In this episode, Steve Rhode (the old Get Out of Debt Guy) and Damon Day (the new Get Out of Debt Guy) dig into one of the most common fears people have about money: “If I stop paying my credit cards or personal loans, can I go to jail?”

We separate fact from fiction, explain why debt misfortune isn’t fraud, and share the real consequences of missed payments. Damon introduces his “shoot the hostage” analogy about credit scores, Steve recalls stories from bankruptcy courts, and together they tackle the mental health toll of financial anxiety.

We also expose how scammers pretend to be law enforcement to trick people into sending money, and why fear is the number one weapon used by both shady collectors and fraudsters.

If you’ve ever lost sleep worrying about debt collectors, credit scores, or the fear of arrest, this episode will give you clarity — and a plan forward.

👉 Learn more at https://getoutofdebt.org

👉 Talk directly with Damon at https://damonday.com

Is it worth pulling money from your 401(k) to wipe out credit card debt charging you 20% or more? In this episode of The Get Out of Debt Guy Podcast, Steve, the original Get Out of Debt Guy, and Damon Day, the new Get Out of Debt Guy, break down the real trade-offs.

We tackle the emotional relief of paying off high-interest balances versus the cold math of lost compounding, penalties, and taxes when you tap into retirement savings. With credit card APRs climbing above 20%, and some people paying over $1,000 a month just in card payments, it’s no surprise more Americans are tempted to borrow from or cash out their 401(k).

Steve and Damon debate whether raiding retirement accounts to pay credit cards ever makes sense, share horror stories of people who never put the money back, and explain why a strategic plan—not a panic move—is the only way forward.

Learn about:

• Why a $10,000 401(k) loan today can cost you nearly $70,000 in lost growth over 20 years.

• What really happens if you lose your job while carrying a 401(k) loan.

• Smarter alternatives to tapping retirement funds, from side hustles to defensive debt strategies.

• When a 401(k) withdrawal might be the last option—and how to avoid disaster if you go that route.

Don’t make a decision based on fear or a sales pitch. Separate emotion from math and protect your financial future.

👉 Visit https://getoutofdebt.org for more insights from Steve.
👉 Work with Damon on a personalized plan at https://damonday.com

Losing your job can feel like the floor’s been pulled out from under you—but there are steps you can take right away to steady your finances and protect your future. In this episode of the Get Out of Debt Guy Show, Steve Rhode (the original Get Out of Debt Guy) and Damon Day (the new Get Out of Debt Guy) break down what to do first when you’re laid off, terminated, or facing a sudden loss of income.

We also tackle a listener’s question: If your loan is sold to a collection agency, does that mean you don’t owe the debt anymore? Damon shares a wild personal story about fighting Citibank in court, and Steve explains why documentation and planning matter more than online myths.

From managing credit cards and unemployment benefits, to side hustles like DoorDash and Instacart, this conversation is packed with real-world strategies to avoid common mistakes when income stops.

💡 Want help with your unique situation? Damon can be reached directly at DamonDay.com.
📚 More resources and guides at GetOutOfDebt.org.