$100,000 in Debt at 30 — Is There a Way Out?

My Rich Nerds,

Meet Daniel. A 30-year-old from North Carolina who came to me looking for guidance on how to get out of debt, what steps he should take once debt-free, and how to cope with the fear of blowing all his money. Let’s dive into his numbers :

Daniel actually earns solid money. He runs a marketing agency bringing in roughly $10,000 per month. W Entrepreneurship.

At first glance, the biggest red flag was the auto loan (and debt more generally). Two months before our call, Daniel had purchased a Corvette. While I appreciate a good car, the only Corvette most people should own is a Lightning McQueen Hot Wheel (if you know, you know). His credit card debt stemmed from years of struggling to make ends meet after college, when he wasn’t earning a substantial income. The personal loan was taken out to start his business. Altogether, Daniel had $100,000 in total debt. It’s completely understandable why he felt overwhelmed. The last note I want to make is that just because you have a GOOD income does NOT mean you’re good with money (as you’ll learn shortly).

What made the situation more interesting was that he had $30,000 in savings! That’s six times more than the median of $5,400! But there’s a plot twist….Most of it came from a single incredible (and of course, risky) casino run where Daniel turned $1,200 into $24,000 over eight hours. At this point in the conversation, sirens were blaring in my head. Shortly after, he mentioned that he was celebrating six months of sobriety 🥹. W sobriety. After congratulating him, I quickly grilled his ass about gambling, and he said it was a “one-time deal”. Fair enough. Now for some solutions.

The first move is clear: the Corvette has to go immediately, even if his aura goes down ( “aura” is a slang term meaning “stylishness; confident and suave excellence.” I don’t know how much longer I can keep up with the Gen Z slang). Selling it would eliminate roughly $68,000 in auto debt and reduce his monthly expenses by about $1,500.

Next, Daniel needs to take $16,000 from his savings and wipe out his high-interest credit card debt immediately. Keeping high-interest debt and delaying payoff only guarantees more money lost to interest. We should not be losing anything to anyone, especially credit card companies.

After that, applying another $9,000 toward the personal loan makes sense. That would leave Daniel with roughly $5,000 in savings as a one-month Newbie Emergency Fund and only about $7,000 in remaining debt. At his income level, that balance could be settled in about two months, faster than it took me to beat Elden Ring (the base game, the DLC was another story). One thing to note here is that this all sounds easy. The reality is that people have a hard time letting go of cash, despite the ugly picture that the math illustrates (high-interest credit cards). It makes them feel safe. Much of this is driven by a person’s upbringing, and I don’t blame them for it. In some cases, it’s actually smart to make minimum payments on high-interest debt (ex, job loss).

At the moment, his investments stand at $0, when according to Fidelity, he should have ~$120k invested (one year’s salary). Once the debt is gone, Daniel’s focus can finally shift to growth. That’s when vehicles like a Roth IRA, Solo 401(k), and potentially an HSA make sense. He asked a great question about which brokerage account to open and what to invest in, but the reality is that the specific brokerage* matters far less than simply starting and choosing the right investments. Low-cost index funds are the meta, not hype. Think of them like going to Jamba Juice—you don’t need to pick just one fruit. You get a blend of everything, creating a balanced and diversified portfolio without needing to guess which stock will win. You can see the ones I invest in for free.

He worries that one day he might blow his money. By automating bill payments, investing, and limiting visible spending money to up to thirty percent of his income, Daniel removes temptation from the equation. If the money never hits his checking account, it can’t be accidentally spent. He can’t forget to invest, because it happens every single month.

Daniel, the Rich Nerd Community wishes you all the best! Also, take us out to lunch in that Corvette before you sell it.

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This content is for educational purposes only and is not financial advice. I am not a licensed advisor—please consult a qualified professional for guidance on your personal situation. You know, someone who wears ironed collared shirts and sips from a ‘Freak in the Sheets’ mug.

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