How to Build Family Wealth After Debt: Live Q&A with Tandem CEO Michelle Winterfield

Getting out of debt is just the beginning. Every year, millions of Americans face debt collection lawsuits, but what happens after you resolve that debt? How do you transition from simply surviving financially to actually building wealth for your family's future?

In a recent episode of The Debt Hotline, we sat down with Michelle Winterfield, CEO and co-founder of Tandem, a finance app helping over 130,000 households manage more than $200 million in assets. As a former private equity investor turned fintech founder, Michelle brings deep expertise on building family wealth, even when you're starting from zero or below.

Michelle's mission is simple: make personal finance achievable for every household. Her insights reveal that building wealth after debt can be an exciting journey that strengthens relationships and creates long-term financial security.

You must eliminate high-interest debt before building wealth

Before diving into wealth-building strategies, Michelle emphasizes the importance of understanding different types of debt because not all debt is created equal.

Michelle categorizes debt into two main types: harmful debt and strategic debt. Harmful debt includes credit card balances and other high-interest obligations that actively hold you back financially. Strategic debt, on the other hand, includes mortgages and car loans that typically carry lower interest rates and can support your financial goals.

High-interest debt—particularly credit card debt with rates often exceeding 20%—should be your first priority. This type of debt actively prevents wealth building because the interest charges eat away at any financial progress you might make.

However, Michelle points out that you don't need to be completely debt-free to start building wealth. Strategic debts like mortgages and car loans typically carry much lower interest rates and can actually support your financial goals. You shouldn't try to buy an entire house with cash, nor could most people afford to do so.

The key is eliminating the debt that's actively harming your financial progress while maintaining the debt that serves as a useful financial tool.

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Michelle's proven framework helps you build wealth systematically

Once you've addressed high-interest debt, Michelle recommends following a framework for building wealth. This isn't a rigid formula, but rather a strategic approach that maximizes your financial opportunities.

Step 1: Build six to nine months of emergency savings first

Michelle recommends starting your wealth-building journey with a solid emergency fund. You'll want to save six to nine months of essential expenses in a high-yield savings account that's specifically designated for emergencies.

This emergency fund serves as your financial safety net. Calculate your essential monthly expenses (rent or mortgage, groceries, utilities, and other necessities) then multiply by six to nine months. This money should be easily accessible in a high-yield savings account, not invested in the stock market where it could lose value when you need it most.

The emergency fund prevents you from going back into debt when unexpected expenses arise. Whether you lose your job, face a medical emergency, or encounter major home repairs, having cash reserves means you won't need to rely on credit cards or loans.

Step 2: Maximize your employer's 401k match to get free money

Michelle considers employer 401k matching one of the best financial opportunities most people overlook. Many employees don't take full advantage of their employer's contribution matching program, essentially leaving free money on the table.

If your employer offers a 401k match, contribute enough to get the full match before doing anything else with your money. This is an immediate 100% return on your investment, something you'll never find anywhere else.

For example, if your employer matches 50% of your contributions up to 6% of your salary, you should contribute at least 6%. This means if you make $50,000 annually and contribute $3,000 (6%), your employer adds another $1,500. That's free money you're leaving on the table if you don't participate.

You need to maximize that employer match because you're getting a one-to-one match up to a certain percentage. Contributing anything less than the maximum match amount means you're turning down guaranteed returns.

Step 3: Tax-advantaged accounts accelerate your wealth building

After securing your employer-match 401k, Michelle recommends maximizing other tax-advantaged accounts in this order:

1. Individual Retirement Account (IRA): You can contribute to an IRA even if you have a 401k. The annual contribution limit is $7,000 for people under 50 and $8,000 if you’re over 50, and these accounts offer significant tax advantages.
   
2. Back to 401k: After maxing out your IRA, return to your 401k and contribute up to the annual limit.
   
3. Health Savings Account (HSA): If available through your employer, HSAs offer triple tax advantages. Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free.
   

Michelle notes that many people can invest their HSA balances rather than simply keeping the money in cash, which significantly boosts long-term wealth potential. Most employees receive their HSA balance from their employer and use it immediately for medical bills, but investing this money can provide substantial growth over time.

Step 4: Simple index fund investing beats trying to pick stocks

Once you've maximized tax-advantaged accounts, it's time to open a traditional brokerage account for additional investing. Michelle recommends keeping investment strategies simple with broad market index funds rather than trying to pick individual stocks.

Michelle personally uses Vanguard's VOO ticker, which tracks the S&P 500 and has historically returned about 10% annually over the past century. This approach provides steady growth without the risk of individual stock picking, making it much safer than trying to time the market or select winning companies.

The power of compound interest means that time is your biggest asset when building wealth. Starting early, even with small amounts, can lead to significant growth over decades.

Couples must communicate openly about money to build wealth together

One of the most challenging aspects of wealth building is getting both partners aligned on financial goals and strategies. Michelle's experience with Tandem has given her unique insights into how couples can successfully navigate money conversations.

Michelle's research on couples' financial habits reveals a troubling statistic: over half of Gen Z and millennial couples keep financial secrets from their partners, with debt being the most common secret. This secrecy creates problems that compound over time, especially when couples attempt major purchases like homes.

Michelle suggests approaching money conversations with excitement rather than anxiety. She believes wealth building should be viewed as an exciting joint project rather than a source of stress, even for couples starting from zero or dealing with existing debt.

Everyone can build wealth successfully, regardless of their starting point. Building a financial life together should generate excitement about the future rather than anxiety about current circumstances.

When partners have different risk tolerances—like one of listeners, David from Texas, whose wife preferred saving while he wanted to invest—Michelle recommends compromise. Michelle advises maintaining that emergency fund while avoiding keeping large amounts in low-yield savings accounts when they could grow through investments. Once you have adequate emergency reserves, additional cash should be put to work in higher-yield investments.

Real listeners successfully built wealth after resolving their debt

During the live Q&A session, we heard from real people navigating the transition from debt resolution to wealth building. Their questions and situations demonstrate that with Michelle's expert guidance, anyone can start building financial security.

Paying off debt doesn't immediately fix your credit score

Ashley from North Carolina had just finished paying off $22,000 in credit card debt but was frustrated that her credit score remained in the low 600s. Despite this major achievement, she wondered why her credit score hadn't improved more dramatically.

Michelle congratulated Ashley on her accomplishment and explained that credit score improvements take time to reflect. For immediate credit score improvement, Michelle suggested calling credit card companies to request higher credit limits. This strategy lowers your credit utilization ratio—the percentage of available credit you're using—which is a major factor in credit scoring.

You can start investing while building your emergency fund

Monica from Florida felt financially stuck with $4,000 in savings, unsure whether to invest the money or continue building her emergency fund. This common dilemma affects many people transitioning from debt payoff to wealth building.

Michelle recommended splitting the approach rather than choosing one strategy exclusively. Monica could allocate some money toward emergency savings while beginning to invest smaller amounts. This strategy helps you get comfortable with the investing process while still building financial security.

The key is starting to generate investment returns early, even with modest amounts, rather than waiting until you have a "perfect" emergency fund.

College students have a huge advantage in wealth building

For college students just beginning their financial journey, Michelle emphasized the powerful advantage of time in wealth building. Students who begin investing during college benefit from an extra four years of compound interest growth before starting their full-time careers.

Michelle recommends that college students with any earned income open IRAs and begin investing as early as possible. Even small contributions during college years can grow substantially over decades, giving students a significant head start on long-term wealth building.

Start building wealth today with these actionable steps

Building wealth after debt requires both practical strategies and the right mindset. Michelle's approach focuses on changing how you think about money and wealth building.

The key steps to remember:

1. Eliminate high-interest debt while keeping strategic, low-interest debt
2. Build a 6-9 month emergency fund in a high-yield savings account
3. Maximize employer 401k matching
4. Take advantage of tax-advantaged accounts (IRA, HSA)
5. Begin investing in broad market index funds for long-term growth
6. Treat saving and investing like non-negotiable monthly bills
7. Maintain transparency with your partner about finances and goals

Remember, you don't have to wait until you're completely debt-free to start building wealth. The sooner you begin taking advantage of compound interest and employer benefits, the more time your money has to grow.

Want to hear the complete conversation with Michelle? Listen to the full episode of The Debt Hotline to get even more detailed strategies for building family wealth after debt. Michelle shares additional insights on managing money as a couple and answers more listener questions about specific investment scenarios.

Learn more about Michelle and Tandem: If you're interested in Michelle's approach to couple finance management, check out Tandem app or follow Michelle on Instagram and TikTok @missmoneymichelle for personal finance tips.

Need help resolving debt before you can start building wealth? Solo connects you directly with debt collectors to negotiate settlements and resolve cases without the stress of court battles.

Transcript

Hannah (00:01):

Hello everybody. Welcome to the Debt Hotline. My name is Hannah. I am a part of Team Solo. At Solo, we help people resolve debt and settle debt and respond to debt collection lawsuits. And we have a really awesome topic for today's episode and we have a very special guest joining today as well. Our topic for tonight is how to build family wealth after dealing with Debt. We have an awesome guest named Michelle Winfield joining us. I'm going to go ahead and introduce Michelle and then give some time to her to tell us a little bit more about herself and fill in any gaps that I might've missed. But Michelle is the founder and CEO of Tandem, which is a finance app that helps modern households manage and grow wealth. Since launching in just 2023, tandem has supported over 130,000 households in managing more than $200 million, and she is a former private equity investor turned FinTech founder.

She's also a personal finance influencer with a community of more than 700,000 followers across Instagram and TikTok. Michelle serves on the Forbes Advisor Banking Advisory Board and the Financial Markets Institute board at Michigan State University. And her work has been featured by the Today Show, wall Street Journal, Forbes, USA today and more. Her mission is to make personal finance simple, transparent, and achievable for every household. And like I said before, she's a founder and CEO of Tandem, which is like a finance app that helps couples with wealth management. So Michelle, thank you so much for joining tonight. Can you tell us anything else that I might've missed or tell us a little bit more about yourself?

Michelle Winterfield (01:46):

Yeah, thank you Hannah and the solo team for having me tonight. Super excited to talk about this topic and that was a really nice fulsome intro. So no, I think you covered it.

Hannah (01:56):

Awesome. Well, I wanted to go ahead and also share Michelle's social profile. So like I mentioned before, she has a pretty big following on her Instagram and TikTok, so you can go check her out at @missmoneymichelle, that's her handle on Instagram. Is it the same on TikTok as well, Michelle?

Michelle Winterfield (02:16):

It is, yep.

Hannah (02:17):

Okay, perfect. So again, it's at Miss Money. Michelle and I went ahead and shared that for anyone watching live. But yeah, thank you so much again for joining. Michelle. We're excited to have, can you tell us a little bit more about how Tandem works and what you do to kind of help as the CEO of tandem?

Michelle Winterfield (02:36):

Yeah, yeah. So I'll give you a little bit of the impetus behind it and then share how it works. But basically it was born out of a personal pain point. So I moved in with my now husband years before we got engaged as 80% of couples in the US today do. And the very first financial experience we had was how do we manage all of these new joint expenses? We didn't want to send Ven requests back and forth, but we weren't quite at the stage where we wanted to jump in and combine our assets in a joint account. So we had, well, when we were going through it, we had no choice and we did open the joint account, but we were funneling money to it separately and we applied for new credit cards to attach to it, just a whole hybrid situation to avoid, like I said, sending them requests back and forth or tracking everything on a spreadsheet.

And what we learned over time is that it was really quite difficult to build a financial life together, particularly when you're not yet married. There was less opportunity to build net worth the same way a married couple can. The macro data really supports this. Obviously couples are getting married later and later in life, and with that comes a lot more inherent financial complexity. You have done more with your career, you have investments, you have debt, you have all these things that make it a bit more complex than back in the day when you just kind of got out of high school, got married and combined everything because you didn't really have anything to start with. So all that said, I decided there was a huge gap in the market that the financial services industry was ignoring, which is how the modern couple and the modern household behaves and needs to manage money.

And we knew that we needed to serve a solution that kind of took care of these very first financial milestones that the couple in the household was having, which is managing expenses, saving for shared goals, planning for buying a house, and then kind of guiding them through all those different financial product purchases from there. So the way Tandem works is it's that very first financial experience that you have with partners. So we essentially eliminate the back and forth of Venmo without the need to get a joint account. You can connect all of your credit cards, debit cards, bank accounts, whatever you use to spend money to the platform. We pull in your transactions and only use see them. So you don't have to worry about your partner seeing all of your individual transactions. They're only going to see what is relevant to 'em, what you choose to share, what you guys need to manage together.

And then everything's tracked in a joint ledger and you can settle up that balance whenever you want. Both of you approve what's in it. So it really gives you transparent and equitable footing from day one, which is a big deal for couples. I mean, financial disputes are a leading cause of divorce, and we really think that by giving you a system in your earliest days of your relationship, it sets you up for success. And just having those open and transparent conversations for down the line.

Hannah (05:30):

Amazing. So it sounds kind of like an unofficial way of combining your accounts so that you can really see where your money is going as a couple without the official commitment of actually combining and getting a mutual bank account or something. Right.

Michelle Winterfield (05:45):

Yeah, it essentially serves as a joint account without being one, so you don't have to change a thing about how you spend money you can spend on your Amex and get your points and manage money with a partner without having to combine things, open up any new accounts. It really lets you kind of continue how you were and give you a very seamless way to manage it together.

Hannah (06:08):

Amazing. And you guys have helped more than 130,000 users with this, right?

Michelle Winterfield (06:15):

Yeah, we have, which is crazy, but we knew it was a problem that a lot of people had In our earliest days. We would scroll through Venmo and see all of these couples ven mowing each other for bills, and we were like, this is not just an US problem. I think everyone could use this. So it's been really exciting.

Hannah (06:37):

Super exciting. And so obviously it's an app, so you can download it on the app store, I'm guessing. Is the app itself free or how does that work?

Michelle Winterfield (06:46):

We offer a free trial for the first week, and then there's a monthly fee of $6 a user.

Hannah (06:55):

So it's affordable as well. Amazing. I love that. So I'm going to go ahead and share it. Well, I'm actually already sharing for anyone watching live or watching this retroactively, but you can go to use tandem.com to learn more about the app or just go ahead and download it and start the free trial. And again, it's tandem, T-A-N-D-E-M, and you can find that on probably any app store, right?

Michelle Winterfield (07:22):

Yep. On the app store.

Hannah (07:24):

Love it. Okay, cool. Well, can you tell us based on your experience, and it sounds like you created tandem obviously from a personal pain point you mentioned. So can you tell us from your own experience, if you were dealing with debt or if someone were dealing with debt, what would you recommend to be the first step that they should take to start building wealth after dealing with debt?

Michelle Winterfield (07:53):

I think really once you crawl out of off debt, and I think about debt in a few different ways. There's the harmful debt, which is credit card debt and the really high interest stuff that holds you back. And then there's debt that can be used as a tool that's very helpful, like your mortgage, your car loan, those are typically very affordable interest rates. And you shouldn't be trying to buy an entire house with cash, nor do I think many people can these days. But once you're in the clear and ready to start growing and building your wealth, I think you just really need to start taking advantage of all the compound interests that you can and free money. One of my favorite things to share with my audience is so many people don't utilize the 401k match that their employers offer. It's like that's free money.

You have to, if nothing else, max out that because you're going to get the one-to-one up to 6% or whatever they offer. So little things like that. And there's a very strict order down the line of wealth building that I think people should follow. And I think it starts with having six to nine months of expenses saved in a high yield savings account that's for your emergencies. So if you lose your job or you run into a medical emergency or something with your house and you need to be able to pay it off or afford living, you need to have some sort of cash reserve that is growing not at the nominal traditional savings account at just your bank. So I'd always say put it in a high yield savings account, and then from there you can start investing your money, obviously maxing out the 401k, the IRA, all the tax advantaged accounts, and then getting into a brokerage account where you can kind of invest in the broader stock market. But that's typically how I think about it is kind of in a phased approach of where you're taking advantage of the most lucrative things like the free money, the easy compound interest, saving cash for expenses, and then getting to your investing so you can start earning that compound interest as soon as possible because time is your biggest asset when building wealth.

Hannah (10:01):

I love that. And I think that most couples in the United States today are probably dealing with some sort of level of debt, whether it's like you mentioned those more beneficial debts like a mortgage or a car loan, et cetera. But I think many probably majority are also dealing with high interest credit card debts. And so my next question for you is how can couples and families get on the same page financially without having overwhelming stress or conflict arise in their relationships? Do you have any thoughts on how to navigate those dead issues, try to build well together as a couple without facing conflict?

Michelle Winterfield (10:49):

Yeah, 100%. We think about this all the time. We talk to our users in our community about this all the time. I think it's the biggest thing that holds people back in relationships is this stigma around money and being scared and anxious or tense about talking about money, talking about money. I really think if you can flip the narrative and flip the mindset in which you go into this topic with your partner, you should be excited about building a life with your partner and building wealth. And even if you're starting from ground zero or even below that because you have debt that you're crawling out of from school or credit cards or whatever, everyone can do it. It is so possible and you have to have that kind of optimism going into these conversations and lean on each other to help one another out. So instead of coming from that place of anxiety and tenseness, you got to push through that fear and just be open with your partner.

And here's where I've messed up. Here's where I want to do better. Here's what I'm learning. What about you? Where are you on the spectrum of these topics? One crazy stat we came across when starting the company was that over half of Gen Z and millennial couples and households keep a financial secret from their partner. And most of the time it's debt. And it's just such a tough way to start out a relationship because eventually things come out if you get married and you do end up combining finances or having to go and try and buy your first home and then one person has a terrible credit score and it's like, oh my God, I didn't know you had that. It just causes so many issues down the line that if you can be open about it, excited about building a future together and have that conversation probably much earlier than people think you should, that is really how you can best set yourself up for success financially with your partner and then ultimately with your household and your family.

Hannah (12:53):

I love that. I agree. I think open and honest communication is the key to avoiding any sort of conflict, but also resolving conflict. And just speaking from my own personal experience, I love what you said about optimism. I tend to be kind of a realist at times, maybe even a pessimist at best. My husband on the other hand, he is like the optimist in our relationship. It's an interesting balance, but whenever we talk about finances, he's like, everything's going to be awesome. We're doing great. And I'm always like, oh, stressed all the time. So I do think it's important to try to approach things with an optimistic attitude. And I love looking at it as an opportunity instead of a burden or a stressor because I agree with you. I think no matter where you are at in the debt journey or in your financial journey, there is opportunity to build your wealth, get back on track, save, and get to where you want to be ultimately. So love that advice. Thank you for that. Michelle. Let's see, I've got another question for you, and then after that I think we'll move on to some real user questions, real people questions that have been submitted to the debt hotline. So my last question though before we jump into those is what would you say is some good advice for balancing short-term goals, maybe going on vacation, getting a new car, living your life, how can you balance those short-term goals with long-term wealth building?

Michelle Winterfield (14:18):

Yeah, so I think if you never spend your money, you're not living your life, you want your foundation to be set, of course, try and pay off these higher interest items, but don't feel like you need to be completely debt free to enjoy your life. And like we talked about, debt can be used as a tool, but I think being able to go on a trip or save for a new piece of furniture or something that makes you happy, it only continues to incentivize and motivate you to continue building wealth and seeing like, oh wow, when I save and am finally able to buy this thing, how good does that feel? I accomplished that. I did that for me. So I think there are certain situations where it's like, okay, we shouldn't spend on a European trip right now because we are paying 23% on our credit card.

But once you get to a spot where maybe you've paid off all of your high interest debt and you're managing everything else, you can set aside some money that at least like I said, maxes out your 401k or your annual IRA contribution. And then whatever's left over, you can either put, I like to use a high yield savings account for short-term goals. And because it's easy to take in and out, you don't have a tax burden, but you can use that for say, a trip or something you want to buy yourself. It can be big, it can be small, but you have to be able to live your life and enjoy your money along the way or else it becomes so daunting because you feel like I'm not seeing any benefit from this. I'm just trying to to crawl out of debt. And I think it creates some confusion in people's kind of minds and a lot of negativity around money. So I think you have to be smart about it, but you should always be gunning towards some sort of short-term goal that you can achieve relatively quickly to kind of keep yourself going and keep yourself motivated.

Hannah (16:26):

I agree with that. If you're just saving up money all the time without being willing to spend and enjoy every once in a while, it might just feel stressful and with little reward, so…

Michelle Winterfield (16:39):

It's not fun or exciting.

Hannah (16:41):

Yeah, I love that. Well, I think we're good to just jump into some real questions. We've got several questions that were submitted to the debt hotline. And just for anyone watching or listening, we accept questions at the debt hotline. We have a phone number, which is (801) 613-8181 where you can call and submit your questions about debt. Primarily at Solo, we deal with debt topics, but we often have guests who will join our podcast and we'll talk about other financial topics as well. We've had a real estate broker come on. We've had founders like Michelle who are helping with other financial wealth building apps and tools. So you can ask questions specifically about debt or you can ask questions about finance and building your wealth, et cetera. So give us a call at (801) 613-8181. That's the debt hotline. And with that being said, we'll jump into some real questions that we've received at the debt hotline. Our first question comes from Ashley in North Carolina. Ashley says, I just finished paying off $22,000 in credit cards. My score is still in the low six hundreds. What is the best way to start building wealth with such a low credit score? Any thoughts on that?

Michelle Winterfield (18:01):

Yeah, first, congrats. That's not easy to do. That's a lot of money to pay off, so you should be proud of that. And I would say now that you've kind of gotten on the other side and out of the super high interest debt, not to be repetitive, but I would kind of go through that order of operations of investing in wealth building, which is now start to work on your emergency fund. Try and calculate how much money you spend each month on necessity. So like your rent or mortgage, your groceries, your utilities, what do you absolutely need to live and make sure you can handle six to nine months of those expenses should anything ever happen to your job or your money or whatnot. And then from there, I would take total advantage of your tax advantaged accounts, so that's your 401k, your IRA, your HSA, if your employer offers you one because you're going to be able to make even more money on those investment accounts because of the tax benefits that are offered

So I like to say the 401k match, then max out the IRA, then you can go back to the 401k, do the total annual contribution, max out the HSA because it has a triple tax advantage. And then you can do a traditional brokerage account where you're just investing in the broader stock market. And if you've never heard of those accounts, I know that sounds overwhelming, but it is really honestly quite easy to pick up and get started if you just kind of sit down and do it. And then lastly, as it relates to the credit score, there's little things you can do to improve it. Obviously like paying off your credit card info and on time each month is key, but you can call up your credit card provider and ask for an increase to your credit limit, which will lower your credit utilization rate, which is a big factor that goes into your credit score. So there's little hacks you can do along the way that can just start to put you ahead. But I would also say be patient with yourself. Don't expect to fix everything overnight. It's like little by little, being able to put money away and avoid getting back into credit card debt will go a long way.

Hannah (20:11):

And I would guess, Ashley, that paying off that $22,000 in credit card debt will help your score improve itself. So I think huge congratulations to you for getting that paid off. That's a pretty big amount of debt, and I'm sure it took a lot of dedication and discipline to get that paid off. So I'm sure that you'll see the benefits on your credit score. I'm sure it'll go up soon. But yeah, I think Michelle also shared some wonderful advice on other ways to build wealth without, if you can't afford a mortgage right now, there are other ways to build wealth, so love that. Okay, next question is David in Texas. David says, my wife, and I think it's supposed to say My wife and I are debt-free except for our mortgage, but we disagree on what to do next. I want to invest. She wants to save more cash. How should we decide the right balance?

Michelle Winterfield (21:08):

Yeah, I think this is a common thing that couples come into. Sometimes there's someone who's a bit more aggressive with money and someone who's a bit more conservative or maybe scared to lose money. I think you can do a mix of both. And this, of course, you both need to be on the same page. You need to talk about it and align on it. I don't think it's ever smart for one person just go rogue and start doing what they want with your money that you share. So like I said, always table stakes. Have that six to nine months in the high yield savings account. I tend to lean a bit more like once you have that, you shouldn't have a ton of money sitting in cash because you're just losing out on compound interest. I think a safer way to achieve both of your goals, which would be to invest and to have cash, is have that emergency fund.

And then as it relates to your investments, you don't need to invest money into individual speculative stocks. That's honestly the easiest way to lose money, especially if it's not your full-time job and you're not researching these things all the time. It's really, really easy to gamble and lose. So as it relates to investing, I would invest in a open a free brokerage account and invest in an index that tracks the broader stock market. I use Vanguard and their ticker VOO, which just tracks the s and p, but on average that's returned 10% a year over the past 100 years need to inflation adjust that. So it's probably more like 7%, but either way there'll be years where you lose a bit or gain a bit, but on the whole, it's always gone like this. So it's a safe way to earn much more than you will in a savings account without necessarily taking on that risk of, wow, my money can go to zero because historically it has not done that. So that's how I would approach it, but great that you both are even talking about it together and having an opinion to sort through.

Hannah (23:07):

Yeah, I agree and hopefully you guys can get on the same page, but it sounds to me like Michelle, long story short, you would probably recommend investing the cash instead of just letting it sit in a bank account, right?

Michelle Winterfield (23:22):

Once you have enough to cover those emergency expenses. Yes. I wouldn't let it sit in the bank account. You're losing money that way.

Hannah (23:30):

Awesome. Also, I forgot to mention this earlier, but while Michelle is a finance expert and at Solo we help people navigate legal debt issues, neither of us are, please don't consider any of this advice like personal financial advice. We're just trying to speak to the general topic at hand and give some resources and point people in the right direction, but don't necessarily constitute any of this as legal or financial advice for anyone listening or watching. Cool. Well, our next question is from Monica in Florida. Monica says, I've been in debt or Monica says I've been debt-free for a year, but I feel stuck financially. I have $4,000 in savings and don't know whether to invest or keep saving. What should my priority be? This is kind of similar to David's question. I think there's probably a lot of factors that would influence Michelle's answer, but I think depending on if you've got that emergency savings saved up and whether or not you have specific investing goals or financial goals, that short-term goals maybe you're trying to save up to buy a house or whatever. Michelle, what would you say though? Do you think it's best to keep that 4,000 in savings or should Monica go ahead and invest it?

Michelle Winterfield (24:55):

Yeah, and I know I laid out my order of operations and that is a general rule of thumb, but it's not so rigid, and I think if you are able to start having some money now, it's not a bad thing to save some in the emergency fund and start investing some. So you can start to just get used to it and start generating some wealth and seeing how the market works and how your money grows. So you can take, the percentage is up to you and what you feel comfortable with, but say you put 3000 of that in the high-yield savings and then you take a thousand and open up a brokerage account or invest that in your 401k or your IRA, I think that's a great way to get started. And another thing I want to mention for people that are able to start saving and investing is you need to treat that kind of monthly contribution is probably the easiest way to do it.

Treat that as a bill. So if you're saving a hundred dollars every month, whether you're putting that in investments or in your high yield savings account, don't look at that as an optional thing. If I have money left over, I'll get to it. Make that treat it the same as you do a utility bill, I have to pay for my electricity. I have to fund my investment account every month that has to come out and whatever's left over after that is more of the fun money and what you use for dinners and all those more discretionary expenses. And I think automating those investments and really looking at them that way can help flip how you view it and stop you from skipping out on doing it each month.

Hannah (26:39):

Yeah, I love that. I think that investing in general is often just a mindset game, and it can be intimidating, especially you're mentioning all these different accounts, tax-free, tax benefit accounts, but I think sometimes what I hear is just a bunch of acronyms like IRA 401k, and it could be kind of intimidating to understand the differences between all these different types of accounts. Michelle, do you have any advice on the best way to learn about them and really gain a deep understanding of the different accounts and options available for investing?

Michelle Winterfield (27:24):

Yeah, 100%. And I do, I always feel for people that don't come from a finance background like you're a teacher, you're a nurse, or you do something totally unrelated, but everyone needs to know a little bit about finance and it's hard because who has time to sit down and then study and learn about investing. So that's why I really think if you can just learn the basics and automate what you can, you will be setting yourself up to be ahead of 80% of the population. So I think the easiest way to learn about it, there's a lot of great articles out there, there's a lot of great finance creators, but I would just do a quick search on tax advantage accounts in order of investing, and there's really not that many. There's four that I mentioned. Hopefully if you are employed, your company has at least introduced.

I know they don't do a great job all the time of teaching you about it, but introduce that you have access to a 401k, that's just a way to save for retirement. So that's money that you put away and you don't touch it until you're done working because there's penalties if you do. So you have to think about that as this money goes in, and I do not see it for a very long time, and that's so when I turn 65 or whenever you decide to retire, I can live and I don't need to work until I'm 80. So I would really try and learn just what are those, what's called tax advantaged accounts, and that's just 401k the IRA, which is an individual retirement account. That's something you can set up on your own. And then the third is an HSA, which is a health savings account that has to be provided to you by an employer, but that can be used for qualified medical expenses and you can actually invest them, which is why I include them as an investment account.

A lot of people just keep their $500 in there that their employer gives them and they use it for medical bills. But if you're able, the best way to utilize that is to invest that balance every year and don't touch it for the medical expenses because it'll grow and you'll gather more compound interest. So there's a bunch of great articles and stuff out there that simplify that down, and if you can spend 20 minutes just reading through it and then go talk to your HR department about it, you're going to be in such a good position. And I know it's painful and it's so dull for most people. It's not interesting like it is for us sometimes, but it's really important and everyone has to deal with finance and money. So I would try and have a basic understanding and don't worry about the really complex stuff and investing in stocks and the crazy things you see on CNBC. You really can make a lot of money and do quite well, keeping it as simple as possible.

Hannah (30:18):

Love that. Very well said. Well, I think Michelle, we've got time for maybe one more question if that's all right with you.

Michelle Winterfield (30:26):

Yeah

Hannah (30:27):

This question is coming from one of our live viewers. So this question comes from Jen, Jen, and it looks like there are two parts to this question. Jen says, would you recommend an extra income or job or budgeting with one income to build wealth as the easier method?

Michelle Winterfield (30:46):

That's a great question, and I know people are having to take on more than one job these days to keep up with expenses and all of that. I think if you can, if you have a main job and you can find a side hustle of sorts that fits with your, that doesn't deteriorate your lifestyle, because again, I think if all you do is work and try and save and you never enjoy your life, you're going to get burnt out and it's going to seem miserable to you. So if the extra job or side income is something that is palatable and you enjoy it, it's easy. You can maybe do it from home then by all means, but if not, and it's really going to just cause more stress and harm than good, then I do think you can do a lot with budgeting and really teaching yourself to spend within your means and start to learn to save and invest as if it's a bill. And that can get you quite far as well. Every situation is different, but just to summarize, if the side job is enjoyable and helps you get further, then by all means, I think those are great to do and sometimes lead you into a whole new career path that you didn't know you could do.

Hannah (32:07):

I think that's great advice. I think it totally depends on your personality. If you're just a busy bee and you really like to work, maybe picking up an extra job would be the best way to build that wealth. But if you're kind of more like me and you like to spend a lot of time with friends and family and maybe have a really good work-life balance, budgeting might be the better way to go about saving and building wealth. So great advice. Jen had one other follow-up question, and I think it's a really good one, so I'm just going to share this one as well. She says, how should a college freshman begin to build wealth?

Michelle Winterfield (32:44):

Well, I'm glad that if this is you or whoever it is, is thinking about it, I don't think many college freshmen think about building wealth. So that's awesome. I think if you have earned income, you can open up an IRA and you can start investing in a tax advantaged way. Anyone can do that. The easiest way I did three simple steps is you can use any platform you want, but I just always say Vanguard because I think they have low expense ratio. So go to Vanguard, open up a individual retirement account and start putting as much into that as you can. The max is, I don't want to get the max wrong, but it's around $7,000 a year annually, depending on the year. I would start with that. If you have nothing else kind of set up as it relates to investments, and then of course always have some cash on side to serve as your emergency fund, but I would start with those tax advantage accounts and get them set up. And then having that extra four years before you actually start your career really does help in building compound interest. And you'd just be shocked at how much you're able to achieve just by putting away the $7,000 a year.

Hannah (34:02):

Great advice. Well, I think we'll go ahead and wrap things up, but I did want to just give a huge shout out and thanks to our guest, Michelle tonight. Again, thank you so much for sharing your expertise. I feel like you had some really sound and useful advice and tips for everyone listening tonight. And I love what you're doing at Tandem. I think back to, I've been married for seven years now, so my husband and I are for the most part on the same page financially. But I think back to the early days and how nice it would've been to have some sort of extra resource to combine our accounts and figure out where we're at financially and really start that foundation. So I love what you're doing at Tandem. It sounds like it's making a huge difference for thousands and thousands of people. Do you have any other last words for any listeners on the topic of building wealth as a family, especially after facing debt issues?

Michelle Winterfield (35:09):

No. I would say just flip the narrative. Be excited about it. Building wealth and building life together is so exciting and allows you for so much flexibility down the line that if you come at it in a very positive way and feeling good about the future and what you can do together, you're going to get a lot farther. So I would say just be excited about it and start building the future together.

Hannah (35:36):

I love that. That's inspiring me even seven years into a marriage with my husband. I feel like I could definitely flip the narrative personally a little bit. So thank you for those words and for everyone listening, thanks so much for tuning in. Again, this is the Debt Hotline and we take calls and answer questions about debt every single week. We do two episodes a week, so if you have questions about debt or even financial questions, give us a call at zero one six one three eight one eight one, and we'd be happy to help and answer your questions and hopefully point you in the right direction. And for anyone out there listening who is dealing with debt, whether you've been sued by a debt collector or you're just trying to settle a credit card debt, you can go to solo suit.com and find solutions to help you respond to lawsuits, negotiate with creditors and collectors to settle your debt for less, and just ultimately to resolve your debt so that you can then turn around and build wealth. Thanks again, Michelle, for joining. Thanks everybody for listening. This is the Debt Hotline.

Michelle Winterfield (36:38):

Thank you, Hannah. Thanks for having me.

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

• Alabama
• Alaska
• Arizona
• Arkansas
• California
• Colorado
• Connecticut
• Delaware
• Florida
• Georgia
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• Missouri
• Montana
• Nebraska
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• Tennessee
• Texas
• Utah
• Vermont; Vermont (Small Claims court)
• Virginia
• Washington
• West Virginia
• Wisconsin
• Wyoming

Guides on how to resolve debt with every debt collector

Are you being sued by a debt collector? We’re making guides on how to resolve debt with each one.

• 11 Charter Communications
• AAA Collections
• Aargon Agency Inc
• Absolute Resolutions Investments LLC
• ACEI Collections
• Account Services
• Accredited Collection Services
• Accredited Collection Services
• Advanced Recovery Systems
• AES NCT
• AFNI Collections
• Alco Capital Group LLC
• Aldous and Associates
• Alliance Collections
• Alliance One
• Alliant Capital Management
• Alpha Recovery Corp
• Alltran Financial
• Alltran Health
• Alorica Inc.
• Amcol Clmbia in Court
• American Coradius International
• American Profit Recovery
• American Recovery Service
• Americollect
• AmSher Collection Services
• Apelles LLC
• AR Resources
• ARC Collections
• ARM Solutions
• Arrow Financial Services
• ARS National Services
• ARSC Debt Collectors
• ARS National Services
• ARstrat
• AscensionPoint Recovery Services
• Asset Acceptance LLC
• Asset Recovery Solutions
• Associated Credit Services
• Atlantic Credit and Finance
• Atradius Collections
• Automated Collection Services, Inc.
• Autovest LLC
• Avante USA
• Avantus
• AWA Collections
• Balekian Hayes
• Bay Area Receivables
• BCA Financial Services
• BC Services
• Benuck and Rainey
• Berlin-Wheeler
• Bluebonnet Financial LLC
• Bonneville Collections
• Bull City Financial
• Bureaus Investment Group
• Cach LLC
• Caine and Weiner
• Capio Partners
• Capital Accounts
• Capital Collections
• Capital Management Services
• CardWorks
• Carmel Financial/New Coast Direct
• Cavalry SPV I LLC
• CBCInnovis
• CBCS Collections
• CBE Group
• CBV Collections
• CCB Credit Services
• CCS Collections
• CCS Offices
• Central Mediation Services
• Central Portfolio Control
• Cerastes LLC
• Choice Recovery
• Choice Recovery Inc
• CKS Financial
• CKMS Financial
• Client Services
• CMRE Financial Services
• COAF
• Coast Professional
• Comenity Bank Debt Collection
• Commonwealth Financial
• ConServe Debt Collection
• Consumer Collection Management
• Contract Callers Inc
• Convergent Healthcare Recoveries
• Convergent Outsourcing
• Couch Conville & Blitt
• Covington Credit
• CRDT First
• Credco in Court
• Credence Resource Management
• Credit Bureau Systems
• Credit Control Corporation
• Credit Management Company
• Credit Management LP
• Credit Systems
• Credit Systems
• CSIEZPay
• CTC Debt Collector
• CVCS Debt Collection
• Cypress Financial Recoveries
• D&A Services
• Daniels, Norelli, Cecere & Tavel P.C.
• DCM Services
• Debt Recovery Solutions
• Delanor Kemper & Associates
• Department Stores National Bank
• Direct Recovery Associates
• Discover Collections
• Diversified Adjustment
• Diversified Consultants
• Diversified Recovery Bureau
• DNF Associates, LLC
• Dodeka LLC
• DRS Credit
• Dynamic Collectors
• Eagle Loan
• Eagle Accounts Group, Inc.
• Eastern Account System
• EduCap
• Ellington and Associates Collections
• Encore Capital Group
• Enerson Law
• Enerson Law LLC
• Enhanced Recovery Company
• EOS CCA
• ERC Collections
• ERSolutions
• Estate Information Services
• Equable Ascent Financial
• Everest Business Funding
• Executive Credit Management
• Faber and Brand
• Factual Data
• Falls Collection Service
• FBCS
• FCO Collections and Outsourcing
• FIA Card Services
• fin rec svc (Financial Recovery Services)
• First Federal Credit Credit Control
• First Financial Bank
• First Portfolio Ventures LLC
• First Progress
• FirstPoint Collection Resources
• Firstsource Advantage
• FMA Alliance
• FNB Omaha
• Forster & Garbus
• Franklin Collection Services
• Freedom Plus
• Freshview Solutions
• Frontline Asset
• Frost Arnett
• Fulton Friedman & Gullace LLP
• Galaxy International Purchasing, LLC
• GC Debt Collection
• GC Services
• General Revenue Corporation
• GLA Collections
• Glass Mountain Capital
• Glasser and Glasser
• Global Credit Collection Corp
• Global Trust Management
• GMAC Financing
• Golden 1 Credit Union
• Grant and Weber
• Grant Mercantile Agency
• Gulf Coast Collection Bureau
• Gurstel
• Halsted Financial Services
• Harris and Harris
• Harvard Collection
• Harvest Credit Management
• Helvey and Associates
• Hollis Cobb
• Holloway Moxley
• Hosto Buchan
• Howard Lee Schiff
• H&R Accounts
• HRRG
• Hudson & Keyse LLC?
• Hunter Warfield
• IC System
• Impact Receivables Management
• Innovative Recovery
• Integras Capital Recovery LLC
• Javitch Block
• JHPDE Finance 1 LLC
• JP Receivables Management Partners
• JPMCB card
• Kenneth Eisen and Associates
• KeyBank student loans
• Kinum
• Kirschenbaum, Phillips & Levy P.C.
• KLS Financial Services
• Kramer & Frank
• Lakeside Collection
• Lending Club
• Lincoln and Morgan Kabbage
• Linebarger Goggan Blair & Sampson LLP
• Lockhart Collection Agency
• LJ Ross Associates
• LTD Collections
• Malcolm S. Gerald and Associates
• Malen & Associates
• Mandarich Law Group
• Mannbracken
• Marcam Associates
• MARS Inc. Collections
• MBA Law
• MCA Management Company
• McCarthy, Burgess & Wolff
• Meade & Associates
• Medicredit
• Mercantile Adjustment Bureau
• Merchants Credit Association
• MGM Collections
• Michael J Adams PC
• Midland Funding LLC
• Mid-South Adjustment
• Monarch Recovery
• Monterey Financial
• Moss Law Firm
• Mountain Land Collections
• MRS Associates
• MRS BPO
• MSW Capital LLC
• Mullooly, Jeffrey, Rooney & Flynn
• Nathan and Nathan PC
• National Collegiate Trust
• National Credit Adjusters
• National Credit Care
• National Credit Systems
• National Enterprise Systems
• National Recovery Agency
• National Recovery Solutions
• Nationstar
• Nationwide Credit
• Nationwide Recovery Services
• Nationwide Recovery Systems
• NCEP LLC
• NCO Financial Systems Incorporated
• North American Recovery
• Northland Group
• Northstar Capital Acquisition
• Northstar Location Services
• NPAS
• NRC Collection Agency
• Oliver Adjustment Company
• Oliphant Financial, LLC
• Oportun
• P&B Capital Group
• PCB Collections Agency
• Palisades Collection LLC
• Pallida LLC
• Paragon Contracting Services
• Paragon Revenue Group
• Payday Loan Debt Collectors
• Pendrick Capital Partners
• Penn Credit
• Perdue Brandon
• Persolve LLC
• Phillips & Cohen Associates
• Phoenix Financial Services
• Pioneer Credit Recovery
• PMAB LLC
• PRA Group, Inc.
• Pressler, Felt & Warshaw LLP
• Prestige Services, Inc.
• Prince Parker and Associates
• ProCollect
• Professional Finance Company
• Progressive Management Systems
• Provest Law
• PYOD LLC
• Quaternary Collection Agency
• RAB Collection Agency
• Rash Curtis and Associates
• Radius Global SOL
• Radius Global Solutions
• Rawlings Company
• Razor Capital
• Real Time Resolutions
• Receivables Performance Management
• Regents and Associates
• Reliant Capital Solutions
• RentGrow
• Resurgent
• Resurgent Capital Services and LVNV Funding
• Revco Solutions
• Revenue Enterprises LLC
• Revenue Group
• RGS Financial, Inc.
• RMP LLC in Court
• RMP Services
• RS Clark and Associates
• RSIEH
• RSIEH
• RTR Financial Services
• Rubin & Rothman
• Salander Enterprises LLC
• Samara Portfolio Management
• SCA Collections
• Scott Parnell and Associates
• Second Round Collections
• Second Round Sub LLC
• Selip & Stylianou LLP
• Sequium Asset Solutions
• Sessoms and Rogers
• Sherman Acquisition
• Sherman Financial Group
• SIMM Associates
• Source Receivables Management
• Southern Management Systems
• Southwest Credit Group
• Spire Recovery Solutions
• SRS Company
• Stark Collection Agency
• State Collection Service
• Stenger and Stenger
• Stillman Law Office
• Summit Account Resolution
• Sunrise Credit Services
• Superlative RM Debt Collector
• Suttell and Hammer
• Synergetic Communication
• Synerprise Consulting
• The Law Office of Michael J Scott
• Trellis Company
• Troy Capital
• TRS Recovery Services
• TrueAccord
• Tulsa Teachers Credit Union
• UCB Collection
• UHG 1, LLC
• Unifin
• Unifin Debt Collector
• Unifund
• Universal Credit Services
• US Bank Collections
• USAA collections
• USCB America
• Valentine and Kebartas
• Valley Servicing
• Vance & Huffman LLC
• Van Ru Credit Corporation
• Velo Law Office
• Velocity Investments
• Viking Client Services
• Wakefield and Associates
• Waypoint Resource Group
• WCTCB
• Weinberg and Associates
• Weltman, Weinberg & Reis
• Westwood Funding
• Williams and Fudge
• Wilshire Consumer Credit
• Wolpoff & Abramson
• Worldwide Asset Purchasing
• www.AutomotiveCredit.com
• Zarzaur & Schwartz
• Zwicker & Associates

Resolve your debt with your creditor

Some creditors, banks, and lenders have an internal collections department. If they come after you for a debt, Solosuit can still help you respond and resolve the debt. Here’s a list of guides on how to resolve debt with different creditors.

• American Express; American Express – Debt Collection
• Bank of America
• Barclay
• Best Buy Credit Card
• Capital One
• Chase
• Credit One Bank
• Old Navy Credit Card
• PayPal Synchrony Card
• Regional Finance
• Retailers National Bank
• Reunion Student Loan Finance Corporation
• SYNCB/PPEXTR
• Synchrony Bank
• Synchrony Walmart Card
• Target National Bank
• Webbank
• Wells Fargo
• Can I Pay My Original Creditor Instead of a Debt Collection Agency?
• Can I Settle a Debt with the Original Creditor?

Settle your medical debt

Having a health challenge is stressful, but dealing medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

• Am I Responsible for My Spouse's Medical Debt?
• Do I Need a Lawyer for Medical Bills?
• Do I Need a Lawyer to Fight Medical Bill Debt?
• Does Bankruptcy Clear Medical Debt?
• How Much Do Collection Agencies Pay for Medical Debt?
• How to Find Medical Debt Forgiveness Programs
• Is There a Statute of Limitations on Medical Bills?
• Medical Debt Statute of Limitations by State
• Summoned to Court for Medical Bills — What Do I Do?
• Summoned to Court for Medical Bills? What to Do Next

Guides on arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

• How Arbitration Works
• How to Find an Arbitration Clause in Your Credit Agreement
• How to Make a Motion to Compel Arbitration
• How to Make a Motion to Compel Arbitration in Florida
• How to Make a Motion to Compel Arbitration Without an Attorney
• How Credit Card Arbitration Works
• Motion to Compel Arbitration in California
• Sample Motion to Compel Arbitration

Stop calls from debt collectors

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

• 1-800-390-7584
• 800-289-8004
• 800-955-6600
• 8009556600
• 877-366-0169
• 877-591-0747
• 800-278-2420
• 800-604-0064
• 800-846-6406
• 877-317-0948
• 888-899-4332
• 888-912-7925
• 202-367-9070
• 502-267-7522

Federal debt collection laws can protect you

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

• 15 USC 1692 Explained
• Does the Fair Credit Reporting Act Work in Florida?
• FDCPA Violations List
• How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)
• How to Make a Fair Debt Collection Practices Act Demand Letter
• How to Submit a Transunion Dispute
• How to Submit an Equifax Dispute
• How to Submit an Experian Dispute
• What Debt Collectors Cannot Do — FDCPA Explained
• What Does Account Information Disputed by Consumer Meets FCRA Requirements Mean?
• What does “meets FCRA requirements” mean?
• What does FCRA stand for?
• What is the Consumer Credit Protection Act