A new story from My Worst Investment Ever Podcast

Automatic TRANSCRIPT

And I'm here with featured guests. Dennis and Katie. O'Brien Denison Katie. Are you ready to rock alertly. Okay all right well let me introduce you to the audience. You have a bit of heroic story here. Denison Katie decided to create chain of wealth. After a tough conversation about Katie's debt. She had over two hundred thousand dollars of debt that included a student loan mortgage car loan and negative equity. And let me tell tell you you're not alone or you weren't alone as I can see a lot of that going on in America after hunkering down and re prioritizing what is important in life they have managed Enersen pay off all their debt in less than two years all while getting married and paying for their wedding in cash. Katie and Dennis take a minute going further tidbits about your life. Yes thank you so much for having us like you said we just got married about a month and a half ago I we got married in South Africa. Because that is where Devos's family is a beautiful location. Yeah when we talk without a hitch absolutely beautiful so I kept expecting something to go wrong but wintle perfectly. We were very very blessed. The weather was perfect. We saw some really cool animals and yeah wait till fairly well. Yeah fantastic fantastic well. Congratulations mom I promise. I'm going to get married when I grow up. She's GonNa she's GonNa go. Hey I heard that my number one listener. Well now it's time to share your worst investment ever and since no one goes into their worst investment investment thinking it will be take a moment and tell us a bit about the circumstances leading up to it and then tell us your story yes sir. We're going to highlight one of Katie's debts. Let's that's she paid off but to give you an idea as to where it all started. So Katie moved into my pop up to DC. We originally admitted Tampa. We'd been dating backwards and forwards and I had to move for work. We kind of agreed that she would come and join me. At the time she says. So she's had a menchie schoolteacher. Ah Trade and she quit her job obviously coming up and she didn't want to take a job because she was worried you know. What if this doesn't work out? I need a backup plan if money to jump except I need to get up there. Quick I mean look at this guy was so. She didn't take up a job she when she moved. Stop and look at the time. But you move into DC without any income and things were grateful a couple of months and all of a sudden you know the Bulls started coming in and Katie was always scared to check the Mail on sketch. She had anxiety of a check in the mail and she never used to lock it win. is say. Well let me ask male with downstairs will Rachi. Let's go grab that's and one day like after this like tension and not that we don't even check them out a skit. So what are you worried about. It's just the male. Yes and that's when it all started so I didn't want to check the mail because because I knew what laid waiting for me in the mailbox and it was like a stack of bills like this and I was right and and after a long night we told everything up and it came to a staggering. Two hundred thousand dollars worth of debt and I thought I was going to be sick. I had no job. I didn't know what to do is pure panic so a lot like you said in the intro it was student loan a mortgage and then a car loan in negative equity. I'm going to focus only on the negative equity part because it is the most regretful. threatful one that I have you because you have to go to school so you take out a loan you buy a home you take out a mortgage. Those are all understandable thing. The negative equity on the other. Our hand is like such a moment in my life or now I just look back I think like what in the world reside thinking so it back in March two thousand fifteen to notice them fourteen somewhere around there. I was dating this boy and he was really convincing. He needed a new car for some reason or another and he had bad credit and he convinced me after many conversations that if I were to co-sign a loan for him that that would lower his interest rate and then we'll be able to save money to do all kinds of other things with the money so at the time. I'm driving a two two thousand two Toyota Corolla with a dent in the side. Okay the check engine. Light is on the you know sue sue. Every time I went to get gas I would have to pop up in the hood. Check the oil. I always had an extra thing of oil in the back of my car. Just think inside a poor more in I I am not like a car person and had never had a car payment before this so finally I go and I geico to the car dealership. He picks out their car and he tells me that he has all this negative equity and and at the time I can use my context clues I know. Negative equity is not great but it was super sure what negative equity even was was at this point and I am twenty five twenty six and now I've got my own apartment. I graduated from college. I have a job like I know everything so I I do the terrible thing. I don't even tell my mom that doing it until after it's done so I co signed for the car and it was not even like a really really nice cars. Well it was nice farther like Haiyan Day it wasn't like a Mercedes or BMW or anything high ends like that. So that was march. And I'm sure as you can probably imagine that relationship quickly hit like a hill and there's just like a straight plummet down and that the friendship relationship was over and he goes well. Thanks for the car that you're going to keep making payments onyx under your name. I'm not paying for it and I thought was. Can you even do that. Yes exactly out all she can after more than one night of tears and my mom trying to help me my brother trying to help me the only away. Well first let me let me back up a little bit when I come signed. He said this'll be no problem to you. I promise I will make every single payments comments and then we are no longer friends and now my credit is attached to the so the first month he made the payment second month. He didn't make the payment and I called every single day. He never made the payment so I didn't know what else to do along with some other stuff that was going on. I went to a lawyer and I said I don't know what to do. I need him to take this car and pay for it or I need him to give back to me so I can deal with this so I'm sure you can imagine like the dog he was. I came home one night. I was living with my mom at the time. I came home one night and and in front of her. How they're six the car and he said it cures go ahead and take it no problem you know basically saying thank you for paying all of my negative equity off on it and we're talking not a little bit of negative equity twenty thousand dollars and Sand Lake then said I a teacher? Twenty thousand dollars is a lot of money for me and so now. I'm panicked next because I don't really know what to do. And I started the process of trying to get his name off the title naturally. He's super hard to work with. He won't even even do that. And I don't know what possessed me but we went to a car dealership my mother and one day because she told me that if I make all the payments on the car and in three years the cars almost paid off he can still come in the middle of the night and take the car away from me. Yeah and that is really now that I have the car back and I can make the payments and my card is not going to be affected. That was my next big fear that he was going to take car in the middle of the night. So I went to a car dealership in Tampa where I was living at the time. And when and I and told the guy what had happened nothing makes you feel more like a bozo then a situation and like this and I remember they i. I thought I was going to be able to go in and pick out a cheaper car. Get his name off of it and Bing Bang boom like we're done John and life can move on. I was wrong just like your head is shaking. I was wrong so then we're looking at all these. He's like fifty and sixty thousand dollar cars. I had never had a car payment. My car is at the time like twelve thirteen eighteen years old so I just like we have to have something cheaper. I can't afford the and the guy told me he said the can't do anything and cheaper because you have so much negative equity you need alone. They'll be able to cover the cost of the car. Just to add to that saw the dealerships are allowed to do that and the reason they weren't giving her a learn with because she had no collateral so it was high risk for them to give her a cheap car. And say we'll just giving you twenty thousand dollars. I'm hoping that you pay it back back. So they say well. If it's not a problem we'll to sell your more expensive assets said that way if you default we have more claim so from the caused the ship I totally get it and I understand why but it's a tough position to be in talking to the salesmen. I didn't didn't even go and look at cars. I know a lot of people go and buy a car. They walked the law and they test drive and they do this and that and everything. I did not do that. There's there's a car sitting right on the showroom floor since I had to get a super expensive car. There's no point in looking at the cheaper cars that can't get so. I bought this blue. Honda cars sewer right off the showroom floor with like thirty five miles on it and I hated it. I didn't even sit in it before I bought. How did I just signed the paperwork and I remember sitting in the dealership with my mom and it was like a beautiful? Saturday is by this time unlike late September but when all this had kinda come to surface and I had moved out and all the car stuff had been you know thrown.

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