- He reminds me of a
teenage boy, half the time. - Gail's not really
being fair to me. - I don't know who
gave you your mortgage, but they were fools. - Why would I wanna save
up for a couple of years to own something
I could have now? - Don't even start with me. - You're a gym
teacher, run faster. I'm still tolerating you, even though you gambled
away all my money. I just want Guy to help. (jazzy upbeat music) ♪ Money money money
money money money money ♪ ♪ Money money money
money money money money ♪ (funky guitar music) ♪ Money money money
money money money money ♪ - My name is Guy,
I'm 29 years old, and I am a physical
education teacher. - My name's Julia,
I am 30 years old. I work as a teacher. Guy and I have been
married five years. We have one child,
who is a year old. - We got our house reappraised and used that extra
money to pay down debts. - Within months, (ATM whirring) (scanner beeping)
(credit card sliding) we're almost back at square one. A lot of the money
goes to Guy's sports. Volleyball, two basketball
leagues, a hockey league, he plays golf, drinks
out afterwards. - If it were up to me, I
would go out every night for some wings and
drinks with my friends. I think she does have
bad spending habits because she doesn't spend. - Somebody's gotta be
smart about the money. Every month, we're
getting further in debt, instead of getting out of it. - I don't think it's
a serious situation. I think I'm a little more
realistic about it than Julia. I also don't believe
that we need a huge chunk in a savings account
just sitting somewhere. We'll always have access
to the credit card or the credit line. - When I first had the baby, we decided that Guy would
take care of the finances, which turned out to
be a huge mistake because that's when
he started gambling. - [Guy] It turned into
more of an addiction. - [Julia] He was pulling
money off credit cards, getting cash advances. - I'm all in. It would be something I would
do after she goes to bed. I think we've kind of
come back to the point where the trust is there. - I'm extremely angry and
I've lost my trust in him. You know, it's hard
to have that intimacy that we had before when we're constantly arguing and I'm being the
mother figure to him. - I didn't ruin it. - Yeah, you did. 'Cause you did exactly
what I told you not to do. - I think Gail will
have to work very hard in finding something that will
make me change my viewpoints. - He's showing me
that the sports and going out with friends
are more important than us. I mean, it definitely hurts. It definitely hurts. (car horns beeping) - This month I'll help this
couple move from red to black. I've been solving money
problems for over 20 years. Tackling everything from
high finance to low income. I help people understand
money and debt, which is still a huge
mystery for most folks. And it's the number one
reason couples split up. So now I'm making house calls. (upbeat music) Guy and Julia can't agree on
how to deal with their debt or their income. Julia wants to pay off the
debt and plan for the future. Meanwhile, Guy thinks I'm
here to cut him some slack. I'm more likely to
hit him with a 2x4. (knocking on door) Gail Vaz-Oxlade. - Hi, Julia, nice to meet you.
- Nice to meet you. - Guy, nice to meet you. - Nice to meet you, Guy. First thing I'd like to
do is just drop my bag and have a quick look around. - Come on in.
- Great. - [Gail] Is this couch paid for? - Uh? - You put it on
your credit card? - Yes. - He, doesn't no, you
don't have a credit card. - Well (mumbles) sorry. - Tell me (laughs) - The credit card's
only in my name. - Why? - Because he can't be
trusted with a credit card. - Ah, interesting. Oh, nice brown,
leather furniture. Is this all paid for? - Yeah. - Compared to some of
the houses I've been in, this is not a lot of
clothes for a baby girl. Who does primary childcare? - [Julia] Definitely me. - Whatever. It's pretty equal. - This is not a lot of clothes. Which makes me wonder, where
are you spending all the money? You fundamentally disagree
on just about everything that has to do with money. - I think if you try to live
the way Julia wants to live, it's not gonna work. - It's not gonna work to
live within your means? - No. (awkward music) - I just don't know what to say. (Guy laughs) - Neither do I. It's nice to see in a
way that I'm not crazy. And that Gail agrees that,
you know, it's out of control. - I don't see the
debt increasing. - Hold on a second. In the last six months, how much of your debt
have you paid up? - Zero. It's gotten bigger.
- Zero. - Okay. - He'll tell you that- - When I was in control of
the funds, it wasn't growing. - When you were in control of
the funds, you were gambling. You spent $9,000 in six months. - I did wanna tell Gail
just to lighten up a bit. You do need to have some
enjoyment in your life. It's not all work and
work and more work, right? - How much debt
is too much debt? Guy, I wanna know
when you hit enough. - Right. - $63,000 worth
of consumer debt. It's hidden in the mortgage,
but it's still consumer debt. If we see interest
rates go up even 2%, that's when you lose your house. And all the shoes
and the golf games won't make a scrap a difference 'cause you won't
have a place to live. (dramatic music) - When I saw Gail's numbers, I thought they were wrong. I just kind of told myself
not to worry about it. - [Gail] You don't
have very much left on your student loans. - It doesn't change
our lifestyle, making
minimum payments. - By the time you get
this debt paid off, you will have doubled the
cost of your education. That's $20,000 you
just gave the bank. - It just makes me feel sick. It's just like
throwing money away. - Right now, you are spending 57% of
your income on housing. It should not be more than 35%, with a minimal amount
of maintenance. You're up to 62%. The reality is nobody can afford to spend 60% of their
income on housing, and have a life. This is what you are averaging every single month
in the life category. Everything from
entertainment, to clothes, to booze, to sports. This is your shopping. $3,000 a month. Tell me again how
much you net, Guy? Less than that.
- Less than that. (Julia sighs) I don't see anything on
that list that shouldn't be. - Every month you spend
$2,900 more than you make. And if you keep it up,
in five years you will be over $600,000 in debt. And is that enough? - I don't see how
we're doing it though. - Numbers clearly in
front of him on a screen. What can you argue with? But, he could find
things to argue with. So that's really frustrating. - So are you prepared
to do anything I ask over the next few weeks to
get from where you are now to where you really
need to be, to be safe. - Yes.
- Yes. - I don't believe you. - I want you to be realistic, as well.
- You want me to be realistic? - Yes.
- Really? - I hope that he
feels guilty enough to wanna make a change. - This month, we have to
get your spending in check. We have to get you on a
real debt repayment plan. And we have to get you people to start behaving like grownups and not like kids
on summer vacation. - Fair. - You are gonna go get me your credit cards
and your debit cards, because you're going to
learn to live on cash. - Cool. - Coming up. It'll never freaking happen. Hell will freeze over. He will not pay the debt. (upbeat music) ♪ Money money money
money money money money ♪ ♪ Money money money
money money money money ♪ - Teachers Guy and Julia
are over $60,000 in debt. - [Julia] Guy thinks "Oh, we have a credit
card with $10,000 balance? That's our money, we
can go and spend that." - Guy's irresponsible spending
habits have me gobsmacked. You're gonna be behind the eight
ball for the next 20 years. Is that enough debt yet? - Julia values a debt free life. I value an active social life. It's just not gonna change. - Time to get real. For the next month, this couple will learn to
live on a strict cash budget. No more credit cards. They'll complete
weekly challenges to tackle their money
and relationship issues. And if they're
willing to change, I'll reward them with
thousands of dollars to pay down their debt. No changes, no money. Give me your plastic. I'm cutting your budget by 62%. This is your variable spending. - Okay.
- Okay? You're going from spending
about $2,900 a month. Down to $1,100 a month. And it plays out like this. You will have $137 a week, for food and personal care. You will have $55 a
week for transportation. This is the entertainment
jar $25 a week. - For the both of us? - For the family. - (laughing) All three of us. - Clothing and gifts,
you don't care, $25, and other. This is everything from
pets to medical costs, $28.75 a week. - I'm not a fan
of the other jar. That needs to be put
away just because, I've never been a
fan of that idea. But I will jump through
those hoops and play along. - This week's challenge is
a life lesson challenge. And so this week, your challenge will be
to figure out the money. Guy is never going to
believe the numbers until he works
with them himself. I've sent them a budget
management worksheet with protected categories, plus the equivalent of
their income in Gail dollars so they can figure
out their own budget. As a contract teacher, Julia doesn't get a
salary over the summer or any health benefits. So I've asked them to
save for a summer fund. - I don't think we need
to save 1700 a month for that summer fund. I think we bite the
bullet for the summer. Take on a little
more debt, and... - Then you're missing
- Survive. - the whole point
- Well no- - of this whole exercise. This is why we're where we are, because there's always a
reason not to pay it off. We're going to have to step
up and make more money. - Summer jobs. Yeah, I realize that. But in the meantime, this budget is not gonna
work until the summertime. Debt repayment is the
most unrealistic part. There are things on that list that are more important
than the debt repayment. Do I pay double for
my debt over 20 years, so that I can have
an extra eight hours at the end of every day and
weekends off with my daughter? My daughter is more important
than the amount of money that we have sitting in our
bank account at any time. - So you're just gonna say,
we're not going to do this? - [Gail] How was the week? - The budget was an eye opener.
- [Gail] Okay. Oh, really? You mean this budget? How did you come up with 1750? - We took what we pay weekly
and multiplied it by four. - Really? 'Cause there
are only 48 weeks in the year.
- Yep. - We need to multiply it by 52.
- Yes. - So you're off here
by about 150 bucks. (pen scratching) And interestingly, you
have absolutely nothing in your budget for the baby. 'Cause the baby is never
gonna need clothes. The baby is never
going to need toys. - Well, we thought that
the clothes section would be enough to
cover the three of us. - $50 a month is not
a lot of clothing. When you make a budget,
you have to be realistic. - Okay. - Gail was very nitpicky
with her budget. Some of the things we
thought we could go easy on, she's not okay with. - Your budget is underfunded
by $2,000 a month. Redo the budget. So you incorporate the stuff
that needs to be incorporated. I'm not convinced that Guy
is ready to change his spots. Guy and Julia's situation
isn't that unusual, so what should you do if you're trying to
clean up a financial mess and your partner
just won't cooperate? You'll have to do what
I suggested Julia do. Protect yourself by
separating your finances. I think it's really important that you put up a
protective shield so that your
finances are separate from your partner's finances. You divvy it up so that, you
know you're well-protected, and he gets all the
superfluous expenses, and he can bugger
them up all he wants. That's what you do. - I like it. - We don't need it. (dramatic music) This week is your budget
booster challenge. You are gonna rebalance this and figure out how
to make more money so that this number at
the bottom is at zero. You're gonna come up with
a way to have a great time on your hundred dollars a
month for entertainment, all summer long. And Guy, you are going to come
up with a debt repayment plan that has you completely consumer
and student loan debt free within a year. - I don't see how that's
gonna happen (laughing) Are you kidding me? - Coming up... The financial makeover
takes a nosedive. (upbeat music) ♪ Money money money
money money money money ♪ ♪ Money money money
money money money money ♪ - Julia plays mommy with the
money and with her marriage. If you mother him forever, you are going to have a
child on your hands, forever. - I value an active lifestyle. It just makes more
sense to have that, rather than to have a big
chunk of money in your bank. - [Gail] He gambled away $9,000. And now gambling's been banned. I challenged him to create a
one-year debt repayment plan. While Julia comes up with
a list of family activities that fall within their budget. - [Guy] So unfortunately,
we bought a cheap kite. This kite never
really stood a chance. - [Julia] I'm upset
that you didn't like it. - It's fun trying. It's also frustrating. - [Gail] While Guy
tries to come up with a debt repayment plan, he proves not much has changed. - Well, he wasn't supposed
to play poker again, but he always has
some kind of excuse for why it's a special reason. - I fold. She's not ecstatic about it. I just explained to her that
it was a couple of friends that I haven't seen in a while that I'd like to have
a night out with, and if it's through a
poker game, then so be it. I'm all in. - I just wonder when the next
occasion is gonna come up that he feels is
outside the box. - I think Gail would
agree if I'm taking money from the entertainment jar
and using only that money, I think it's very
reasonable for sure. - [Gail] Gambling
isn't the only thing Guy is being deceitful about. He also has a problem
with receipt deceit. - [Julia] Did you get
a receipt from the gas? - [Guy] They didn't
have any ribbon. - No, I don't believe
that for a second. Look at me with a straight face and tell me there was no ribbon. - I don't have to, you
should just trust me I'm your husband.
- Look at me and tell me there was no ribbon. - There was no ribbon. - Didn't have any ribbon
at the beer store, the gas station
- Did I already use that excuse?
- or the restaurant? This is the problem. - Well you need to trust me. This is also part
of the challenge. 'Cause that will be
challenging for you. (dramatic music) - What happened? - He was taking money out
of jars for no real reason. Didn't get receipts.
- No. - He--
- 'Cause you see that would make him accountable. - I just forgot, it
was a habit thing. - But that's the whole point
of this whole exercise, is to form new habits. I told Guy to come up
with a debt repayment plan that would take one year. He chose instead to do
one that would take three, effectively failing
this challenge. - I wouldn't give back
anything I have right now just to get rid of the debt. I'm where I want to be, and if it costs me more
money and interest, so be it. - Did you do any
gambling this week or you're out of the
gambling business now? - Out of the gambling business. - You're sure? - Yes. - That was just four days
ago when he last gambled. So I'm not really sure why
he said it had stopped. - What did you not
do with the baby? Because he went
out with the boys. We didn't take her swimming or go to the play area
at all this weekend. - [Gail] Okay. - That we usually do. - You know what? Listen up. I'm not gonna throw us
into debt year after year. - Let's move on to your
challenge for this week, which is a relationship
rescue challenge. And what you're going to do,
is you're gonna reverse roles. So I have a martini, for you, because you're gonna
be the Guy this week. - Thank you. - You have to go out
five nights a week. Incidentally, you
get to stay home. What this means is Julia, on night one you'll
do some scrapbooking and on night two, you're gonna go
out and get your hair done, And on night three, you're going to go
drinking with the girls, And on night four, you're going to do
something sports related, And on night five, you can
choose your own adventure. Have a great time.
- Thank you. The best challenge I ever saw. - It's not even a challenge. She's gonna be out spending
money with her friends. I'm gonna be at
home with the baby. Gail is penalizing me, like Julia tries to do,
for having a social life, And I don't believe in it. - [Gail] Coming up: Guy strikes a low blow. - Absentee mother, I hope your daughter
doesn't forget who you are. ♪ Money money money
money money money money ♪ ♪ Money money money
money money money money ♪ - Guy and Julia are
facing $60,000 of debt. As school teachers they
can take the summer off or make more money. Then he goes out and
does what he wants. And then you get to bitch
and complain about it. - Yeah, exactly. - How's this working for you? - Not well. - He's happy. He's getting
everything he wants. Usually, Julia saves money
while Guy blows it on sports and nights out with the boys. So this week they're
reversing roles. Julia has been denying herself
any kind of entertainment. So this week, I'm
giving her $300 to go out and have some fun. The equivalent of what
Guy spends in a month. - The entertainment one won't
work for me this summer. What's in the jar for a month
is about a round of golf. - Very frustrating to hear
some of the comments he makes, about things being unrealistic. Thinks he deserves everything. - I wanted Gail to come
in here and tell Julia to, you know, lighten up
a bit, take it easy. It's not the end of the world spending a little bit
of money here and there, but she took Julia's side. - It's almost as
though I was right. You don't wanna say, I told
you so, but I told him so. (upbeat music) (ladies cheering) This is my Gail Mail. Here's $75 for a night
out with the girls. (ladies cheering and clapping) (upbeat dance music) - [Ladies] Cheers! (upbeat dance music) - You want another one? - Uh, sure. - We're gonna have six more. Thank you Gail! (upbeat dance music) - I had hoped my intervention
would make a difference. But this month Guy hasn't made
much of an effort to change while Julia has worked hard. I wanted to find a
way to reward her without putting any
more money in his hand. Your hair looks great. - Thank you. - What else did you
do that was fun? - I signed up for an
ultimate Frisbee league. - Fabulous! - Yeah, so that'll
be lots of fun. - Yeah. Now, I did notice when I went
through your bank statement there was a withdrawal that
was over the jar amount. - That's when I send
Guy to do a job, he takes extra out. - If you go to the bank to take
out $280, why take out $300? - I forget why. - You just made something up Guy.
- No I promise there was a good reason.
- Yeah, good reason? - Well, I don't
wholeheartedly agree. - When I got here, you were
overspending by $2,900 a month, and heading to
$608,000 worth of debt. In my budget, I have a
thousand dollars a month for debt repayment. Your consumer debt will
be gone in three years. However, you will still
have $50,000 worth of consolidated
debt to the house. So you will not have
dealt with that at all. - That's great. - That's just what you wanted? - Think we're on
board with making, doing whatever we can to
make it even shorter, so... - It's funny you say that
because from my perspective you bucked the
system the whole way. You have a boy
child on your hands and you have all
my sympathy, okay? He's casting you in the role
of mother and you watch him. - Well, I have to. - And manage him. You think that's part of
your job, as his partner? But I'm here to tell you
that the marriage won't last. (dramatic music) I think what you need to
do is you need to either, accept him for who he is
and stop with the whining. Okay, just this is Guy, and
Guy is never gonna change, and you love him, and that's what you're
willing to put up with for the rest of
your life or not. In which case you build that
firewall to protect yourself. - Mm hmm. - Okay, so I have for
you a check for $1,000. - And why is that? - Do you remember me
saying at the beginning it's not just about
doing the challenges, it's also about having
the right attitude? - Mm hmm. - So you definitely don't
have the right attitude. I do have for you
an educational fund for Delilah for $2,000.
- Thank you. - Thank you very much.
- Okay? You can't spend that. - I wouldn't think of it. - Maybe not in that form. In this form however, I
think you would think of it. - I could have faked
it the whole time if you wanted me to, but... - She basically
told me my choices, but I don't like either
of those choices. So, I'm gonna take
a third choice, (Guy laughs) which is that Guy is going
to work with me and improve. - Who gave you that choice? (upbeat music) ♪ Money money money
money money money money ♪ (funky guitar music) ♪ Money money money
money money money money ♪ (funky guitar music) ♪ Money money money
money money money money ♪ (logo whirring)
(beeping)
