McDonald's Is More Important Than Her Child | Financial Audit
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To watch episodes of Financial Audit a week earlier, check us out on YouTube. I was not making ends meet. Why? Because guys spend money. Oh, this is interesting. We don't have a rent payment. We have a kid. We care for their future, but going out to eat is more important. You can't just sit and laugh. I am going to go get McFries over my child's future. Are you going to feel worse when he is putting his life on hold to support you because you have nothing for retirement?

Hi, my name is Elena. I'm 34. I'm from Edinburgh, Texas, and this is Financial Audit. Thanks for coming up. I know it's a long drive. What do you do for a living there? I work at a bank as a quality control representative. Okay, awesome. And making sure people not losing that money. Pretty much. What do you make in this job? I believe $33,000. You believe? What does that mean? Well, that's what they told me when they gave me my raise. When did you get your raise? Um,

Probably in May, I think. So that's what they told you. A raise to $34,000. It's because... Now, I know that's, you know, it's kind of on the border. It is cheaper cost of living there. What's the nearest major town? McAllen. McAllen, okay. It's like the main city. Okay, so I know it is cheaper, but $34,000. A raise to $34,000. How do you feel living on $34,000 there? I feel like I need more. You need more? Like a bigger raise, yeah.

So what do you think hits your account on a monthly basis then? So it should be up to date then because your raise has been a while ago now. Yes. Okay, so I get paid every two weeks and I get, I take home. Something's weird here. $1,050, $1,100 when I make. Per check? Yes. Because I only have one of those hitting. Really? $1,077. Are you hourly? Yeah.

Yes. Or salary. Oh, so they're expecting you with 40 hours a week to hit that 34? Yes. So did you take non-paid time off? Because 1,077, that's what we had come in. Payroll right there. If you have two of them, it makes sense. Yeah, like it's... But we had one. We had one. No, it's every two weeks. Okay. Is it bi-weekly or is it semi-monthly? It's on the first of the 50. Oh, so semi-monthly. So we wouldn't have missed it. It's just one? Okay.

Yep, but that's okay. You know, maybe it was just something a little weird with the statement. Maybe it was a timing thing. But $2,000 a month? Yeah, it's not enough. Okay. How are you stretching that? What's like, what is even your rent? I'll just ask that off the gate. You should be waiting for that one. My parents, I live with my parents. Oh, I was going to say, you kind of have to. Yeah, they help me out a lot. Um...

you have kids one he's gonna be nine next oh wow okay because that's also expensive yeah living with your parents is there a significant other in the picture uh he's my boyfriend he lives in houston that's a that's a commute well he drives to me sure that's a commute does see the father of the child no is the father of the child providing child support

late he does provide it but it's like well what about legal obligation well that's his legal obligation how much what's his legal obligation I get 292 that's what we had hit 292 but you're saying sometimes he doesn't

Okay, so right now it's September. He's late on the August. How often is he late and what does late look like? Does he double this month because of last month? No, no, no, no, no, no, no, no, no, no, no. That's what you told him to do? I expected him. Will he? No, probably not. So he won't pay September. He's just in debt. Yeah, like if he pays September, it's probably going to be the one for August.

So I guess he's like a month. Well, yeah, but okay. Yeah, but is his August really August? Or is it a month delayed pushback from something else as well?

was in april late and then you know so like is the one that's being paid for august actually august or how often is he late yeah because back in april he well that was just an example i don't need april specifically okay yeah so he got behind like three months so april may june july and then he tried to catch up so now the one that he's gonna pay if he pays in september it would be the one for august so you make two thousand dollars a month did you spend

yes a lot tiki yes and what is that number i don't know but i always end up no no no no what is the number how much did you spend what do you think you've spent i'll clarify a thousand two hundred thousand two hundred maybe you bring in two thousand you spend a thousand two hundred well i bring in a thousand every paycheck not a month yeah so two thousand a month okay but you spend a thousand two hundred

Oh, no. In the month? Yes. Probably $2,400. $2,400? Yeah. Why are you spending $400 more than you make? Because, I don't know, I have payments. Payments for what? Why? How? Where? My daycare. My son's daycare. Wait, but you live with your parents, so they don't watch the kiddo? No, I have to pay daycare because they both work. They're working? Yes. How old are they? 63 and 61. Okay. Okay.

um are they continue gonna continue to work for a while i hope not daycare nine-year-old i mean he's getting pretty close to where he can stay at home yeah yeah he's already asking me to stay by himself but i'm like no you can't do that i know i know especially first kid i i know everyone's a little more you know nervous yeah as someone who has had so many kids i'm an authority figure on the subject okay yeah you spent three thousand dollars in a month yeah i didn't know wow

Are you sure? Yeah, math is kind of math. You know, you add numbers together and you get $3,000. Oh, wow. Oh, wow, indeed. Okay. I don't know why. I try to budget, but... What is try to budget? I feel like I hear people say try to budget. I make a list, right, of all the payments that I have to make. Sure, Santa, sure. And just like the payments that I make, that just goes, my whole check goes to that. Uh-huh. I don't even have spending money left.

Girl, you know what show you're on. I don't even have any spending money left. I don't. I have like $7 in my account. Uh-huh. I don't have any money, spending money left. $267 going out to eat. Is that funny? No. Huh, interesting. Miscellaneous bulls... You know? Well, it could be a video game. It could just be things that don't matter. $158. But I don't have any money left to spend. Well... What? What?

well it's because i make my list and i added congratulations and your list is wrong you must not be writing things down i write everything oh i guess not interesting if you write everything down you'd be able to tell me how much you spent last month yeah you're off by like 30 percent yeah yeah oh i need help caleb well no that's why everyone's here that's not a that's not a cop-out

That doesn't get your feet out of the fire. No, it doesn't. You'll get the help. We'll get the help. But this is the we uncover your and your bullshit part of the conversation. Okay. I'm sorry. No, it's okay. Maybe. Maybe it's okay. We'll see. Obviously. So your method of budgeting is obviously not correct, to be clear. So we need to get you on a proper path. By the end of this, we're going to create a makeshift budget, kind of see where we stand, and

And what you can do, but go through the budgeting program that you're going to get for free. Okay. Go through the investing program that you're going to get for free. Go through all that. Take the classes. Take the quizzes. These people out there have to spend money to get it, so you better take advantage of it. Okay? I will. Some of the best education you can take advantage of. Change your life. Self-assess. Where do you think you are?

Financial score, zero to ten. Zero being the worst, ten being the best. Where do you think you are? I took the test. I got a zero. Yeah, I'm not surprised. Especially where I'm looking down at this statement and I see red everywhere. So watch your Hammer Financial Score. It's free. Link in the description below. Also, feel free to come on the show if you have an interesting situation, interesting finances. CalebHammer.com slash apply. We would love to have you in Austin, Texas. Capital One. So, what is going on with this card? Why is this card?

Okay, so back in 2023, I was making my payments. 2023 is a while ago now. Yeah, I know. But starting probably February, March, for some reason, I could not. No. No, for some reason. No, how could you give me the reason? I spend money on miscellaneous. But I make a list. Okay. So...

I was not able to... Like, I was, like, struggling, right? I was, like, I was not making ends meet. And then... Why? Because I spend money on miscellaneous stuff. Oh, this is interesting. We don't have a rent payment. We have a kid. We care for their future. But going out to eat is more important. No, it's not. Well, it was. It was. You did it. You chose that. That was the action you chose. Whether it was a conscious... It was a conscious effort. Whether it was a full frontal conscious effort of...

i am going to go get mcfry's over my child's future no but in there you still made the choice to do it knowing that you were going to stop paying on a debt in order to get a mcfry yeah i know um okay so i i know i made that wrong choice but you didn't just make that wrong choice this isn't you just made a wrong choice this has been six months

Of daily wrong choices. This isn't, we cannot excuse this as I made a wrong choice. This is behavior of a half a year. Yeah. Showing that you prefer a McFry damn bells. It's okay that you live with your parents, especially as we're trying to figure things out. But clearly again, we prefer a Fry Bells.

over any semblance of independence. - I know. It's because my son asked for McDonald's. - No, no, no. You know what a parent does? - Says no. - No. - Cooks at home. - Huh? - Cooks at home. - We got McDonald's at home and it's a little frozen nugs. That's what we do. I mean, you can't do it. Does the little disappointment of saying, "I'll tell him no. I know he's out there. I'll go there." No.

Yeah, you can see I'm great with kids. Yeah, you'll probably scare him. Oh, well. Good. No more nugs for you. No nugs on the way back down to Edinburgh. He already asked what we're going to eat. He asked me right now. What the fuck? That's a fat fuck. I don't go around asking people how much I eat. What is happening? Is that the only thing he thinks about?

No. Well, yeah, most of the time. That actually might be something we need, though, because that's not going to lead to healthy life choices. I know. Especially if you're having like this constant, like spoiled throughout expectation of always getting these little sweet treats. If that is the expectation in life. Yeah, no, he's going to beg for it. And it's actually going to be hard to break that.

Because this is the expectation. It's the what's looking forward to. I feel, yeah, I feel since he was little, he would always want something and then I would give it to him. And then now, now I'm seeing it. It's like he's seeing, he's like, I want this. And then I'll get it. Like, no, you can't do that. But you don't say no, you can't get that. Oh, throw a tantrum. Okay, call me in. I have fists. He has a face. They will meet in battle.

No, I'm kidding. Obviously, that's not how you deal with it. You hit him with a belt. No one wears belts anymore. We're all too fat. We hold up our pants with our own weight. What is happening? What am I saying? Just... Slive up. No.

It's just, you know, especially nine. He's in middle school, right? No, he's in third grade. Well, yeah, middle school. That's not middle school. Third grade is not middle school. Fifth grade is. Elementary. Hold on. Five is first. Second grade.

Sixth grade is... I guess I know what middle school is. I'm trying to figure out what age sixth grade is. Elementary. No, I'm trying to figure out what age sixth grade is. Sixth grade. Hold on. Ten should be fifth, right? Ten and eleven should be fifth? Yes. If fifth grade is... Or first grade is one. Oh my... Five. First grade is five. It doesn't matter. Sixth grade should be twelve. Okay, so he's probably not old enough for...

I'm just trying to think maybe we sit down and we have a little more mature conversation might not be able to fully grasp it at that age, still sit down and have conversations, but the full consequences and like, we're doing this for the family future conversation is a little harder when it's a younger, but, um, the conversation, something does need to happen. We need to start talking and to them, yo, mom can't afford this. Essentially.

Yeah, I tried. Now, legitimately, guys, I believe that you, everyone in your life, everyone around us can actually take control of their financial future and make their lives better. And we've spent over a year here creating tools to help make those goals a reality. Right now, our budgeting program and investing program are bundled together at a 15% discount and you get $100 in cash gifted to you right into your Moomoo account.

There's honestly no time like the present to actually take control of your future. Don't wait. Don't let this opportunity pass you. So what do you mean you try? Like I tell them, but OK, but to understand, I don't give a shit. It's like at a certain point. What do you do when a tantrum is thrown? You just give in. No, not. Yes, you do. That's kind of what you were saying, though.

Okay. Yeah. Not all the time though. Why do you sometimes then? Because we legitimately can't afford it. I guess I feel bad, I guess. Yeah. And I would too. Yeah. I would too. I get it. But are you going to feel worse when, you know, the kid in high school has girls over and he's

At his grandma's house with his mom. Are you going to feel worse when you can't provide a single cent to college? Are you going to feel worse when he is putting his life on hold to support you because you have nothing for retirement at that point? Yes.

Yeah, I'd feel worse at that point than just saying no on a McFry. Yeah. Really, it just comes down to that. The child conversation is a little harder for me to navigate, I'll be honest and candid. But that is a conversation and responsibility that just needs to happen on your behalf as a mother because mathematically this is not working out. And there are longer term real consequences involved.

coming down in the future of his life if you do not get your s*** taken care of now. Yes, I agree with you on that. Well, good. Maybe put some action behind it then. I will. Why haven't you? Well, I started kind of. Well. Any statements? What this month? Okay, yeah, that's nothing. That's nothing. That's like me going on Biggest Loser and f***ing starting a diet two days before. That's not funny. I know. Yeah, well, I try to start...

I started paying this month, this credit card down. But it's hard because they take $80. They start taking the $80 this month. Yeah. You have a balance of $635, which, I mean, in the grand scheme of, you know, median salary, median household income, it's like we should be able to take care of this relatively quickly. But with an $185 minimum monthly payment because of how you've been managing this card, you

Mix that with you earning really just on the lower end of the salary scale. It's not even salary. It's hourly, but it's essentially that guaranteed 40. But

That makes that hard, especially the $185. So just this, just this one, we're talking net 185 divided by the 2000 that comes in. This is already almost 10%, almost 10% of my paycheck of your two paychecks. Yeah. Of your two paychecks, almost 20% of one paycheck. Now there's fees, $39 fees in interest of $15 and 46 cents. Again, we have a $635 balance.

Yeah, what's the limit? $500. Well, it's all the fees that they charge. Well, you know how you get the fees? You don't pay or you're above. And I don't see a payment happening here. Not even an attempt of a payment. Not even a call to the credit card company saying, I can't make this payment. Can we lower the minimum of the payment and the interest so I can pay it off? I did not know that. I will call them. I didn't know they could lower it. Well, I don't even know if that's the full solution, but no attempt from your end. Well, I started, like I said. No, you didn't. I paid $80 on the first. Listen.

Listen, I say this to every guest and I'll say it to you. I don't care what you did two days before the show. Two days before the show is nothing. That's a scramble to look decent before you sit at this table. That's nothing. It's the actions that we've been doing for months, for a year, for a decade. Those are what we break. You doing something for a couple of days is nothing.

Nothing. Because you leave here and you go into the habits you've been doing since forever. Not in a habit that you did for two days. It's not a habit. It's an action that you did. A quick little try to look good action. That's what always happens.

And so, no, I'm not going to sit here, give you a high five for that. I'm not. I'm sorry. It's just that's not helpful to you. It's really not. It's not. That's why I'm here. And it's a past due fee. It's a past due fee. The thing is, you're right. It is all the fees that have gotten up there, but the minimum payment was probably...

20 to $40 before 25. So why weren't you paying a $25 fee? Cause now you've gotten yourself in a position, the $20 fee, the $20 fee, the $20 fee, $20 fee was 1% of your paycheck, 1% of your paycheck, 1%. And now we're up to 10%.

We decided we didn't want to pay $20, but we wanted to spend $250 getting McNug. I know. It wasn't on the credit card, though. Huh? Nothing. It wasn't on the credit card. No, no, no. How'd you build all the credit cards, then? How'd you build this balance? Yeah, it was just random. So it was, then. So it was. Yeah, random crap. Well, there you go. So it was. Why'd you just try to tell me it wasn't on the card? No, why'd you just try to tell me that? Try to deflect? Maybe. No. Why? I don't know. Maybe, no. No.

No, I'm not trying to play killer. I'm trying to get to a better position in my situation. What? That's not an answer to my question. What? You can't just sit and laugh. Okay, I know. Just trying to answer a question. So we're not going to get to the bottom of this, is it? It isn't a, why did you not pay your bills? That's not going to... There it is. I didn't...

When I was, like, struggling and I couldn't make it, like, some people told me, well, don't pay it. Like, they'll, like, eventually they'll disappear. And I know. Disappear. It'll go to collections. Yeah, it'll go to collections. And I know. I was like, well, I don't want that. Like, I don't want it to go to collections because I want to move out. I want to get my own place. It's going to be hard with the credit. Yes. Exactly. And I had good credit. Yeah.

And I want my son to have his own place. I'm like, but I still couldn't pay it. I still couldn't make the payments. So what do I do? I listen to these people and stop paying for the credit cards. When did you listen to them? Probably like in the beginning of the year. How successful are they? Not very. So that's who we listen to? Well, they have money, but they don't have credit cards. Do they have money? From what they tell me. Ah, okay. What's having money to you?

I guess they have like they don't have to. Well, because I don't know their situation, but they I know they always when I see them, they always have money. So like they got the flex that I know of is they don't have credit cards like not like I had a good credit score back in 2022. And I kind of messed it up. Well, what is it today? 2024, two years ago.

What's your credit score today? Oh, it went down to 530. Oh, that's really not good. 530? Yes. It was like really. We're going to the 400 soon. Yeah. I was able to get my car back in 2022 by myself. Car back? No, no, no. Like a new car.

which is another dumb decision. Is that, is that in today's statements? Yeah, it should be. Uh, you always had debt like this. Kind of. Well, no. Okay. When I was younger, I, when I started building my credit, I messed it up back in when I was 22. Um, pay it off, build my credit. How'd you pay it off? I just pay the cards. Okay. But, and then build my credit again. Um,

I guess my car payment back then would help me with my credit score. So then I started getting more credit cards. Once I paid it off, they're like, oh, here, you qualify for this credit card. So they gave me more credit cards and then I got them again. And then, yeah. And you paid those off? Well, those are this situation.

I believe you cashed out a 401k to pay off debt. Back in, yeah. You were going to not tell me that? I forgot. You forgot? Yes. How do you mean you forgot? What do you mean? I forgot about the 401k. But yeah, I cashed it out and I paid it. When? 2021. So you didn't pay off debt. You took away from your retirement account. Yes. Your forced savings because you set up a percentage. Yes.

You took that, took the penalties and the taxes, which, by the way, might have completely negated the interest anyway, depending on what it was. And then you paid it off. But you didn't pay it off through behavioral change. You didn't pay it off through budgeting and then putting extra towards it. You budget by taking away from your retirement account. So you didn't learn anything.

anything nothing was beneficial there no i think it was how much did you take out of your 401k it was like eight thousand buddy how much do you have left in a 401k yes in your retirement today yes uh fourteen thousand okay at least there's something still dramatically behind for your age for my old dramatically instead of transferring it i just took it out

What? The eight? Yes. But 14 remains. Well, that's for my new job. The one that I'm in right now. Okay, you have 14 in retirement. Yes. Don't get mad.

I don't know. You're just... I'm sorry. I'm sorry. I get the cope thing. I get the cope thing. And I know it doesn't look as good on camera because no one's just sitting here. Like, I try to take these conversations very seriously. I try to take the debt very seriously. And when someone's sitting across the table and giggling for me, that's very hard. That's very hard. It's like you just... I know you care about...

I know you care about your situation. I do. Or else we wouldn't have you on the show. We vet for that. But still, it's hard when it feels like because of the outward that they don't care as much as I would like them to. That is hard for me. But I know you do, and I just need to... There's more overdue stuff. Yeah. What even is this? What am I looking at? Is this...

Well, what is this? It's an affirm payment. Affirm? You're not even paying your affirm? Well... Not even the worst people on this show have not paid their affirms. Wow. I didn't think I was the bad one. One of the bad ones. You didn't think you were one of the bad ones? Buddy, we're looking at two things. You got a score of zero on this site. And we've only looked at two deaths so far and they're all not paid. You didn't think you were one of the bad ones?

No, I didn't. How? In what world? I don't know. No, try to answer. I don't. Yeah, I didn't think it was that bad. Why? Okay, yeah. I want to know why you actually think this is not that bad. I want to get some of your psychology here. I didn't think it was that bad because the, I guess the payments, the amounts owed are not that bad. Okay.

Isn't that even worse that you're not paying something that is so payable? Yeah, that's worse. I was like, why can't I just pay this? It's $40. Yes. In fact, that is my question. Why are you not just paying that? Because I can't. Like, I cannot. I don't have... Interesting. You spent $250 on going out to eat. Maybe that's why. In the last month. Yeah, maybe that's why. Maybe that's why? Well, that's why. So I don't want to hear I can't. You're choosing not to. I know. I know.

When did you move in with your parents? Or have you always lived there? No. Last year. What happened? I moved out. I was in my apartment. No, what happened? Why did you move back? The debt. I couldn't pay it. Do they know? Yes. What's your education? I graduated high school. Okay. And some college. Some college? Yeah. We're going to send you to CourseCure's website. I want you to take...

their assessment there, and see what kind of certification is best for you to boost your resume to get a better job. And then we'll pay for it. Because I really need you to make more than $30,000 a year. I really need to. That's going to be a part of this. This is going to be an income and behavioral problem. Okay, so on the Affirm, we...

Oh, 168.11. They were actually going to send that to collections. They sent me a text message. Yeah, they're going to send everything to collections, dude. And then you're really like, good luck. Good luck getting a place who's going to rent something to you. Nobody. I wouldn't. I know. Would you? Would you trust yourself? Someone who's not paying things? No. Yeah.

Do you at least have savings? Okay, yes. You have $6 of savings. No, $6? $6. You started with $1,300 and you're checking. Oh, sorry. This is checking. Oh, we'll get there. My, okay. All right. Security first credit, 74% left to pay on the loan. This must be a car. This screams car. Yes.

What is your car? It's a 2022 Toyota Camry. Why do you need a 2022 car? I don't. Guys, I want to learn more about what your finances look like in this community here. So we have a survey in the pinned comment and description below. It's only going to be open for a week and four people will win $250. So sign up now. Okay, so... This balance on this is basically what you make. The purchase price was more than you make. And that's actually after your raise. Yes.

What were you making before the raise? $15. Okay, what's your hourly now then? $16.49. Okay. You're going to be upset. I actually had a Corolla before this one. I owed $4,000 on it. That's all I had left.

And they call me from Toyota. And they're like, hey, so we wanted to see if you were interested to come and get a new car. And I'm like, well, I can just go and see. And see what they say. I don't think I would trade it in. Our culture is so fucking hard. They actually convinced me to get a new car. A truck? No, no, no. It's a car. It's a Camry. Oh, this is a Camry. Yeah. Okay. Well, it's worth about $21,000. So you're under by about $4,000. Yeah, I know. I saw that.

When I was printing out my reports. Oh, it says it on there? Yes. Okay. So you owe $25,769 minimum monthly payment of $487, which is aggressive for your... Yes. Aggressive. What is the interest on this? $4.5. $4.5? Yes. I'm surprised. I'm genuinely surprised. So this is when you had a good one. Yes. It's an 84-month term, though. 84. You pushed it to the extreme. Yes.

I can't. Why just? I am thrilled for the day. I know it's coming. Someday on the show, someone's going to walk in with a 90-something loan. They're going to invent those. I can't believe you have an 84. When I started the show, I don't even think 84 existed. This is crazy. The dealer guy, he was like, oh, they gave me the payment for 500. I was like, oh, no, that's too hot. The other guy? What are you talking about? The guy that sold me the car. The dealership guy.

What? So when he was selling me the car, he was like, oh, they gave you a payment for $550. I'm like, I can't make that. I'm like, never mind. Oh, no. You gotta fart the car. If you,

If you put 20% down on a car and it's a three year loan and you can't afford the minimum monthly payment or it's more aggressive than 8% of your income, you can't afford it. Stretching out the term does not mean you can afford it. In fact, it makes it worse because all of a sudden your car gets so much more used, but we're five years into this thing and we still have a fucking loan on it. Yes. It continues to depreciate the interest stretch longer.

Yes, I learned that. No. At least you've made all your payments on this. Yeah, it's my car. I need it. Well, why is this different to you than the other debt? Because I needed to get to work. Because it's physical. Maybe. Yeah, well, it's tangible. You needed to get to work. I do understand that. I don't want you to think that this is...

Just because it is what gets you to work, though, that other debt is just insignificant. This is a dangerous mental precedent to set in your life. Oh, so this one is collections. Is that Macy's? $2,355?

So that's how Macy's? Yes. Macy's-esque? Mm-hmm. Okay. Okay, so I saw a video. If you're on collections. Oh, you saw a video. Let's see. To pay it. Uh-huh. And they said what? Is that true? Not to pay it because the people that bought the debt just paid cents for it. That's the reason not to pay it? That's what they said on the video. But then I'm like. On the radio? No, on the video that I watched. Okay, I want to hear the because what?

The only reason they're saying not to pay it is because they spent cents? Yeah. And then there's no and do this instead or is that it? It just stops there. Don't pay it because they bought it for pennies on the dollar. That's it. Well, and then your debt will disappear in seven to ten years. I don't want that. I need it to disappear. Well, yes, that part sucks because you're probably going to want to live in a place in seven to ten years, you know, seven years. But not only that, technically, I mean, this balance is small enough that

Not going to do anything. Legally, you could go to like... Legally, there could be a... They could go after you legally. Okay. Yeah, I've been there. But it's... Well, what happened? A while back, I target a target credit card. And?

I didn't pay. What happened? And then my balance went up to like $900. $900. Again, those aren't balances that they're probably not going to spend money on. I got a legal paper from the court. Yeah, but did anything happen? I had to pay. Oh, okay. Because I got scared.

Because you got scared. But nothing, it never got to the point. Okay. No. I got you. It's usually going to be on something bigger if it's worth them fighting. More than anything, there is something to be said. Okay, maybe don't pay because there's pennies on the dollar. But it doesn't stop there. It's because they bought it for pennies on the dollar, they're willing to negotiate it. Okay. And that's where like, okay, this $2,355 might be able to settle for like $2,000 or $1,500. Oh, okay. It's a painful process. We can talk about that in a bit. Okay.

But that's why I'm confused how it just ended there. Sure, if you want to wait for seven years, this likely won't get legally challenged. You probably won't have to show up anywhere. But... No, I don't want that. It's always possible, though. And again, it affects you from options, from debt options. Yes. People are okay with having collections on them. They...

Usually people that have collections don't really have any savings. And usually people who don't have any savings need to take out debt for a vehicle or some kind of loan for an emergency. And if you have collections, you have a bad credit score. And if you're that person taking out those debts for whatever reason, you're going to be taking out a predatory debt. So you're not a debt person. No. You're not a credit card person. You need to use a charge card like a Fizz card. That's what a lot of our guests use and our audience members use.

Where you put the money on and you can only spend what you put on there. It still benefits your credit because I'm taking away that you care about that. Yeah, I do. I need a house eventually. This is so silly, this one. It's $99. Well, I'm working on it. I set up a payment plan and they're taking out $47 on the 17th.

In three months, it'll get paid off. What do you mean? Wait. No, no. Wait. But what? Wait, huh? It says the minimum is $99, but you're paying less? Yes. But you're getting hit with $40 fees. Yeah, that's what I'm trying to pay off. Meaning that for every $90 you put towards it, you're only putting $50 towards it. And then it's even less than that because you have interest accruing on that. You're putting more like $47? Yeah, just about. Yeah.

So supposedly I set up a payment plan and then said that in three months. You set it up through them? Yes. Like on the Target app. It's not reflected on here yet. So there won't be late payments anymore. No, because that's a late payment fee. Is that 40 bucks? Yeah, no, because they take it out the day of the payment. It's supposed to be. So they take out those $47 and in three months it's going to get paid off. Okay. So they're not going to hit you with fees anymore because of that. Okay.

Okay, so $47, $99, and 12. Wait, but. No, there's still something, though, because that's not just interest accruing. Because it wouldn't take three months to pay off $99 with $47. No, because I paid one last month. Oh, so $47 for two more months. Yeah, it's a 28.15% interest. Oh, no. Oh, this? Yes. Alta, alta. What are we doing? Yeah. Yeah.

Trying to look good for those Houston dates, I guess. Not even. There's fees on everything. I know. Dude, literally, the minimum monthly payments that they were before they started adding fees on all these, you could pay with what you spend on food, going out to eat. Not groceries. Going out to eat.

Because groceries, you still spent only $47, actually. On groceries? Mm-hmm. That's what we got. Well, there's an unknown category where this is $151. Sometimes that could be groceries. It's hard to tell. Places like Target, Walmart, Amazon are hard to know what you purchased. But if it's H-E-B, we pretty much know it's groceries. Okay. So, available credit, $0. Not great. Credit line, $600. But you owe...

Oh, no, it's just closed. That's why. You're not over the credit limit, but this is closed. They closed it? Well, yeah, they don't want you to spend. You don't know how to spend. You don't know how to manage that. How are you surprised? In what world are you surprised that they closed it? I was going to pay it off after that. Well, it's still paid off. It hasn't been sent to collections. Okay, yeah. But it's closed. Sounds like it's in their internal collections for now. It's a 32.24% interest, and you better bet that it's still accruing, and you better bet that the $41 fees are still hitting.

Dude, it's the fact that you just let this... Listen, people get to a certain point because of necessities or an emergency that gets on debt. And then the debt becomes a burden that they cannot pay. Yeah.

That being said, with where your debt was and where the minimum monthly payments were, we know you could have 100% paid your minimum monthly payments in your living situation. You totally could have. And now the situation we're in with these balances that are closed with above the credit limits, with things that are in collections and with the higher minimum monthly payments, which for example is 132 on this because you're not paying it. You're accruing food, freeze, food fees are all because of you and your actions and your spending and your lack of discipline and your

inability to budget or have any sense of maturity in your life or care for your future or child's future financially. Yes. Specifically financially. Yes. Can't speak for the rest of your life. Yeah, I was like, I could have paid it. You said you're right. I held like $110 the purchase that I did. And it went up to that. Someone that knows everything.

You sure have finances. I listen to the people. The people? We're talking about those people. Those people suck. When did you learn that those people wrong? Um,

Soon after I stopped paying. Well, no. When did you learn that those people were wrong and that was incorrect and you needed to reverse it? When they told me that I knew I should. I'm like, no, I can't. I need to pay those debts. But then you listened and did it. Because I couldn't pay them. No, you could have paid the original minimum monthly payments. Yes, you could have. Yeah. Yes, you could have.

Yes, you could have! Okay, I know, I know. I should just... What the f*** are you saying? So why'd you do it then? Because my account was like at $7 at the end. Okay, just because you wanted to keep spending on your bulls***. Okay, cool. So when did you learn that that is wrong?

The spending on my bulls**t? Yes, instead of making your f**king payments like an adult who was in their 30s. Now, this conversation. When? A month ago. Then why the f**k haven't you changed anything other than the past couple days? Other than the past couple days! A month ago is not only a couple days. We're barely any days into this month. So why, last month by the way, is what I'm taking a look at. So I would see it would be reflected.

That is not an answer. This is a podcast. You give an answer. Okay.

I'm sorry. No, no, no. Which is why. Why did you recognize? I want to get your psychology. If we can't figure out where you are, where your brain has been, where your lack of discipline is originating from and what your mindset on this stuff is, we will get nowhere. I need to know why you fully recognize what you needed to do, what was wrong and what was required to get out of this a month ago. And you've done nothing.

until the couple days before you knew you were coming on this table. Why? Listen, guys, if you haven't been making payments on your credit cards, I've just partnered with a new app called Relief. I always give you guys s*** for falling behind on your cards. But if you're already there, then the amount they say you owe isn't exactly what you have to pay. In fact, as you fall behind on your debt, most credit card companies are willing to accept less money to pay it off. Like us.

A lot less. So before you start paying off anything past due, download Relief to get the best deal your creditors are willing to make. I've partnered with them because they've saved people a ton on their debt, like more than 50%.

Don't be an idiot and pay more than you have to. Relief only costs you a few bucks to save hundreds or thousands. Instead of wasting time negotiating on your own, focus on the sh*t that matters the most, like staying current on the rest of your bills. And to help you get started, I got the boys over there at Relief to give you all 15% off your first order when you enter my promo code, Caleb, during the month of September. So don't f*ck this up. Do it now. Because I need to fix my situation. I need to...

What? No, why did you do nothing? Well, because, Caleb, I don't have...

The money on my account. Like, I get paid every two weeks. I know. I know. I have your spending for the last month. I have your spending for the last month. I saw where your money went. So, no, you said you learned a month ago, but I saw your spending during that month. So, why did it not change? Why did you do nothing even though... Why? Not because I didn't have any money. We saw where your money went. We saw where your money was spent. Even though you knew your money shouldn't be spent there. Because I spend my money on those...

You don't know the... How do you not understand this question? Okay, okay, okay. Let me... I want a phrase. I want a phrase. I don't want to get angry at you for not understanding my question. I want to just... I want to... How do I ask it? Why haven't I done anything to change it? Because it's been a month. Like, I haven't...

I get paid till like Friday and I don't have money left in my account. It's not about being paid. It's not about being paid. It's about your spending during that exact time when you already knew what was wrong. So if you already knew it,

Why was your spending reflected in a way like not a single thing was changed? Not a single thing was changed beneficial once.

I'm not talking about when your pay gets hit. I'm talking about your literal actions. Did not change even though you said you knew what you needed to do a month ago, which are the statements we are looking at. And we haven't even gotten to your spending statement yet. So why did the... I don't know. I'm sorry. I'm sorry.

I'm sorry. I don't know. That's the easiest life ever. I wish I could just go around. Everyone asks me questions. I can just say, I don't know. No, no, no, no, no. Like, for real. Like, I don't understand why. And I told my friend, I was like, I don't know where my money is going. Like, I really don't understand.

Okay. Like I know it's going to spending on stupid. So like a budget, like a budget. Yes. Like a budget, lack of understanding where your money's going. So lack of any discipline of looking at our numbers, looking at our accounts, looking at our spending. So it's just like a discipline.

Yeah, because I honestly... Okay, so let me say, are you saying if you knew your numbers, if you knew your spending, it would have changed? I would believe, yes. It would have changed? I would... That changes the conversation between you and your son when he begs and throws a tantrum. That changes the conversation between you and yourself and your stomach when you say, I want fast food. I haven't even eaten now. Or myself. Like, I would... You're telling me that all changes, though, when you look at your numbers? Yes. Okay. And you're going to say, I don't know, but...

Why didn't you look at your numbers? Because I did, but I don't understand. Like I told you, I write down my numbers. Like you said, maybe earlier, maybe I write them wrong. Maybe they're wrong. Cause numbers aren't translated language to language. But I don't like, I honestly don't know. I, I get paid. My bills get drawn like automatically. Please go through the budgeting program. I need you to go through the budgeting program.

If you just like don't even understand the numbers being written down, you need to go through that because it'll teach you how to write the numbers down and how to track it. Because I mean, we built out a spreadsheet for you to literally just plug it in. Oh, boy. Okay. PayPal. Credit. Everyone's favorite. It's never went down. $1,563.29. The $37 minimum fee payment. You made a payment.

Yeah. Oh, and there's no interest or fees. Finally, something that isn't just the absolute f***ing thing in the world. It's drafted automatically. Oh, thank f***. Well, they all should. They all should. By the way, minimum repayment, the way you're doing it, takes four years to pay off. Yes. So you're going to be, what is it, 38? Yes.

And you're not over the credit limit. This is the first one where, and I can't believe I'm saying that $1,563 of a credit on a $30,000 a year income is good, but it almost looks good compared to the rest you've done. It's still not good, but... They kind of closed it. Okay, so I had to pay for credit. I had bought something and I never, like I was struggling to make the payments.

So that's just like... You sometimes did miss the payments. No, no, no. I never missed them, but I couldn't make the payment. So I told them I can't do it. So they said they could close that account and I would have the balance left over, no interest. And then I could just pay it in payments. So I don't have PayPal credit right now. Like that's just the balance that I owed before.

So the compliments I just gave you were bullshit because if it was open, you'd be spending on it. No, probably not. And they would probably... What the f*** are you talking about? Everything else was over the limit. The only one that's not is the one that stopped you from spending before it was over the limit. So what do you mean probably not? Literally everything, every statement that exists indicates that probably...

I would have spent it. You have no evidence to suggest that. Probably not. All evidence is contradicting that. Net credit. Credit to the people. Lucky us. Well, this is actually, I mean, it's down from $4,000 to $657. Yeah, I'm paying it. I'm almost done with it. I owe $600. What is this? It's a loan. A personal loan? Yes, that I had gotten online. What was it for? When did you get it? What was it for? When did you get it?

You're going to get mad. To pay off more debt. Okay, so again, you've never actually paid off debt. You've just transferred debt. So I got it. I don't know. What's the minimum monthly? Okay, so they charge me every two weeks $119. But I moved the payment from the 15 to the first. So I paid $238 a month total. Interest? 64%. 64%? Yeah.

No, no, no, no. Not 64%. A personal loan was 64%. Yeah, it's the ones that I get online. Wow, credit to the people. Yeah, it's horrible. Like, I got some money and I paid it down because I'm like, this is never going to end. Oh, yeah. That's borderline payday. Yeah. It's honestly, it's in that direct, a 64%. Honestly, I can't even be, like, shocked of her right now. Like, it didn't even shock me. But, like...

I'm a little shocked that this person alone has it, but I'm not shocked that you have it. Just based on your existence. Wow. Net credit. Credit to the people. F*** you. Yeah.

That's a disgusting product. Horrible. But it's a product you applied for and took, though. You sought it out. You signed up for it online. Yeah. So it's a product, but you bought the product. Yes. And I regret it. But at that time, when I got it. Wait a second. Hold on. Hold the f*** for a second. Hold a singular f***.

Your credit card at that time, especially with our interest rates, where it was likely like at max 25% interest. Okay, max 25% interest. We took out a 64% interest to pay it? Yeah, it was a dumb decision. That doesn't make sense. Plus the minimum repayment stank even higher than it was likely on the credit card. So this didn't help you at all. No, it didn't. It did not. But I will give you credit to the people where credit to the people is due. You...

have made significant progress on this and I think it's because you realize just how bad it was with that interest rate so that is good it shows that there is something inside of you that can push it

Unless, was it debt or 401k that paid towards this significantly to get it down quicker? No, no, no, no, no. Okay. It was actually money that you made. That I saved. So there's a group of friends. We pay every paycheck. We give like... There's numbers. And then... I don't know if that's legal or not. Huh? I don't know if that's legal or illegal. What? Numbers? No. What we're doing. Well, tell me and I can tell you. Okay. So...

It's like, let's say, 30 people. We each have one number, 1 through 30. And then every paycheck, we pay $50, right? And then whoever has number one, they get the money first. That doesn't make sense, though. It's like a savings club, I guess. No, it's not because doesn't the math work out where...

Like, I guess it's forced savings in a way. Yes, kind of. But you could get the same amount of money just by setting $50 aside for yourself. I don't get it. You're also relying on other people to f*** up. Like, other people could f*** up. It doesn't really make sense. So, there's 50 people. Or how many people? 50 or 30, I don't know. Okay, so 30 people. You set $50 aside for...

And once every 30 weeks or 30 months? No, because it's every two weeks. Oh, once every 60 weeks, you get the collection of what you put in. Which, by the way, again, if someone f***s up, it's just all of a sudden we have less money to pay out. And it's like, uh-oh, someone's not paying. Someone left. Someone moved. Someone died. It's like, well, s*** the money I put. You know, it gets a little, in a way, uh...

But I'm only doing that till May. And then I'm going to get out of it. How do you get out of it? You just stop? Yeah. Whenever the whole thing, the last person gets the money, they ask who wants to redo it again. Oh, so it's something you have to commit to? Yeah. Gosh, it's like if someone f***s up and doesn't get you.

I've done it for a year and we didn't have issues. Well, I didn't have issues. Yeah, one year isn't... Yeah. This is my second year. Either way, it also just doesn't make sense to put the $50 aside. Because you can also put the $50 aside in a high-yield savings account and earn interest on the money. Where interest isn't accruing in this. Yeah. It's... I opened the... At least you get what you put in it. Yeah. Because... Oh, how am I not forgetting the...

thing where you put money in and the only money that gets paid out at the end is money that new people are putting in. How am I? Ponzi scheme. Kind of. Except, I mean, kind of. I mean, if everyone pulls out at the end, if no one puts more money in...

and you're at the end of the 30 people you would get it is kind of a ponzi scheme and i'm the last number kind of i'm sure what you guys are doing uh if it's just friends i mean it's not necessarily illegal as far as i would think but i mean if it's set up as an official investing type thing that's where you know it gets questionable and be kind of like a ponzi scheme so

$558. Close. Texas Energy just didn't pay your energy bill? That's great. Yeah. Who needs energy? Well, that was in my apartment when I moved out. Was it in collections? Nope. Is that in collections? I thought it was. Oh, yep. Yeah. Great. It's last year.

Wonderful. Why didn't you pay your energy bill? Because it was high. My AC broke down. Because I wanted to have fast food. It was too much. It was like $300. Nothing keeps us warm like some freshly fried McNugs. Security first credit. Do I already have this? Is this something different? Yes.

Huh? Yes. I do. We've already talked about this? No. What is this? Okay, so I have my car payment with security first and then I have to... Wait, a what payment? My car payment. Okay. And then I have to secure loans with them.

Yeah. Why? Okay. So you know how we like people get the child tax credit yearly? Okay. So I have my income tax. My point, my goal was, okay, I'm going to save this. Oh, you try to finesse everything. I can already tell. Go ahead. Okay. So I got in two years in a row. I got the money for that, for the child, for the IRS, for the income tax. I put it in a secure loan. They gave me the same amount. Okay.

And then because I was like, I'm going to save that money. So whenever I pay it off, I can just get a house. And then, yeah, kind of like. But then this bank. How'd that work? Not good. Because I had $11,000 in it. Now I have $6,000. You could have just put the money in savings or paid off debt. I usually do that. Or retirement. You usually do that? Yeah. Well, once I did that, I was like.

So yeah, so now I'm paying interest on my own money. Didn't the larger child tax credit expire anyway? Well, no, I still get it. I get like 5,000 a year.

So, yeah. So, I put those two loans, those two years in a secure loan. So, what did you use the money for? Okay. So, I had it with my bank. And then they had it in a CD. So, I couldn't touch the money, right? I was just paying the loan. And then when they switched the bank, they switched companies. They sold? Yeah. The loan to the bank? The bank. It switched to PNC. Sure. And then...

PNC was like, well, we don't do secure loans. So they were trying to take out the money from CDs to pay off those loans. And I wouldn't know there's a reason why I had the money in the CDs. And then they don't offer the products. Yeah. So my friend lent me money to pay those loans.

I almost paid her. I almost paid her. So she lent me the money. Yeah, I'm almost paying her. So we have this debt plus debt to her? $1,500 to her. And then I moved it to security first. They gave me the secure loans again. So now I'm paying interest on my money. But security first does savings instead of CDs. So every time I make a payment, they release the money, the amount of the payment. Gosh, if it's just...

I almost wish I had no morals because I can just loan you so much money and you'd give me so much in interest. It'd be incredible. You'll accept stupid money from anywhere. I learned my lesson now. Did you? Because your financial situation does not show that.

Do you pay a monthly payment to your friend for the $1,500 that you still owe? No. You know, like the savings club? Whenever I get it, which is in November, I'm going to get some. I'm going to pay her. I'm going to pay her off. You could just do it with the $50 every two weeks. Well, she didn't want the monthly payments. She didn't want monthly payments. You didn't answer what you spent the money on. What money?

Oh, no, well, the dollar side, whenever... Yeah, it was just... I don't know what I spend it on, honestly. Here's the other one. Yeah. Do you know interest? I think it's like three something. I'm not sure on that one. I'm not sure on those. It's not that high. Maybe it's four point something. Because there's a good loan. Money could have just been in a savings account making the same. Okay, $3,110. Okay.

This other one with $113 a month. I see how you f*** yourself now. I mean, now you've just, well, you f*** yourself through your own choices and actions and just dumb choices. And now you're actually in the position where you can't pay things. But you weren't before in why you said you didn't pay your bills, which are now allowing fees. Like, that was not the case. But now it actually is. This is ridiculous. I honestly did not think this would happen.

Be as crazy as it is before going into this. I didn't think it was that bad, honestly. Do you know now? Now I know. Then the conversation worked. Now the checking account. And this is where you spend your money. What is that? My son's karate school. Oh, I don't think he's doing that anymore. Are you serious? No. That's the only thing I can provide for him. You provide a lot of things. You can go to parks. You can kick him. And he can kick you back. If you...

What is he? Is this dude kicking ass? Is this dude... What does he look like? Is he like skinny or is this a fat... No, he's skinny. Okay. He's about to be a green belt. Okay. So he's already burning off the calories. Like all the McDonald's calories that you give him. Just... I don't know. Have him join cross country at school or something. I don't think... There has to be something somewhere. There has to be free activities. And...

in the city there has to be you just can't afford this there's no way you can afford 186 dollars 66 cents yeah it's hard like yeah it's hard you're choosing not to pay your payments that are that much and i just it doesn't i don't like taking away from kids that's the not something like this whereas it could actually be beneficial you know being around a community uh potentially learning discipline skills uh this isn't the thing i would want to take away the mcdonald's from him so he doesn't throw a fit that's what i would want to take away yes

POSX, $2.58. Starbucks, we're getting Starbucks. You're saying I can't pay bills, but we're getting Starbucks. Go inside a 7-Eleven. Get a drink, probably for him. Go inside a 7-Eleven. Probably got him some Prime. McDonald's, something snack. Payment to a firm. TikTok shop?

tiktok shop the f*** are you tiktok shopping uh present for my boyfriend f*** your boyfriend make that the present mcdonald's mcdonald's stop and get in some bs jack in the box some stop it inside get into bs atm withdraw 40 bucks who knows where that went chick-fil-a atm withdraw 580 dollars who knows where that went huh that's my car payment

580? ATM would drop. Okay. Because I take it out and then I just go to the... Went inside, got some BS, squinkle snack, we're back. Transferred us out $150. Where'd that go? Who'd you sell $150? Where'd that go? That's the savings club. What's the savings club? You're done with the savings club next time. Yeah. Once I'm done with it... Don't f*** other people to something you committed even though you shouldn't be a part of it. Yeah, no. But other people could f*** you. Eddie's Tacos, Subway, Dutch Bros...

Go inside, get into BS. McDonald's, McDonald's, gordillas, gordillas, gorditas. Dual lingo. What are you trying to learn? Italian. Okay, no more. No, no, no, no. I canceled it. I used a free. I accidentally. You have a handsome pasta-making Italian boyfriend? No. All right. We don't need that anymore. Went inside, got some BS from the gas station.

Some fee for something. 47 cents. Went inside, got some BS probably from H-E-B. Netflix, Chick-fil-A. The f***ing snack. What is this? It's X-Quinkle snack. Oh, my son likes those raspas. I don't know what they're called. Okay, your son's going to have to f***ing like eating peanuts. And that's it or something. I don't know. Just like little scraps crawling out by the dumpster. It's like a corn in a cup. That's what we go with. Just get snacks. Corn in a cup? Go f***ing buy corn.

yeah but drive up to kansas just grab a pile take it down when is that i got some bs clarna more tiktok more tiktok uh is it because they do the clarna like every two weeks no i'm that's a separate thing oh but tiktok another tiktok thing 11.66 tiktok oh yeah it was the hurley her iron for my hair wait you're going to italy

No. Oh, my producers thought they saw that. Eventually. I would love you to as well. Let's get there, but you're not doing it today. Sonic ATM draw $200. Would that go? Sonic? The thing I said last, which was the ATM draw of $200.

Probably another payment. Like the bank payment. Oh, this must be for the kid. Academy Sports Outdoor, $115. He didn't have anything that he got that time? No, those were his school shoes. He didn't have shoes? My boyfriend bought them for him. Like he sent me the money and then I paid him with my car. Subway. Super, super. Chick-fil-A. When it's like SMBS, when it's like SMBS, when it's like SMBS, when it's like McDonald's, transfer to sell, $150. That's the savings club.

The $150 every two weeks. Oh, it's $150 every two weeks. I heard $50 every... No, because I got three numbers. $150 for $300? Yeah, I know. I wouldn't have you be saving $300 right now when you have...

literally 60% debt. Yeah. 60% interest debt in this money isn't gaining anything. Absolutely not. It's cool. There's, there is something to be said that it's cool that a community is coming together and saying we can't save. So we need to have some almost like forced obligation to save. There is something to that could be said about the idea. One, you can obviously get over people leave and you're in the last in line to get paid out to, um,

The money is not accruing any interest and you can get interest even in the worst savings account. You can at least get pennies. So this is, and it's also just like, can you trust a person who's getting the money anyway? It's like, uh, there's so much wrong here. There's the idea itself. I'm not like, Hmm. So I just wouldn't do it because of the risks. McDonald's McDonald's. That's it. Hoy. Hoy vey. This is going to be interesting. This is going to be interesting to figure out.

Preschool, 176? What? Preschool, 176? Preschool. Or the daycare? Oh, yeah. That's 176? Yes, yes, yes. Can I and your hold stay at home? I don't know. Can they? Do we know? Am I hearing no? Because I don't remember what age they start getting where they won't die. What age is that? When can they start staying at home? I think I started too in like fifth grade. 13th?

Fifth grade? Fifteen? You're waiting until high school? No. Probably not. Thirteen. As long as they know your phone number, 911. You can even have cameras set up like Nest Cams. It'll pay for itself with this. Yeah.

Google says 10 or 11. Okay. And I only pay $176 because I'm in this program, like the government program, where they help me pay half of the daycare. Daycare. So that's after school. Yes. They don't have free after school programs in the community for people that are lower income? They do. But on the summer, since we all work, I needed him to be in daycare. Okay. But that's done, though. Summer's done. So is that done, then?

No, no, no. I still pay for this. So what about the free after school programs in the city that you're saying exists? Oh, no. That's in the school. But there's a limit where they can stay.

A limit of people that can stay. Like, I guess the capacity. So they already have enough students after the after school program. Did you apply? No, because they told me it was full. And then... Did you get on, like, the wait list? No. Because on vacation, I still need him to go... Vacation? Like, no, but... In what world are you taking a vacation? Like, on his Thanksgiving vacations, Christmas, like, he still needs to go to daycare because he can't stay by himself. That's why... I know, I know. He's too young for that. We've established that. Yeah. Um...

That's why I still... Because I thought about the after school program, but I was like, wait, no, because I still need daycare for when he's out of school. Can we just sell him? He's too expensive.

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No, and then... So I pay $136 right now because they help me with that program. But I have to... Well, let's see if we can fit it in the budget. Let me get the rest of your budget. It might be higher. That'll... Huh? That might be higher because I have to... How much? Well, I don't know because I have to reapply for the program to see if they can help me. But they go based on my income. All right, let me budget. I kind of asked this at the beginning. Do either of your parents have any retirement desires? Abilities? I don't think so.

My mom. Listen, your minimum monthly debt payments, and this is without the $47 payment that you have to make for two more months. So this is without it. $1,318, which is already over half your take home. What time do your parents get home? My dad at five. He's the one that picks them up from daycare. Cool. So your dad's chill with sitting with them? Yeah. And then my mom gets out at six. No, you don't.

Well, I get out of five, but the... No, you don't. What do you mean? No, you get home at 10 now because you really don't have any choice but to work a second job. I applied. And I hate that. Okay, cool. Apply to more. Okay. Congratulations. But if, I mean, if 65 to 70% of our income is going to debt and we already have things in collections and you don't want things to go to collections because you want to have your own place...

There's only so much we can cut back with that much wiggle room. It's like you need to bring in more income. That's the only option. Or bankruptcy, which again, that'll f*** you. Yeah, I don't want that. Plus it's expensive anyway. You don't have to pay anything for rent or utilities? I don't. Okay, no internet. Okay, what about phone bill? I paid $210 because my parents are in it, but they gave me $60. What?

okay so i paid 210 my bills 210 because they're lying oh my god but what the make the numbers make sense yeah it's like no make the numbers make sense was uh the request okay so 150 dollars what are you paying 150 dollars for i have no yes t-mobile i don't know like does your kid have a line yes a tablet okay he has a tablet with internet mo with service yes

do you own the tablet yes okay there's no loan on it no what about your phone i don't think so switch to helium now okay it's not an option does it get good service uh does t-mobile cover your area quite well it's the t-mobile tower so yes that's 40 bucks covering you and him okay okay will you do that yes okay sick i can make that 40 and then your parents got to figure themselves out

Gas. Vroom vroom, drive, drive. How much on a monthly basis? And I'm going to tack on 50 because you're commuting to a second job as well. On a monthly basis. Probably like 80. Okay, I'm tacking on 50. Really? 80? Are you sure? I just go to karate. I had 113. Yeah, probably. My car was... I'm going to say 150 after you get the new job. Car insurance. 120.

Oh, boy. Yeah, there is no wiggle room here. Okay, my dad pays for it and then I pay my dad. The 120. My dad pays the insurance and then I pay him. Okay. The 120. Okay. How do groceries work at the house? Well, when I buy some, I... Just explain to me how the groceries work at the house for f***'s sake. My mom buys most of the groceries. So it's a collective? Yeah. Does she ask for any money? No. For them? No.

Would it be okay if you did not provide anything for groceries? Yes. Okay. At all. I don't provide groceries right now. That might be the saving thing. Zero dollars for food.

The fact that I can put it in your budget might make this survivable. $0 for food. $100 is the TP fund. This is makeup, but more priority, anything for him for school. $100. You can put whatever. If karate fits in there, okay. It doesn't. Medical health care, co-pays? I actually owe $91 on my doctor right now. Okay, but do you have ongoing co-pays? No. Put that in the debt. $91 to the doctor.

Once again, fast food is more important. So great. Do you have any pets? I have my dog, but my dad buys him food. Do you have pet insurance? No. And you can't afford pet insurance. He's a savage. He doesn't get sick. Yeah, he's a living fucking creature that you're responsible for. So it's not funny. But I don't know how to put that in your budget. Is there anything else I have to put in your budget? I'm not putting any of those wants.

Or do you have like phone insurance? You're at your new phone, your gas, your car insurance, your TEP fund, which is anything else to survive, and your debt payments. Anything else? Can we survive? Barely. And it's because we don't have groceries. It's still unacceptable. You need $1,728 to survive on a monthly basis. I want you to be able to provide the karate thing for him.

My boyfriend said he would help me. How much? What do you mean help? With the karate. What's help? If I need the payment, he'll help me out. What is help? What? Just help me need a cover so that he splits it. 75. So give me 100 and then I'll pay 86. But you can't afford that. You cannot afford that. Yeah. Like, yeah, that's it. Like, I guess not. Yeah, don't count that in. Here's how I will allow you to afford that extra $80. Okay.

You are going to, at a minimum, bring in an extra $500 a month. Okay. Okay? By working an extra $15 an hour-ish, an extra 10 hours a week somewhere. Okay. You bring that in net, $500 a month, I will allow you to pay that AD whatever for his karate. Okay. Other than that, it's canceled and we have a mature conversation with him as to why.

If you do that, which is no choice, so I'm putting it in your budget, you have $700 left over now. Only if you go bring in that extra $500 and then you can pay for this thing. $700 is left over. $700 we can start making progress for you. It is small to large, it's not including collections. Collections sits on the side. We start freeing up some of these minimum monthly payments by killing the debts.

Wiped out month one. And then we throw everything else at all. Firm is also wiped out. Boom.

Okay. And then we throw everything to the altar card that we can. Then the altar card is taken care of in month number two. We'll call it conservative and say that's the end of month number two. And then from there, capital one, everything's thrown there. And then that's wrapped up by the beginning-ish of month number four. The remainder of month number four, everything gets thrown to the personal loan. And then by the end of month number five, personal loan's paid off. We're in month number six.

I do get a bonus on December. How much? Last year, I got like $800. Cool. Yeah, just add that to this. Month number six. So that will have already happened. So we can wipe off $800 from the PayPal credit, which means from there, you can actually finish the PayPal credit. Now we're in month number seven.

Seven or eight, one of those lost track, but doesn't make too much of a difference. Macy's, now with the extra money we have, we have about $800 we can throw towards it on a monthly basis. We should pay off the Macy's. Oh, sorry, that's in collections. So we're attacking the $3,100 secured loan.

We're paying that off in about five months. We're paying off the other one in about four months after that because the money, we just get to roll into it. So where are we? We're at a year and a half, just about. From there comes the big old car. What I would do, you're only behind on $4,000. Once you're able to qualify for a personal loan or some kind of loan, I would borrow $14,000. Okay. What do you do with this? Great question, Caleb. You...

Use the difference between what you sell your car for and its remainder on the loan, about $4,000, and you pay it off. Then you use $10,000 and you go get yourself a used $10,000 car. That's like a 2017 car. Okay. You get it taken to a mechanic. They approve that it will be safe and that it will last you for a few years to come without you putting substantial money into it. You have to do that. This is all you at this point. But then we only have $15,000 to pay off, which...

At that point, we have about 800 left over and hopefully we're getting pay raises. Let's call it 850 left over at that time a year and a half from now. Okay. 15,000, 14,000 hours. We're just kind of simulating this. So that's going to take about a year and a quarter. So now we're two years and three quarters in. It's a big catch up. I know you're still living at home. Yeah. Or you're fully making your rent. Well, okay.

all this extra money still exists by working a lot more getting a better job again we're setting you up with that education stuff feel free to take advantage of that if you want and then the other collections i think you can negotiate it all down to about two thousand three hundred which i think you should be able to pay off in about three months so we'll call this what did i say where were we two years two years okay three years is

It's done in three years. And then you can get a fully funded emergency fund with whatever your new rent is going to be or 10,000 hours, whichever one is bigger is the one you go with. And that might take about another 10 months or so, but three years, 10 months, let's call it. And you are literally at baseline zero, but that is a good thing because right now you're at baseline negative, you know, get, so it's, so this works. This is a long process. A lot of it because of your income. Again,

Go bring home more than $500 net. You're bringing this down from almost four years. You can cut it down to like three years total. You know, the more money you bring, the better your discipline, the less likely you're to move out.

The more you're able to say no without a fit being thrown to the kiddo, the quicker this all goes. This is going to be a long process and you need to find ways to get yourself motivated. If that means extending this by an additional three months by allowing yourself reward systems for hitting goals, I'm okay with that. I'd rather this go just a little bit longer, not significantly longer.

and still have a higher chance of completing it than going so aggressive for so long. Listen, if it was a year and a half, I would say, don't be a, just go aggressive, go hard. Four years, that is hard to go super aggressive on. So if it takes four years and a quarter, go through it and set yourself a little bonuses along the way. Okay. Whether that's just a little day trip somewhere, going out to eat, taking the fam, you know, whatever it be. Okay.

So that's what I would do. And we'll have you on the follow-up channel as many times as you want all along the process to keep ourselves accountable and situated. But there's a lot of things we can do. Let's get your Hammer Financial score. Then we'll go to the post show. Make sure to join the membership below. Come join us for the post show. An extra 20 minutes for every episode. We dive into extra drama that we didn't have a chance to go into. And stuff that I'm not even aware of. Your Hammer Financial score. Here we go!

Spending in a budget, you overspend 0 out of 10. You have collections, so debt 0 out of 10. Emergency fund, there's nothing 0 out of 10. Retirement, there is something. You're just behind, very behind, about a 2 out of 10. And I round up. The computer probably rounds down, but real estate 0 out of 10. So I'm actually going to round up as the generous person that I am. Hammer financial score 0.5.

out of 10. Make sure to join us for the post show and check out the investing and budgeting program, which are bundled together at a 15% discount. You can change your life today. Make sure to check that out today on the financial audit post show. Why is your boyfriend in Houston? He wasn't, I met him on Tik TOK.

On TikTok? Yeah. Never even heard of this. What is this? Go ahead. Do explain. Well, one day I was on TikTok and I started seeing all these notifications. This random guy just looks at my profile, starts liking all my posts. And I was like... Are you good with a six hour long distance relationship? To watch the financial audit post show, click the join button below.