Smart Planning Sessions: Digging Out of $36K in Debt — Without Derailing Retirement

Jun 16, 2025

Guest Daniel Messeca, a Certified Financial Planner and co-host of Check Your Balances, shares insights on managing debt without jeopardizing retirement plans. He discusses the risks of tapping into retirement funds to pay off credit card debt, emphasizing the importance of evaluating long-term implications. Messeca also highlights strategies for spotting budget leaks and the benefits of nonprofit credit counseling. Additionally, the conversation includes navigating the pitfalls of debt consolidation and the value of seeking professional financial advice.

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ANECDOTE

Maximizing Credit Card Rewards

Elizabeth maximized her credit card rewards by analyzing which cards were best for different purchases.
She realized using the American Express Blue Cash card for groceries gave her the best return over the annual fees she was paying.

ADVICE

Use Credit Card Rental Insurance

Use the insurance benefits provided by your travel credit card instead of buying additional rental car insurance.
This strategy can save you hundreds, especially when renting new or expensive vehicles.

ANECDOTE

Lash Extensions Addiction Cost

Elizabeth got new lash extensions as a favor but got hooked on the costly maintenance.
She spent $100 initially, then $50 every other week, realizing the expense was unsustainable and has now stopped.

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In this month’s Smart Planning segment, a financial advisor discusses how to build a smarter debt payoff plan without sacrificing long-term financial goals.

What’s the smartest way to make progress on credit card debt when budgeting alone isn’t cutting it? When can debt consolidation tools actually make your situation worse? Hosts Sean Pyles and Elizabeth Ayoola discuss strategies for getting out of debt without sacrificing long-term financial stability. But first, they begin with a round of Smart Money, Dumb Money, Fun Money, where they talk about some of the smartest, dumbest and “funnest” things they’ve seen in the world of money lately, from maximizing credit card rewards to avoiding loyalty traps with insurance providers to choosing which splurges are actually worth it.

Then, they’re joined by Daniel Messeca, Certified Financial Planner and co-host of the Check Your Balances podcast, to help listener Safia weigh whether tapping their 403(b) to pay off $36,000 in credit card debt is a smart move. Together, they explore how to evaluate the long-term tradeoffs of using retirement funds, how to spot and plug budget leaks, and how nonprofit credit counseling, 403(b) loans, and even bankruptcy might fit into a comprehensive debt payoff plan.

Inspired to navigate your finances with an advisor? Use NerdWallet Advisors Match to find vetted professionals today at https://www.nerdwalletadvisors.com/match

Card benefits, terms and fees can change. For the most up-to-date information about cards mentioned in this episode, read our reviews:

American Express Blue Cash Preferred Review: Perhaps the Ultimate Family Card https://www.nerdwallet.com/reviews/credit-cards/american-express-blue-cash-preferred
Citi AAdvantage Executive Review: Your Key to the Club https://www.nerdwallet.com/reviews/credit-cards/citi-aadvantage-executive

Track your net worth, stay up-to-date on consumer news, and learn smart money moves on the NerdWallet app: https://nerdwallet.com/app

Compare auto insurance rates in 2 minutes: https://www.nerdwallet.com/m/insurance/auto-insurance/compare-quotes-control-29

In their conversation, the Nerds discuss: using 403b to pay off credit cards, credit card debt payoff strategies, credit card consolidation options, nonprofit credit counseling, 403b loan vs withdrawal, how to budget paycheck to paycheck, emergency fund savings tips, high-interest credit card strategies, 0 APR balance transfer, eSIM international travel, rental car insurance credit card, car insurance loyalty penalty, budgeting apps for debt payoff, student loan repayment tips, public service loan forgiveness program, SAVE plan student loans, income-driven repayment plans, how to reduce entertainment spending, reducing eating out budget, how to start a side hustle, budgeting for low income, when to pause retirement contributions, how to qualify for PSLF, tips for high annual fee credit cards, choosing the right rewards card, using hobbies for self-care, fun money budgeting tips, best credit cards for groceries, and car insurance shopping tips.

To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email podcast@nerdwallet.com.

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