Man with $57k in debt taking 40% of income said ignoring mental health made things worse

• A man has appeared on a budgeting podcast to seek help and raise awareness of mental health issues.
• Duncan, 26, from San Antonio, said his bipolar disorder 2 contributes to his dire finances.
• He told Hammer he owed about $57,000, with minimum payments eating up 40% of his $2,150 monthly income.

A man grappling with massive debt appeared on a budgeting podcast last week, claiming to be an example of how ignoring mental health can lead to financial woes.

Duncan, 26, of San Antonio, Texas, said he appeared on the ‘Financial Audit’ run by YouTuber Caleb Hammer. He did not give a middle name.

Hammer and Duncan found that he owed a total of $57,000 in loans and credit card debt, with high interest and minimum payments so high that they absorbed more than 40% of his income.

Duncan said he was a delivery boy for the Tiff’s Treats cookie store and occasionally worked the manager’s shift. He said he averaged 32-34 hours a week and was making $2,150 a month.

He said the store was in trouble and his hours could be cut, which would not only reduce his income but also lead to him getting cut or health insurance.

He was “busting my ass” trying to find another job, he said. “It was very difficult, you know,” she continued, starting to cry.

Duncan told Hammer he knew he was in dire straits but had been “afraid to look” at his debts.

He admitted to spending heavily on Uber Eats and other fast food outlets. Hammer calculated those costs to be about $766 a month, 36% of his income.

“I don’t see a single purchase here that isn’t just bullshit spending,” Hammer said.

Hammer also looked into Duncan’s debts, finding $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 owned a Toyota Camry, which he paid off with a loan of approximately $16,500 at an interest rate of 10.45%. He also had late fees of $1,137 in the past year.

He said he had three credit cards that he defaulted on, leading to the debt being taken on by a collection agency.

$1,324.12 was on an Affirm credit card that dated back to 2021. “I just stopped paying it,” Duncan said.

Duncan also previously had a Visa credit card and a Kohl’s store credit card, those two totaling approximately $3,000.

Additionally, Duncan had late payments on three pay-later apps: $240 on PayPal, $63.23 on Afterpay and $91.45 on Klarna, due to “a series of really, really bad decisions,” she said.

He also listed a $1,400 personal loan from last year and $4,500 he owed to his grandfather for being in an uninsured car accident.

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

His minimum monthly payments were $880.65, which was 41% of his income.

“It’s been a really, really bad situation that I’ve been in for the last couple of years,” Duncan said. He said he had tried to budget in the past but kept making “stupid decisions” as he struggled with his mental health.

He said he was diagnosed with bipolar 2 disorder and had recently started medication. He said the condition contributed to him making “the worst decisions of my life”.

“When COVID hit, it was so awful,” Duncan said. He said he was working 50-60 hours a week and sales were up, so he was making good money.

“I kept being so careless with it,” he said. “I realize how much it has affected me in recent years.”

Starting the meds helped, he said like “taking the blinders off a horse.”

Hammer said the good part was that he got on the show and they could make a plan. Hammer said he also struggled with an anxiety disorder, which had been debilitating to his life.

“It doesn’t make you any less of a person,” she said.

Hammer suggested an aggressive budget to pay off the debt, but it still came to $173 of what Duncan was making. He recommended side hustles like short-distance trucking or shifts at Walmart.

“You just have to make a lot, a lot, a lot, a lot more money,” he said. “We’re grinding every single second we can.”

After four years, at age 30, Duncan could be in a much better position, with an emergency fund set aside, Hammer predicted.

If it did, it would be “well above” the 30-year average, Hammer said.

In the comments below the video, people praised Duncan for coming to the show and being open about his mental health issues.

“Her honesty about her anxiety is so admirable, it’s refreshing to see someone address their problem rather than making excuses,” one person wrote. “I respect him so much. I really wish him all the best and I believe he can make it out!”

Duncan also commented, saying he was encouraged by the support.

“I wanted to be here to specifically explain how not treating your mental health issues can lead to the huge financial strain I’m in,” she said.

“Guys, if you have anything with mental health that you’re dealing with, anxiety, depression, bipolar disorder, trauma, PTSD, etc. please get help.”

He said reading some of the comments made him cry and said he would “work his ass off” to go along with Hammer’s plan.

“Thank you guys for the outpouring of support it means so much,” he said. “And he made me feel more motivated to do better than I have in years. Thank you all, really.”