MW 'Americans love their rose-colored glasses': I was a slave to credit-card debt, then I got laid off and turned my life around
By Quentin Fottrell
The biggest promotion is often the one we can give ourselves by cutting back on our spending
"I was making good money, and loving it - until the work dried up." (Photo subject is a model.)
Dear Quentin,
Americans love their rose-colored glasses. So did I, for far too many years.
I spent 49 years in tech, making money and spending money. I was good at all facets of my job, and people suggested I go into consulting and make some real money. It sounded tempting, but I liked a steady paycheck - and what if I wasn't as good as I needed to be? Thirteen years into my job, I was laid off (not for the first time), and I decided it was time.
As a consultant, I was making good money and loving it - until the work dried up. I learned that the peaks are high, but it's hard to tell just how wide the valleys are. I learned to moderate my spending and pay attention. Still, I relied on credit to get me by at times and incurred credit-card debt when I wanted to buy more than I could afford. I depended on credit cards too much of the time.
Then the bombshell hit. I watched a movie called "The International," which focused on an Interpol investigation of a bank that primarily served groups intent on overthrowing existing governments. A bank official said that the bank's reasoning was that the debt owed ensured that the customers were slaves to the bank in perpetuity. It was a true story. I was no different.
Fast-forward to today
I was laid off for the final time in 2022, which was fine since I was ready for a change and had grown tired of working with younger Generation Z colleagues who assumed they knew everything because they'd seen it on Facebook (META). I eliminated all my recurring bills and waited until age 70 to start Social Security in order to maximize my income stream.
I have an excellent, low-cost Medicare Advantage plan that allows me to use the same doctors I've been seeing for 35-plus years. My debit card stays in my pocket (no fear of identity theft there). I use my credit card for everything, pay it in full at the end of the month, pay no annual fee and no interest, and get cash back.
I have steadily increased my assets by more than 10% since being laid off in 2022, including what I have spent since then (not bad for a 60% salary decrease from the good old days). My credit score is up to 825. I am trying to get my state representatives and senators to recognize that the best way to cure Social Security's ills is to remove the cap on taxable income.
My rose-colored glasses are off, and I see the world clearly without them.
A Retired Reader
Don't miss: 'I plan to exit corporate life': I'm 50 and have $400,000. My wife is a teacher. Can I retire at 55?
You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com. The Moneyist regrets he cannot reply to questions individually.
"I was making good money, and loving it - until the work dried up." (Photo subject is a model.)
Dear Retired Reader,
You are a master of the prosperous pivot.
Crucially, you pivoted in your career, moving to consulting from tech, only to be laid off. During this time, you no doubt kept learning new things, including soft skills, which are important for dealing with colleagues of all working styles and generations, including millennials and Generation Z. That takes guts, stamina, creativity and the ability to think on your feet.
Your letter is a powerful reminder that the biggest promotion is the one we can give ourselves: cutting back on our spending. There's a joy in living modestly and simply and knowing how to use your assets wisely, whether it's doing a Roth conversion or taking a five-star vacation in retirement using a home-exchange site or being a renter and a host on Airbnb $(ABNB)$.
But in order to spend less, we need to want less. That's the biggest trick and, I believe, the one you are getting at with your "rose-tinted glasses" image. It's human and, frankly, American to want to show off our success, and that means the more we earn, the more we spend: bigger cars, a bigger house, bigger vacations, bigger hair and sometimes even bigger lips.
Whatever curve ball is coming, you have to roll with it.
You recognized your vulnerabilities - namely, not paying off your credit cards. The golden rule of credit-card spending is to pay off your balance every month. If you care about 3.3% inflation and vote for candidates on that basis, and you wish the 30-year mortgage rate was below 6%, you should also care about double-digit rates on your credit cards.
If only those $500 Meta smart glasses could warn people about credit-card debt. You reined in your spending, but many people have trouble making their rent and paying for food and transportation without exceeding their income. Total U.S. credit-card debt is hovering at about $1.3 trillion, with the average balance around $6,000.
Your letter also speaks to the challenges of longevity in an ever-changing world - whether it's artificial intelligence upending industries like tech, finance, media and the arts, dot-com booms and busts, great recessions, or global pandemics. Whatever curve ball is coming - and as sure as night follows day, there will be another - you have to be ready to roll with it.
The challenges of longevity
As I told this reader, who wondered whether she should give up her $150,000-a-year job at a nonprofit for a $225,000-a-year job in data analytics with a 50-minute daily commute each way, no sector is immune to job cuts. Many recent layoffs have been due to the AI revolution, whether companies readily admit it or not (some do, some don't).
On Thursday, ahead of April's jobs data on Friday, ADP $(ADP)$ said that U.S. businesses created 109,000 new jobs last month, the largest increase in 15 months, raising hopes that the labor market may finally be regaining momentum. Wall Street economists had forecast an increase of 84,000 private-sector jobs in April, far below the actual number.
Nela Richardson, chief economist at ADP, the U.S.'s largest processor of company payrolls, said medium-sized companies still show signs of weakness. Medium-sized firms often don't have the cash reserves and access to credit of larger corporations and lack the nimbleness of smaller firms, leaving them more exposed to shifts in demand and financing.
Many recent layoffs have been due to the AI revolution.
Among the Big Tech companies, Amazon (AMZN) already cut around 14,000 jobs last year and axed another 16,000 in January. Microsoft $(MSFT)$ laid off around 15,000 workers last year. Pinterest (PINS) said in January that it would cut up to 15% of its workforce - which could affect an estimated 700 people - in order to prioritize AI-powered products.
Morgan Stanley $(MS)$, Deutsche Bank $(DB)$, JPMorgan Chase $(JPM)$, Citigroup $(CUL3)$ and Goldman Sachs $(GS)$ have all also announced layoffs in recent times. While AI has been blamed for many of these job cuts, many were likely part of a broader strategy to increase efficiency and cut costs after the hiring boom in the wake of the pandemic.
And now? Waiting to claim Social Security takes preparation. I assume you didn't wait to start thinking about it until the eve of your 70th. If you have enough money saved, you can afford to wait - whether you do that at 62, the age you can first draw your benefits, or at 67, the full retirement age for most Americans. Waiting until you turn 70 is a status move in itself.
It's a deceptively soft, cost-effective flex.
Related: 'I plan to take out a mortgage': My father died. Should I buy the family home from my mom at a 40% discount?
By emailing your questions to The Moneyist or posting your dilemmas on The Moneyist Facebook group, you agree to have them published anonymously on MarketWatch.
More columns from Quentin Fottrell:
'This is an overlooked catastrophe': Why do so many hospitals not accept Medicare Advantage for cancer patients?
We're in our 70s with no heirs. I like donating $30,000 from our $700,000 IRA to charity - my husband disagrees. Who's right?
'I was shoveling sidewalks at 8 years old': I'm a 73-year-old boomer dad with two kids. Here's what I teach them about finance
Check out The Moneyist's private Facebook group, where members help answer life's thorniest money issues. Post your questions, or weigh in on the latest Moneyist columns.
By submitting your story to Dow Jones & Co., the publisher of MarketWatch, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
-Quentin Fottrell
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
May 08, 2026 05:15 ET (09:15 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments