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Should I Pay Off A Loan I No Longer Need? · Becoming Financially Confident

• 0:37
  You
• 0:37
  took
• 0:37
  out
• 0:38
  the
• 0:38
  loan
• 0:38
  because
• 0:38
  you
• 0:38
  had
• 0:39
  a
• 0:39
  plan.
• 0:39
  You
• 0:40
  found
• 0:40
  the
• 0:40
  perfect
• 0:40
  car.
• 0:41
  You
• 0:41
  were
• 0:41
  ready
• 0:42
  to
• 0:42
  move
• 0:42
  forward.
• 0:43
  And
• 0:43
  then
• 0:43
  everything
• 0:44
  changed.
• 0:45
  That
• 0:45
  car
• 0:45
  wasn't
• 0:46
  the
• 0:46
  right
• 0:46
  choice.
• 0:47
  A
• 0:47
  different
• 0:47
  opportunity
• 0:48
  came
• 0:48
  along.
• 0:49
  Now
• 0:49
  the
• 0:49
  loan
• 0:49
  money
• 0:50
  is
• 0:50
  sitting
• 0:50
  in
• 0:50
  your
• 0:50
  account,
• 0:51
  your
• 0:51
  credit
• 0:52
  score
• 0:52
  has
• 0:52
  dropped,
• 0:53
  and
• 0:53
  you're
• 0:54
  staring
• 0:54
  at
• 0:54
  a
• 0:54
  decision
• 0:55
  you
• 0:55
  never
• 0:55
  expected
• 0:56
  to
• 0:56
  make.
• 0:57
  If
• 0:57
  that's
• 0:58
  you,
• 0:58
  I
• 0:58
  want
• 0:58
  you
• 0:58
  to
• 0:58
  know
• 0:59
  something
• 0:59
  before
• 0:59
  we
• 0:59
  go
• 1:00
  any
• 1:00
  further.
• 1:01
  You
• 1:01
  didn't
• 1:01
  ruin
• 1:01
  your
• 1:02
  financial
• 1:02
  future.
• 1:04
  You
• 1:04
  don't
• 1:04
  need
• 1:04
  a
• 1:04
  clever
• 1:05
  strategy.
• 1:05
  You
• 1:05
  don't
• 1:06
  need
• 1:06
  to
• 1:06
  panic.
• 1:07
  What
• 1:07
  you
• 1:07
  need
• 1:07
  today
• 1:08
  is
• 1:08
  wisdom.
• 1:09
  So
• 1:09
  today
• 1:09
  we're
• 1:10
  going
• 1:10
  to
• 1:10
  talk
• 1:10
  about
• 1:10
  what
• 1:10
  actually
• 1:11
  matters
• 1:12
  when
• 1:12
  you
• 1:12
  have
• 1:12
  a
• 1:12
  debt
• 1:13
  you
• 1:13
  no
• 1:13
  longer
• 1:13
  need,
• 1:14
  how
• 1:14
  your
• 1:14
  credit
• 1:15
  score
• 1:15
  really
• 1:15
  work
• 1:16
  in
• 1:16
  situations
• 1:17
  like
• 1:17
  this,
• 1:18
  and
• 1:18
  how
• 1:18
  to
• 1:18
  make
• 1:18
  the
• 1:19
  next
• 1:19
  financial
• 1:19
  decision
• 1:20
  with
• 1:20
  confidence
• 1:21
  instead
• 1:21
  of
• 1:22
  fear.
• 1:22
  That's
• 1:23
  what
• 1:23
  we're
• 1:23
  breaking
• 1:23
  down
• 1:23
  on
• 1:24
  today's
• 1:24
  show.
• 1:33
  Hello
• 1:34
  and
• 1:34
  welcome
• 1:34
  to
• 1:34
  Financially
• 1:35
  Confident
• 1:35
  Christian.
• 1:37
  And
• 1:37
  today's
• 1:37
  question
• 1:38
  is
• 1:38
  more
• 1:38
  common
• 1:39
  than
• 1:39
  people
• 1:39
  realize.
• 1:40
  So
• 1:41
  many
• 1:41
  of
• 1:41
  us
• 1:41
  make
• 1:41
  a
• 1:42
  decision
• 1:42
  based
• 1:43
  on
• 1:43
  the
• 1:43
  info
• 1:43
  we
• 1:44
  had
• 1:44
  at
• 1:44
  the
• 1:44
  time.
• 1:45
  But
• 1:45
  then
• 1:45
  circumstances
• 1:46
  changed
• 1:47
  and
• 1:48
  the
• 1:48
  question
• 1:48
  is,
• 1:48
  do
• 1:48
  you
• 1:49
  keep
• 1:49
  going
• 1:49
  or
• 1:50
  do
• 1:50
  you
• 1:50
  change
• 1:50
  course?
• 1:51
  Let's
• 1:52
  get
• 1:52
  right
• 1:52
  in
• 1:52
  today's
• 1:53
  listener
• 1:53
  question.
• 1:54
  Listener
• 1:54
  writes
• 1:55
  this.
• 1:55
  Hi
• 1:55
  Ralph.
• 1:56
  I'm
• 1:56
  kicking
• 1:57
  myself
• 1:57
  for
• 1:57
  a
• 1:57
  dumb
• 1:58
  financial
• 1:58
  move
• 1:59
  and
• 1:59
  I'm
• 1:59
  not
• 1:59
  sure
• 2:00
  how
• 2:00
  to
• 2:00
  fix
• 2:00
  it.
• 2:01
  I
• 2:01
  took
• 2:01
  out
• 2:02
  a
• 2:02
  $5,000
• 2:03
  loan
• 2:03
  on
• 2:03
  Sunday
• 2:04
  because
• 2:04
  I
• 2:04
  thought
• 2:04
  I
• 2:04
  was
• 2:04
  going
• 2:05
  to
• 2:05
  buy
• 2:05
  a
• 2:05
  used
• 2:05
  car.
• 2:06
  The
• 2:07
  car
• 2:07
  ended
• 2:07
  up
• 2:07
  being
• 2:08
  rusty,
• 2:09
  so
• 2:09
  my
• 2:09
  partner
• 2:09
  and
• 2:10
  I
• 2:10
  financed
• 2:10
  a
• 2:10
  newer
• 2:11
  car
• 2:11
  from
• 2:11
  Carvana
• 2:12
  instead.
• 2:13
  And
• 2:13
  it
• 2:13
  arrives
• 2:14
  tomorrow.
• 2:15
  It's
• 2:15
  a
• 2:15
  2019
• 2:16
  and
• 2:16
  it's
• 2:16
  in
• 2:17
  great
• 2:17
  condition.
• 2:18
  The
• 2:18
  problem
• 2:19
  is
• 2:19
  the
• 2:19
  five
• 2:19
  thousand
• 2:20
  dollar
• 2:20
  loan
• 2:20
  got
• 2:21
  deposited
• 2:21
  today.
• 2:22
  I
• 2:22
  don't
• 2:23
  need
• 2:23
  it.
• 2:24
  My
• 2:24
  credit
• 2:24
  score
• 2:24
  was
• 2:25
  750
• 2:25
  before
• 2:26
  all
• 2:26
  this,
• 2:27
  but
• 2:27
  it
• 2:27
  took
• 2:27
  a
• 2:27
  hit
• 2:28
  from
• 2:28
  the
• 2:28
  loan
• 2:28
  inquiry
• 2:29
  plus
• 2:29
  financing
• 2:29
  for
• 2:30
  the
• 2:30
  actual
• 2:30
  car.
• 2:31
  Now,
• 2:32
  Ralph,
• 2:32
  I
• 2:32
  know
• 2:32
  I
• 2:32
  should
• 2:32
  probably
• 2:33
  just
• 2:33
  pay
• 2:33
  5,000
• 2:34
  back
• 2:34
  immediately,
• 2:36
  but
• 2:36
  I'm
• 2:36
  wondering
• 2:37
  if
• 2:37
  there's
• 2:37
  a
• 2:37
  smarter
• 2:37
  move
• 2:38
  here.
• 2:38
  Could
• 2:39
  I
• 2:39
  put
• 2:39
  the
• 2:39
  money
• 2:39
  in
• 2:40
  a
• 2:40
  separate
• 2:40
  account
• 2:40
  and
• 2:40
  make
• 2:41
  monthly
• 2:41
  payments
• 2:41
  on
• 2:42
  it
• 2:42
  to
• 2:42
  help
• 2:42
  rebuild
• 2:43
  my
• 2:43
  credit
• 2:44
  like
• 2:44
  larger
• 2:45
  payments?
• 2:45
  So
• 2:45
  it's
• 2:46
  paid
• 2:46
  off
• 2:46
  in
• 2:46
  a
• 2:46
  year,
• 2:47
  but
• 2:47
  I'm
• 2:48
  still
• 2:48
  showing
• 2:48
  active
• 2:48
  payment
• 2:49
  history.
• 2:50
  I
• 2:51
  know
• 2:51
  that
• 2:51
  might
• 2:51
  be
• 2:51
  stupid,
• 2:52
  but
• 2:52
  I've
• 2:52
  never
• 2:52
  taken
• 2:53
  a
• 2:53
  loan
• 2:53
  before
• 2:53
  this
• 2:54
  and.
• 2:54
  And
• 2:54
  I
• 2:55
  feel
• 2:55
  like
• 2:55
  I'm
• 2:55
  already
• 2:55
  messing
• 2:56
  up.
• 2:56
  Should
• 2:57
  I
• 2:57
  just
• 2:57
  bite
• 2:57
  the
• 2:57
  bullet
• 2:58
  and
• 2:58
  pay
• 2:58
  it
• 2:58
  off
• 2:58
  or
• 2:59
  is
• 2:59
  there
• 2:59
  something
• 3:00
  better
• 3:00
  I
• 3:00
  could
• 3:00
  do
• 3:00
  with
• 3:01
  it?
• 3:01
  Thanks.
• 3:03
  You
• 3:03
  got
• 3:03
  a
• 3:03
  lot
• 3:03
  to
• 3:03
  stuff
• 3:04
  unwind
• 3:04
  there
• 3:05
  and
• 3:05
  I
• 3:06
  understand
• 3:06
  this
• 3:06
  happens
• 3:07
  all
• 3:07
  the
• 3:07
  time.
• 3:07
  Sounds
• 3:08
  like
• 3:08
  you
• 3:08
  got
• 3:08
  a
• 3:08
  personal
• 3:08
  loan.
• 3:09
  You
• 3:09
  went
• 3:09
  to
• 3:09
  look
• 3:10
  at
• 3:10
  this
• 3:10
  car.
• 3:11
  It
• 3:11
  wasn't
• 3:11
  what
• 3:11
  you
• 3:11
  were
• 3:12
  expecting,
• 3:12
  so
• 3:12
  you're
• 3:13
  like,
• 3:13
  nah,
• 3:13
  I
• 3:13
  think
• 3:13
  we're
• 3:13
  going
• 3:13
  to
• 3:14
  go
• 3:14
  and
• 3:14
  pivot
• 3:14
  and
• 3:14
  buy
• 3:14
  something
• 3:15
  else.
• 3:15
  Sounds
• 3:15
  like
• 3:15
  you
• 3:15
  got
• 3:15
  a
• 3:16
  really
• 3:16
  cool
• 3:16
  car.
• 3:16
  I
• 3:16
  can't
• 3:16
  wait
• 3:17
  till
• 3:17
  you
• 3:17
  get
• 3:17
  it.
• 3:18
  Most
• 3:19
  of
• 3:19
  the
• 3:19
  time
• 3:19
  I
• 3:20
  will
• 3:20
  tell
• 3:20
  people
• 3:20
  to
• 3:21
  pay
• 3:21
  off
• 3:21
  money
• 3:21
  that
• 3:22
  you
• 3:22
  don't
• 3:22
  need,
• 3:23
  especially
• 3:24
  if
• 3:24
  keeping
• 3:24
  it
• 3:25
  makes
• 3:25
  means
• 3:25
  paying
• 3:26
  interest
• 3:27
  for
• 3:27
  a
• 3:27
  small
• 3:27
  credit
• 3:28
  benefit.
• 3:28
  What
• 3:28
  you're
• 3:29
  talking
• 3:29
  about
• 3:29
  is
• 3:29
  you're
• 3:29
  going
• 3:29
  to
• 3:30
  pay
• 3:30
  interest
• 3:30
  on
• 3:30
  a
• 3:30
  loan
• 3:31
  that
• 3:31
  you
• 3:31
  don't
• 3:31
  really
• 3:31
  need.
• 3:32
  And
• 3:33
  that
• 3:33
  could
• 3:33
  help
• 3:33
  your
• 3:34
  credit.
• 3:34
  But
• 3:34
  how
• 3:34
  much
• 3:35
  is
• 3:35
  it
• 3:35
  going
• 3:35
  to
• 3:35
  cost
• 3:35
  you?
• 3:36
  First
• 3:37
  thing
• 3:37
  I
• 3:37
  want
• 3:37
  to
• 3:37
  do
• 3:37
  is
• 3:37
  I
• 3:38
  want
• 3:38
  you
• 3:38
  to
• 3:38
  realize
• 3:38
  something.
• 3:39
  This
• 3:40
  isn't
• 3:40
  a
• 3:40
  mistake.
• 3:41
  Let's
• 3:41
  talk
• 3:41
  about
• 3:42
  what's
• 3:42
  really
• 3:42
  going
• 3:42
  on
• 3:43
  here.
• 3:44
  I
• 3:45
  hear
• 3:45
  shame
• 3:45
  in
• 3:45
  what
• 3:45
  you're
• 3:46
  talking
• 3:46
  about.
• 3:47
  You
• 3:47
  didn't
• 3:48
  make
• 3:48
  a
• 3:48
  dumb
• 3:48
  move.
• 3:49
  You
• 3:49
  made
• 3:49
  a
• 3:49
  decision
• 3:50
  based
• 3:50
  on
• 3:50
  the
• 3:50
  info
• 3:51
  you
• 3:51
  had
• 3:51
  at
• 3:51
  the
• 3:51
  time.
• 3:52
  And
• 3:53
  then
• 3:53
  the
• 3:53
  facts
• 3:53
  changed
• 3:54
  and
• 3:55
  you
• 3:55
  adjusted.
• 3:56
  See,
• 3:56
  you
• 3:57
  could
• 3:57
  have
• 3:57
  just
• 3:57
  carried
• 3:57
  forward
• 3:57
  and
• 3:58
  bought
• 3:58
  this
• 3:58
  car.
• 3:59
  That
• 3:59
  is
• 3:59
  a.
• 3:59
  There's
• 4:00
  a
• 4:00
  dump
• 4:00
  that
• 4:00
  it
• 4:01
  is
• 4:01
  all
• 4:01
  filled
• 4:01
  with
• 4:02
  rust.
• 4:02
  But
• 4:02
  you
• 4:02
  decided,
• 4:03
  no,
• 4:03
  this
• 4:03
  isn't
• 4:03
  for
• 4:03
  me.
• 4:04
  You
• 4:04
  made
• 4:04
  a
• 4:04
  wise
• 4:05
  decision.
• 4:06
  That's
• 4:07
  making
• 4:07
  good
• 4:08
  decisions,
• 4:08
  that's
• 4:09
  responding
• 4:09
  to
• 4:10
  new
• 4:10
  information,
• 4:11
  that's
• 4:11
  not
• 4:11
  being
• 4:12
  reckless.
• 4:13
  So
• 4:13
  let's
• 4:13
  start
• 4:13
  there.
• 4:14
  No
• 4:14
  shame
• 4:15
  in
• 4:15
  what
• 4:15
  you
• 4:15
  did
• 4:15
  here.
• 4:15
  No
• 4:15
  shame
• 4:16
  in
• 4:16
  your
• 4:16
  game,
• 4:16
  as
• 4:16
  they
• 4:17
  say.
• 4:17
  Let's
• 4:18
  talk
• 4:18
  about
• 4:18
  the
• 4:18
  credit
• 4:18
  score.
• 4:19
  Credit
• 4:20
  scores
• 4:20
  drop
• 4:21
  because
• 4:21
  of
• 4:21
  multiple
• 4:21
  events
• 4:22
  at
• 4:22
  once.
• 4:23
  You
• 4:23
  had
• 4:23
  that,
• 4:24
  what
• 4:24
  they
• 4:24
  call
• 4:24
  in
• 4:24
  the
• 4:25
  credit
• 4:25
  field,
• 4:26
  a
• 4:26
  hard
• 4:26
  inquiry
• 4:27
  for
• 4:27
  that
• 4:27
  personal
• 4:27
  loan.
• 4:28
  That
• 4:28
  happens.
• 4:29
  You
• 4:29
  had
• 4:29
  another
• 4:30
  inquiry
• 4:30
  for
• 4:30
  the
• 4:31
  vehicle
• 4:31
  financing.
• 4:32
  Again,
• 4:32
  that
• 4:32
  happens.
• 4:34
  At
• 4:34
  some
• 4:34
  point
• 4:35
  down
• 4:35
  the
• 4:35
  road,
• 4:35
  that
• 4:36
  auto
• 4:36
  loan
• 4:36
  is
• 4:37
  going
• 4:37
  to
• 4:37
  start
• 4:37
  reporting
• 4:38
  those
• 4:39
  new
• 4:39
  accounts
• 4:39
  and
• 4:40
  those
• 4:40
  inquiries
• 4:41
  are
• 4:41
  going
• 4:41
  to
• 4:41
  affect
• 4:42
  your
• 4:42
  credit
• 4:42
  score.
• 4:42
  That's
• 4:43
  normal.
• 4:43
  It
• 4:44
  happened
• 4:44
  to
• 4:44
  me
• 4:44
  the
• 4:44
  other
• 4:44
  day.
• 4:45
  We
• 4:45
  were
• 4:45
  at
• 4:45
  a
• 4:45
  department
• 4:46
  store
• 4:46
  and
• 4:47
  I
• 4:47
  got
• 4:47
  a
• 4:47
  30%
• 4:48
  discount
• 4:48
  if
• 4:49
  I
• 4:49
  took
• 4:49
  out
• 4:49
  a
• 4:49
  credit
• 4:49
  card
• 4:50
  from
• 4:50
  them.
• 4:50
  I
• 4:50
  said,
• 4:50
  sure,
• 4:50
  why
• 4:51
  not?
• 4:51
  I'll
• 4:51
  save
• 4:51
  30%.
• 4:53
  Well,
• 4:53
  I
• 4:53
  went
• 4:53
  ahead
• 4:53
  and
• 4:54
  did
• 4:54
  the
• 4:54
  charge
• 4:54
  on
• 4:54
  that
• 4:54
  day.
• 4:55
  A
• 4:55
  couple
• 4:55
  days
• 4:56
  later,
• 4:56
  a
• 4:56
  week
• 4:56
  later,
• 4:56
  I
• 4:57
  got
• 4:57
  a
• 4:57
  thing
• 4:57
  that
• 4:57
  says
• 4:57
  my
• 4:58
  score
• 4:58
  had
• 4:58
  dropped
• 4:58
  10
• 4:58
  points.
• 4:59
  I'm
• 4:59
  like,
• 4:59
  wait
• 4:59
  a
• 4:59
  minute,
• 4:59
  why
• 5:00
  did
• 5:00
  my
• 5:00
  score
• 5:00
  drop?
• 5:01
  I'm
• 5:01
  not
• 5:01
  sweating
• 5:02
  it.
• 5:02
  That
• 5:03
  temporary
• 5:03
  dip
• 5:04
  doesn't
• 5:04
  mean
• 5:04
  you're
• 5:05
  damaged
• 5:05
  your
• 5:06
  credit.
• 5:06
  It
• 5:07
  just
• 5:07
  means
• 5:07
  that
• 5:07
  there
• 5:08
  has
• 5:08
  been
• 5:08
  something
• 5:09
  on
• 5:09
  your
• 5:09
  credit
• 5:09
  report.
• 5:09
  Now
• 5:10
  make
• 5:10
  sure
• 5:10
  you're
• 5:10
  looking
• 5:10
  at
• 5:10
  it,
• 5:11
  but
• 5:11
  don't
• 5:12
  beat
• 5:12
  yourself
• 5:12
  up
• 5:12
  about
• 5:13
  it.
• 5:13
  The
• 5:14
  mistake
• 5:14
  isn't
• 5:15
  that
• 5:15
  circumstances
• 5:16
  changed
• 5:16
  it.
• 5:17
  The
• 5:17
  mistake
• 5:18
  will
• 5:18
  be
• 5:18
  letting
• 5:18
  that
• 5:19
  shame
• 5:19
  make
• 5:19
  the
• 5:19
  next
• 5:19
  decision.
• 5:21
  That
• 5:21
  lower
• 5:22
  score
• 5:22
  today
• 5:22
  doesn't
• 5:22
  mean
• 5:23
  you
• 5:23
  ruin
• 5:23
  your
• 5:23
  financial
• 5:24
  future.
• 5:24
  So
• 5:25
  stop
• 5:25
  overthinking
• 5:26
  in
• 5:26
  that.
• 5:26
  But
• 5:27
  now
• 5:27
  let's
• 5:27
  get
• 5:27
  into
• 5:27
  the
• 5:27
  specifics
• 5:28
  because
• 5:28
  you
• 5:28
  said,
• 5:28
  ralph,
• 5:29
  what
• 5:29
  should
• 5:29
  I
• 5:30
  do
• 5:30
  with
• 5:30
  this
• 5:30
  money?
• 5:31
  And
• 5:31
  that's
• 5:32
  where
• 5:32
  we
• 5:32
  can
• 5:32
  make
• 5:32
  a
• 5:32
  math
• 5:33
  or
• 5:33
  a
• 5:33
  financial
• 5:34
  decision.
• 5:35
  You
• 5:35
  gotta
• 5:35
  weigh
• 5:35
  the
• 5:36
  real
• 5:36
  cost
• 5:36
  against
• 5:37
  your
• 5:37
  cash
• 5:37
  flow.
• 5:38
  Keeping
• 5:39
  that
• 5:39
  loan
• 5:39
  for
• 5:39
  a
• 5:39
  year
• 5:40
  would
• 5:40
  build
• 5:40
  payment
• 5:41
  history.
• 5:41
  It
• 5:41
  absolutely
• 5:42
  would.
• 5:43
  No
• 5:43
  doubt
• 5:43
  about
• 5:43
  it.
• 5:44
  As
• 5:44
  long
• 5:44
  as
• 5:44
  you
• 5:44
  pay
• 5:44
  it
• 5:44
  on
• 5:45
  time,
• 5:45
  it's
• 5:45
  going
• 5:46
  to
• 5:46
  build
• 5:46
  your
• 5:46
  credit
• 5:47
  history.
• 5:47
  Now,
• 5:47
  I
• 5:48
  don't
• 5:48
  know
• 5:48
  your
• 5:48
  specific
• 5:49
  credit
• 5:49
  situation.
• 5:50
  Maybe
• 5:50
  this
• 5:50
  is
• 5:51
  the
• 5:51
  first
• 5:51
  loan
• 5:51
  you've
• 5:51
  ever
• 5:52
  gotten.
• 5:52
  I
• 5:53
  might
• 5:53
  make
• 5:53
  a
• 5:53
  different
• 5:53
  decision
• 5:54
  if
• 5:54
  I
• 5:54
  have
• 5:54
  more
• 5:54
  information.
• 5:56
  But
• 5:56
  you
• 5:56
  have
• 5:56
  to
• 5:56
  understand
• 5:57
  that
• 5:57
  history
• 5:58
  comes
• 5:58
  with
• 5:58
  a
• 5:58
  real
• 5:59
  interest
• 5:59
  cost.
• 6:00
  It's
• 6:01
  going
• 6:01
  to
• 6:01
  cost
• 6:01
  you
• 6:01
  money
• 6:02
  to
• 6:02
  do
• 6:02
  that.
• 6:02
  You
• 6:02
  said
• 6:02
  you
• 6:02
  borrowed
• 6:03
  $5,000.
• 6:04
  If
• 6:04
  it's
• 6:05
  a
• 6:05
  personal
• 6:05
  loan,
• 6:06
  I'm
• 6:06
  imagining
• 6:07
  the
• 6:07
  interest
• 6:07
  rates
• 6:08
  are
• 6:08
  a
• 6:08
  little
• 6:08
  bit
• 6:08
  higher.
• 6:09
  So
• 6:09
  you
• 6:09
  got
• 6:10
  to
• 6:10
  ask
• 6:10
  yourself,
• 6:10
  is
• 6:10
  it
• 6:11
  worth
• 6:11
  paying
• 6:11
  this
• 6:11
  much
• 6:12
  in
• 6:12
  interest
• 6:12
  for
• 6:12
  the
• 6:13
  next
• 6:13
  year
• 6:13
  for
• 6:14
  that
• 6:14
  credit
• 6:15
  benefit
• 6:15
  if
• 6:15
  you've
• 6:16
  already
• 6:16
  got
• 6:16
  a
• 6:16
  car
• 6:16
  loan?
• 6:17
  To
• 6:17
  be
• 6:17
  blunt,
• 6:18
  the
• 6:18
  car
• 6:18
  loan
• 6:18
  is
• 6:19
  probably
• 6:19
  going
• 6:19
  to
• 6:19
  be
• 6:19
  better
• 6:20
  for
• 6:20
  your
• 6:20
  credit
• 6:20
  anyway.
• 6:22
  Your
• 6:22
  new
• 6:23
  car
• 6:23
  loan
• 6:23
  is
• 6:24
  going
• 6:24
  to
• 6:24
  build
• 6:24
  what
• 6:24
  we
• 6:25
  call
• 6:25
  installment
• 6:26
  history.
• 6:27
  You
• 6:27
  don't
• 6:27
  need
• 6:27
  a
• 6:27
  second
• 6:28
  loan
• 6:28
  doing
• 6:28
  that
• 6:28
  same
• 6:29
  job.
• 6:30
  And
• 6:30
  on
• 6:30
  the
• 6:30
  cash
• 6:30
  flow
• 6:31
  side,
• 6:31
  a
• 6:31
  new
• 6:32
  vehicle
• 6:32
  means
• 6:32
  new
• 6:33
  expenses
• 6:33
  are
• 6:33
  coming
• 6:33
  in.
• 6:34
  You
• 6:34
  might
• 6:34
  say,
• 6:34
  well,
• 6:35
  Ralph,
• 6:35
  it's
• 6:35
  no
• 6:35
  big
• 6:35
  deal.
• 6:35
  I
• 6:36
  can
• 6:36
  make
• 6:36
  a
• 6:36
  loan
• 6:36
  payment
• 6:36
  for
• 6:37
  $5,000.
• 6:37
  But
• 6:38
  you
• 6:38
  also
• 6:38
  got
• 6:38
  a
• 6:38
  new
• 6:38
  car.
• 6:39
  You're
• 6:40
  going
• 6:40
  to
• 6:40
  have
• 6:40
  insurance,
• 6:41
  you're
• 6:41
  going
• 6:41
  to
• 6:41
  have
• 6:42
  registration,
• 6:43
  you're
• 6:43
  going
• 6:43
  to
• 6:43
  have
• 6:43
  maintenance
• 6:44
  costs.
• 6:44
  Those
• 6:44
  surprise
• 6:45
  repairs.
• 6:45
  Hey,
• 6:46
  when
• 6:46
  you
• 6:46
  own
• 6:46
  a
• 6:46
  car,
• 6:46
  surprise,
• 6:47
  surprise,
• 6:47
  things
• 6:48
  happen.
• 6:49
  Any
• 6:49
  unnecessary
• 6:50
  payment
• 6:51
  reduces
• 6:51
  your
• 6:51
  flexibility
• 6:52
  for
• 6:52
  those.
• 6:53
  But
• 6:53
  you
• 6:54
  have
• 6:54
  to
• 6:54
  ask
• 6:54
  yourself
• 6:54
  a
• 6:54
  couple
• 6:55
  questions
• 6:55
  here
• 6:56
  before
• 6:56
  you
• 6:56
  decide
• 6:57
  to
• 6:57
  just
• 6:57
  pay
• 6:57
  it
• 6:57
  off.
• 6:58
  Call
• 6:58
  the
• 6:58
  lender
• 6:59
  and
• 6:59
  ask
• 6:59
  some
• 7:00
  questions.
• 7:01
  A
• 7:01
  lot
• 7:01
  of
• 7:01
  people
• 7:01
  don't
• 7:01
  think
• 7:02
  about
• 7:02
  this.
• 7:03
  You
• 7:03
  got
• 7:03
  to
• 7:03
  find
• 7:03
  out,
• 7:04
  is
• 7:04
  there
• 7:04
  a
• 7:04
  prepayment
• 7:05
  penalty?
• 7:05
  Which
• 7:06
  means
• 7:06
  this.
• 7:07
  Some
• 7:07
  lenders
• 7:08
  will
• 7:08
  give
• 7:08
  you
• 7:08
  a
• 7:09
  penalty
• 7:09
  if
• 7:09
  you
• 7:10
  pay
• 7:10
  it
• 7:10
  back
• 7:10
  before
• 7:11
  it's
• 7:11
  due.
• 7:12
  Ask
• 7:12
  that
• 7:12
  question.
• 7:13
  Most
• 7:13
  loans
• 7:13
  don't
• 7:14
  do
• 7:14
  that.
• 7:14
  But
• 7:14
  ask
• 7:14
  that
• 7:15
  question,
• 7:16
  second
• 7:16
  question.
• 7:17
  Because
• 7:17
  the
• 7:17
  money
• 7:17
  is
• 7:17
  already
• 7:17
  in
• 7:18
  your
• 7:18
  account,
• 7:18
  you
• 7:19
  probably
• 7:19
  already
• 7:19
  owe
• 7:19
  them
• 7:20
  a
• 7:20
  little
• 7:20
  bit
• 7:20
  more
• 7:20
  than
• 7:20
  you
• 7:21
  borrowed.
• 7:22
  So
• 7:22
  get
• 7:22
  the
• 7:22
  exact
• 7:22
  payoff
• 7:23
  amount.
• 7:23
  What
• 7:23
  you
• 7:23
  don't
• 7:24
  want
• 7:24
  to
• 7:24
  do
• 7:24
  is
• 7:25
  assume,
• 7:25
  I'm
• 7:25
  just
• 7:25
  going
• 7:26
  to
• 7:26
  pay
• 7:26
  them
• 7:26
  5
• 7:26
  and
• 7:27
  then
• 7:27
  this
• 7:27
  money
• 7:27
  lingers
• 7:28
  out
• 7:28
  there
• 7:28
  and
• 7:28
  affects
• 7:28
  your
• 7:28
  credit.
• 7:29
  And
• 7:30
  then
• 7:30
  ask
• 7:30
  them
• 7:30
  this
• 7:30
  question.
• 7:31
  How
• 7:31
  will
• 7:32
  that
• 7:32
  early
• 7:32
  payoff
• 7:33
  be
• 7:33
  reported?
• 7:34
  Then
• 7:34
  you
• 7:35
  decide
• 7:35
  based
• 7:35
  on
• 7:35
  the
• 7:36
  answers,
• 7:36
  not
• 7:36
  some
• 7:37
  fear,
• 7:38
  but
• 7:38
  don't
• 7:38
  pay
• 7:39
  interest.
• 7:39
  For
• 7:39
  the
• 7:39
  illusion
• 7:40
  of
• 7:40
  financial
• 7:41
  progress,
• 7:42
  protecting
• 7:43
  your
• 7:43
  cash
• 7:43
  flow
• 7:43
  is
• 7:44
  most
• 7:44
  of
• 7:44
  the
• 7:44
  time
• 7:44
  more
• 7:45
  valuable
• 7:45
  than
• 7:45
  protecting
• 7:46
  some
• 7:46
  temporary
• 7:47
  Credit
• 7:47
  score
• 7:48
  dip.
• 7:49
  But
• 7:49
  now
• 7:49
  we
• 7:49
  got
• 7:49
  to
• 7:50
  think
• 7:50
  about
• 7:50
  a
• 7:50
  plan.
• 7:50
  I
• 7:51
  want
• 7:51
  to
• 7:51
  encourage
• 7:51
  you
• 7:51
  to
• 7:51
  make
• 7:51
  a
• 7:52
  clean
• 7:52
  plan
• 7:52
  for
• 7:52
  the
• 7:53
  next
• 7:53
  seven
• 7:53
  days.
• 7:54
  Number
• 7:54
  one
• 7:55
  thing,
• 7:55
  don't
• 7:55
  spend
• 7:55
  the
• 7:55
  money.
• 7:56
  Because
• 7:56
  I've
• 7:56
  seen
• 7:56
  this
• 7:57
  happen
• 7:57
  many
• 7:57
  times.
• 7:58
  A
• 7:58
  lot
• 7:58
  of
• 7:58
  people
• 7:59
  say,
• 7:59
  oh,
• 7:59
  I
• 7:59
  got
• 7:59
  the
• 7:59
  car
• 8:00
  loan
• 8:00
  and
• 8:00
  I
• 8:00
  got
• 8:00
  this
• 8:01
  extra
• 8:01
  money.
• 8:01
  Let's
• 8:02
  go
• 8:02
  on
• 8:02
  a
• 8:02
  vacation.
• 8:03
  No,
• 8:03
  keep
• 8:03
  it
• 8:04
  separate.
• 8:05
  Get
• 8:05
  those
• 8:05
  answers
• 8:05
  from
• 8:06
  the
• 8:06
  lender
• 8:06
  and
• 8:07
  get
• 8:07
  that
• 8:07
  official
• 8:07
  payoff
• 8:08
  amount.
• 8:08
  If
• 8:09
  there's
• 8:09
  no
• 8:09
  penalty,
• 8:10
  then
• 8:10
  pay
• 8:10
  it
• 8:10
  off.
• 8:10
  That's
• 8:11
  my.
• 8:11
  You
• 8:11
  want
• 8:11
  my
• 8:11
  professional
• 8:12
  view?
• 8:12
  Pay
• 8:13
  it
• 8:13
  off
• 8:13
  quickly.
• 8:13
  I
• 8:13
  don't
• 8:13
  see
• 8:14
  any
• 8:14
  value
• 8:15
  in
• 8:15
  keeping
• 8:15
  that
• 8:15
  money
• 8:16
  in
• 8:16
  your
• 8:16
  account
• 8:16
  and
• 8:17
  paying
• 8:17
  interest.
• 8:18
  Keep
• 8:18
  the
• 8:18
  documentation
• 8:19
  showing
• 8:19
  the
• 8:20
  loan
• 8:20
  was
• 8:20
  satisfied.
• 8:21
  Nothing.
• 8:21
  I'm
• 8:22
  going
• 8:22
  to
• 8:22
  encourage
• 8:22
  you.
• 8:22
  Do
• 8:22
  you
• 8:22
  ask
• 8:23
  me
• 8:23
  about
• 8:23
  this?
• 8:23
  But
• 8:24
  it's
• 8:24
  a
• 8:24
  great
• 8:24
  time
• 8:25
  to
• 8:25
  really
• 8:25
  build
• 8:25
  your
• 8:25
  credit
• 8:26
  with
• 8:26
  that
• 8:26
  car
• 8:26
  loan.
• 8:27
  Set
• 8:27
  up
• 8:27
  automatic
• 8:28
  payments.
• 8:29
  That
• 8:29
  way
• 8:29
  you
• 8:29
  don't
• 8:30
  miss
• 8:30
  those.
• 8:31
  And
• 8:31
  then
• 8:31
  check
• 8:31
  your
• 8:32
  credit
• 8:32
  report
• 8:32
  to
• 8:33
  make
• 8:33
  sure
• 8:33
  everything
• 8:33
  is
• 8:33
  reported
• 8:34
  correctly.
• 8:35
  That
• 8:35
  one,
• 8:36
  why
• 8:36
  step
• 8:36
  today
• 8:37
  is
• 8:37
  worth
• 8:37
  more
• 8:37
  than
• 8:37
  weeks
• 8:38
  of
• 8:38
  worrying
• 8:38
  about
• 8:39
  what
• 8:39
  already
• 8:39
  happened.
• 8:41
  Now
• 8:41
  let's
• 8:41
  get
• 8:41
  a
• 8:41
  little
• 8:41
  deeper
• 8:42
  in
• 8:42
  this.
• 8:43
  What
• 8:43
  often
• 8:43
  follows
• 8:44
  what
• 8:44
  I'll
• 8:44
  call
• 8:45
  a
• 8:45
  financial
• 8:45
  misstep
• 8:46
  and
• 8:46
  isn't
• 8:47
  just
• 8:47
  frustration,
• 8:49
  it's
• 8:49
  condemnation.
• 8:49
  And
• 8:50
  I
• 8:50
  hear
• 8:50
  you
• 8:50
  condemning
• 8:51
  yourself.
• 8:52
  And
• 8:52
  if
• 8:52
  you're
• 8:52
  like
• 8:53
  most
• 8:53
  of
• 8:53
  us,
• 8:53
  you're
• 8:54
  going
• 8:54
  to
• 8:54
  replay
• 8:54
  that
• 8:55
  decision
• 8:55
  in
• 8:55
  your
• 8:55
  head.
• 8:56
  You're
• 8:56
  going
• 8:56
  to
• 8:56
  criticize
• 8:57
  yourself
• 8:57
  and
• 8:58
  you're
• 8:58
  going
• 8:58
  to
• 8:58
  look
• 8:58
  for
• 8:58
  complicated
• 8:59
  ways
• 8:59
  to
• 9:00
  make
• 9:00
  up
• 9:00
  for
• 9:00
  it.
• 9:01
  But
• 9:02
  God
• 9:02
  doesn't
• 9:02
  call
• 9:02
  us
• 9:03
  to
• 9:03
  panic
• 9:03
  our
• 9:03
  way
• 9:03
  into
• 9:04
  wisdom.
• 9:05
  What
• 9:05
  he
• 9:05
  does
• 9:05
  is
• 9:06
  he
• 9:06
  calls
• 9:06
  us
• 9:06
  to
• 9:06
  walk
• 9:06
  in
• 9:07
  truth.
• 9:08
  Living
• 9:08
  in
• 9:09
  faithful
• 9:09
  stewardship
• 9:10
  isn't
• 9:10
  about
• 9:11
  never
• 9:11
  making
• 9:11
  mistakes.
• 9:13
  I
• 9:13
  make
• 9:13
  mistakes.
• 9:14
  You're
• 9:14
  going
• 9:14
  to
• 9:14
  make
• 9:15
  mistakes,
• 9:15
  too.
• 9:16
  But
• 9:16
  living
• 9:17
  faithfully
• 9:17
  is
• 9:18
  about
• 9:18
  acknowledging
• 9:19
  what
• 9:19
  happened,
• 9:20
  seeking
• 9:20
  wisdom,
• 9:21
  and
• 9:21
  taking
• 9:22
  that
• 9:22
  next
• 9:22
  right
• 9:23
  step.
• 9:24
  There
• 9:24
  is
• 9:24
  always
• 9:25
  grace
• 9:25
  for
• 9:25
  the
• 9:26
  decisions
• 9:26
  you
• 9:26
  made,
• 9:27
  and
• 9:27
  there's
• 9:27
  wisdom
• 9:28
  available
• 9:28
  for
• 9:29
  the
• 9:29
  one
• 9:29
  in
• 9:29
  front
• 9:29
  of
• 9:29
  you.
• 9:30
  God
• 9:31
  can
• 9:31
  use
• 9:31
  our
• 9:31
  mistakes
• 9:32
  to
• 9:32
  build
• 9:32
  maturity
• 9:33
  and
• 9:34
  use
• 9:34
  them
• 9:34
  to
• 9:34
  build
• 9:34
  discernment.
• 9:35
  I'm
• 9:35
  not
• 9:35
  saying
• 9:35
  you
• 9:35
  made
• 9:36
  a
• 9:36
  mistake,
• 9:36
  but
• 9:36
  you
• 9:37
  said
• 9:37
  that
• 9:37
  you're
• 9:37
  feeling
• 9:38
  that.
• 9:39
  That
• 9:39
  one
• 9:39
  loan
• 9:40
  doesn't
• 9:40
  define
• 9:40
  your
• 9:41
  future.
• 9:42
  And
• 9:42
  one
• 9:43
  wise
• 9:43
  decision
• 9:43
  can
• 9:44
  change
• 9:44
  your
• 9:44
  direction
• 9:45
  and
• 9:45
  your
• 9:45
  trajectory
• 9:45
  forever.
• 9:46
  So
• 9:46
  here's
• 9:47
  your
• 9:47
  win
• 9:47
  for
• 9:47
  today.
• 9:48
  I
• 9:48
  want
• 9:48
  you
• 9:48
  to
• 9:48
  call
• 9:49
  that
• 9:49
  lender
• 9:49
  this
• 9:49
  week
• 9:49
  and
• 9:50
  ask
• 9:50
  three
• 9:50
  questions
• 9:51
  really
• 9:51
  simple.
• 9:52
  We'll
• 9:52
  put
• 9:52
  these
• 9:52
  in
• 9:52
  the
• 9:52
  show
• 9:53
  notes.
• 9:53
  But
• 9:53
  number
• 9:54
  one
• 9:54
  question,
• 9:54
  is
• 9:55
  there
• 9:55
  a
• 9:55
  prepayment
• 9:55
  penalty?
• 9:56
  Number
• 9:57
  two,
• 9:57
  what's
• 9:57
  the
• 9:57
  exact
• 9:58
  payoff?
• 9:59
  And
• 9:59
  three,
• 10:00
  how
• 10:00
  will
• 10:00
  an
• 10:01
  early
• 10:01
  payoff
• 10:01
  be
• 10:01
  reported?
• 10:02
  Once
• 10:03
  you
• 10:03
  know
• 10:03
  those
• 10:03
  answers,
• 10:04
  then
• 10:04
  make
• 10:05
  a
• 10:05
  decision
• 10:05
  based
• 10:05
  on
• 10:05
  wisdom,
• 10:06
  not
• 10:06
  that
• 10:07
  fear.
• 10:08
  When
• 10:08
  you
• 10:08
  have
• 10:09
  information.
• 10:10
  It
• 10:10
  reduces
• 10:11
  anxiety.
• 10:12
  Let's
• 10:12
  get
• 10:13
  to
• 10:13
  our
• 10:13
  Bible
• 10:13
  verse
• 10:13
  for
• 10:14
  today.
• 10:14
  It
• 10:14
  comes
• 10:14
  to
• 10:14
  us
• 10:15
  from
• 10:15
  the
• 10:15
  book
• 10:15
  of
• 10:15
  Proverbs,
• 10:16
  chapter
• 10:16
  22:7.
• 10:18
  It
• 10:18
  says
• 10:18
  the
• 10:19
  rich
• 10:19
  rule
• 10:19
  over
• 10:19
  the
• 10:20
  poor
• 10:20
  and
• 10:20
  the
• 10:21
  borrower
• 10:21
  is
• 10:21
  slave
• 10:22
  to
• 10:22
  the
• 10:22
  lender.
• 10:24
  That's
• 10:24
  just
• 10:24
  a
• 10:24
  truism.
• 10:26
  When
• 10:26
  you're
• 10:26
  in
• 10:26
  debt,
• 10:27
  it
• 10:27
  creates
• 10:27
  obligation.
• 10:29
  If
• 10:29
  you
• 10:29
  no
• 10:29
  longer
• 10:30
  need
• 10:30
  the
• 10:31
  obligation
• 10:31
  and
• 10:32
  remove
• 10:32
  it
• 10:32
  wisely,
• 10:33
  then
• 10:33
  do
• 10:34
  that.
• 10:34
  It
• 10:34
  makes
• 10:34
  sense
• 10:35
  to
• 10:35
  do
• 10:35
  that.
• 10:36
  How
• 10:36
  about
• 10:36
  we
• 10:36
  pray
• 10:36
  together?
• 10:37
  Heavenly
• 10:38
  Father,
• 10:39
  I
• 10:39
  want
• 10:39
  to
• 10:39
  lift
• 10:39
  up
• 10:40
  the
• 10:40
  person
• 10:40
  who
• 10:40
  feels
• 10:41
  embarrassed
• 10:41
  or
• 10:42
  anxious
• 10:42
  or
• 10:43
  frustrated
• 10:44
  over
• 10:44
  decision
• 10:44
  they
• 10:45
  wish
• 10:45
  they
• 10:45
  could
• 10:45
  undo.
• 10:46
  Hey
• 10:46
  man,
• 10:46
  so
• 10:46
  many
• 10:47
  of
• 10:47
  us
• 10:47
  have
• 10:47
  those,
• 10:47
  Lord,
• 10:48
  don't
• 10:48
  we?
• 10:48
  And
• 10:49
  I
• 10:49
  just
• 10:49
  ask
• 10:49
  right
• 10:50
  now
• 10:50
  that
• 10:50
  you
• 10:50
  would
• 10:50
  give
• 10:50
  them
• 10:51
  peace
• 10:51
  instead
• 10:51
  of
• 10:52
  panic.
• 10:52
  And
• 10:53
  Lord,
• 10:53
  help
• 10:53
  them
• 10:53
  to
• 10:53
  find
• 10:54
  wisdom
• 10:54
  instead
• 10:55
  of
• 10:55
  feeling
• 10:55
  like
• 10:55
  they
• 10:56
  live
• 10:56
  in
• 10:56
  a
• 10:56
  shame.
• 10:57
  Help
• 10:58
  them
• 10:58
  to
• 10:58
  separate
• 10:59
  facts
• 10:59
  from
• 10:59
  fear,
• 11:00
  Lord,
• 11:00
  and
• 11:00
  make
• 11:01
  the
• 11:01
  next
• 11:01
  right
• 11:01
  decision.
• 11:03
  And
• 11:03
  remind
• 11:03
  all
• 11:04
  of
• 11:04
  us
• 11:04
  that
• 11:04
  one
• 11:05
  financial
• 11:05
  decision
• 11:06
  doesn't
• 11:06
  define
• 11:07
  our
• 11:07
  future.
• 11:08
  Lord,
• 11:09
  thank
• 11:09
  you
• 11:09
  so
• 11:09
  much
• 11:09
  for
• 11:10
  your
• 11:10
  grace.
• 11:11
  Thank
• 11:11
  you
• 11:11
  so
• 11:11
  much
• 11:11
  for
• 11:12
  providing
• 11:12
  when
• 11:12
  we
• 11:13
  make
• 11:13
  mistakes.
• 11:14
  And
• 11:14
  thank
• 11:14
  you
• 11:15
  so
• 11:15
  much
• 11:15
  for
• 11:15
  showing
• 11:15
  us
• 11:16
  wisdom
• 11:16
  you
• 11:16
  offer
• 11:17
  when
• 11:17
  we
• 11:17
  seek
• 11:17
  you
• 11:18
  first,
• 11:18
  Lord,
• 11:19
  and
• 11:19
  we
• 11:19
  ask
• 11:20
  this
• 11:20
  in
• 11:20
  Jesus
• 11:21
  name.
• 11:22
  Amen,
• 11:24
  friend.
• 11:24
  You
• 11:24
  don't
• 11:24
  need
• 11:25
  a
• 11:25
  perfect
• 11:25
  financial
• 11:25
  record
• 11:26
  to
• 11:26
  build
• 11:26
  a
• 11:26
  healthy
• 11:27
  financial
• 11:27
  future.
• 11:28
  You
• 11:29
  just
• 11:29
  need
• 11:29
  the
• 11:29
  willingness
• 11:30
  to
• 11:30
  take
• 11:30
  the
• 11:30
  next
• 11:31
  wise
• 11:31
  step.
• 11:32
  So
• 11:33
  get
• 11:33
  the
• 11:33
  facts
• 11:33
  from
• 11:33
  the
• 11:34
  lender,
• 11:34
  avoid
• 11:35
  unnecessary
• 11:35
  debt
• 11:36
  where
• 11:36
  you
• 11:36
  can
• 11:37
  and
• 11:37
  focus
• 11:37
  on
• 11:38
  that
• 11:38
  loan
• 11:38
  you
• 11:38
  actually
• 11:38
  need.
• 11:39
  And
• 11:39
  hey,
• 11:39
  enjoy
• 11:39
  that
• 11:40
  new
• 11:40
  car
• 11:40
  you
• 11:40
  got.
• 11:41
  I'd
• 11:41
  like
• 11:41
  to
• 11:41
  hear
• 11:41
  about
• 11:42
  it.
• 11:42
  If
• 11:43
  you've
• 11:43
  got
• 11:43
  a
• 11:43
  question
• 11:43
  for
• 11:44
  the
• 11:44
  show,
• 11:44
  you
• 11:44
  can
• 11:44
  reach
• 11:45
  me
• 11:45
  by
• 11:45
  going
• 11:45
  to
• 11:46
  financiallyconfidentchristian.com/question
• 11:50
  We'll
• 11:50
  put
• 11:50
  a
• 11:50
  link
• 11:51
  in
• 11:51
  the
• 11:51
  show
• 11:51
  notes,
• 11:51
  but
• 11:51
  again,
• 11:51
  that's
• 11:52
  financiallyconfidentchristian.com/question
• 11:57
  Thank
• 11:57
  you
• 11:57
  so
• 11:57
  much
• 11:57
  for
• 11:57
  joining
• 11:58
  me
• 11:58
  today.
• 11:59
  Stay
• 11:59
  financially
• 12:00
  savvy.
• 12:00
  May
• 12:00
  God
• 12:01
  bless
• 12:01
  you
• 12:01
  and
• 12:02
  you
• 12:02
  have
• 12:02
  a
• 12:02
  truly
• 12:02
  great
• 12:03
  day.