Man With $57k Debt Taking 40% Income Said Ignoring Mental Health Made It Worse

• One man appeared on a budgeting podcast to seek help and raise awareness of mental health issues.
• Duncan, 26, from San Antonio, said bipolar disorder type 2 contributes to his dire finances.
• He told Mr. Hammer that he owed about $57,000 and had a minimum payment equal to 40% of his monthly income of $2,150.

A man struggling with massive debt appeared on a budgeting podcast last week as an example of how ignoring mental health can lead to financial problems.

Duncan, 26, from San Antonio, Texas, Appeared in “Financial Audit” Run by YouTuber Caleb Hammer. He did not reveal his second name.

Hammer and Duncan determined that he had $57,000 in loans and credit card debt combined, with high interest rates and very high minimum payments, which accounted for more than 40% of his income.

Duncan said he was a delivery driver at Tiff’s Treats, a cookie shop, and worked occasionally as a manager. He said he works an average of 32 to 34 hours a week and earns $2,150 a month.

He said the store was underperforming and hours could be reduced. Not only will this result in a loss of income, but it will also result in business suspension and health insurance coverage.

He said it was “hard” trying to find another job. “It was very difficult,” he continued, as tears began to flow.

Duncan told Hammer he knew he was in dire straits, but was “horrified to see” the debt.

Hammer admitted to spending a lot of money on Uber Eats and other fast food. By Hammer’s calculations, that cost is about $766 a month, or 36% of his income.

“I don’t see a single purchase here that’s just a waste of money,” Hammer said.

Hammer also investigated Duncan’s debt and found $16,000 in federal student loans and three Sallie Mae student loans totaling $14,251, two at 10% interest and one at 14%.

Duncan also owns a Toyota Camry, which he paid with a loan of approximately $16,500 at an interest rate of 10.45%. He also had a late fee of $1,137 over the past year.

He said he had three credit cards that defaulted and a debt collection agency took over the debt.

$1,324.12 was on Affirm’s credit card dating back to 2021. “I stopped paying,” Duncan said.

Duncan also previously had a Visa credit card and a Kohl’s store credit card. The total for these two pieces was about $3,000.

Duncan also said that due to a “series of really, really bad decisions,” she was past due on three postpay apps: $240 on PayPal, $63.23 on Afterpay, and $91.45 on Klarna.

He also listed $1,400 in personal loans from last year and $4,500 he owed to his grandfather after he was in an uninsured car accident.

Overall, Duncan had $57,303.85 in “really bad debt,” Hammer said.

His monthly minimum payment was $880.65, which represented 41% of his income.

“The last few years have been really, really bad,” Duncan said. He said he had tried to budget in the past, but struggled with his mental health so he kept making “silly decisions.”

He said he was diagnosed with bipolar disorder type 2 and recently started medication. He said the condition helped him make the “worst decision of his life.”

“When Covid-19 broke out, it was so bad,” Duncan said. He was working 50 to 60 hours a week and sales were up, so he was making a good income, he said.

“I was too careless about it,” he said. “I realize how much it has affected me over the last few years.”

Once he started the medication, he says it worked – “It’s like removing the blindfold from a horse.”

Hammer said the good thing was that he was on the show and was able to make a plan. Hammer also suffered from an anxiety disorder, which he said was debilitating in his life.

“That doesn’t make you any less human,” he said.

Mr. Hammer proposed an aggressive budget to pay off the debt, but it still exceeded Mr. Duncan’s income by $173. He recommended side jobs such as short-haul trucking and shifts at Walmart.

“Just make more, more, more money,” he said. “We are polishing every second with all our might.”

Four years from now, by the time Duncan turns 30, Hammer predicted that emergency funds might put him in a better position.

If he can do that, Hammer said he would be “well above” the average 30-year-old.

In the comments below the video, people praised Duncan for being on the show and speaking openly about his mental health struggles.

One person wrote, “His honesty about his fears is amazing. It’s refreshing to see someone face their problems instead of making excuses.” “I have a lot of respect for him. I wish him all the best and I believe he will get out of this situation!”

Duncan also commented that the support encouraged her.

“I wanted to come here specifically to point out that not treating mental health issues can lead to a huge financial burden for me,” he said.

“People, if you have anxiety, depression, bipolar disorder, trauma, PTSD, or anything else you have to deal with regarding your mental health, ask for help.”

He said some of the comments brought tears to his eyes and said he would “do everything in his power” to follow through with Hammer’s plan.

“Thank you for your outpouring of support. This means a lot,” he said. “And it has inspired me to do better than I have in years. Thank you guys so much.”