Financially Undressing: A Talk About Your Debt

Feb 6, 2024

They discuss the impact of inflated car prices on credit and the risks and benefits of home equity lines of credit (HELOCs). They also cover debt management strategies, tax implications of forgiven debt, and debt consolidation. The podcast warns parents about using HELOCs to pay for college and discusses student loan forgiveness programs. They debate between the avalanche and debt snowball method for paying off debt, and address the impact of debt on heirs. They emphasize the importance of creating a spending plan and considering non-recurring expenses.

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Introduction

00:00 • 2min

Prioritizing Debt Repayment and Building an Emergency Fund

02:29 • 5min

The Inflation of the Used Car Market and its Impact on Borrowers

07:31 • 8min

Discussion on Public Service Loan Forgiveness and Potential Changes

15:59 • 2min

Debate between Avalanche and Debt Snowball Method

17:37 • 10min

Debt Verification, Credit Management, and Liability for Elderly Parents' Debts

27:45 • 2min

The Impact of Debt on Heirs

29:18 • 10min

Creating a Spending Plan

39:47 • 14min

Are you ready to strip away the layers of your financial life? We’re unbuttoning the secrets of debt management and financial planning. We cover everything from the impact of inflated car prices on credit and the potential risks and benefits of home equity lines of credit (HELOCs) to debt management strategies and the potential tax implications of forgiven debt. Senior Student Loan Advisors Sim Terwilliger, CFP®, CSLP®, and Meagan McGuire, ChFC®, CSLP®, share expert insights on debt consolidation, budgeting for recurring expenses, and the significance of prioritizing mental health while working towards financial goals. Get ready to shed some light on your financial wardrobe with valuable tips to help you become debt-free and financially empowered.

In today’s episode, you'll find out:

The difference between the funnel method and the strainer approach for financial goals
How the pandemic’s inflated car prices are impacting car loans and credit
What high loan-to-value ratios mean for your credit score
The role of credit reports for landlords, jobs, and future debt costs
How car payments can make or break your house hunting journey
A warning to parents about using HELOCs to pay for children’s college costs
When to use HELOC vs. double consolidation for student loan debt
What changes borrowers can expect in student loan forgiveness programs
Why math-based strategies like debt avalanche or debt snowball aren’t a slam-dunk
The sneaky language in cosigner agreements and why refinancing is a smart solution
What types of debt to prioritize before paying off private student loans
How to get out of default on federal student loans
The secret to leveraging debt to earn money rather than paying it off
Options when dealing with IRS debt and how to balance payment options

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