This Las Vegas stripper makes $12K/month but she is in scary levels of debt — YouTube expert Caleb Hammer gave her a reality check
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To pick an unconventional career, you probably need a wider safety net than most. Earnings can be unpredictable, and taxes can be much more complicated.
On a recent episode of Financial Audit with YouTuber Caleb Hammer, Christa, 33–year-old, talked about her struggles with debt, her career as an exotic dancer, and her reliance on Veterans Affairs (VA) disability payments each month.
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Christa’s earnings are volatile, fluctuating from just $4,000 to $5,000 a month in the summer to $13,000 in November. She isn’t sure about her tax burden but estimates that she owes $60,000 for a previous tax year and $40,000 for the current tax year, for a total of $100,000 owed to the tax agency.
“I’ve been avoiding them,” she told Hammer. “The accountant or the IRS?” he asked, to which she replied: “Both.”
Christa spent six years in the U.S. Navy, which entitles her to medical coverage and roughly $2,000 a month in disability payments. Though this offers her some stability, her bad spending habits have pushed her into further debt.
‘You’ve dug yourself a hole’
Christa’s property renovations were funded by her credit card, which is nearing its $10,000 limit. To alleviate the monthly payments, she obtained a personal loan at an interest of 15%, though it failed to effectively condolate her debt.
“I used that to consolidate debt, but I didn't do a very good job because I still have that [debt],” she said.
If you are considering debt consolidation, Credible makes it easy to streamline your debt repayment at an affordable rate. Credible allows borrowers like Christa to compare debt consolidation rates at no cost, facilitating refinancing of credit card and other debts into a single loan.
You can access loans of up to $100,000 with competitive interest rates and flexible repayment plans from 24-84 months.
Credible’s online marketplace of vetted lenders provides personalized debt consolidation loan offers based on your needs, allowing you to pay off your debt more efficiently at a fixed rate without juggling multiple bills.
Christa’s total consumer debt amounts to $59,085, with monthly payments from $2,103. Her predicament mirrors a broader trend. American consumer debt is ballooning, as indicated by data from the New York Federal Reserve Bank. With rising interest rates, borrowers face mounting challenges to overcome this debt burden.
“You’ve dug yourself a hole beyond holes,” Hammer told her.
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Steps in the right direction
Consolidating debt at a lower interest rate, as Christa attempted, is a step in the right direction.
However, without a comprehensive household budget, individuals risk falling into a cycle of debt. Seeking guidance from a qualified financial professional can provide clarity and structure to your financial planning.
For effective spending management, the You Need a Budget (YNAB) app proves invaluable. YNAB is a budgeting app that empowers you to allocate every dollar with purpose, ensuring your savings and spending are intentional.
Features such as goal tracking and spending reports empower users to adhere to budgets and maintain focus on financial goals.
Christa’s spending habits have amplified her financial troubles. She got breast enlargement surgery, and purchased a property in Arizona which is being refurbished to serve as a short-term rental. However, the property was financed at 10%, unbeknownst to Christa — she believed it was only 5%.
Being fully aware of your financial status can keep you from costly mistakes like Christa’s. When it comes to reducing debt and building savings, professional advisors — like those at Zoe Financial — can help you create a money management plan.
Zoe Financial is a free online wealth building platform connecting you with professionally vetted fiduciaries, financial advisors, and financial planners.
All you have to do is answer a few questions and their algorithm will match you with the best options for you to choose from.
Advisors can guide you on how to grow your nest egg and determine your living expenses for retirement, or just generally build up your finances and portfolio. Book a free, no obligation consultation to get your finances on track.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
