DeliverAwayDebt on Blog Talk Radio with Ask Mr. Credit Card

by Ryan Yates

Yesterday I had the pleasure to speak with Mr. Credit Card on his Ask Mr. Credit Card Blog Talk Radio Show. We talked about many topics related to debt and how I use my second job as a pizza delivery dude to pay down my debt. If you looked closely at yesterday’s post Got Hope, you may have noticed that my debt freedom date is July of next year. That means my family will have paid off just over $100K in two years.

During the interview Mr. Credit Card brought up an interesting notion I’d like to mention here. If $100K can be paid off in two years, then a person could save $200K in 4 years to pay cash for a house. Using the $200K mark as the average house value in the USA. I personally never looked at it this way. In order to do that, we would have to sacrifice for an extra 4 years. Although I think it would be much quicker because we would already have traction. The first 4 to 5 months have been spent gaining traction so after calculating it out we could do it in 3.6 years based on my 1st and 2nd job. I’m not sure we are ready to do that but it has really peaked my interest. I’ll be investigating it further and I’ll report back here about my findings and thoughts. In the mean time, have a listen to the interview. I know everyone is dying to here my voice πŸ™‚

If you don’t see or can’t access Blog Talk Radio (I can’t from work), here is the MP3 file, just right click and save.

{ 21 comments… read them below or add one }

Wojciech Kulicki March 17, 2010 at

Great interview, I really enjoyed learning more about you! The point about buying a home for cash is definitely interesting, since most people would consider it so absurd and out-of-reach that it shouldn’t even be considered. But clearly, it can be done, and rather quickly actually.
.-= Wojciech Kulicki´s last blog ..How to Sell Your Car on Craigslist =-.

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Jeffrey Kosola March 17, 2010 at

Thanks Wojo, that was my first live interview since blogging. I had a lot of fun doing it. After the interview I talked with my wife about the idea of continuing to work a 2nd job and stock pile the cash (after we are out of debt). She isn’t opposed to it, but isn’t sure if I’ll still be alive after working so much. We are even talking about the possibility of going back to renting a bigger house for a while to build up cash to pay for a house. I need to crunch the numbers but it sounds interesting.

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Wojciech Kulicki March 17, 2010 at

Yeah, you guys definitely generated a lot of good ideas during your chat. I would echo your wife, though, and say–don’t burn yourself out. πŸ™‚
.-= Wojciech Kulicki´s last blog ..How to Sell Your Car on Craigslist =-.

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Jolyn@Budgets are the New Black March 17, 2010 at

GREAT INTERVIEW! Crunching the numbers, wouldn’t it take less time to accumulate the same amount of money you just paid off because you’ll be EARNING interest instead of paying interest, eh?

I think your wife is right, but I think you guys can do it (relatively) quickly even w/out the second job, if paying cash for a house ends up being your next financial goal. Some things are just more important than money: spending time with family, for instance; and not missing your children’s childhoods.

I loved your explanation of your online envelopes! That’s a system worth thinking about…

“More income is not going to solve the problem unless you apply it.” “…. it’s just going to raise your cost of living.” Or however you said that exactly. Excellent.

Anyone struggling with debt would be inspired listening to your story. So much good, practical information in this interview. Keep up the good work, paying debt and with your blog.
.-= Jolyn@Budgets are the New Black´s last blog ..5-goodwill-dress =-.

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Jeffrey Kosola March 17, 2010 at

@Jolyn – I’m glad you liked it. Yeah, I think my wife is right too. If I’m not working at either job I try to spend as much time with my kids as possible. Right now my little boy is playing with my hair as I type this and watch 101 Dalmatians with him. I’m not ready to continue to miss out on their lives after our debt is gone.

The online envelope system is great. I’m cooking up something fun with it right now, should be ready in a few weeks.

Thank-you very much for all the kind words, Jeff

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myfinancialobjectives March 17, 2010 at

Wow good post. You are making so much money through delivering pizza! Kinda making me think about which pizza shops are by my house…..hmm… hehe

$100,000 in two years is AMAZING.

Also wow, I would of had a HARD TIME not tell him what I really thought concerning the $50.00 story. Why wouldn’t he just give you the $50 the first time. That must have been incredibly annoying! And he got a free gift card out of it!
.-= myfinancialobjectives´s last blog ..The Ultimate Motivator: Compounding Interest =-.

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Jeffrey Kosola March 17, 2010 at

@MFO Pizza is a super second income maker. It is so much more fun than most service industry jobs (ie T-bell, McDs, etc…) Aside from freelance work or working your own company I think its the best.

Yeah, It took everything I had NOT to give that guy a piece of my mind. He was just an A-hole about the whole thing, it still make me mad thinking about it πŸ™‚

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Mrs. Money March 17, 2010 at

WOW! That is awesome! 100k in two years? You are the master!

You don’t sound like you’re from MI. My family all lives up there- we should hang out sometime! πŸ™‚
.-= Mrs. Money´s last blog ..If You Can’t Eat it, Don’t Put it on Your Skin =-.

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Jeffrey Kosola March 17, 2010 at

@Mrs. Money The only reason I can be labeled a master is because I was a master spender in my previous life πŸ™‚ Not many people have this amount of debt to pay off, I’m just lucky I guess.

I’ve always been told that people from the Midwest do not sound like they are from anywhere. I guess that makes us really sound weird. I have visited California before maybe I sound like a surfer dude? Or maybe it was the time I spent in China that gave me this voice, ni hao!!

As long as I’m not delivering I’m always willing to hang out. I’ve got an even better idea, bring your friend to work day. I could take you on a few pizza runs, I’m sure that sounds like every person’s dream…

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myfinancialobjectives March 17, 2010 at

a few of those pizza’s may goes missing… I don’t know if I could deal with the smell of pizza all day!! I would gain like 20 pounds my first week haha
.-= myfinancialobjectives´s last blog ..The Ultimate Motivator: Compounding Interest =-.

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Mr Credit Card March 17, 2010 at

I would add that you need not exactly save up for full cash payment on a house. But think of it this way – saving 50% for a downpayment and then saving half of your kids college education in a 529 plan, that would not be too bad.

And once you have reached that objective, perhaps you can cut down on the hours..maybe just working Friday and Sunday nights for example…lots of ways to “save up quick” and not just “reduce debt quick”…

Or another idea might be to save up for a “rental property” so that it earns you income?
.-= Mr Credit Card´s last blog ..Interview with Jeff from Deliver Away Debt =-.

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Jeffrey Kosola March 18, 2010 at

@Mr Credit Card The cool thing about looking toward my debt freedom date is that I will have options. Options are things that broke people just don’t have. You are right, maybe saving for 100% of a house is crazy, but after talking with you I believe it wouldn’t be too bad. I totally agree with the “save up quick” train of thought. I will have to make sure to shift gears as I get closer to paying everything off. Momentum is a hard to get so transitioning from a debt focus to a saving focus while still working hard should be easy.

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Forest March 18, 2010 at

Jeff awesome to hear you speaking and I like the frankness of your back story… Mr Credit Card just wrote an awesome guest post for my blog…. putting it up now.

You have been an inspiration for me from a blogging perspective and a debt perspective…. I like MrCC’s idea of saving for a house, I never want any debt again!
.-= Forest´s last blog ..FREE DOWNLOAD -Tribes: We Need You to Lead Us by Seth Godin =-.

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Jeffrey Kosola March 19, 2010 at

@Forest I really liked talking with Mr. Credit Card. I’m glad you enjoyed the back story. You’re not the only traveller out there πŸ™‚ I’ll head over and read his guest post later today. While I like the idea of paying cash for the house, I’m not sure I can do it. Maybe I’ll focus on 50% downpayment πŸ™‚

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Forest March 19, 2010 at

50% would be great if you still have a stable job… I never intend to be employed again so that’s another reason I don’t want debt!

You could just carry on working one day on the weekend and still generate significant 2nd income.
.-= Forest´s last blog ..FREE DOWNLOAD -Tribes: We Need You to Lead Us by Seth Godin =-.

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harvestwages March 18, 2010 at

Hey Jeff, Great interview,
i like the way you handle your debts.
.-= harvestwages´s last blog ..How to Sensibly Succeed As an Entrepreneur Without Changing Who You Are =-.

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Jeffrey Kosola March 19, 2010 at

@harvest Thanks for taking the time to listen, I hope I didn’t bore you too much πŸ™‚

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Mrs. Accountability March 22, 2010 at

Oh cool, I was interviewed by Mr. Credit Card a couple months ago. I will download your interview and listen to it on the way to work tomorrow morning.

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Jeffrey Kosola March 22, 2010 at

Yeah, I notice you did one with Mr. Credit Card. I’ve been listening to a lot the past interviews, I’ll put you in the line up next πŸ™‚

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Mrs. Accountability March 23, 2010 at

Hi Jeffrey! I listened to your interview this morning on my way to work. I think you did great – my interview with Mr. CC was my first live interview, too. I was SOOOO nervous! And so scared to listen to myself! It was so nice to hear your voice and I chuckled several times during the interview. Thanks for being so honest and hey, did I hear that you have a third baby on the way? I thought you mentioned it a couple times, once when you said something about your family getting bigger and needing a bigger house, then I heard you say a third on the way, but Mr. Credit Card didn’t pick up on that. Congratulations!
.-= Mrs. Accountability´s last blog ..Paradigm Shifts with Money =-.

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Jeffrey Kosola March 24, 2010 at

Thanks Mrs. Accountability, we are talking about the third child now. Looks like we will wait until next year to start trying. We both want all the debt gone before we have another one. Yeah, my house is quite small so we are trying to move up a little bit in the next 2 years. 2 Adults, 2 Kids, and 2 dogs (black lab and Golden Rev) are more than enough for our current house.

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