If your 401(k) just took a dive and you’re losing sleep over a debt collector breathing down your neck, you’re not alone—and you’re definitely not doomed.
Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.
In the latest episode of The Get Out of Debt Guy Podcast, Damon Day and I dive into the emotional side of money decisions and why fear, not facts, is usually what gets people in the most trouble.
Let’s start with the market mayhem. The headlines scream “CRASH!” and suddenly everyone’s checking their portfolios every five minutes. People start pulling money out at the worst possible time—locking in their losses and swearing off investing forever. But here’s the truth: unless you sell, that loss is only on paper. The market goes up, it goes down. That’s what it does. Always has. Always will. Historically, the average return on the S&P 500 is around 8.5% a year—even through wars, recessions, and actual Great Depressions.
We talk about this in the episode, and I even share how I handle market corrections myself: I don’t panic. I keep investing small amounts every week through an app like Acorns, buying all the way down and all the way back up. That strategy? It’s called dollar-cost averaging. It’s boring. It’s slow. But it works.
Now let’s pivot to debt—and specifically, the nonsense advice floating around TikTok and social media. One of the worst offenders? The myth that if you send a letter to a debt collector asking for validation and they don’t respond in 30 days, the debt magically disappears. Nope. Not true. Not even close. If that letter worked the way the internet says it does, I’d be out of a job.
In reality, the collector might stop for a while if they don’t have documentation. But they can come back later—and they often do. Sometimes with a lawsuit. And if you’re standing in front of a judge arguing your case based on a TikTok coach’s advice? That’s not going to end well.
This episode is a reminder that fear leads to impulsive decisions—whether it’s cashing out your retirement in a panic or trying to outsmart a debt collector with a “magic” letter. What you need instead is a clear head, good information, and a strategy that works for you. Not your neighbor. Not a social media influencer. You.
So take a deep breath. Step back from the panic. Whether you’re navigating the stock market or sorting out a mountain of debt, you’ve got options—and there’s no shame in asking for help or taking your time to make the right decision.
