them access to any of your account. information or login information,

anything like that. They might try to. scam you into that. No. Don't do that. So, I only have this. This is what I have. Let's just settle. it. Keep asking them. And then for the other one, for the. first for the second medical debt at. $1,150, the next month. save up maybe we're trying to save up to. like. uh 600 bucks there over a month and a. half. And we're saying, "Hey, this is all I. have. This is all I have. Let's just. finish this. Come on. Let's finish.

this." Do the process over and over and. over again till you get them. Settle it. Medical debt, too. We're doing the same. thing. We're probably saving up about. 1,000 bucks Okay. course of like two two and a half. months. Like, "It's all I have. 1,000. bucks.". Repeat the process till they're paid. off. I'm making it sound so much easier. than it is. You're going to have to. hound them Yeah. once a week. This is all I have. This is. all I have to my name. This is all I. have to my name. You want it or not. You. want it or not. They're taking a risk on. it when they bought it, but they bought. it on pennies on the dollar. So, they. they a lot of them they're just lucky if.

they get anything. So, if you really. say, "This is all I have." and just make. sure they know that over and over and. over again. Like once a week, then it's cool. If. they say no, they get upset, like, "Okay. Talk to you later.". Next week, "Hello. Talk to you later.". Next week, "Hello. Talk to you later.". Do it until they give in. With the car, the repo one, the 4,000. maybe over the course of. I mean, it'd be great if we could get. like 2,000 2,500. Maybe it'd be 3,000.

hours. Try with 2,000. Uh no, cuz then. we don't want to go up from there. because then they think they can just. keep getting you up. Maybe we save up. 2,500. Okay. Over the course of. about 6 months, say. It's all I have to. my name. You know, I'm not going to. prove myself, but repeat the process. And then try to settle it. Again, I just said that all within like 2. minutes. Making it sound so much easier. than it is, but that's the. macro process. And then just getting in. there and getting in there mentally and, you know, fight for yourself. Fight for.

yourself. You're very soft-spoken, very. nice. It's awesome. But no, these. deadheads, you got to go in there with. good energy. Oh, you borrowed that at 21%. Oh, crazy. Yeah, I don't know why I did that. No, it's in the past. It's in the past. We've all done things we don't like in. the past, but we're here now and we're. looking towards the future. And you're. learning from the past. No one's going. to punish you for what you did years and. years and years ago cuz that would be. stupid. I think.

in about a year and 3 months or so, you. save up enough to be able to negotiate. with the collections. Each collections. account, smallest largest. This is the. easier easiest way to go about it. Okay. We're not doing the minimum monthly. payments towards them anymore. Come. So, I think about a year to a year. and a quarter year. 12 to a year and 3 months, something. like that. Okay.

So, I think that's what it is until we. get out of the collections. Now, with. the car, cuz you owe your friend, I. don't like that situation. Even if the. interest rate was low because you owe. your friend, we're just going to pay it. off quick anyway. Yeah. So, at that. point, it'll probably be around like. 2,500 left. I don't know the term. I don't know the term length, I mean, but I believe it's 3 years. 3 years? Yeah. Maybe it'll be. How many years has it been?

Um almost a one. Almost one. 3 years. The original amount was how. much? Um about 7,000. We put down 2,500. Oh. Okay. Yeah. You got a $1,500 will be. left. And then. you pay that off in about 4 months. Just. give her all your extra money for 4. months until it's paid off. So now we're. talking a year and a half, little over a. year and a half. All the collections are. gone, the car is gone. And then we do. the exciting thing. You give the money.

back to yourself. What it cost for you to survive, we're. going to get you to. I don't I don't want any emergency fund. to be less than $10,000 because of. medical potential medical things and. and car things like. 6,7566. on paper would be a 6-month emergency. fund for you. Nah. Let's get to $10,000. as quick as we can. And how do we do that? You'll already have $1,261. in there. So essentially.

cuz you would need to save up an. additional $8,739. But yeah, you don't. have much money to put towards it. And. we are about to have that conversation. Yeah, cuz it'll take about 20 months. 20 months to have a fully funded. emergency fund. Then we start investing. That's unacceptable, so we don't do. that. How many hours a week do you work. grooming right now bringing in that. money in? Okay. So right now I'm working. um.

You don't know how many hours you work? I'm working about 30 hours at my main. salon. And then I get about. maybe 4 hours here and there from my. other salon. that I just started up. Are they going going you more hours? So, it's based on. um um. how many clients I have.

And basically. I get paid right now hourly because I'm. not making enough in commissions. Once I make enough in commissions, then. that's my income. But I am actually actively working to. find another job. Yeah. What kind of. job? Anything. Okay. I've been applying. to anything. Anything and everything? Anything and. everything. At some point it might be worth checking. out certification programs to see if you.

can get into like a mobile tech job. That'd be great. So, you can check out. Course Careers for that, but if that's. not something you're interested in, you could. at the very least, I want you working in. a coffee shop. so that your total hours of work a week. is 50, 60, 50 to 60. Like. your partner's lovely. I met him. He's. great. That's a partner, right? The. person I met. Yeah, lovely, fantastic. person. Cool. Congratulations. You're. not going to see him anymore because you. are going to be working your butt hole. off. Just going to go going crazy. You.

have to go crazy. This doesn't make any. sense. It is crazy. It's crazy how long. it's going to take to. get this emergency fund all the way up. It's unacceptable that that would take. an additional 20 months. You are working. every second of your life. 34 hours at. these two jobs, uh-uh. No, you are doubling your hours to maybe. over 60. Maybe we're doing 68. I don't. care. You're not home and you're only. packing for food or he'll deliver some. food to you. I don't care. You're not. spending money, but you need to work.

Whether you get a certificate and then. work in like tech sales, something like. that, just something you can do on the. side, do something like Course Careers, or you go work at a coffee shop, or you. deliver Uber Eats in your car. I don't. know. Do you want to put more miles and. maintenance on it? I don't think so, but. whatever you You do in service still. wants to hire even though the job market. has gone a little woo right now. Woo, service still wants to hire. They're. still trying to backfill for what it was. like even pre-pandemic. So, you need to. work your butt off. Tulsa is a good.

enough size city that you can go find a. restaurant. Yeah, absolutely. I've been. applying everywhere. Be a busboy. I. don't care. Yeah. You've been applying. to everything, anything and everything? Indeed, yeah. I've been applying. And what if those restaurants that's. worth going in and talking to the. manager? Yo, I want this job. Come on. Like. You can you you can sometimes get I've. had a couple examples of people on this. show who followed my advice and they. went and got a job. like the day of. It's crazy. It's crazy. And check out.

the other places. Jimmy John's over. there in my place. They're desperate to. hire. They'll give. referral bonuses of people who stay. around for a month. You know, so they want to hire. You just need to increase your income. This This income is. If you wanted to live on this income. forever, like we wouldn't be able to. retire, but I think you'd be able to. survive. I mean, you wouldn't be able to. retire super comfortably, but we'd be. able to survive. Yeah. But, we're not going to make any. progress in terms of paying off the debt. and saving up an emergency fund. We're. talking like 4 years. And 4 years of you.

having absolutely no life, essentially. Yeah, and So, that's not ideal. No, no, it is not. Cuz. at this point, you're, you know, working. in your 80s, dying on the Walmart floor. Yeah. That's where we are. Yeah. And. I want a better future for you. Agreed. If you it depends how much you want a. better future for yourself because then. the actions that follow that decision to. hit the goals that you've mentioned that. we haven't talked about yet, but you. want goals. In order to hit those,

figure out the actions that are required. to do them. And right now, it's your. income. It's your money. Mhm. And you don't have any. Yeah. What are those goals you want to. hit? Um I want to get to the point where. I have an emergency fund. Um, the 10,000 at least. Um, I want to help buy a house with my. partner. Um, and I want to be able to have a. family at some point in time. Don't get a house together or be on the. same loan unless you guys are married,

just for legal protection, but yeah. Yeah. Okay. Yeah, no, very reasonable, very. reasonable. Um, the way to get there, again, the the equation to your situation is. money. Money. Yeah, and part of my. reason for even being here, too, is. I see how my mom is living, and it's. just not. How she living? ideal. Um, probably pretty similar to. me, not as far as like income, cuz she.

makes more money than I do, but. But it's all out the door. But it's all. out the door. Um, she's taking care of. um. my niece. Mhm. And it's just she has no savings, like, and she's never been very financially. literate. Um, and growing up we were. extremely poor and all that. Um, so. seeing that in further adulthood, I just. don't I don't want to be there. And here's the thing.

And here is the thing. If you actually. follow the plan we talk about today, and. you bring in additional income to start. paying down this debt and save up that. emergency fund, you'll be a generational. change. And that's exciting. That's. exciting. Your future could be so bright. if you just buckle down and actually. take care of. Yeah. And the goals are very reasonable. Those. are goals that, you know, most money. most people want to hit in this country. That's, you know, the classic, almost. like American dream type goal. You can. do it. Again, just got to got to buckle.

down. Look, but. not to go back to negative, but I do. have to just say, I'm nervous cuz the. two checking accounts of the two. checking accounts you have both started. negative and one of them ended negative. Yeah. That was a month ago. Not even a. full month ago. So, I'm scared. That's fair. Everything now depends on. you. Do you get your together or not? Yeah. What are you going to do when you leave. here? What does the next few months of. your life look like? Um working, trying.

to find another job, getting another. job, and working extra hours, and paying towards everything, and. letting those other ones fall off, and. just trying to get a better life. Does what I say about the collections. and negotiating that make sense? Yes. Yes, it does. Okay. Yeah. How many hours a week are. you spending applying to jobs right now? Um not enough. Okay. Like. That's probably the correct answer. So,

it's a second full-time job until you. get another job as you're applying for. jobs. Go and say hi to the managers in. these service places. Okay. Cuz they will sign people up the. day of. I've had that happen here with. this show. Okay. Well, if you get another job and you bring in. income a year from now, we should see. major progress. So, we'll do a follow-up. then. Okay. Please do not disappoint us. Please don't. Be a positive story, but. what matters from here.

is actually. just what you're going to do. Depends. how much you're going to buckle down or. not. Are we going to be starting and. ending checking accounts. monthly basis with negative money? You've received the mental health you. want. Mhm. You've received the mental health that. you've needed and the medical help. Now, receive this financial help and just. improve your life drastic life. drastically all the way around. That's. the goal.

Any final thoughts? Um, just. don't do what I do. And don't let anything go into. collections. It'll bite you in the. For Danny, it's going to be a long road. ahead, but it could be much shorter if. she just brings in some more money by. getting a second job, a third job, a. fourth job, and just working like crazy. For her Hammer Financial Score right. now, spending, this is what's going to. push it up a little more than anything. Yes, she was overspending for her.

situation, but it still wasn't crazy. compared to a lot of people on here. Three out of 10. Debt, I mean, if we're. this much in collections, it's not going. to be better than a zero out of 10. Retirement is nothing, zero out of 10. Emergency fund, barely started, so one. out of 10. Real estate, absolutely. nothing, zero out of 10. Right now, it's. down to zero out of 10. So, one out of. 10. Make sure to check out in the. resources I have linked below, like. getting a free $5 for acorns or getting. the best yield, high yield interest rate. I can think of. So, it's all down there. I linked the resources I partnered with.

them, that way I can get you the best. resources possible. Don't forget to. follow my Instagram and Twitter. Thanks. Thanks to SoFi for sponsoring this. episode. View your rate for a SoFi. personal loan through my link, sofi.com/calebhammer, with no impact to your credit score and. no commitment.