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Sneaky Ways Credit Card Companies Keep You In Debt · She's On The Money

• 0:00
  Speaker 1: Hello.
• 0:01
  Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud yr the Order,
• 0:05
  Speaker 2: Kerney Whoalbury and a waddery woman. And before we get
• 0:09
  Speaker 2: started on She's on the Money podcast, I would like
• 0:11
  Speaker 2: to acknowledge the traditional custodians of the land of which
• 0:14
  Speaker 2: this podcast is recorded on a wondery country, acknowledging the elders,
• 0:19
  Speaker 2: the ancestors and the next generation coming through as this
• 0:23
  Speaker 2: podcast is about connecting, empowering, knowledge sharing and the storytelling
• 0:28
  Speaker 2: of you to make a difference for today and lasting
• 0:31
  Speaker 2: impact for tomorrow.
• 0:33
  Speaker 1: Let's get into it. She's on the Money, She's on
• 0:37
  Speaker 1: the Money.
• 0:57
  Speaker 3: Hello and welcome.
• 0:58
  Speaker 4: She's on the Money the pod cast millennials who want
• 1:01
  Speaker 4: financial freedom. My name is beck Syed and today we
• 1:04
  Speaker 4: have Victoria Divine.
• 1:07
  Speaker 1: Hello, thank you for having me on your show, Becksire,
• 1:10
  Speaker 1: thank you so much for being here today.
• 1:12
  Speaker 4: What I really want to talk about vee with you
• 1:14
  Speaker 4: as my guest for just one episode only, is debt.
• 1:19
  Speaker 1: So I hate debt, love talking about it though, So
• 1:22
  Speaker 1: this is the perfect show for me.
• 1:24
  Speaker 3: I think we're gonna have a bit of fun this episode.
• 1:26
  Speaker 1: I'm ready. I'm ready.
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  Speaker 4: So v did you know that according to Finder dot Com,
• 1:30
  Speaker 4: there are thirteen million, three hundred and fifty six thousand,
• 1:34
  Speaker 4: two hundred and ninety one credit cards in Australia as
• 1:37
  Speaker 4: of April twenty twenty three, netting a national debt accruing
• 1:42
  Speaker 4: interest of eighteen point.
• 1:44
  Speaker 3: Six billion dollars. That's hectic, vile.
• 1:48
  Speaker 4: Oh my god, that's hectic.
• 1:51
  Speaker 1: I mean, it doesn't surprise me at all. Let's be
• 1:53
  Speaker 1: brutally honest. I also think let's just preface this episode
• 1:57
  Speaker 1: before we get any deeper. Are we here beck to
• 2:00
  Speaker 1: crucify credit cards? No, absolutely not. I think it's so
• 2:04
  Speaker 1: important that we preface it upfront. I'm not here to
• 2:07
  Speaker 1: crucify you. If you use credit card, we do need
• 2:09
  Speaker 1: to be educated about it though, and we do need
• 2:11
  Speaker 1: to use them in an educated way that helps us
• 2:15
  Speaker 1: along our financial journey. But I think that right now,
• 2:18
  Speaker 1: if you're listening to this and you're like, oh, oh,
• 2:21
  Speaker 1: they're gonna absolutely slam me. I've really been struggling at
• 2:24
  Speaker 1: the moment. I've put a few things on my credit
• 2:27
  Speaker 1: card because I had to. Girl.
• 2:30
  Speaker 3: That's all right, that's so fine.
• 2:31
  Speaker 1: You're doing the best thing that you can with the
• 2:33
  Speaker 1: tools and resources you have, and I'm proud of.
• 2:35
  Speaker 3: You exactly right.
• 2:36
  Speaker 1: However, we do need to talk about it so that
• 2:39
  Speaker 1: at some point you can become completely debt free and
• 2:42
  Speaker 1: that you don't rely on a credit card to make
• 2:44
  Speaker 1: finance decisions, because ultimately a credit card can be a
• 2:49
  Speaker 1: really slippery slope. And Beck, you've spoken publicly before about
• 2:52
  Speaker 1: how credit cards were a really slippery slope for you. Yes,
• 2:55
  Speaker 1: I know that the situation you were in was a
• 2:57
  Speaker 1: bit more of a you had because you needed to
• 3:01
  Speaker 1: have debt situation. Yes, but did you find that you
• 3:04
  Speaker 1: were a bit, I don't know, tap happy anyway, knowing
• 3:07
  Speaker 1: that it technically wasn't your money.
• 3:09
  Speaker 3: I think so.
• 3:10
  Speaker 4: And obviously, you know, I was really really young. I
• 3:12
  Speaker 4: think I was like eighteen or even just say, just
• 3:15
  Speaker 4: a tiny baby when I got my first credit card.
• 3:16
  Speaker 4: So for me, thinking like, I had never really been
• 3:20
  Speaker 4: in a position where I could just go out and
• 3:22
  Speaker 4: buy myself shoes or go out and buy nice things.
• 3:24
  Speaker 4: And here I have a bunch of money that I
• 3:27
  Speaker 4: have to pay off eventually, but I.
• 3:29
  Speaker 1: Don't feel that precent time.
• 3:31
  Speaker 4: It just took over at that point, so I think, yeah,
• 3:35
  Speaker 4: I just was not in any position and I probably
• 3:37
  Speaker 4: was a bit tap happy.
• 3:38
  Speaker 1: Yeah, And I think it's important to note that I've
• 3:41
  Speaker 1: also been in that situation. Like I had a credit card,
• 3:43
  Speaker 1: I got into forty four thousand dollars worth of personal debt,
• 3:46
  Speaker 1: and none of that beck was stuff I needed, right,
• 3:49
  Speaker 1: it was a car, it was for university. I did
• 3:52
  Speaker 1: travel overseas for a few months and study abroad. Sure,
• 3:55
  Speaker 1: I'm very very well trapped a culture, nothing except a
• 4:01
  Speaker 1: whole heap about French wine and how to order a
• 4:04
  Speaker 1: Panachekla every single morning with my latte, and I regret nothing. Honestly.
• 4:10
  Speaker 3: I think it's kind of really neat created.
• 4:12
  Speaker 1: Me into who I am today, and we can't be
• 4:15
  Speaker 1: mad at that, but I think it's really important to
• 4:19
  Speaker 1: talk about. I guess how it's not that surprising that
• 4:23
  Speaker 1: credit cards and the credit card companies that own those
• 4:27
  Speaker 1: credit cards, they spend millions every year back on researching
• 4:31
  Speaker 1: ways to keep you in debt. I mean, they don't
• 4:33
  Speaker 1: call it that. They call it marketing, and they call
• 4:36
  Speaker 1: it customer retention, and they call it six million other things.
• 4:40
  Speaker 1: But essentially they're doing a whole heap of research back
• 4:43
  Speaker 1: to keep you in debt, to make you feel comfortable
• 4:47
  Speaker 1: with tapping a credit card instead of spending cash. And
• 4:50
  Speaker 1: there's lots of different perks and ways that they do that.
• 4:53
  Speaker 1: And you know what, there are going to be a
• 4:55
  Speaker 1: lot of people in our community who do it really smartly,
• 4:59
  Speaker 1: like points hacking. M so many people do that and
• 5:03
  Speaker 1: I'm just like, this is genius you're tacking. Yeah, absolutely so.
• 5:07
  Speaker 1: Glennie James, our mate over on my Millennial Money. Sure,
• 5:11
  Speaker 1: he's spoken very openly and also in text messages with me,
• 5:15
  Speaker 1: which I don't know, sorry Glennie if I'm exposing you
• 5:18
  Speaker 1: a little bit too much, But he always uses points
• 5:20
  Speaker 1: to travel and like upgrade himself to business class. Right.
• 5:23
  Speaker 1: One of my team members Brook honestly at Points Queen, Like,
• 5:27
  Speaker 1: I've never met anyone who is smarter about it. I'm
• 5:30
  Speaker 1: not that smart. I will just copy her, but she
• 5:33
  Speaker 1: just cycles through different credit cards to get the sign
• 5:36
  Speaker 1: on bonuses, to get the points organized and lined up
• 5:40
  Speaker 1: so that she's getting free travel. That is so clever, right,
• 5:44
  Speaker 1: But these people are very good with money, ye, So
• 5:48
  Speaker 1: they're not using it to kind of tap happy on
• 5:50
  Speaker 1: things that they don't need to spend on. They're actually
• 5:53
  Speaker 1: doing it in a way that I don't think I
• 5:55
  Speaker 1: could trust myself to do Sure, I do technically have
• 5:58
  Speaker 1: a credit card for business because I'm kind of like, well,
• 6:00
  Speaker 1: why aren't we making points on all of these business expenses? Because, Beck,
• 6:04
  Speaker 1: you're so expensive with git, I've got I've got bills
• 6:09
  Speaker 1: to pay, bills pay, I've got a fancy palette.
• 6:11
  Speaker 3: Sorry, what can I say?
• 6:12
  Speaker 1: Yeah, it's not your fault, Like, I respect it, but
• 6:15
  Speaker 1: I think it's really important to talk about I guess
• 6:18
  Speaker 1: social life pressures and things that push us towards consumer debt.
• 6:22
  Speaker 1: And while some people might be listening to this and
• 6:24
  Speaker 1: they're like, they're really helpful, you can use them constructively. Babe,
• 6:29
  Speaker 1: I have ADHD. Give me a credit card, I will
• 6:31
  Speaker 1: ruin my life again, and I'll have fun.
• 6:33
  Speaker 3: Doing it world record time.
• 6:35
  Speaker 1: I will regret it, but oh my gosh, it's like
• 6:37
  Speaker 1: a spending s free if you gave me a personal
• 6:39
  Speaker 1: credit card. Yeah, I'm done.
• 6:40
  Speaker 3: It's over.
• 6:41
  Speaker 1: I'm done. It's Do you know why I created our
• 6:44
  Speaker 1: budget and cash Flow Muster class Because I couldn't control
• 6:46
  Speaker 1: myself right, So it wasn't for you, Beck, I didn't
• 6:49
  Speaker 1: create it for the community because I'm just so kind
• 6:52
  Speaker 1: and generous. I created it because I was useless, right,
• 6:56
  Speaker 1: and then I realized it worked really well and I
• 6:58
  Speaker 1: was like, I could probably share this with themmunity and
• 7:00
  Speaker 1: help them too.
• 7:01
  Speaker 4: Now that's nice.
• 7:02
  Speaker 1: Do you know like more than five thousand people who
• 7:04
  Speaker 1: have now done that?
• 7:04
  Speaker 3: Course, Wow, big dog energy, You've saved a lot of
• 7:07
  Speaker 3: lives potentially.
• 7:08
  Speaker 1: But there are still more than thirteen million credit cards
• 7:11
  Speaker 1: in Australia, so we've got a lot of work to do.
• 7:14
  Speaker 4: We're just really hitting the surface or whatever that's saying
• 7:17
  Speaker 4: is yeah.
• 7:18
  Speaker 1: Yeah, scraping theraping the surface.
• 7:20
  Speaker 3: How can I get that?
• 7:21
  Speaker 1: I like that? But today I guess that's why we're
• 7:24
  Speaker 1: talking about credit cards, and we want to break down
• 7:26
  Speaker 1: the sneaky, sneaky ways that credit card companies want to
• 7:30
  Speaker 1: keep you in debt and keep trying to keep you
• 7:32
  Speaker 1: in debt, and then we're going to tell you what
• 7:34
  Speaker 1: you can do to kind of break out of that cycle.
• 7:36
  Speaker 1: Because Beck, look at us, we both have broken out
• 7:39
  Speaker 1: of the credit cards, so we have so are we
• 7:41
  Speaker 1: not the best people to learn from?
• 7:43
  Speaker 3: Absolutely?
• 7:45
  Speaker 4: I'm really excited about this. So V let's talk about
• 7:47
  Speaker 4: the sneaky tactics of what you might say the trap tap, trap,
• 7:51
  Speaker 4: let's start off with excessive interest rates.
• 7:53
  Speaker 1: Yeah, stunning place to stuff. So we already know that
• 7:57
  Speaker 1: there's very high interest rates on credit cards and then
• 8:00
  Speaker 1: not very sexy these interest rates at the very start.
• 8:04
  Speaker 1: I feel like nobody gets a credit card with the
• 8:06
  Speaker 1: intention of ever paying the interest rate. Right, So, like,
• 8:09
  Speaker 1: if you get a credit card, your interest rate might
• 8:12
  Speaker 1: be anything from fourteen to like, let's say twenty three
• 8:15
  Speaker 1: percent on average. No one looks at that and says, oh, yeah,
• 8:19
  Speaker 1: I'm happy to pay twenty three percent more for my
• 8:22
  Speaker 1: goods and services.
• 8:23
  Speaker 4: Right.
• 8:23
  Speaker 1: You don't say that. You say I'll pay it off
• 8:25
  Speaker 1: in time, It'll be absolutely fine. But at the end
• 8:28
  Speaker 1: of the day, your expenses they accumulate really quickly, especially
• 8:32
  Speaker 1: if you're carrying balances from months to month, because you know,
• 8:36
  Speaker 1: maybe a car service popped up, maybe something else popped up,
• 8:38
  Speaker 1: and you couldn't pay off your credit card. And I
• 8:40
  Speaker 1: feel like the compounding interest can actually make debt repayment
• 8:45
  Speaker 1: even harder, and a big chunk of your monthly payment
• 8:48
  Speaker 1: actually goes towards interest charges than reducing that principal amount
• 8:52
  Speaker 1: or the amount you actually owe. So from my perspective,
• 8:56
  Speaker 1: the best thing that you can do is each and
• 8:58
  Speaker 1: every single month. If you have a credit card, pay
• 9:01
  Speaker 1: it off in full and get rid of it. And
• 9:03
  Speaker 1: if you can't pay it off in full, do not
• 9:05
  Speaker 1: add to it until it's completely gone. Don't use it again. Yeah,
• 9:09
  Speaker 1: So I feel like this is a trap that so
• 9:11
  Speaker 1: many of us run into. And we always talk about
• 9:15
  Speaker 1: how sexy compound interest is, right, Like Einstein called it
• 9:18
  Speaker 1: the eighth wonder of the world, and if I could
• 9:20
  Speaker 1: come up with a better catchphrase, I would use my own,
• 9:23
  Speaker 1: but Einstein, thank you for the I guess borrow. But
• 9:26
  Speaker 1: compound interests is sexy, right, because I've spoken to you
• 9:29
  Speaker 1: about it before. We've done a whole heap of investment
• 9:32
  Speaker 1: podcasts where I teach you exactly what compound interest does
• 9:36
  Speaker 1: to create wealth, essentially because of the Rule of seventy two,
• 9:39
  Speaker 1: which maybe one day I'll do an entire podcast on
• 9:41
  Speaker 1: because it's a very interesting finance concept. The rule of
• 9:44
  Speaker 1: seventy two tells us that on average, every seven to
• 9:47
  Speaker 1: ten years, money doubles. Right, So if you invested one
• 9:51
  Speaker 1: thousand dollars ten years from now, it's worth two thousand dollars.
• 9:55
  Speaker 1: And this is how we create wealth. It's how wealth
• 9:58
  Speaker 1: compounding works. Thing happens in the credit card world. You
• 10:02
  Speaker 1: just flip that chart upside down and instead of getting
• 10:06
  Speaker 1: out of debt, you're getting in more and more debt
• 10:08
  Speaker 1: the longer you have that credit card, and it can
• 10:11
  Speaker 1: compound out of control. Yes, and ultimately, let's be honest,
• 10:15
  Speaker 1: lots of people only pay the minimum amount exactly V.
• 10:19
  Speaker 4: So that's actually what we're going to talk about next.
• 10:21
  Speaker 4: So the minimum payment trap, it is a trap.
• 10:24
  Speaker 3: It is a trap.
• 10:24
  Speaker 1: So you might have begg gotten a few credit card
• 10:28
  Speaker 1: statements in the mail a few times. Yes, what do
• 10:32
  Speaker 1: they say?
• 10:33
  Speaker 4: X amount is due on X jateep.
• 10:35
  Speaker 1: Stunning, But it's the minimum amount of minimum. They never say, hey,
• 10:39
  Speaker 1: here's how much you owe us. In general, it might
• 10:42
  Speaker 1: be two thousand dollars. They don't say, hey, you need
• 10:44
  Speaker 1: to pay that off in order to not incur any interest. Yes,
• 10:48
  Speaker 1: they say fifty two dollars please. Do you know I
• 10:50
  Speaker 1: know that number was my minimum date repayment waigh that
• 10:53
  Speaker 1: quen or my credit card? Fifty two dollars is burnt
• 10:56
  Speaker 1: into my brain and I just remember being like, fi
• 10:59
  Speaker 1: dollars isn't that bad? Yeah, money I've spent this month
• 11:02
  Speaker 1: it's pretty good, pretty sexy. That's all they care about,
• 11:04
  Speaker 1: no worries. If I'd extrapolated that out, which obviously I
• 11:08
  Speaker 1: have before, it would have taken me forty six years
• 11:10
  Speaker 1: to pay off that.
• 11:11
  Speaker 3: Oh oh my god, right, hectic.
• 11:14
  Speaker 1: Right, yeah, way back when I was practicing as a
• 11:17
  Speaker 1: financial advisor. This would be like maybe twenty nineteen. I reckon.
• 11:21
  Speaker 1: I saw a client. They came in before I had
• 11:23
  Speaker 1: a podcast, and they were in my Facebook group, and
• 11:26
  Speaker 1: they were really really stressed. If this is you still
• 11:28
  Speaker 1: love you, please, like, don't worry at all. They came
• 11:32
  Speaker 1: in and they had twelve maxed out credit cards, a
• 11:35
  Speaker 1: personal loan, and a mortgage. Put that to the side,
• 11:38
  Speaker 1: but of their personal debt, they had one hundred and
• 11:40
  Speaker 1: sixty five thousand dollars worth of credit card debt. God,
• 11:43
  Speaker 1: and I remember being like, how did you get here?
• 11:46
  Speaker 1: The answer to the way they got their ears by
• 11:49
  Speaker 1: lying essentially to the credit card companies. She'll say, no,
• 11:52
  Speaker 1: I don't have any other credit cards, like it's all good,
• 11:55
  Speaker 1: it's all good. And because they'd had them for a
• 11:56
  Speaker 1: number of years, they actually had those credit cards prior
• 11:59
  Speaker 1: to the Royal commissions. So like lending wasn't as tight
• 12:03
  Speaker 1: as it is now, so there are a lot more
• 12:05
  Speaker 1: things in place to keep you safe and keep you
• 12:08
  Speaker 1: out of debt. So actually, I really doubt that in
• 12:12
  Speaker 1: twenty twenty three you could achieve the same debt levels
• 12:15
  Speaker 1: on a personal level.
• 12:17
  Speaker 3: Sure, And I.
• 12:17
  Speaker 1: Extrapolated out how long if you only paid the minimal
• 12:20
  Speaker 1: repayments on all of their debt, it would take like
• 12:23
  Speaker 1: one hundred and seventy years to get out. Oh my god,
• 12:26
  Speaker 1: isn't that insane? Yeah, because it's the interest rate on it,
• 12:29
  Speaker 1: Like it blew my mind. And obviously we went down
• 12:33
  Speaker 1: the path of declaring bankruptcy and you know, putting in
• 12:36
  Speaker 1: the best possible position, and like they're doing well, they're
• 12:38
  Speaker 1: thriving now, but it's one of those things where you
• 12:41
  Speaker 1: just don't realize how much it compounds. And this idea
• 12:45
  Speaker 1: of the minimum payment trap totally exists, and they look
• 12:49
  Speaker 1: like they're doing you a favor to be like, oh,
• 12:51
  Speaker 1: it's only fifty two bucks, and you go, oh, when
• 12:53
  Speaker 1: I open this bill, I thought it would be so
• 12:55
  Speaker 1: much more. Yeah, no, that's so that you pay them
• 12:58
  Speaker 1: interest in these companies still make a massive profit and
• 13:02
  Speaker 1: you actually aren't being put first it's a super clever
• 13:05
  Speaker 1: ployee to keep you in debt, and they're not actually
• 13:09
  Speaker 1: helping you in any way, shape or form. And it
• 13:11
  Speaker 1: essentially just means that these interest charges accrue over time.
• 13:13
  Speaker 1: And in the same way compound interest works in a
• 13:16
  Speaker 1: very sexy investment way. It's a very unsexy thing that
• 13:19
  Speaker 1: it does when applied to a credit card.
• 13:21
  Speaker 3: That is so sneaky, so icky. How do we fight that?
• 13:24
  Speaker 1: I feel like it's a privilege to say, pay off
• 13:26
  Speaker 1: your entire credit card. Sure, so nice if you can,
• 13:29
  Speaker 1: but pay more than the minimum, Like, what can you
• 13:32
  Speaker 1: afford to pay off your credit card this month? Genuinely so? Like,
• 13:36
  Speaker 1: if the minimum is fifty two dollars, maybe you've got
• 13:39
  Speaker 1: one hundred and fifty that you could put on credit.
• 13:41
  Speaker 1: Sure do that, please do that. You might have a
• 13:44
  Speaker 1: couple of thousand owing, but I promise that decision will
• 13:47
  Speaker 1: put you miles ahead in terms of getting out of
• 13:50
  Speaker 1: debt and staying out of debt. And it's also just
• 13:52
  Speaker 1: really good money habits to be paying off more than
• 13:55
  Speaker 1: you necessarily need to, because minimum repayments on a credit
• 13:59
  Speaker 1: card not sexy at all.
• 14:00
  Speaker 4: That's a really good point and I think that yeah,
• 14:02
  Speaker 4: if you can do. If not, don't stress because we
• 14:05
  Speaker 4: are here to give you more pointers. And next up
• 14:08
  Speaker 4: what we have is hidden fees and fine print. Very sexy,
• 14:12
  Speaker 4: very sexy.
• 14:13
  Speaker 1: Do you know what the biggest lie in the entire
• 14:15
  Speaker 1: world is?
• 14:15
  Speaker 4: What is it?
• 14:16
  Speaker 1: I reckon? It's when you scroll through any terms and
• 14:19
  Speaker 1: conditions and then you tick that box that says, I
• 14:22
  Speaker 1: acknowledge that I have read all of the terms and
• 14:24
  Speaker 1: conditions and I consent to them. Right. Have you ever
• 14:27
  Speaker 1: read your phone's terms and conditions? Never in my entire life,
• 14:31
  Speaker 1: but you consent it to them? Right?
• 14:32
  Speaker 3: True?
• 14:33
  Speaker 1: And then we all act so offended when we're like,
• 14:36
  Speaker 1: what do you mean they can spy on us? It
• 14:39
  Speaker 1: was in the terms and conditions, like it was clearly
• 14:41
  Speaker 1: articulated to you, but you didn't read it. I was
• 14:44
  Speaker 1: never told, no, you didn't read it when you got
• 14:46
  Speaker 1: the opportunity to same thing with credit cards. Right, they're
• 14:50
  Speaker 1: not spying on us. This isn't some kind of government
• 14:53
  Speaker 1: propaganda stuff. But so many of us are just scrolling
• 14:57
  Speaker 1: through the t's and ceas and not actually, I guess,
• 15:00
  Speaker 1: understanding how they impact us, and essentially credit card companies,
• 15:05
  Speaker 1: which I'm obviously not going to earn a sponsorship for
• 15:07
  Speaker 1: this because I'm throwing credit card companies straight under the bus.
• 15:11
  Speaker 1: Beck But yes, what I'm driving you so it's all good, Yeah,
• 15:14
  Speaker 1: straight up and over. I'm gonna accelerate because I don't
• 15:17
  Speaker 1: want to work with credit card companies because they don't
• 15:19
  Speaker 1: think that they put you in the best possible position.
• 15:22
  Speaker 1: So credit card companies essentially bury additional fees and charges
• 15:25
  Speaker 1: like the annual credit card fee, or late payment fees
• 15:29
  Speaker 1: or balance transfer fees. They put it in complex language
• 15:33
  Speaker 1: into your terms and conditions, so essentially you'll pay them
• 15:36
  Speaker 1: more money and you just go, oh, it's fine, I
• 15:38
  Speaker 1: won't do a balance transfer. You probably will if you
• 15:41
  Speaker 1: rack up some debt. What do you mean annual fee?
• 15:44
  Speaker 1: That's fine, it's worth it for all the bells and
• 15:45
  Speaker 1: whistles you get. No, it's not.
• 15:48
  Speaker 4: No.
• 15:49
  Speaker 1: Why are we paying five hundred bucks sometimes to get
• 15:51
  Speaker 1: a credit card? You're paying for the privilege to pay
• 15:55
  Speaker 1: them interest? Absolutely not. So I think when we're looking
• 15:59
  Speaker 1: at getting a credit card, if you need one for
• 16:02
  Speaker 1: any reason, we need to really weigh up what are
• 16:05
  Speaker 1: these additional fees? How do they benefit me? Because paying
• 16:08
  Speaker 1: a fee on a credit card can sometimes actually be beneficial.
• 16:12
  Speaker 1: So I'm not a credit card sales rep at all.
• 16:14
  Speaker 1: But as I said, I've got a business credit card,
• 16:17
  Speaker 1: and I ultimately chose one that has an annual fee.
• 16:20
  Speaker 1: And I did that because I get a number of
• 16:22
  Speaker 1: benefits that I wouldn't have gotten on a normal credit
• 16:25
  Speaker 1: card that I think serve my business. So you guys know,
• 16:28
  Speaker 1: I travel all the time for work, and I often
• 16:31
  Speaker 1: take my team. If I book on my credit card,
• 16:34
  Speaker 1: lounge access for me and.
• 16:35
  Speaker 3: My team beautiful.
• 16:36
  Speaker 1: Isn't that nice? I'm happy to pay for that privilege.
• 16:39
  Speaker 1: Travel insurance can be really helpful. I don't believe the
• 16:43
  Speaker 1: credit card companies have comprehensive enough travel insurance for you
• 16:48
  Speaker 1: to actually lean on it one hundred percent. We've talked
• 16:50
  Speaker 1: about this before. I always get a standalone policy, but
• 16:54
  Speaker 1: I kind of lack the idea that there would be
• 16:55
  Speaker 1: some additional buffer or some backup if I do lose something,
• 16:59
  Speaker 1: because often when I'm paying for my travel insurance, Beck
• 17:03
  Speaker 1: you've heard me rant about this before, my priority is
• 17:06
  Speaker 1: actually my physical health. So like, if something happens to
• 17:09
  Speaker 1: me overseas, I want to know that I can get home.
• 17:11
  Speaker 1: I'm not really caring too much about my luggage or
• 17:14
  Speaker 1: things in that luggage and what their value is. And
• 17:17
  Speaker 1: I find that that's where my credit card policy tops
• 17:20
  Speaker 1: it up, because they might say up to ten thousand
• 17:22
  Speaker 1: dollars worth of XYZ, and I go, yeah, all right,
• 17:25
  Speaker 1: that's nice to have because then I can focus on
• 17:27
  Speaker 1: my physical health for my insurance policy that I take
• 17:31
  Speaker 1: out for travel. It's one of those things where you
• 17:33
  Speaker 1: just really need to look into one whether they benefit
• 17:37
  Speaker 1: you or not. But they are taking advantage of your
• 17:40
  Speaker 1: lack of awareness of these things, and they're just genuinely
• 17:43
  Speaker 1: taking advantage of the fact that they're going to increase
• 17:47
  Speaker 1: their revenue through fees that you didn't really know about.
• 17:49
  Speaker 1: And you know what they do. They just whack them
• 17:51
  Speaker 1: on your credit card. They don't like message you and
• 17:53
  Speaker 1: say this bill's you. They just add it to your
• 17:55
  Speaker 1: credit card. So at the end of the month, she's
• 17:58
  Speaker 1: just got an extra four fitty you know, of course,
• 18:01
  Speaker 1: so rude.
• 18:02
  Speaker 3: I know it is very rude.
• 18:03
  Speaker 4: I think let's go to a really quick break and
• 18:06
  Speaker 4: when we come back, we're going to be telling you
• 18:08
  Speaker 4: about all the other little ploison tactics.
• 18:11
  Speaker 1: Got Wait, let me add it.
• 18:18
  Speaker 4: Okay, V we are back hot, And I don't know
• 18:20
  Speaker 4: if you're filled with rage, but I'm almost rage, always
• 18:25
  Speaker 4: filled with rage, raging feminist over here. We are talking
• 18:29
  Speaker 4: about the little tactics, tips and tricks that credit card
• 18:33
  Speaker 4: companies use against us to keep us trapped in this
• 18:37
  Speaker 4: endless cycle of debt.
• 18:38
  Speaker 1: Doesn't have to be endlessly, it doesn't have to be endless.
• 18:41
  Speaker 1: We can get out of it.
• 18:41
  Speaker 3: We can get out of it, so hot.
• 18:43
  Speaker 4: Next one I want to talk about is the reward programs.
• 18:47
  Speaker 3: It sounds exciting.
• 18:48
  Speaker 1: Yeah they are. They're very enticing little programs that credit
• 18:52
  Speaker 1: card companies put together, like they might have like enticing stuff.
• 18:55
  Speaker 1: You know what, sexy cash back, They're going to use that.
• 18:58
  Speaker 1: Do you know what else is sexy free flats?
• 19:01
  Speaker 4: Oh?
• 19:01
  Speaker 1: I love, They're going to use that. They're going to
• 19:03
  Speaker 1: use it. They're going to tell you that you can
• 19:04
  Speaker 1: get it. I told you before. Lounge access they got
• 19:08
  Speaker 1: me on that one. God, so discounts on other things
• 19:13
  Speaker 1: that you might want to purchase, Like they might give
• 19:15
  Speaker 1: you discounts on like insurance or like tickets to shows
• 19:18
  Speaker 1: or something. We've talked about all of these before. Yeah,
• 19:22
  Speaker 1: I can't be trusted with them, because I literally just
• 19:24
  Speaker 1: told you that one of the reasons why I picked
• 19:27
  Speaker 1: my business credit card, lounge access, yeah, insurance. I'm like, yeah,
• 19:31
  Speaker 1: give me those reward perks. They are worth it to me,
• 19:34
  Speaker 1: but I do know that they are worth it, so
• 19:37
  Speaker 1: not in general worth it, but after I assessed the
• 19:40
  Speaker 1: circumstances for my business and for myself, it made sense.
• 19:45
  Speaker 1: We're not saying they're going to make sense for you, Beck,
• 19:47
  Speaker 1: but these are shiny little things that they add. So
• 19:49
  Speaker 1: do you want to stay in it with us? You? Yeah,
• 19:51
  Speaker 1: I'd love to.
• 19:52
  Speaker 3: I'd love to stay with you girls.
• 19:54
  Speaker 1: Oh that's so nice.
• 19:55
  Speaker 3: If you don't, are only what I want.
• 19:57
  Speaker 1: I know I love you. So they programs are essentially
• 20:01
  Speaker 1: often designed to encourage spending that you weren't planning for
• 20:05
  Speaker 1: and to get you really dependent on your credit cards.
• 20:08
  Speaker 1: It's like a little abusive relationship. How nice. They're like,
• 20:11
  Speaker 1: you need us, and I'm like, yeah, I do. So
• 20:16
  Speaker 1: you might overspend to reach different reward thresholds. So like
• 20:20
  Speaker 1: you might go, oh, well, if I do this amount
• 20:22
  Speaker 1: of spending in the first three months, I'm gonna get
• 20:24
  Speaker 1: those bonus points.
• 20:26
  Speaker 3: That's enticing.
• 20:27
  Speaker 1: I would never have spent three thousand dollars normally, but
• 20:29
  Speaker 1: I really need those bonus points totally. Please come at me,
• 20:34
  Speaker 1: really sexy. I just really want to stay in debt
• 20:36
  Speaker 1: now because I want all of those rewards and benefits.
• 20:39
  Speaker 1: Why do you think they've got them their peck, Let's
• 20:42
  Speaker 1: think about the market. You're not going I really love Beck.
• 20:45
  Speaker 1: I wish that she had some travel insurance though when
• 20:47
  Speaker 1: she traveled. They really care, they really care about keeping
• 20:51
  Speaker 1: you in debt. Yes, like they're like, let's keep Beck
• 20:54
  Speaker 1: as a customer. They don't have a team called the
• 20:57
  Speaker 1: keep people in debt team. Sure, they do have the
• 21:00
  Speaker 1: customer Attention team, which is essentially the same thing. So
• 21:03
  Speaker 1: just to remember that all of these things are ultimately
• 21:06
  Speaker 1: designed by credit card companies to keep you in debt,
• 21:10
  Speaker 1: and usually they win. Gosh, so rude, so rude.
• 21:14
  Speaker 4: So this is coming at a funny time because I
• 21:17
  Speaker 4: feel like we are getting more aggressive than we are aggressive.
• 21:20
  Speaker 4: Let's talk about aggressive marketing tactics.
• 21:22
  Speaker 1: Yeah, I love an aggressive marketing tactic. I've never employed
• 21:26
  Speaker 1: one myself because they just don't think it suits my personality.
• 21:29
  Speaker 3: Maybe it does. You need to get financially leacher it honestly,
• 21:33
  Speaker 3: i'd listened to you.
• 21:34
  Speaker 1: Yeah, I think you already do though, So let's just
• 21:37
  Speaker 1: and that doesn't count. Absolutely not even just saying that
• 21:39
  Speaker 1: makes me feel a little bit ill. But essentially, credit
• 21:42
  Speaker 1: card companies they invest heavily into their marketing strategies to
• 21:46
  Speaker 1: attract new customers because the return on investment it's worth it, right,
• 21:50
  Speaker 1: They are not going to invest in things that aren't
• 21:52
  Speaker 1: worth it because credit cards have existed for many, many
• 21:56
  Speaker 1: a year now exactly, so they've had heaps of time
• 21:59
  Speaker 1: to go. If we invest this amount of marketing money
• 22:02
  Speaker 1: into this area, we're probably going to see an ROI
• 22:05
  Speaker 1: or a return on investment of xys, right, so they're
• 22:09
  Speaker 1: going to keep doing it.
• 22:10
  Speaker 4: Of course, are the ones that kind of meet cold
• 22:13
  Speaker 4: calls or like stand in the maybe middle of the
• 22:15
  Speaker 4: shopping center and us Yeah, it could.
• 22:17
  Speaker 1: Be an advertisement on Telly. I know, the banner ads
• 22:21
  Speaker 1: that you see while driving your car, the billboards, see anything,
• 22:25
  Speaker 1: and you know what all of those things play into
• 22:28
  Speaker 1: human psychology. Like have you ever seen someone holding a
• 22:31
  Speaker 1: credit card with like no emotion on their face and
• 22:34
  Speaker 1: they're trying to sell it? Absolutely not, No, they look
• 22:37
  Speaker 1: so happy they'll be holding their credit card, and they're like,
• 22:40
  Speaker 1: look how happy I am with this credit card.
• 22:43
  Speaker 3: I believe them every time because you.
• 22:45
  Speaker 1: Go, I'm not happy, but I could be.
• 22:46
  Speaker 3: I could be really happy. Yep, yep, yep. Absolutely.
• 22:49
  Speaker 1: I get sold the dream all the time. Do you
• 22:52
  Speaker 1: know how by going to my local cafe every morning? Right,
• 22:55
  Speaker 1: So there's like the line out the front of all
• 22:57
  Speaker 1: the depressed people, and then there's these people walking out
• 23:00
  Speaker 1: smiles on their face, holding their fresh cup of Joe Joe,
• 23:03
  Speaker 1: and I'm like, I'm going to be like them. Yeah,
• 23:05
  Speaker 1: so I get my coffee. That's how your property back.
• 23:10
  Speaker 3: That's very true.
• 23:11
  Speaker 4: I'm joking if you just stopped drinking coffee.
• 23:14
  Speaker 1: I'm joking. But did you see that that new app recently,
• 23:17
  Speaker 1: Threads has come out.
• 23:18
  Speaker 3: Yeah?
• 23:18
  Speaker 1: I love thread I am obsessed with Threads. Do I
• 23:21
  Speaker 1: would follow you because I automatically follow everybody that I follow.
• 23:24
  Speaker 1: But it's where I came to thrive. Like you know,
• 23:27
  Speaker 1: if you thought I was okay at Instagram, I'm not.
• 23:30
  Speaker 1: I'm killing it at Threads.
• 23:32
  Speaker 3: The Threads is your plate.
• 23:33
  Speaker 1: It's my place to shine because I can rely on
• 23:36
  Speaker 1: being a sassy little s h one t as opposed
• 23:40
  Speaker 1: to like looking hot, which does not work for me.
• 23:44
  Speaker 1: I was not born to be an influencer.
• 23:46
  Speaker 4: I was born to be a pest, and a pest
• 23:49
  Speaker 4: I will continue to be. I'm so happy they made
• 23:52
  Speaker 4: threads just for this reason.
• 23:53
  Speaker 1: It was just for me.
• 23:54
  Speaker 3: Now you can be as much of a pest as
• 23:56
  Speaker 3: you want.
• 23:57
  Speaker 1: I am. Anyway, I put up a thread the other day,
• 24:00
  Speaker 1: got a lot of attention because I was like, you
• 24:01
  Speaker 1: can have your coffee as a little treaty treat because
• 24:03
  Speaker 1: we're still not going to be able to afford property. Bye.
• 24:06
  Speaker 4: Really made me feel comforted to be honest with you,
• 24:08
  Speaker 4: because I'm like, okay.
• 24:09
  Speaker 1: Well I did the maths and I was like, look,
• 24:11
  Speaker 1: it's like fourteen hundred bucks a year if you had
• 24:13
  Speaker 1: a coffee every morning, which is you know, fourteen hundred
• 24:17
  Speaker 1: bucks is a lot, but like that's not going to
• 24:19
  Speaker 1: get you closer to owning your own home. So have
• 24:21
  Speaker 1: your coffee. Be a little bit happy, save in a
• 24:24
  Speaker 1: different way. Yes, so true, so sad. Anyway, they really
• 24:27
  Speaker 1: helped you. Those aggressive marketing tactics. Maybe they should employ
• 24:31
  Speaker 1: me because I'm like really good at them. But essentially
• 24:34
  Speaker 1: they are trying to entice you in with ads and
• 24:37
  Speaker 1: promo offers, and they're essentially, let's be honest, disgustingly, they
• 24:42
  Speaker 1: are targeting vulnerable people who might already be struggling with
• 24:46
  Speaker 1: debt or struggling to pay the bills month to month.
• 24:49
  Speaker 1: Because you know, a credit card could be a very
• 24:52
  Speaker 1: cool tool to you know, take some financial pressure off, right,
• 24:55
  Speaker 1: And that's why we all get credit cards, right, because
• 24:57
  Speaker 1: we need access to funds that are not ours.
• 24:59
  Speaker 3: That is so true.
• 25:01
  Speaker 4: With all of that in mind, let's tell people how
• 25:05
  Speaker 4: they can kind of avoid these and maybe some things
• 25:09
  Speaker 4: to keep in mind when we are faced with these
• 25:11
  Speaker 4: little challenges. I'm going to start off with creating a budget.
• 25:16
  Speaker 4: Should we do something like that?
• 25:19
  Speaker 2: So?
• 25:19
  Speaker 1: A budget underrated tool. It's the most underrated tool of
• 25:22
  Speaker 1: twenty twenty three. No one wants to do a budget
• 25:24
  Speaker 1: because budget feels like it's restrictive, but corner the days
• 25:26
  Speaker 1: of restrictive budgets. A budget for me is a tool
• 25:30
  Speaker 1: that tells me how many dollars I have coming in
• 25:32
  Speaker 1: and how many dollars I have going out, and whether
• 25:34
  Speaker 1: they're being spent in line with the goals and the
• 25:36
  Speaker 1: values that I have. You know, what if I look
• 25:38
  Speaker 1: at your budget back and I say that one hundred
• 25:40
  Speaker 1: percent of it is going to uberates. Do you know what,
• 25:42
  Speaker 1: I don't care. I literally don't care, because what I'm
• 25:45
  Speaker 1: looking at your budget for is to educate you on Oh, Beck,
• 25:49
  Speaker 1: did you realize so much of your money is going here?
• 25:51
  Speaker 1: You might go, yeah, because I love it, and I go, great, Beck,
• 25:55
  Speaker 1: that's exactly what we want to hear. Or you might go, oh,
• 25:59
  Speaker 1: oh my gosh, No, I had no idea. Oh, maybe
• 26:02
  Speaker 1: I should change a few things about my lifestyle because
• 26:04
  Speaker 1: that's not something that I actually want to engage in.
• 26:06
  Speaker 1: I didn't realize how much that added up, sure, And
• 26:09
  Speaker 1: I think that often we forget how things can add up.
• 26:13
  Speaker 1: So like, you know, our coffee here and there, you
• 26:15
  Speaker 1: might go, you know what, my five dollar latte every
• 26:18
  Speaker 1: single week or every single day. If you're me, it's worth.
• 26:21
  Speaker 1: Like I think I've said on the pod before, it's
• 26:23
  Speaker 1: one of my favorite things in the entire world. I
• 26:25
  Speaker 1: go for a walk with my husband and my dog
• 26:27
  Speaker 1: and we get out overpriced lattes every single morning, not
• 26:30
  Speaker 1: from the cafe I've got beef with. Don't worry, I've
• 26:31
  Speaker 1: got a new cafe.
• 26:32
  Speaker 3: Good.
• 26:33
  Speaker 1: It's all right, It's all right. I've got a new cafe,
• 26:35
  Speaker 1: got a new hood, but I adore that. It's one
• 26:37
  Speaker 1: of my favorite things in the entire world. So if
• 26:39
  Speaker 1: I sat down with someone and they were trying to
• 26:41
  Speaker 1: help me with my budget, and they said, hmmm, Victoria,
• 26:44
  Speaker 1: because I've looked at my budget, Steve, and I spend
• 26:46
  Speaker 1: more than three thousand dollars a year on coffee. Well
• 26:49
  Speaker 1: that's a lot, right, because it's for two people, it's
• 26:51
  Speaker 1: course for one course. But to us that three thousand
• 26:54
  Speaker 1: dollars is so much more than just two cups of coffee.
• 26:58
  Speaker 1: It's that time that we have to get in the morning,
• 27:00
  Speaker 1: It's that connection. It's so much more. And I think
• 27:03
  Speaker 1: that it's so rude when people just look at your
• 27:06
  Speaker 1: budget and go, oh, Beck, that's not worth it to me.
• 27:08
  Speaker 1: So you should get rid of it, right, You need
• 27:10
  Speaker 1: less streaming services? Okay, well maybe I do. But have
• 27:14
  Speaker 1: we thought about my lifestyle, maybe my entire life? And
• 27:17
  Speaker 1: this is absolutely not true for you, Beck, because you
• 27:19
  Speaker 1: are the most social butterfly I have met in the
• 27:22
  Speaker 1: entire world. I swear every Monday and Tuesday that we
• 27:25
  Speaker 1: sit down together, I'll be like, how is your weekend?
• 27:27
  Speaker 1: You're like, I was at a house party. Hew, am
• 27:30
  Speaker 1: I wrong?
• 27:31
  Speaker 3: You are not wrong that it's very nice. That's you too.
• 27:34
  Speaker 1: You are the most social person ever. But take my
• 27:37
  Speaker 1: streaming service off me. I'd be like, wait, what do
• 27:39
  Speaker 1: you mean? Like that's like my wind down time. I
• 27:42
  Speaker 1: don't actually go out that often. I don't go out
• 27:45
  Speaker 1: for dinner once a week at all. I'm lucky if
• 27:47
  Speaker 1: I go out for dinner once a month. Yeap, Like, yes,
• 27:50
  Speaker 1: I could afford to go out for dinner, but like,
• 27:52
  Speaker 1: I just want to be at home. I want to
• 27:53
  Speaker 1: be with my pets. That's something that I value. So
• 27:56
  Speaker 1: I think it's so important to look at a budget
• 27:58
  Speaker 1: and go, all right, let's develop a really realistic budget
• 28:02
  Speaker 1: that's reflective our goals and our values and what we're
• 28:05
  Speaker 1: trying to achieve, so that we can track our income
• 28:08
  Speaker 1: and expenses and prioritize debt repayment without being judgmental. Because
• 28:13
  Speaker 1: what's that help? Does that help it all? To sit
• 28:16
  Speaker 1: down and do a budget and be like, oh, I
• 28:17
  Speaker 1: feel so bad about this. No, who are you helping nobody?
• 28:21
  Speaker 1: You're just making yourself feel trash about it for no
• 28:23
  Speaker 1: good reason. Exactly, you're going to change it? How good
• 28:27
  Speaker 1: it's just like, forget about the feeling bad part. But essentially,
• 28:30
  Speaker 1: by following a budget and allocating funds towards paying off
• 28:33
  Speaker 1: debt and credit card, you are preventing yourself from spiraling
• 28:37
  Speaker 1: out of control. But you're also putting yourself in a
• 28:39
  Speaker 1: position of power because sometimes, and Beck, I know you've
• 28:42
  Speaker 1: been here, paying off debt feels like trash. It feels
• 28:45
  Speaker 1: like you're just flushing money down the drain and spend it.
• 28:48
  Speaker 2: Right.
• 28:48
  Speaker 1: Yeah, but if you create a debt repayment plan, Let's
• 28:51
  Speaker 1: pretend you are repaying debt four hundred dollars a month.
• 28:55
  Speaker 1: Ill that feels yuck. Right, I'm flushing four hundred bucks
• 28:59
  Speaker 1: down the drain. No you're not. Once you've finished paying
• 29:01
  Speaker 1: off that debt, Beck, you're going to be saving four
• 29:04
  Speaker 1: hundred bucks a month. Yeah. Look at that habit you've started.
• 29:06
  Speaker 1: Look at that you've created. So the second that debt's gone,
• 29:11
  Speaker 1: oh my gosh, you're going to turbo charge your savings.
• 29:14
  Speaker 1: You're going to be an investing queen. You were going
• 29:16
  Speaker 1: to do so many things that you've always wanted to do.
• 29:18
  Speaker 1: But I promise it starts with getting rid of your debt.
• 29:20
  Speaker 1: Because there is no point having a heap of savings
• 29:23
  Speaker 1: in the bank but also holding significant debt because they
• 29:26
  Speaker 1: counsel each other out. Yes, it's not sexy in saying that. Yes,
• 29:30
  Speaker 1: I do genuinely believe that everybody who is in consumer
• 29:33
  Speaker 1: debt needs to have an emergency front still to stop
• 29:37
  Speaker 1: them going further into consumer debt. Yes, but that's a
• 29:40
  Speaker 1: different conversation for another day.
• 29:41
  Speaker 4: Beck, that is a really good point. View this point
• 29:44
  Speaker 4: I'm about to make. I did it really really poorly.
• 29:46
  Speaker 4: But basically I tried to consolidate my debts, and I
• 29:51
  Speaker 4: think that what I was thinking at the time was
• 29:53
  Speaker 4: I'm gonna consolidate these debts and I'm gonna ask for
• 29:55
  Speaker 4: way more than I need so that I have a
• 29:58
  Speaker 4: little bit of money to spend on bills and view
• 30:01
  Speaker 4: whatever else. Yes, and then that just snowboard and snowboard
• 30:05
  Speaker 4: and snowboard. But that aside, it is not a bad idea.
• 30:08
  Speaker 4: Would you say to try And maybe it's not.
• 30:11
  Speaker 1: A bad idea at all. I mean, don't go and
• 30:13
  Speaker 1: take out more money because it's attractive. But if you
• 30:16
  Speaker 1: have multiple credit cards with high interest rates, debt consolidation
• 30:20
  Speaker 1: is something you could consider looking at because what debt
• 30:24
  Speaker 1: consolidation does is it rolls all of those debts together
• 30:27
  Speaker 1: and usually gives you a lower interest rates so you
• 30:30
  Speaker 1: can pay it off with less interest going to be
• 30:33
  Speaker 1: incurred over the long term. I think when it comes
• 30:37
  Speaker 1: to debt consolidation, there's two streams of thought. There's that
• 30:40
  Speaker 1: thought of let's consolidate it so we get a lower
• 30:43
  Speaker 1: interest rate and we can pay it off reasonably over
• 30:45
  Speaker 1: a period of time that suits us, and we're not
• 30:47
  Speaker 1: crippled by consistent debt repayments. It's overwhelming when you have
• 30:53
  Speaker 1: so many credit cards that you actually need to pay off.
• 30:56
  Speaker 1: So I do feel like consolidating it into one payment,
• 30:59
  Speaker 1: even if it is the same amount of I guess
• 31:02
  Speaker 1: interest can feel a little bit free because you've only
• 31:04
  Speaker 1: got one payment right and there's really really solid terms.
• 31:08
  Speaker 1: I do think it can be a little bit of
• 31:10
  Speaker 1: a trap for some people too. If you see consolidate
• 31:13
  Speaker 1: to this particular credit card and you'll get zero percent
• 31:16
  Speaker 1: interest for the first six months. Unless you can actually
• 31:19
  Speaker 1: pay that debt off in six months, that change is
• 31:22
  Speaker 1: probably going to shoot you in the foot. And I
• 31:24
  Speaker 1: know a lot of people in our community have been
• 31:26
  Speaker 1: bitten by that because they'll go, oh, my gosh, I
• 31:28
  Speaker 1: don't want to pay interest for six months. That's great.
• 31:30
  Speaker 1: And so they take their eighteen percent credit card and
• 31:33
  Speaker 1: they roll it into this other one. They get six
• 31:35
  Speaker 1: months of interest free time. But because it was interest free,
• 31:38
  Speaker 1: they didn't prioritize it because whatever, Like, it's just interest free,
• 31:41
  Speaker 1: right Beck. And then after six months it changes to
• 31:43
  Speaker 1: twenty two percent interest and you're in a worse position
• 31:46
  Speaker 1: than when you start it. Sure, so we need to
• 31:48
  Speaker 1: make sure that debt consolidation is done properly. So go
• 31:51
  Speaker 1: see a finance broker. Obviously shameless plug. Our team at
• 31:55
  Speaker 1: Zella Money do that, but essentially simplifying your payments, it
• 31:59
  Speaker 1: can essentially save you money in the long term.
• 32:01
  Speaker 3: Yeah, I love that. And then finally I think we
• 32:04
  Speaker 3: can both agree on this one.
• 32:05
  Speaker 1: Seek professional help exactly a podcast, my friend. If you're
• 32:09
  Speaker 1: in this sticky, sticky position, not enough, I mean, hopefully
• 32:13
  Speaker 1: it's been enough to like motivate you. And you're like,
• 32:15
  Speaker 1: I want to get my budget and cash flow in place,
• 32:17
  Speaker 1: and I really want to be out of debt and
• 32:19
  Speaker 1: I don't want to rely on credit cards. Like that's
• 32:21
  Speaker 1: the sexiest thing I've ever heard in my whole affect.
• 32:23
  Speaker 1: I'm just so excited about it. But essentially, if you're
• 32:26
  Speaker 1: finding yourself in overwhelming debt, there's no shame in reaching
• 32:29
  Speaker 1: out for help. Nobody, I promise nobody cares more than
• 32:33
  Speaker 1: you do. Like, nobody's looking at you going, oh, Beck,
• 32:36
  Speaker 1: can't believe you just admitted to that ill. They're literally like,
• 32:39
  Speaker 1: oh my god, Beck, congrats on taking the first step
• 32:42
  Speaker 1: to being out of this circumstance. The sooner you reach
• 32:46
  Speaker 1: for help, the sooner you're going to be out of debt,
• 32:49
  Speaker 1: and the easier the circumstances are going to be. I
• 32:51
  Speaker 1: promise the longer you leave your head in the sand,
• 32:54
  Speaker 1: the worst things are going to get. So I have
• 32:57
  Speaker 1: a few of my I guess favorite and trusted resource
• 33:00
  Speaker 1: is that we will obviously put in the show notes.
• 33:02
  Speaker 1: The National Debt Helpline is one of my favorite resources.
• 33:06
  Speaker 1: And it's not just because it's easy. It's because it's free,
• 33:10
  Speaker 1: free financial counseling.
• 33:12
  Speaker 2: Beck.
• 33:12
  Speaker 1: The team there are gorgeous. I have worked with them before,
• 33:16
  Speaker 1: not on a like they've paid me way, I have
• 33:18
  Speaker 1: reached out to them and been like, how do we
• 33:20
  Speaker 1: work together? Because you guys are legends and I think
• 33:23
  Speaker 1: that what you're doing is epic. They provide guidance and
• 33:27
  Speaker 1: tailored advice to your circumstances. They have financial counseling. They
• 33:31
  Speaker 1: can send you to a financial advisor if you're in
• 33:33
  Speaker 1: a super super tricky circumstance. They can help you with
• 33:36
  Speaker 1: a partnerine debt agreement, or they can help you with
• 33:39
  Speaker 1: filing for bankruptcy, or they could talk you through what
• 33:42
  Speaker 1: those things mean. They can talk you through negotiating with
• 33:45
  Speaker 1: your credit card company some time off if you need
• 33:47
  Speaker 1: some time. They can do so many things, and I
• 33:50
  Speaker 1: would reach out to them. Yeah, Honestly, they can help
• 33:52
  Speaker 1: you with the specific advice you might need to pay
• 33:55
  Speaker 1: off your debt, and I guess regain financial freedom. And
• 33:59
  Speaker 1: then I guess if you're not in as sticky a
• 34:02
  Speaker 1: situation as needing the National Debt help Line, let's just
• 34:05
  Speaker 1: do a little shameless plug my budget and cash Flow
• 34:08
  Speaker 1: master class I created for me to get me out
• 34:11
  Speaker 1: of debt because I'm a bit nearer, spicy, and I
• 34:13
  Speaker 1: need a lot of structure and I need it to
• 34:16
  Speaker 1: work for me. So I'm not the type of person
• 34:18
  Speaker 1: that you can sit down and be like, oh, Victoria,
• 34:20
  Speaker 1: write a budget, right, and then I go, yeah, great, old,
• 34:23
  Speaker 1: stick to this absolutely. Not like, if I write a budget,
• 34:26
  Speaker 1: I'll be like groceries X, you know, gym membership X,
• 34:29
  Speaker 1: rent X. What do I do? Go away with that
• 34:32
  Speaker 1: budget and do what? Beck? Am I meant to implement that?
• 34:37
  Speaker 1: I'm not going to implement that? No, So I created
• 34:39
  Speaker 1: this budget and cashlow master Class that essentially takes that budget,
• 34:43
  Speaker 1: overlays it into a banking structure and tells you how
• 34:47
  Speaker 1: much you need in each account to live the lifestyle
• 34:50
  Speaker 1: that you've said you are living from your budget. So
• 34:53
  Speaker 1: I will say, all right, here's your food, your fuel,
• 34:55
  Speaker 1: and your fun money each and every single week. Beck
• 34:58
  Speaker 1: if you run out, you're eating noodle this week. And
• 35:01
  Speaker 1: that's okay because it means that every other bill in
• 35:04
  Speaker 1: your life is catered for. Yeah, you're not gonna miss
• 35:06
  Speaker 1: your redro, you're not going to miss your rent, You're
• 35:07
  Speaker 1: not going to miss anything. But if you just kind
• 35:09
  Speaker 1: of like threw your money up against a wall this
• 35:12
  Speaker 1: week in your spending amount, well that's all good because
• 35:15
  Speaker 1: like we can just live on noodles until next Thursday. Right.
• 35:18
  Speaker 1: So I created that to put you in their best
• 35:21
  Speaker 1: possible position. Literally, thousands of people have done it now.
• 35:24
  Speaker 1: People have used it to get out of debt, to
• 35:26
  Speaker 1: stay out of debt, to save for their first homes,
• 35:28
  Speaker 1: to save for overseas trips, and save for six million things. Honestly,
• 35:33
  Speaker 1: I'm really proud of it. Do we think we should
• 35:34
  Speaker 1: give them a discount? I think we should give them
• 35:36
  Speaker 1: a discount.
• 35:37
  Speaker 3: I'm in a good mood. Let's do it.
• 35:38
  Speaker 1: So it's not active at the moment, but I will
• 35:40
  Speaker 1: make sure that by the time this episode goes live.
• 35:43
  Speaker 1: The code pod five zero, so Pod fifty is a
• 35:48
  Speaker 1: code to get fifty bucks off the budget and cashular
• 35:50
  Speaker 1: Master like, Oh, she's good, it's so generous.
• 35:52
  Speaker 3: That is so nicey.
• 35:53
  Speaker 1: I'll make sure just turns that back on. If it's
• 35:55
  Speaker 1: not on, please message me and it will be the
• 35:58
  Speaker 1: kick up the butt that I need.
• 35:59
  Speaker 3: Yes, if you're listen to this, hello end please Hi?
• 36:02
  Speaker 1: I love you, gotcha coat? All right?
• 36:04
  Speaker 3: I think this is a really good place.
• 36:05
  Speaker 1: I'm so done. I'm so tired, and I heard there's
• 36:08
  Speaker 1: a fancy lunch going on, so let's go.
• 36:10
  Speaker 3: I can hear them celebrating.
• 36:12
  Speaker 2: Let's go eat.
• 36:13
  Speaker 1: All right, have a good day, guys, love you, Love you, guys.
• 36:15
  Speaker 3: Bye.
• 36:22
  Speaker 5: The advice shared on She's on the Money is general
• 36:24
  Speaker 5: in nature and does not consider your individual circumstances. She's
• 36:28
  Speaker 5: on the Money exists purely for educational purposes and should
• 36:32
  Speaker 5: not be relied upon to make an investment or financial decision.
• 36:35
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• 36:38
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