Before You Sign Anything: Run any debt relief contract through the free Contract Decoder to spot hidden fees and unfair terms. Check the company’s complaint history with the Scam-O-Meter.
Compare Your Real Options: Most debt relief companies won’t tell you about all your options — especially the ones they can’t profit from. Credit counseling has a 21-27% completion rate. Settlement resolves about 1% of enrolled debts fully. Bankruptcy has a 95% discharge rate — and protects your retirement. Take the Find Your Path quiz for a recommendation based on your actual numbers.
Key Takeaways
- Don't believe everything you think – your fear and anxiety about debt are often created by assumptions and beliefs, not facts
- Three fears drive debt anxiety: fear of what others think, fear of the unknown, and fear of change – all can be conquered with knowledge and facts
- I-Series savings bonds from Treasury pay 9.62% guaranteed (as of 2022) with inflation protection – individuals can invest up to $10,000/year
- $10,000/year in I-Bonds at 10% for 30 years turns $300,000 invested into $1.7 million through compound interest
- The amount of debt doesn't matter – one man was cavalier about $1 million in debt while another collapsed sobbing over $3,000
- Debt shame can be deadly: Steve shares a tragic story of a man who murdered his family rather than face debt shame, when bankruptcy would have solved everything in 90 days for $1,500
Free Tool — Your Brain on Debt Quiz: Fear, shame, and panic don't just make debt harder — they actively drive people toward bad decisions. The free Your Brain on Debt Quiz identifies which emotional driver is in control of your financial choices right now. Take the Quiz →
Full Transcript
Click to expand transcript
Steve Rhode addresses the emotional reality of debt with practical guidance.
Each weekday I send one short email: one money story that caught my attention, why it might matter to you, and one manageable thing you can do with it. A couple of minutes, and a dad joke.
In the latest issue (Oct 16): The check that looks like a scam may be real
Free. I sell nothing. Unsubscribe any time.
DON’T BELIEVE EVERYTHING YOU THINK
“Dealing with money worries amplifies your emotional brain and leads you to make poorly thought out decisions based on what you believe rather than what you need to know.”
Ron’s story: He woke in the middle of the night for a week, money worries infecting his dreams. He followed what TV personal finance celebrities said about cutting up credit cards and avoiding bankruptcy. He fell in with a debt relief company that told him half-truths.
The result: “Years of financial struggle causing Ron to lose out on more than a million dollars in retirement savings he could have had. It also led to his health suffering, strained relationships, and frequent fear and anxiety.”
THE THREE FEARS THAT CREATE DEBT ANXIETY
1. FEAR OF WHAT OTHERS THINK
“If you live your life based on the fear of what other people think, you allow them to run your life. Are you going to do what’s best for your reality or what you think others will approve of?”
2. FEAR OF CHANGE
“We run towards doing something that makes us feel less anxious as fast as possible rather than taking action that resolves the problem most effectively. Change is necessary to grow, overcome challenges, feel pride, and move forward to a better life.”
3. FEAR OF THE UNKNOWN
“Because we seek shelter in what we believe others think and what we can apply the fastest, we don’t take the time to contemplate our reality.”
The antidote: “Knowledge, guidance, acceptance, and purposeful execution are the better enemies of fear and anxiety.”
REVIEW TERRORISTS
A new scam: Crooks leave negative reviews on Google for restaurants and demand gift cards to stop. Scammers threaten one negative review a day until paid. Even when Google removes fake reviews, it sometimes wipes legitimate customer reviews too.
I-SERIES SAVINGS BONDS: 9.62% GUARANTEED
The U.S. Treasury offers I-Series savings bonds paying 9.62% guaranteed (as of 2022), with rates rising if inflation increases. Over the years, they’ve paid as much as 13.18%.
The math: $10,000/year for 30 years at 10% = $300,000 invested becomes $1.7 million.
Rules:
– Maximum $10,000/year per individual
– Minimum investment: $25
– Must hold for one year
– Cash out before 5 years = lose 3 months interest
– Tax-free for qualified education expenses
– Visit treasurydirect.gov to invest
“For complete transparency, when I learned about I-Series savings bonds, my wife and I began investing in them.”
A DEBT LIFE LESSON
Steve shares two contrasting stories:
Man #1: Owed over $1 million in unsecured debt. “He was pretty cavalier about the whole situation. He viewed his predicament as a math problem.”
Man #2: “Before we could sit down, the man approached me. He collapsed in my arms and started to sob. ‘I’m so ashamed about my debt situation. Is this the worst situation you’ve ever seen?’ How much debt do you have? ‘$3,000.’”
“The amount of debt is never important. That is just a number. How it affects your life, your mental health, your self-esteem, and relationships is essential.”
THE TRAGEDY OF DEBT SHAME
“The worst debt situation I’ve ever seen was the man afraid of what his family would say. He was defiant that bankruptcy was not an option. He didn’t want to be thought of as a loser.”
A month later he tried to gamble his way out of debt. He lost. “The man returned home so ashamed that he shot his wife and daughters. He then killed himself to avoid the shame of his debt. He left a note about his fear of his family finding out.”
“He could have been out of debt in about 90 days for less than $1,500 in legal fees.”
“Debt problems combine simple math and complicated emotions. There is professional help out here. You do not need to feel alone, ashamed, or afraid.”
Questions? Visit getoutofdebt.org/question
Frequently Asked Questions
What are I-Series savings bonds and what do they pay?
I-Series savings bonds are inflation-protected savings bonds from the U.S. Treasury. As of 2022, they pay a guaranteed 9.62% rate of return that rises with inflation. Individuals can invest up to $10,000 per year with investments as low as $25 monthly.
What are the restrictions on I-Series bonds?
You must leave your money invested for one year minimum. If you cash out before five years, you lose the previous three months of interest. Interest compounds every six months and bonds earn interest for up to 30 years.
How can I overcome fear and anxiety about debt?
Knowledge, guidance, acceptance, and purposeful execution conquer fear and anxiety. Don't believe everything you think – seek facts, do research, and make decisions based on reality rather than assumptions about what others think.
Why do people with small debts sometimes feel worse than those with large debts?
The amount of debt is just a number – what matters is how it affects your mental health, self-esteem, and relationships. Someone with $3,000 in debt can feel incapacitated while someone with $1 million views it as a math problem.
What is review terrorism?
Scammers leave negative reviews on Google for restaurants and demand gift cards to stop. Restaurants must choose between constant bad reviews or paying the scammer. Even when Google removes fake reviews, it sometimes also removes legitimate customer reviews.
