Apple Podcasts
Google Podcasts
Spotify
StitcherDebt can be a scary word, really. It keeps you up at night, brings on the stress, and makes everything feel heavier. But you’re not alone. Once upon a time, Jen and Jill were there too. So in this episode, they’re once again sharing how they got through it and reminding you that it is possible.
There is no good or bad debt. Debt is not the enemy— it is a part of life. If we realize that, we don’t have to live in the extremes.
Sponsors:
- Annual Finance Planner. Do you have different sheets, docs, and notes for your wellness checks, insurance, home, car, and travel rewards? Say no more because we made an annual finance planner spreadsheet so you can keep everything in one place. Check out frugalfriendspodcast.com/planner! Use our code SUMMER50 to get 50% off and organize your life.
Check out some relevant episodes
How Jill Paid Off $56,000 of Debt Over 7 Years
How Jen Paid Off $78,000 In 2 Years
Debt Free Summer series
How to Stop Obsessing Over Your Debt, According to Experts
We love the normalization this CNBC article insinuates on having debt. Many people think about their finances– we all experience and go through them.
What Jen + Jill have to say:
In a 2019 research that surveyed 1,007 people, about 28% said they think about the money they owe daily, 20% think about it ‘almost every day,’ and another 20% do ‘several times per week.’ You can see how much mental space finances take on most people. Jill reminds you that when we feel shameful or guilty about debt, it can cause more overwhelm and strain on our mental and emotional health than necessary. We can’t be completely self-sufficient in any aspect of life; we still need help and support. While trying to pay off your debt, don’t forget to look at your progress.
While it is important to look at how much debt you have, it is just as important to know how much you need. Jen spent a lot of time feeling shame and guilt because she had always thought that debt was the enemy, but it wasn’t, and it should never be. We often forget the reason behind our debt, which can make us feel bad about it.
5 Tips to Lower Your Debt-to-Income Ratio
If you have applied for a loan, mortgage, or any debt, this will be handy. Fool lists down practical tips if financially you have a higher debt-to-income ratio.
What Jen + Jill have to say:
It’s crucial to figure out first how to calculate the debt-to-income ratio. Jen estimates that the ideal debt-to-income is about 36%, considered the “acceptable ratio.” Try lowering your interest on the debt. Jill is surprised that you can call your lender and ask for a reduction in your interest rate.
One tip Jen & Jill finds amusing is putting cards on ice (not literally)! Lock your card, but it should not impede any recurring payments. Seek to implement a 24-hr rule when deciding to make a purchase. If you really want to save more money, try taking on a side hustle you can enjoy, but if you’re still unsure about what side hustle to take on, make sure to check out The Side Hustle Series by The Frugal Friends, you might discover what you’re looking for!
How we overcame the overwhelm of having more debt than we earn
Jill took 7 years to pay off her debt while not earning much in a year. Taking hold of her thoughts took a lot of intentionality and not letting them run wild. She had to mentally compartmentalize various things that stressed her and made her anxious about her finances.
Meanwhile, Jen overcame the overwhelm together with her husband, Travis. Teamwork makes the dream work as their partnership and support during their debt pay-off journey got them through it all.
Bill of The Week
Thank you Amanda for sharing your bill about lowering your electric bill!
Thanks so Much for Listening!
Thanks so much for listening. We love love love reading your kind reviews of our book Buy What You Love Without Going Broke and we especially loved this one from:
✰✰✰✰✰
I am so grateful that this book found me in this season of life. As someone interested in personal finance, I’ve consumed an inordinate amount of personal finance content. I’ve watched my personal finance knowledge (and needs) evolve, and Buy What You Love Without Going Broke meets me exactly where I am. Better yet, it provides actionable insight to help me chart where I’d like to go.
Never punitive, but instead, always curious, Jen & Jill’s approach to spending is refreshing and empowering. It provides a loving path to identifying what we truly value and unpacking the ways our spending may or may not be aligned.
In a world with so much noise — be it influencers promoting overconsumption or personal finance educators praising deprivation — Jen & Jill introduce a radical middle that allows readers to tune into what really matters.
If you want to check out our monthly challenge community head to frugalfriendspodcast.com/club to see what challenge we have coming up next.
Keep leaving us reviews on iTunes or Stitcher, and sending the screenshot to reviews@frugalfriendspodcast.com. And don’t forget to share your favorite quote from the episode by using the hashtag #FrugalFriendsNote. 😉
