Hey, hey, hey, we're back. Well not really, but we are still black and Brown ambition. Hey, y'all, it's me Tiffany the budget. He said, I should cut up because Mandy's not here. Actually, neither one of us are here. I may or may not be sipping on a Virgin my tie in Hawaii because I'm on VACA and Mandy is chilling as well, minding her brown owned business. But we wanted to make sure you still had an awesome show, and since it's Halloween, we thought, why not have.
A little spooky show.
Let's talk about something super scary d e BT debt in particular, there's actually a debt called zombie debat, right, how apropos? Okay, So we hope you enjoyed this throwback show because we are gonna be talking about zombie debt and how it can actually kind of be your friend or what else. All right, So we will see you when we get back and enjoy your Halloween and be and save me some snickers.
Those are my faves, all right.
Bye.
Hey, hey, hey, it's time for b a Q. A heykay, it's time for b a Q. Wait, come on baby que Hey hey, it's time for any until you left my tab.
I don't know what you're doing. Oh there you are.
So for those who don't know me and man, they are testing out this video thing. No, you can't see us, but I can see her. So I was trying to get her to do the bomb. I'm like, come on, Manny, come on, come on, show me, show me that.
Bob I was lost in tab purgatory.
What is it?
It's like that part when I almost forget what the next the next move in the wobble is and you're kind of looking over.
Wait, yeah, get in there.
Well it's not from the aqua and we got some awesome questions. But if you have questions, maybe how can the people ask questions?
Oh?
How can't you ask questions? You can. You can go to Brandambition podcast dot com and click ask us anything. You can also hit us up on Instagram at brand Ambisson Podcast on the Gram and slide into our dms and let's see email. You can hit us up Brand Ambition Podcast at gmail dot com with your questions. Try to make them detailed. You don't have to say your name. You can stay anonymous. We're happy to call you whatever
alias you prefer. So who knows try out a do name with our show, but we love to get y'all's questions.
Okay, so first question you want me to read it?
Yes?
Please? Okay, it's from Brian, he says. Hey.
First, thank you so much father, you do for our community, you welks. My question is about the statute of limitations slash zombie debt. I read your article about how to settle your credit card debt, and I have some questions about the statute of limitations for debt collection. Does that statute of limitations change if you move from one state to another or does the original state in which you open the account supersede your current state of residence?
Ryan, Yeah, well zombie debt.
Yeah yeah, So let's explain zombie debet. Let's do it.
So, zombie debt occurs. So something you may not realize is when you so, let's say you run up a credit card and you don't pay it off. There's several things that happen over a long period of time. Eventually, what may happen is that you're so delinquent that the credit card issuer or the debt collector just charges it off and that goes on your credit report. Is a charge off and it's not good for your credit, and then they may send it to a collector who will
try to pursue that debt. And in each state they have a specific window of time, a window of opportunity, when lenders or debt collectors can actually sue you to recoup that debt. And this is important. It means the time in which they can sue you to recoup that debt. And once that statute of limitations has passed, they technically can't sue you. They can still pursue it, and do they ever try. They definitely will try, but technically they don't have the legal authority at that point to actually
sue you. So what that means for you, So if you have a super old debt that was charged off forever ago, and you get a phone call and they're like, hey, we want you to make a payment, just one dollar, just ten dollars on this old account, if that has passed the statue limitations in your state, there's technically no benefit to you giving them money. In fact, if you do give them money, what it can do is resurrect
that debt. Then it breathes new. It's like it's like infecting a zombie or how do zombies turn into zombies? Who knows?
Whatever?
They bite, So it basically is a zombie bite you. And now yeah, it basically statute of limitation. It starts back over so in New Jersey, New York, like the statute of limitation of evolving debt, meaning like credit card debt is six years. So if it's your seven and it's like oh and you don't realize and you pay that one dollar then literally it can start back at a year zero again and work its way back up. So just be mindful. So just so you guys know,
that's what it is. And so Brian, no, whatever whatever state that you incurred that in, it stays there. It doesn't because technically you can go from a state with you know, a six year statute limitation to a state with three year and be.
Like wooo sorry Nanna and boom booth.
So they're like, no, wherever you started, that's that's where it is.
So it won't. It won't.
It's with the original state where you opened up the account. It doesn't supersede. It's not about your current residence if you've moved, if you open that account when you're in Jersey, it's with Jersey. And then if you go to you know, California, it's still Jersey.
Brian's on the run.
What do you do?
Brian?
Next?
Like you brother?
A question for friends.
Proximo we Spanish.
Oh look at this, morm They say, hey, hey, just like me. Hey, hey, hey, Tiffany and Mandy love you ladies, love you back?
Keep up?
Oh, let's you. I'm sorry, Mandy. I read you read I read the last one. You could read this one, my bad girl.
Oh thank you. You're so generous.
All right?
Hey, hey, hey, hey, hey, Tiffany and Mandy love you ladies. I giggle right along with y'all while taking notes. I have a question about paying back debt. Currently this is my debt, and she goes on to list one, two, three, four, five, six different types of debt line of credit, credit card, another credit card, some kind of zero percent credit card. I don't know, different accounts. Am I reading that right?
So basically what she's asking is should I concentrate and pay off a line of credit that is accruing at seven percent and my balance is ten five hundred dollars? Or should I concentrate on paying down credit cards while they are charging zero percent and two percent. So she has a total of eleven thousand dollars on those two credit cards which are charging zero percent and two percent, and wants to know she should prioritize those or a line of credit at her bank, which is charging seven
percent for a balance of ten. So about the same amount of money but vastly different.
But poqu I see she has regular credit card. It says twenty percent. We ain't gonna talk about that. I look like we talk about the wrong thing.
Sis, sister child, We're gonna call you giggles, So she said, you're gonna giggle, so giggles. I'm concerned that we're not mentioning that the second item on your list says twenty percent credit card, it's forty five hundred dollars. That would be my main priority because it's that's expensive, giggles, that's pricey.
You know. So that's where I would put, quite honestly, where I put my energy.
Yeah, I mean, just reading this kind of stresses me out, and it makes me think of people who are kind of juggling those multiple debts, and all you're doing is kind of making your minimum payments and just staying above So I commend you, Giggles for at least trying to strategically, you know, attack the debt. So the two zero percent interest cards that she has, those are zero percent until twenty twenty two. So in my mind, set your set a calendar alert even for March or April or sorry,
yeah late, it's like March and May next year. So I would set a calendar alert for like February, just to be sure that you don't miss and you want
to get back on top of those cards. Check the on those zero percent offers, check the fine print and make sure that there's not a deferred interest clause, because if there is, you may be sitting pretty until early next year, but then get slapped with all the interest that you would have been accruing if you leave money on your if you leave a balance on those cards, well,
let's see. I mean, I agree with Tiff. I think that the smartest thing to do is order these from most expensive to least and do your best to attack them. So starting with that twenty percent credit card and then moving on to your seventy percent interest line credit teen percent, there's a thirteen number four. This is interesting, okay, you are I'm confused why you show these cards?
It's one That's what I guess.
I'm just I would love to know, like, what is it about the line of credit that made you think that you should I can understand the zero percent because you're like, I can put all of my money that I put toward it goes to the money goes to the principle. So I can understand why you bring that up. But what is it about the line of credit that makes you think that you should pay that first versus the twenty percent and the thirteen percent credit card? So
that's what I'm curious about. So I would focus on.
The twenty then the thirteen. To Mandy's point, what will that is? What will your zero percent cards be in March and in May?
If they're going to be like thirty percent something crazy, then then I might rethink my strategy. Or if it's not paid off, I have to pay back all the interest from before, then my strategy might be to focus on the zero percent cards. It depends on what happens if there if it's not paid off in full by March in May, if it's something astronomical those cards first, if it's something that so bad twenty percent, then thirteen percent,
then you know, whatever, the the whatever. I would do my interest rates in order from highest to lowest basically.
And count those zero percent cards as their regular APR once you check the fine print. Yeah, that's smart, that's smart. I mean in general, having this many lines of credit and credit cards kind of it just tells me there's something underlying that's probably that's problematic with your cash flow. So I would also say, really focus on bringing an additional income, trying to find any way that you can bring an extra income to really attack, you know, these
debts so that you can get debt free. Because each card balance isn't that insane? Yeah, add it up. When you add it up, that's I'm gonna do some quick math. That's like fifteen k plus four. That's nineteen plus five twenty four. That's like twenty five twenty six thousand dollars. That's a lot to have on all credit lines, which could be variable aprs and change with the market. So you definitely want to get that under control.
So make a little bit more tighten the belt, spend a little bit less, put it toward your expensive debt. Especially first, Okay, giggles, we're gonna have you looking good.
It's OPA's bank account all right, Number three?
This distracted thinking about her Oprah's bank account ahead.
This is from quotes Kia.
Okay, hey, Kiyah. She has a question for her parents. They're planning to relocate to another state within the next two years. They plan to rent out their current home that still has a mortgage, but they are trying to determine if they should dip into their retirement accounts to pay off their current home and then buy a new home in their new city or simply rent in the new city. In either option, they would rent out their corn home for more than enough to cover the mortgage.
They're both sixty and fly, I bet Kia, and have about one million safe for retirement.
Oh, they all fly and are five.
And ten years away from retirement, are they because it's not like they're there. There's about one hundred K left to pay on the house, and they feel that paying this off will improve their credit score, which is currently pretty low, and debt to income ratio which is very high to due to student loans, so they can qualify to buy a new house. I'm concerned about them dipping into their retirement accounts. What do you think they should do?
Well?
First of all, let's give a round for falls to Kia's million dollars saving parents, because that's not an easy thing. So you know, commend your mama and pop up you know, papa about that because that's awesome. And there's a lot here so to really unpack. She's got parents, they have a million dollars safe for retirement, boohoo. They do have a house that they want to pay off, and they're like,
it's about one hundred thousand dollars. Do they go from one million to nine hundred thousand to pay off the house because this will hopefully want improve their credit score because they want to buy another house, and I guess just not having you know, that particular debt, or they can just pay it off more naturally by renting out the house and having someone else pay the mortgage via rent.
I'll say what I'm leaning toward, Kei Ki.
If your parents were you know, forty five, I might be like, you know what, maybe I would dip a little maybe, but honestly, not at sixty. Not at sixty, especially since they can rent and the renter will pay their mortgage. I feel nervous about so close to retirement, taking money out of your retirement account that's not specifically for retirement.
You know, let the renter just pay off the mortgage. I mean, and.
Here's the thing, I don't even know at this age, why do they need to buy a house.
I know I said it, That's what I was gonna say.
Don't buy another house. Go ahead, I know, I'm like, don't, don't buy another house.
My dad is sixty. He is desperate to buy a house right now. And I'm like, you don't have to, but he just something about he wants I mean, helmes are in where he wants to live in like the boon The Boonies of Georgia aren't that pricey. But you know, first of all, do your parents want our advices? Michael, I'm a little nervous. I'm like this woman.
They don't want to.
They don't want to know what made you take me?
Then? Baby grown? They talk about Yeah.
But I would say, like if you're depends on what kind of retirement they want, but you can have a you can have a home that you rent. Yes, you know, you don't have to buy a house.
Yeah, it's a financial because here's the thing. So much mortgage you're gonna get is between fifteen and thirty years. Wow, what are we trying to Are we trying to owe for the next fifteen years? No, you want to be footloose and fancy free as sixty. I know your pop still got your mom's still dipping on a dance floor. If it was me, no disrespect to your parents, you know, I'd be like, hey, parents, I know, I'm like, you know, you're like, girl, this baby's talking. But I would be like,
I'm going to rent in our new city. I'm going to let someone else pay off my mortgage. I ain't got to worry about it, and I'm going to lean into the four percent rule for my million dollars that I have saved. That four percent rule is this is them on average. I know the last year the market has been crazy, but on average, if we look over the last you know, one hundred years, the market has yielded between like seven to ten percent, so to be conservative,
eight percent. The four percent rule is that you have your money put up and you pull out four percent a year, because it means that you'll put out pull out on typically less than what your money has returned to you and you'll never you'll never have to dip into that one million, and you can live off that four percent, you know. And so I would be living off the four percent rule, keeping that million dollars in the bank less somebody else pay mortgage, you know, renting
a nice apartment. Because here's the thing about apartment too. You ain't got to what shovel, you don't got to what raake.
Oh there's a leak. I'm sorry, mister super you need to fix that. No, sir, I.
Feel like buying a home when you're younger makes more sense when you're like having a kid and you want something more stable whatever. But no, like if my parents' house wasn't paid off, that was their plan that they were gonna get a condo, you know, so they don't have to worry about kind of like the household chore. So that's what I wou suggest, Keia, But your parents are grown and they're gonna do grown things.
Yeah, let us know.
How that goes. I want you to sit down and say so mommy and daddy, and I tell you what my friend's Mandy and Tiffany think you should do with your money.
She's gonna be like press play.
No, disrespect mister and missus Kia.
First of all, they're gonna be like, why are you tell my business? Right?
Oh no, they don't want any of their any of theirs out there. But I think this they've given you a gift, which sounds like they're gonna be okay. So, yeah, how is your finances? Yes?
Her the house, you focus on mom and dad.
You good girl.
I can only see her mom being like, meanwhile, me and your daddy's good.
Me and daddy good. But you're over here asking to borrow five hundred dollars.
You worry about me and my retirement your parents.
I was just like, hell, why why do you worry?
Kia?
But honestly, k you being an awesome daughter, These questions were awesome. I hope you like this ba QA.
I like this format right, mind you too. I'm glad we switched it in.
Yeah yeah see so yes, we'll be doing the b A QA every week.
So if you have some QA for the b A what you gotta do?
Andy ask us? Oh my boy, my bad, you served it. I dropped the ball picking it back up. You can go to Brannivision podcast dot com, dot ask us anything, or hit us up on I G. I check my ig quite often Brand Ambition Podcast. I probably will respond to your message if you send us one just saying send us your question there or email us Brandonbission Podcast at gmail dot com.
And one last favor poor for war That means please in Spanish. If you love the baqa, and especially if you have a friend that could quite obviously use the advice, please share the link to this podcast with at least three friends coworkers, mom, dad, cousin, Auntie and them, because we would really love to share our delicious brown ambitiousness with the world.
Yeah, you guys seem to be enjoying.
The way we're doing the podcast now, so we would just love even more people to listen and to help more people. So share with at least three different people. I promise you you won't regret it. We're gonna treat them good, real good.
To Superman just open the door and slam it.
Yes, I like bruh, I told you, mondays, Well.
The good thing is we ain't got to worry about that because we're gonna be taping early. I'm doing the own what is this called the bogel like that? You know that I don't know it's like, you know, think.
About shall me and Madia both doing it?
Like?
I don't know what it is like.
Let me find a many got a little little rhythm.
Okay, you haven't seen you came to my wedding way, I know, but you entire But.
Yes, I'm saying you didn't like that dancing like you.
Know, yes I dance, you should say me in Rio we cut at with.
A little two step rhythm.
Now I thought you knew where I was from and who I am.
That's a person.
Got a little bit of money. I could still move, all.
Right, Jenny from the block, all right, until next time. The a q A is out out by