- A 50-year-old man named Clark sought financial assistance on Caleb Hammer’s “Financial Audit” show.
- Clark revealed that he worked as a shop assistant, earning $12,000 per year, and also served as his mother’s caregiver.
- His situation highlighted the prevalent issue of poor financial literacy in the United States.
A middle-aged individual appeared on YouTuber Caleb Hammer’s budgeting podcast seeking financial guidance, shedding light on the detrimental impact of low financial literacy in the US.
Clark, a 50-year-old resident of San Antonio, Texas, shared with Caleb Hammer, the host of “Financial Audit,” that he worked as a stocker at a convenience store, earning an annual income of $12,000 at a rate of $9 per hour.
Hammer questioned Clark about how he managed to survive on such a low income. Clark explained that he lived with his 83-year-old mother and also earned additional money as her caregiver, bringing his total yearly income to $22,000.
In terms of his financial situation, Clark had accumulated approximately $9,800 in credit card debt that he hadn’t addressed in over a year, resulting in the debt being passed on to collection agencies.
During the episode, Hammer did not go into detail about all the credit cards and their specifics, but he did mention that the ones he discussed were all maxed out:
- $959 on a First Direct bank card, exceeding the credit limit by $259.
- $585 on a Credit One card, which included overdue payments.
- $457 on another unspecified card.
- Around $2,000 on an Aspire card.
- $5,209 on another Capital One card, exceeding the limit by $209.
The total amount owed for these cards was approximately $9,200.
Hammer did not provide the interest rates for these cards and later mentioned that Clark’s record-keeping was poor, making it difficult to determine the exact details of his debt.
Clark’s monthly minimum payment surpassed $2,100, exceeding his income. Hammer pointed out that due to accruing interest and late fees, Clark’s total debt could easily exceed $10,000.
According to Clark, he started accumulating credit card debt in 2021, considering it as “money to burn.”
Hammer asked Clark about his mindset regarding money, to which Clark revealed that he initially attempted to pay off his cards but eventually stopped due to insufficient funds.
“I just haven’t planned that far ahead yet,” Clark confessed when Hammer questioned why he didn’t seek a job with more hours or a higher salary to pay off his debts.
Hammer countered by stating that not having a plan is not a plan. He asked Clark if he simply didn’t care about his situation.
“I do care and I don’t care,” Clark responded, expressing his belief that improving his credit history seemed pointless to him. Hammer then inquired if Clark considered the moral obligation to repay his debts.
“That’s a conundrum,” Clark admitted. “To tell you the truth, I don’t have anyone to apologize to.”
Hammer probed further and asked if Clark was someone who made excuses.
“Yeah, pretty much,” Clark acknowledged.
Hammer emphasized that if Clark wanted to avoid working for the rest of his life, he needed to stop making excuses.
Clark revealed that he had lived with his mother for the majority of his life, paying her $400 in monthly rent for a house she owned. When Hammer asked if he would inherit the house, Clark mentioned that it was probable, although he had siblings.
Clark admitted to having no retirement savings, jokingly mentioning a mere $25, and revealed that he only had $13 in his checking account.
Hammer questioned Clark about the circumstances that led to his current financial state. Clark explained that he lost some jobs due to his Type 1 diabetes. In one instance, he experienced low blood sugar and passed out while working as a cashier, resulting in his termination.
Clark mentioned that he had been auditioning for acting roles and had received a job offer as a cook at a restaurant, which would increase his hourly wage to $19.
On Hammer’s subreddit, where fans of the show engage in discussions, numerous individuals expressed frustration towards Clark, comparing him to family members they perceived as “failures to launch.”
One redditor described a sibling who held a series of minimum-wage jobs and quit whenever they felt annoyed, all while living with their mother, who covered their rent. The comment highlighted the difficulty of not feeling resentful towards such choices, especially considering the likelihood of inheriting their parent’s house.
Hammer responded to a comment questioning why he hadn’t advised Clark to negotiate a settlement with his debtors. Hammer explained that the exact details of Clark’s current collection status were unclear and that his overall documentation and record-keeping were woefully inadequate. Therefore, pursuing that route without certainty of its effectiveness didn’t seem prudent.
Hammer, who uploads two interviews each week on his channel, boasting over 600,000 subscribers, featuring individuals seeking financial assistance, previously highlighted the significance of financial literacy as one of the major issues plaguing Americans today.
According to Hammer, there exists a “complete lack of understanding” regarding what individuals can truly afford. He attributed this problem to the absence of financial education in schools, inadequate parental guidance, and the common acceptance of large, long-term debts in American society.
Hammer stressed that the average American carries a few thousand dollars in credit card debt, with monthly car payments nearing a thousand dollars. Relying solely on home-based financial education poses challenges since it often comes from individuals lacking financial knowledge themselves.
He further remarked, “We do kind of feel like we deserve everything as well.” Hammer mentioned the inclination to indulge oneself after a hard day’s work, such as treating oneself to a $20 restaurant meal. However, accumulating such expenses regularly while already in debt may hinder financial stability. He emphasized the importance of ensuring a solid foundation before indulging in non-essential expenses.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
