the only thing taking off right now is your rebooking fee

Some financial traps don't announce themselves. They just show up and start costing you money.

The government shutdown cancels your flight and suddenly you're paying 3x for a rebooking. A debt gets "written off" by your credit card company, which sounds like good news until the tax bill arrives. An emergency forces you to tap your 401(k), and years later you realize that $10,000 withdrawal cost you $50,000 in retirement savings.

This week: the real cost of flight cancellations, what debt write-offs actually mean, and why hardship withdrawals are rarely as simple as they seem.

Here’s what’s inside:

• Prep yourself for flight cancellations

• Debt "write-offs" explained

• The real cost of raiding your 401(k)

• 15 days of career lessons

P.S. If you want to talk through your own finances, you can book a free 1-hour coaching call here ☎️

Your flight might be cancelled (and it’s not because of the weather)

The FAA just announced they're cutting flights by up to 10% at 40 major airports across the country, and the reason has nothing to do with storms or mechanical issues.

Air traffic controllers and TSA agents have been working over 40 days without pay during the government shutdown, creating what officials are calling "signs of stress in the system.”

The cuts started at 4% last Friday and are gradually ramping up to 10% by November 14. That means thousands of daily flights are being scrapped at major hubs like Atlanta, Chicago, Denver, Dallas, LA, and New York. Regional flights are taking the biggest hit, as airlines protect their most profitable routes while cutting back on smaller markets.

What this means for your money:

✈️ Cancellation chaos: Over 700 flights were canceled on the first day of reductions alone. Check if your airline is offering penalty-free changes or refunds (most are, through mid-November).

✈️ Rebooking scramble: Last-minute flight changes mean higher prices if you're trying to salvage travel plans. Download airline apps and enable notifications to catch cancellations early.

✈️ Lost time, lost money: Missed connections, extended hotel stays, and work disruptions all add up fast. Book backup flights now if you have critical travel coming up.

✈️ Travel insurance gaps: Most basic policies don't cover government-related cancellations — consider travel insurance with "cancel for any reason" coverage for future trips.

Debt got “written off”? You’re not off the hook.

Got debt that's been written off by a creditor? Before you celebrate, understand what really happens, and why it's probably not the fresh start you're hoping for.

A debt write-off isn't debt forgiveness. It's an accounting tool that lets the creditor declare your debt uncollectible and deduct it as a loss on their taxes. But you still owe the money.

Here's what usually happens: After about 180 days of non-payment, the credit card company writes off your debt. Then they sell it to a collection agency for pennies on the dollar. The collection agency then comes after you, trying to squeeze out more than they paid.

Three ways this hurts you:

💰 Your credit score tanks for years. Debt that's been written off can stay on your credit report for up to seven years, significantly lowering your credit score and making it harder to qualify for new loans or credit cards.

💰 You can still be sued. Even after a write-off, creditors or debt collectors can take legal action to recover the money, especially if it's within your state's statute of limitations.

💰 You might owe taxes. If the creditor eventually forgives the debt, the IRS treats the forgiven amount as taxable income. Any forgiveness of $600 or more triggers a Form 1099-C that goes to both you and the IRS.

There's one exception: if you're insolvent (your debts exceed your assets) when the debt is cancelled, you may not owe taxes. You'll need to file IRS Form 982 to prove it.

💡 Rather than waiting for a write-off, explore your options while you still have leverage: negotiate payment plans directly with creditors, work with a nonprofit credit counselor, or consider debt consolidation. A write-off isn't a get-out-of-debt-free card—it's usually just the start of a longer, more expensive problem.

Currently dealing with debt? We can help you come up with a plan to pay it off. Book a call here.

What is a 401k hardship withdrawal?

When you're facing a financial emergency, your 401(k) can look like a lifeline. And technically, you can access it (but the true cost might shock you).

A hardship withdrawal is only allowed for immediate and heavy financial needs, and you can only take out what's necessary to cover that specific need. Qualifying reasons include medical expenses, costs to purchase or repair your primary residence, education expenses, payments to avoid eviction or foreclosure, funeral expenses, or losses from a federally declared disaster.

But here's what it actually costs you:

📈 Immediate taxes. You must pay income tax on any previously untaxed money you receive as a hardship distribution. If you're in the 22% tax bracket and withdraw $10,000, you'll owe $2,200 in taxes right away.

📈 The 10% penalty. Under age 59½? Add another 10% early withdrawal penalty—that's $1,000 on a $10,000 withdrawal.

📈 Lost growth is the killer. A $10,000 withdrawal today could cost you $50,000 or more in lost compound growth by retirement. The money you take out permanently reduces what you'll have later.

📈 You eliminate your backup plan. Once you drain your 401(k), where do you turn when the next emergency hits?

Facing a financial crisis? Let's explore all options before touching retirement.

15 days of career lessons

Looking for a new job? Thinking about switching careers? Stuck in a role that's draining your soul and your savings? I’ve been through all those phases.

So I'm sharing 15 career lessons over the next 15 days. These are the things I learned the hard way so you don't have to.

Here’s what we’re covering:

✨ How to build a career board of advisors

✨ Why you should look beyond the base pay

✨ How and why you should to track your achievements

✨ Building negotiation skills

✨ The skill gap analysis

Follow along for the next 15 days here.

 Worth the Click This Week

📚 Student loan forgiveness notices are going out: Even during the government shutdown, borrowers are getting notices of student loan forgiveness as the Trump administration resumes forgiving education debts under different programs. Read the full story »

💳 Consumer debt rises amid worsening economic divide: In the "K-shaped" economy, some borrowers are in financial distress while others have strengthened their financial position by benefiting from stock market rallies and appreciating home values. Read more about the economic divide »

🤖 AI is powering the next wave of financial scams: Deepfake technology is being used to impersonate CEOs, loved ones, and celebrities to steal money. From fake phone calls to AI-generated videos, scammers are getting harder to detect. Learn how to protect yourself from the latest AI-powered schemes. Read how to spot AI scams »

🚨 "Ghost tapping" scam targeting tap-to-pay users: The Better Business Bureau warns about a new scam called "ghost tapping" that exploits tap-to-pay credit cards and mobile wallets using near-field communication (NFC) technology to withdraw money without direct contact. Protect yourself from this scam »