Introduction: The Truth About Debt No One Talks About
I remember the moment debt took over my life.
I had a stack of overdue bills sitting on my kitchen table—credit card statements, past-due notices, letters with big, bold warnings like “FINAL NOTICE” and “IMMEDIATE ACTION REQUIRED.”
Every time I looked at them, my stomach tightened. Every time the phone rang, I wondered if it was another collector. And at 4 AM, when I should have been sleeping, I was wide awake, panicking about money.
But what no one told me back then—the truth about debt that could have saved me years of stress—is exactly what I want to share with you today.
If you’re feeling trapped, overwhelmed, or like there’s no way out, I need you to hear this:
👉 There are options you don’t know about because you don’t know what you don’t know.
And the most dangerous thing about debt? It messes with your mind, making it harder to think clearly and escape.
Let’s break that down.
Why Debt Feels Impossible: The Science Behind Financial Stress
Debt isn’t just a money problem—it’s a psychological trap that keeps you stuck.
People in deep financial stress often make worse decisions because their brain chemistry is altered by stress hormones like cortisol. This isn’t just my opinion—science backs this up.
1. Debt Lowers Your Ability to Think Clearly
A study by Princeton University found that financial stress can reduce cognitive function by up to 13 IQ points—the same impact as losing an entire night of sleep. (Source)
In other words, debt physically lowers your brain’s ability to process decisions effectively. That’s why:
- You avoid looking at your bank balance.
- You ignore overdue notices instead of dealing with them.
- You make panic-driven financial choices that make things worse.
Your brain is overloaded with stress, making it harder to make rational financial decisions.
2. The Fear Center of Your Brain Takes Over
When you’re in a financial crisis, your brain triggers the amygdala—the part responsible for fear and survival.
According to research from Harvard University, people experiencing chronic stress shift from logical decision-making to impulsive, short-term thinking. (Source)
That’s why people in financial panic often:
- Take high-interest payday loans to cover immediate expenses.
- Fall for “too good to be true” debt relief scams.
- Borrow from one credit card to pay another.
This isn’t a personal failing—it’s a biological reaction to stress.
3. The Psychology of Loss Aversion Keeps You Trapped
Humans hate losing money twice as much as they enjoy gaining it. This is known as loss aversion, a concept studied by Daniel Kahneman and Amos Tversky in their famous Prospect Theory. (Source)
How does this apply to debt?
- People keep throwing money at unpayable debt instead of cutting losses and considering bankruptcy.
- They stay in high-interest loans because they already “invested too much.”
- They make minimum payments on low-priority debts instead of prioritizing essentials.
This irrational fear of financial loss keeps people in debt longer than necessary.
The Biggest Debt Myths That Keep You Stuck
Myth #1: You Must Pay Back Every Dollar You Owe
False. Debt is negotiable—creditors would rather settle than get nothing.
📌 Fact: Many people settle debts for 40-60% less than they owe.
Myth #2: Bankruptcy Destroys Your Life for 10 Years
False. Bankruptcy is often the fastest way to recover.
📌 Fact: Most people who file for bankruptcy see their credit recover within 1-2 years. (Source: Federal Reserve Bank)
Myth #3: Debt Consolidation Always Saves You Money
Not always. Many debt consolidation loans charge high fees and interest rates that cost you more over time.
📌 Fact: Debt consolidation only works if the new interest rate is lower than what you’re currently paying. (Source: Consumer Financial Protection Bureau)
How to Get Out of Debt the Right Way
1. Work With Someone Who Builds a Custom Plan for You
Most debt relief companies sell you one solution—whether it’s bankruptcy, debt settlement, or a repayment plan. But the best solution depends on your unique situation.
📌 That’s why I recommend talking to Damon Day.
Damon isn’t a debt settlement salesman—he’s a debt coach and advocate who helps you create a comprehensive strategy based on your unique financial situation.
👉 Damon helps you:
✔ Figure out the best overall path forward (not just the first thing that sounds good).
✔ Avoid debt relief scams and high-fee companies.
✔ Negotiate directly with creditors if that’s the right approach—but only if it actually makes sense for you.
I’ve mentored Damon for years, and if I were in financial trouble today, he’s the first person I’d call to help me create a real, customized plan.
📌 If you’re feeling overwhelmed and need an honest, personalized strategy—talk to Damon Day.
🔗 Visit Damon’s website here
Final Thoughts: Your Worst Financial Mistake Can Be Your Biggest Strength
If you’re in your own 4 AM panic, I need you to hear this:
👉 Debt is just math wrapped in emotion. It can be fixed.
👉 You are NOT your financial mistakes. You deserve a fresh start.
👉 There are more options than you think—don’t let fear make decisions for you.
I know what it feels like to drown in debt, and I know how hopeless it can seem. But I also know that your worst financial failure can become your greatest strength—if you learn the truth and take action.
🎯 Next Steps:
✔ Like this post if it helped you—it costs nothing but helps others find it.
✔ Subscribe for more honest, no-BS debt advice.
✔ Visit GetOutOfDebt.org for even more resources.
You are stronger than you think. See ya next time. 😊
Video Transcript
[0:03] I remember when I used to have a stack of overdue bills sitting on my kitchen table.
[0:09] Credit card statements, past due notices, letters with big, bold words like final warning and immediate action required. Every time I’d look at them, my stomach would tighten. Every time the phone rang, I wondered, is this another collector? If you’ve ever had a pile of those sitting in front of you or worse, buried in a drawer because you couldn’t bear looking at them? You know exactly what that feels like. It’s like being stuck in quicksand. The harder you struggle, the deeper you sink.
[0:44] A lot of people know me as the get-out-of-debt guy. I spent over 30 years helping people find a way out of financial messes. Maybe you’ve seen me on TV, read one of my books, or just stumbled across me today for the first time. However you got here, I’m glad you did. Because what if I told you that my biggest failure, the one that nearly wrecked me, actually turned out to be the thing that changed my life for the better and let me help thousands of people just like you? At the time, I never could have imagined it. It felt like the end of everything I was drowning in debt Waking up in a panic every night Watching terrible late night infomercials Just to keep my mind from spiraling I was exhausted, ashamed, depressed And completely overwhelmed, But here’s the thing What felt like my worst moment Actually became my turning point.
[1:55] And if you’re feeling the same fear, the same panic, let me tell you something that I wish someone had told me back then.
[2:04] There are options you don’t know about because you don’t know what you don’t know.
[2:12] And that’s why I want you to hear this, because you have more options than you think, even if it doesn’t feel that way right now. Hey friends, it’s Steve here, your second or maybe your third favorite grandfather. Welcome back to Old Guy Insights, where we talk about life, lessons learned, mistakes, and how to get back up when you’ve been knocked down. Now, I don’t personally work one-on-one with individuals anymore. After 30 years, I’m now retired from that. But I still write about debt over on my getoutofdebt.org site. I share insights and mentor others in the field, and one of the best people I’ve ever worked with is Damon Day, and I’ll tell you more about him later. But listen, even if you’re broke right now, there’s something free you can do that’s kind and helpful. Like this video and watch it to the end. It helps me a bunch, and who knows? Something you hear today might just be the thing that turns everything around for you.
[3:18] Today, we’re talking about debt, fear, and the options no one talks about. I know what it’s like to feel completely overwhelmed by money problems. I lived through it myself in the late 80s. It sucked. It was horrible.
[3:39] And then in 1990, I will never forget. Waking up in the middle of every night My heart racing, unable to focus on anything but my fear I felt like I had failed I remembered praying for the sun to come up Because my fear was more manageable in the daylight for some reason, I didn’t know what to do or who to trust I got a lot of bad advice from well-intentioned people making assumptions But what I didn’t know back then What I couldn’t have known, was that this so-called failure would eventually lead me to a whole new path where I helped so many people get their lives back from my failure. But here’s something unexpected. Your greatest failure might just be your greatest strength. I’m going to tell you why, so keep listening. And here’s the wild part. You don’t know where this journey may lead you before you even take the first step.
[4:44] That isn’t just about numbers. For those that understand it, they know it’s about fear and shame and exhaustion. At 4 a.m., it doesn’t feel like a math problem. No, it feels like a trap. You lay there thinking, what if I never get out of this? What if I lose everything? What if I let down my family? What if people find out I’m a failure and how bad things are? And that kind of thinking, it doesn’t help. It just makes everything feel heavier and harder. Like no matter what you do, it’s never going to be enough. And the worst part? Most people don’t even know all their options. We assume we have to pay back every cent, even if it destroys us. We assume bankruptcy will ruin our lives. We assume missing a payment means we’ll never recover or our credit will be ruined forever. But those are just myths. They’re lies that others have told us and we believe.
Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.
[5:51] When you’re deep in financial stress, your brain goes into survival mode. And survival mode doesn’t always make smart choices. It just wants relief. Look, even cavemen made bad choices when being chased by a lion. That’s why so many people jump at the first thing that sounds like a solution.
[6:12] But why do we do that? I’ve watched people do this for decades, Well, science has an answer When we’re under intense stress Logical thinking takes a back seat And the fear center of our brain takes over You start investing in stinking thinking, And that hurts more than it helps Your brain isn’t trying to solve your money problems logically It’s just looking for the fastest way it thinks to stop the panic Like.
[6:41] And that’s where people make mistakes. They take out payday loans to cover a bill, not realizing it traps them in an even worse cycle. They fall for credit counseling programs that wind up screwing their financial future. They agree to bad debt settlement offers just to make the stress go away when they could have gotten a much better deal. They fall for quick fix debt relief scams because they’re desperate for someone to tell them everything will be okay. So before you do anything, pause, take a breath, sleep on it, talk to someone who isn’t trying to sell you something, get as much information as you need, and then make a well-informed decision based on facts, not assumptions. Take the right action for you and not what others say is the right action for them so they can make a buck selling you their solution. Hey, that might be right for them, but not for you.
[7:44] Most people just pick one solution and call it a day. Typically, the first magic solution they hear about. Some settle their debt, file bankruptcy, start making credit counseling payments,
[7:54] or just stop paying altogether and wait to get sued. But if you’re feeling overwhelmed trying to figure out the best approach, talk to a debt coach. And one of them that I have mentored for decades now is Damon Day. I’ve worked with Damon for years I talk to him almost daily, And if I were in trouble today He’s the guy I’d call first He doesn’t do cookie cutter advice He actually listens and builds Customized solutions That work for each individual person, But you should do what feels right for you As I say You do you boo.
[8:32] You know If you’re in your own 4am panic I need you to hear this. There are options you don’t know about because you don’t know what you don’t know. Your life might feel like it’s crumbling, but that’s your perception of reality, not actual reality. While you feel as if you can’t go one more day Others are having the best day ever Your misery is trapped within your brain and lying to You are not your debt Your panic, shame, embarrassment, and depression are not reality They are perceptions They are emotions you feel Feelings your brain chemistry is creating Not the truth of math, And I’ve said for years, debt is nothing more than math wrapped in emotion. It’s like having that lion chasing you two steps away from grabbing you with mouthwatering jaws, ready to tear you apart.
[9:37] Not all is lost. If you let it, your greatest failure might just be your greatest strength because it can be the best teacher you’ve ever had. I want you to learn, not get devoured. If anything in this episode helped, do me a favor, please. I would appreciate it. Hit the like button and maybe share this with someone that needs to hear it. It doesn’t cost a thing, but it might help this message reach someone else who needs to hear it. And if you want more insights like this, subscribe and check out oldguyinsights.me. That’s me. I got a lot more resources. In fact, I just wrote a detailed post about this subject, and I’ll link to it in the description. You are stronger than you think And the future is brighter than you think As long as you make good choices See ya.
