Smart Planning Sessions: Digging Out of $36K in Debt — Without Derailing Retirement

NerdWallet's Smart Money Podcast

NerdWallet Personal Finance

Business, Education, Investing, How To

4.2 • 665 Ratings

🗓️ 16 June 2025

⏱️ 33 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

In this month’s Smart Planning segment, a financial advisor discusses how to build a smarter debt payoff plan without sacrificing long-term financial goals. What’s the smartest way to make progress on credit card debt when budgeting alone isn’t cutting it? When can debt consolidation tools actually make your situation worse? Hosts Sean Pyles and Elizabeth Ayoola discuss strategies for getting out of debt without sacrificing long-term financial stability. But first, they begin with a round of Smart Money, Dumb Money, Fun Money, where they talk about some of the smartest, dumbest and “funnest” things they’ve seen in the world of money lately, from maximizing credit card rewards to avoiding loyalty traps with insurance providers to choosing which splurges are actually worth it. Then, they’re joined by Daniel Messeca, Certified Financial Planner and co-host of the Check Your Balances podcast, to help listener Safia weigh whether tapping their 403(b) to pay off $36,000 in credit card debt is a smart move. Together, they explore how to evaluate the long-term tradeoffs of using retirement funds, how to spot and plug budget leaks, and how nonprofit credit counseling, 403(b) loans, and even bankruptcy might fit into a comprehensive debt payoff plan. Inspired to navigate your finances with an advisor? Use NerdWallet Advisors Match to find vetted professionals today at https://www.nerdwalletadvisors.com/match Card benefits, terms and fees can change. For the most up-to-date information about cards mentioned in this episode, read our reviews: American Express Blue Cash Preferred Review: Perhaps the Ultimate Family Card https://www.nerdwallet.com/reviews/credit-cards/american-express-blue-cash-preferred Citi AAdvantage Executive Review: Your Key to the Club https://www.nerdwallet.com/reviews/credit-cards/citi-aadvantage-executive Track your net worth, stay up-to-date on consumer news, and learn smart money moves on the NerdWallet app: https://nerdwallet.com/app Compare auto insurance rates in 2 minutes: https://www.nerdwallet.com/m/insurance/auto-insurance/compare-quotes-control-29 In their conversation, the Nerds discuss: using 403b to pay off credit cards, credit card debt payoff strategies, credit card consolidation options, nonprofit credit counseling, 403b loan vs withdrawal, how to budget paycheck to paycheck, emergency fund savings tips, high-interest credit card strategies, 0 APR balance transfer, eSIM international travel, rental car insurance credit card, car insurance loyalty penalty, budgeting apps for debt payoff, student loan repayment tips, public service loan forgiveness program, SAVE plan student loans, income-driven repayment plans, how to reduce entertainment spending, reducing eating out budget, how to start a side hustle, budgeting for low income, when to pause retirement contributions, how to qualify for PSLF, tips for high annual fee credit cards, choosing the right rewards card, using hobbies for self-care, fun money budgeting tips, best credit cards for groceries, and car insurance shopping tips. To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email [email protected]. Like what you hear? Please leave us a review and tell a friend. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Elizabeth, would you say your money is smart, dumb, or fun?
0:05.3	I'd say it's smitter fun.
0:07.5	If that's it's smitter fun, if that's a word.
0:09.9	A little bit of everything.
0:11.0	It's a little bit of everything.
0:12.2	But honestly, if I had to choose one, I'm proud of myself.
0:15.0	I'd say in this season it's smart.
0:16.8	You know, I was going to go with fun personally.
0:18.7	But I think that fun can also be smart.
0:26.9	Welcome to Nerd Wallet's Smart Money Podcasts, where you send us your money questions, and we answer them with the help of our genius nerds.
0:33.6	I'm Sean Piles.
0:34.6	And I'm Elizabeth Ayola.
0:37.1	On this episode of the show, we have the next
0:39.8	installment of our smart planning series, where we talk with a financial planner and a listener
0:45.1	about whether they should take money out of their retirement account to pay off their
0:48.8	credit card debt. But first, Elizabeth and I are going to play a little game that I'm calling
0:53.5	smart money, dumb money, fun game that I'm calling smart money,
0:54.3	dumb money, fun money.
0:56.6	We are the smart money podcast.
0:58.1	So Elizabeth, let's chat about some of these smartest, dumbest, and funnest things that
1:02.7	we've seen in the world of money recently.
1:05.3	And yes, I am aware that funnest is not a real word.
	...

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