George Kamel Reacts To TikTok Advice That Will Actually Make You Broke

An April 2025 Gallup poll found that 20% of Americans used social media to get financial advice and information. That number jumped to 42% for young adults aged 18 to 29.

But since anybody can post on TikTok and other platforms, you risk following misleading advice that wastes your time, makes you lose money or even gets you in trouble. That makes it crucial to compare what influencers are saying to financial advice from trusted experts.

In a recent YouTube video, money expert George Kamel reacted to TikTok clips with unwise money tips you might have heard before. Find out why these five recommendations would be damaging to your finances and what to do instead.

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Kamel shared a TikTok video of a man who recommended not paying debt collectors and claimed that the debt is no longer the borrower’s after it transfers to the collection agency. He also referenced the Fair Debt Collection Practices Act to back up his claim.

Unfortunately, this is harmful advice that can damage your credit and possibly even lead to having your wages garnished or assets seized. Kamel explained that you’re still responsible for debts you owe, regardless of the transfer. And while the Fair Debt Collection Practices Act sets rules for how debt collectors can work with you, they can still legally collect legitimate debt.

If you can’t pay your debt off, you can follow Kamel’s advice to negotiate with the debt collector. You may be able to settle for a smaller amount or at least reduce some fees.

“Once you settle it, get that in writing that it will be paid in full, and never give them access to your checking account,” said Kamel. “Do a money order, a cashier check, anything but giving them money directly from your account.”

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One TikToker said wealthy people use liens against their assets, such as investments, instead of regular mortgages to buy their homes. He claimed that this would allow you to use an interest-only loan (like a HELOC), avoid liquidating your assets and even profit during the process.

Kamel explained that this advice is not only incorrect and risky, but it’s also costly due to high HELOC interest rates. He also warned about the volatility of investments, which might leave you needing to come up with money if there’s a margin call. A regular mortgage makes more sense for the average person.

According to another TikToker, the stock market has entirely predictable cycles. He claimed that the current market has started crashing and discussed keeping cash now rather than investing, as the bottom was still to come. This advice was geared toward investors in their 20s.

While Kamel said that market cycles do exist, he advised against timing the market since that could mean missing out on big returns later.

He said, “The average return over the long term is 10% to 12% in the U.S. stock market, and that includes all the downturns, the recessions, the pandemics, the wars, you name it.”

As long as you’re debt-free with emergency savings, Kamel recommended consistently investing, even in rougher times, rather than hoarding your cash. Keep in mind that younger people also have the advantage of being better able to ride out the swings.

One TikTok video featured an old clip of motivational speaker Jim Rohn, who claimed that the path to financial independence was “two homes and one car.” He said you’d only buy another car after you’ve got two homes.

Kamel said having two cars these days is often necessary, so some households simply can’t wait to buy the second. For example, you or your partner might not be able to get to work and make money if you rely on a single vehicle. However, he did agree with Rohn’s idea of avoiding purchases that lose value.

According to Kelley Blue Book, a new car loses around 30% of its value in the first two years alone. That’s worth considering when you’re deciding on buying used versus new.

Kamel showed a video of entrepreneur Robert Croak discussing three things 20-somethings should do to become millionaires in a year or two. These included using owner financing to buy a business, focusing on crypto opportunities and gaining AI expertise to release products.

While Croak might have succeeded if he had followed this advice, Kamel said it’s unlikely to work for the average young person. First, he said that owner financing is risky, even if a 20-year-old person could access it. He also explained that crypto investments are very volatile and encouraged a slower path to wealth than a quick fix.

Kamel offered some safer advice, including escaping and avoiding debt, not living outside your means, using your skills to earn a higher income and investing 15% of your pay.

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