"The Money Coach" Offers Advice on Slashing Debt
Steve Adubato sits down with Lynnette Khalfani Cox, financial expert & author, also known as "The Money Coach" who gives advice on how to slash your debt and improve your credit score.
"She is back by popular demand. Boy does that look great! You look beautiful with that backdrop. Oh, thank you. Lynette Khalfani Cox. She is the money coach and she is an author. She's on every conceivable national program. She is back here on public broadcasting and FIOS 101. Good to see you! Thank you! I'm back where it matters. This is the only place that matters. You know that Steve. Well you're saying the right thing. You're going to get another invitation if you keep that again. Invite me back again Debt... Right? We've got to bring down our debt. We've got to slash our debt and improve our credit score.Ye.s First of all. How in the heck do so many people get in such debt? You know, I tell people all the time, especially as someone who was in debt. Mmm. A very very long time ago, back in 2001... I think I've shared this with you before. That's right. I had a massive amount of credit card debt. $100,000. Crazy amount. That's right. Don't even ask!. I paid it all off in 3 years and never missed a single payment. Then I wrote this book about it "Zero Debt". It became a New York Times best seller. Most people get into debt because of 2 different sets of reasons. Some people are poor money managers or over-spenders. That was me. I was in the over spending category. I was making a six figure salary, but I was spending like I was earning 7 figures. Got it. The math will never work, okay? Other people get into debt because of circumstances and what I call the "dreaded D's". Downsizing, Divorce, a Death in the family (the main bread winner), Disability or Disease. Obviously, anytime something like that happens to you, it can throw your finances completely out of whack. It forces a lot of people to live on plastic. So right now, federal statistics show us that the typical household that's actually carrying a credit card balance... They have over $16,000 in credit card debt. What?! I know! It's a lot! 16 grand? 16 grand. Not everybody has credit card debt and carries a balance and that's another thing I tell people. Don't mistakenly think "Well, everybody's in debt. Everybody has debt" MmmMmm. Pew research has shown that 80% of all Americans do have some form of debt... A mortgage, a car note, student loan, auto loan, credit card debt, all of that. However, on credit card debt specifically, only 47% of households carry a balance month to month. So you have to note that these statistics, when we talk about $16,000, we're talking about among those that do actually care a balance. Got it. So here's the thing I often worry about. Well, not worry about, but..."