Chapter 1: What is the main topic discussed in this episode?
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And we'll be talking about your life, your money, career relationships, anything and everything. We are here for you. so let's start off in Boston with Miguel hi welcome to the show hey how's it going we're doing well how can we help today so today I wanted to ask so I have a business and I'm
I'm contemplating on what I should do next because I'm also $147,000 in debt, and that's including credit cards, student loans, and car payment. Okay. So I want to know if I should sell a business for what I think I give value for and then start fresh and use that lump sum of money to attack the debt.
What kind of business are you in?
It's a printing business, so merchandise.
What would cause you to sell the business versus using profit from the business to pay down the debt?
I think it's just because I'll collect a lump sum of money and the business right now is kind of fluctuating. It's up and down. And I'm also alone in it, so it's a lot of my time.
If you didn't have debt, Miguel, would you stay in this business? Or would you still want out?
Yeah. You would stay in? I'll potentially stay in the business, yeah.
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Chapter 2: What financial challenges does Miguel face with his business?
No, I'm single.
You're single. How are you living off of $1,500 a month?
Just making it happen, honestly.
But what's your rent, though? Like, real numbers.
I pay studio. It's about $850. Mm-hmm.
What else? Car?
Car? Yeah, 450.
And then 450.
Okay.
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Chapter 3: Should Miguel sell his business to pay off debt?
Yeah.
And then utilities, I guess that's put in with the rent. And then just you're scrapping on food. No insurance.
Yeah.
Do you have insurance?
Health insurance? My cards, no, no, no, no health insurance.
Yeah, so you're not on a living wage right now. And so while I think it's cool to have a printing business, it eats like a part-time side hustle when we look at the income that it's bringing. So I would be looking, as you're working this, I'd be looking for a full-time job. What are your skills? What have you done in the past before you did this business?
I technically just hopped out of school and then saved money and then started this business.
Yeah. How many hours a week?
I've never really.
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Chapter 4: How does Miguel manage living on $1,500 a month?
She's concerned about how she's going to invest all this money properly and not mess this up. Or she's concerned how she's going to eat tomorrow. That's exactly right. These are the two options.
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I'm hanging in there. Well, good. We are too. How can we help today?
Well, so I got a little bit of a financial problem as well as marriage problem. And It's becoming a strain more so with the marriage because of the financial problem. We recently had gotten married about five years ago. My wife and I have had three kids in the last five years. My youngest kid, he was put in the ICU, and long story short, we have a bunch of medical debt.
It's about $35,000 worth, and I just can't keep up. I just recently, in the last couple years, we've been on Medicaid, but I just recently got a raise working, which is good, but it's like, The more income I come in, the more my wife likes to spend. I'm the saver. I like to say no and get bills paid.
We currently have been taking care of some of the medical bills by credit card, which recently I figured out was a no-no.
Yeah.
So I have seven grand left in medical debt. We have $6,000.
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Chapter 5: What advice do Rachel and Jade give Miguel about his future?
So the total is eight grand.
for the car okay my friend owns it owned it and he told me i can pay him 400 a month okay that's fine i make roughly 850 dollars bi-weekly okay and the part that's getting me is the insurance my insurance for just liability a month because of my age is about 700 and
Having to pay all of that on my own, buying a used car, I also have to pay a title tax because we switched it over to my mother's name. And that's about another $700.
A month? No, just in one time.
Just in one time.
Okay. I was like, what? Okay, keep going.
But I have to get it all done at once, which is kind of the hard part. And I have one or two literal repairs that are going to cost me a total of $350 before I can get a tag done.
What would happen? So you haven't done it yet. You haven't done this deal yet. How are you getting around now?
So I did buy the car. Oh, you did buy it. And I have an operating permit from Georgia without a tag for 30 days. But once that runs out, I'm going to be stuck without a tag and not being able to drive the car until I pay.
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Chapter 6: How much debt did Christopher pay off and in what time frame?
Okay, wonderful. All right, so how much debt have you paid off?
$63,563.
Oh my gosh, to the T. What kind of debt was it?
Mostly, it was actually 50-50, credit card debt and car debt.
Okay, credit cards and cars. How long did it take?
11 months.
Wow, you were pedal to the metal.
Yes, you were.
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Chapter 7: What sacrifices did Christopher make to pay off his debt?
How much were you making during that time?
I went from $72,000 to about $80,000, but with overtime, I'm set to close out about $110,000 this year. Oh, my gosh. I was working a lot. You were kicking it.
Yeah, and living on nothing. You just cut everything.
That was it. Actually, I even sold the car. It was a brand new 2024.
Chapter 8: What advice do Rachel and Jade give about handling debt and finances?
I was a little upside down, so I did the one thing you say is okay with debt. Yeah. Get a loan, pay. Yeah.
And so it's not a myth.
It actually works. It worked out. It was tough. I ended up buying an 05 Lexus for about $6,000. Wow. And then a few months later, someone drove into it on my street.
Oh, shoot. Oh, look at that. That's good looking car. How much were you upside down?
I was upside down about $4,000, $5,000.
You are the poster child or poster man adult of what we teach. I love hearing it.
Oh, thank you. So when that one got hit, I actually got about $8,000 from the insurance company. And I was like, how cheap of a car can I get? So I bought another car for $2,000. Stop it. Put the rest of it towards my credit cards. Stop it. Look at you. That's it right there.
Christopher.
And I said, you know what? That's what I'm driving right now. Let's keep working. And it works.
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