Member Success Story: Tackling Life’s Financial Challenges

debt and new home

Rhianna had three weeks off work for knee surgery.  She was in pain and frustrated, but it wasn’t just the recovery process she found exasperating.  It was her finances. Rhianna needed guidance and accountability to help her deal with debt, overspending, a condo worth less than she owed, and wanting to buy a house.  Through her employer, Rhianna got the opportunity to work with a Money Coach and meet her needs.

Building a Budget

Coach Graham worked with Rhianna all through recovery, providing personalized financial guidance based on Rhianna’s situation.  Together, they created a budget for a stronger financial foundation.  Putting money in envelopes for personal items, art supplies, et cetera, gave Rhianna a structured, successful way to alleviate her bad habit of overspending.  What’s more is that getting an idea of how she used her annual $100k income restored her sense of control and better equipped her to move forward with the goal of eliminating debt and buying a new house.

Debt Repayment Strategy

With a clearer picture of her income – factoring in tax refunds, bonuses, and the $1,000 she had left over each month – Rhianna’s Coach explained the options, so she could choose a debt management plan.  They discussed credit counseling, loss mitigation, going into default, and debt stacking.  Based on her Coach’s professional feedback, Rhianna chose debt stacking for her two credit cards: she would pay off the $8k credit card first and then the $18k card next.

The new debt plan gave Rhianna manageable steps towards success without compromising other goals.  She paid off her debts and still had $14k in savings.

Buying a New Home

One of Rhianna’s biggest challenges was her desire to buy a new home while owning a condo that was upside down by $100k.  She started working with Money Coach Aaron who educated her on the pros and cons of each possibility, such as…

  • Downsizing to a more affordable payment
  • Living in the condo long enough to qualify for a short sale
  • Renting out the condo while buying a new place

As luck would have it, Rhianna was able to sell the condo for $395k, which was $20k more than her asking price!  She eventually found a home to purchase for $352k.

Here’s what Coach Aaron had to say about working with Rhianna: “We were able to successfully get through the mortgage process and use the equity from the sale of the condo to pay off her debt and add to her savings.  Working with Rhianna was wonderful.  She was on board from the start and willing to do whatever it took to get on track.  Rhianna went from a tough financial situation to a great success story.  It was a real pleasure working with her and watching her grow in her financial knowledge.”

Ongoing Success

Rhianna found the one-on-one consultations with her Coach so enriching that she decided to stick with the program even after the initial goals were met.  As Rhianna settled into her new home, costly issues arose, like needing a new skylight and the stove catching on fire.  Talking with her Money Coach about how to address the issues financially gave her peace of mind and confirmation that she could handle each situation in the best way possible.

People flourish when they have a stable financial foundation and ongoing support.  Get access to your own reliable Money Coach by calling 888-724-2326 today.