Pay Off High-Interest Rate Debt | 5 Minute Military Money 5/10 #223

Apr 6, 2026

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Step 5 in our 10-part series: pay down your high interest rate debt. Spencer and Jamie share how they each paid off six figures of debt on military pay, why debt robs your future self of choices, and where to find free help if you're overwhelmed.

Topics covered:

Why non-asset-backed debt (credit cards, auto loans, student loans) is working against you
The 5-6% interest rate threshold for "high interest" vs. "low interest" debt
Why Spencer has become more debt-averse over time — even toward low-interest career starter loans
The emotional and psychological weight of debt, and how paying it off changed both hosts' financial trajectories
Scarcity mindset vs. abundance mentality — and why you might need a temporary scarcity mindset to get out of debt
Ways to increase income in the military: spouse employment, side hustles, DoorDash, garage sales, Facebook Marketplace
Debt affects all ranks and all ages — don't let embarrassment keep you from getting help

Resources mentioned:

The Total Money Makeover by Dave Ramsey (available on Libby app and base libraries)
Financial Peace University (Dave Ramsey)
Dave Ramsey's 7 Baby Steps — Military Money Manual Podcast Episode 135
How to Get Out of Debt in the Military — Episode 14
Spencer & Jamie's Debt Stories — Episode 15
On-base financial counseling services (accredited financial counselors)
Military OneSource (text, chat, phone, video counseling)

Spencer is offering one-on-one Military Money Coaching sessions! Get your personal military money and investing questions answered in a confidential coaching call.

If you have a question you would like us to answer on the podcast, please reach out on instagram.com/militarymoneymanual or email podcast@militarymoneymanual.com.

If you want to maximize your military paycheck, check out Spencer's 5-star rated book The Military Money Manual: A Practical Guide to Financial Freedom on Amazon or at shop.militarymoneymanual.com.

I also offer a 100% free course on military travel hacking and getting annual fee waived credit cards, like The Platinum Card® from American Express, the American Express® Gold Card, and the Chase Sapphire Reserve® Card in my Ultimate Military Credit Cards Course at militarymoneymanual.com/umc3.

The Platinum Card® from American Express and the American Express® Gold Card waive the annual fee for active duty military servicemembers, including Guard and Reserve on active orders over 30 days. The annual fees on all personal Amex cards are also waived for military spouses married to active duty troops.

Military Money Manual may receive compensation from JPMC. Opinions expressed here are author's alone, not those of any bank, credit card issuer, airlines or hotel chain.

Spencer and Jamie offer one-on-one Military Money Mentor sessions. Get your personal military money and personal finance questions answered in a confidential coaching call. militarymoneymanual.com/mentor Over 22,000 military servicemembers and military spouses have graduated from the 100% free, Ultimate Military Credit Cards Course available at militarymoneymanual.com/umc3 In the Ultimate Military Credit Cards Course, you can learn how to apply for the most premium credit cards and get special military protections, such as waived annual fees, on elite cards like The Platinum Card® from American Express and the Chase Sapphire Reserve® Card.

Learn how active duty military, military spouses, and Guard and Reserves on 30+ day active orders can get your annual fees waived on premium credit cards in the Ultimate Military Credit Cards Course at militarymoneymanual.com/umc3 If you want to maximize your military paycheck, check out Spencer's 5 star rated book The Military Money Manual: A Practical Guide to Financial Freedom on Amazon or at shop.militarymoneymanual.com. If you have a question you would like us to answer on the podcast, please reach out on instagram.com/militarymoneymanual.