Getting out of debt allows you to reach true financial security, but it’s not an overnight process. Fortunately, My Secure Advantage (MSA) can help you make a strong, realistic plan to get rid of debt and clear the path for a better financial future.
Take Felicia, for instance.
Just 10 years before she planned to retire, Felicia found herself with unsecured debts that included $35,000 in credit card debt and $158,000 in student loans. She also had secured debts that included a $24,000 car loan, a $14,000 consolidation loan and two mortgages. Her total debt added up to more than $400,000.
She feared that entering her golden years with so much debt would lead to spending her retirement in poverty.
Though her job kept her refrigerator and gas tank full and paid the mortgage, Felicia’s debt kept her living paycheck to paycheck. Worse, as the interest piled up, she found herself having to borrow even more just to keep up with the bills. Consequently, she had no money to cover emergencies, such as car or home repairs. Every bill – whether expected or not – was another obstacle in her path to financial peace.
The stress of feeling unable to clear the path made Felicia feel extremely anxious and depressed. Every aspect of her life, from work to family, was affected by the debt. She needed a vacation, but the debt made it impossible to take time off. She also felt guilty because she couldn’t afford nice Christmas presents for her family.
Felicia realized she might never be able to make it to a financially stable retirement unless she reached out for help.
Felicia took charge of the situation by contacting My Secure Advantage (MSA). Through MSA, Felicia connected with a Money Coach who offered practical guidance and helped her take control of the problem. Her Money Coach didn’t judge her situation; instead, he listened carefully and asked questions so that he could fully understand her concerns and goals and how best to move forward.
In order to retire in a few years, Felicia made a goal of paying down her long-term loans, including student loans, vehicle loans and mortgages. Together, Felicia and her Money Coach created a debt management plan that brought her the peace of mind she needed, knowing she had realistic action steps to reach her goal.
By crunching the numbers and reviewing expenses, Felicia’s Money Coach helped her develop a spending plan that resulted in healthier finances. Through this process, Felicia realized that she had spent over $2,300 in two months on things she didn’t actually need. Discovering areas of unnecessary spending helped Felicia realign her cash-flow to match her goals. For example, she had the ability to repurpose those extra costs and pay off her credit cards fast by budgeting over $1,000 per month for debt reduction. She could also redirect some spending to go towards retirement savings and gifts for her family.
Felicia and her Money Coach determined how long it would take her to pay off her credit card debt at this rate. Felicia was happy and relieved to learn it would take less time than she imagined. Finally, she knew she would have a clear path to retirement.
Her Money Coach also helped her develop a plan to build emergency savings. This way, Felicia could avoid taking on more debt when the unexpected occurred.
In fact, in the first three months of working with her MSA Money Coach, Felicia paid off two credit cards!
A Brighter Future
By working with her MSA Money Coach, Felicia learned how to track expenses effectively. Now, she always knows how much she can afford and no longer stresses about monthly bills or worries about missing payments.
Felicia’s new-found knowledge and positive mindset also help to keep her focused on long-term goals. She can plan ahead to buy nice Christmas gifts for her family without feeling guilty or anxious.
She also has a plan to reduce her student loan debt and car loans. Her Money Coach showed her how to calculate how much she could save by applying the money she used to spend on credit card debt to these longer-term loans. After working with MSA, she is “now aware of the lures and traps of the credit card companies” and knows how to avoid them. Felicia also learned how to reduce mortgage debt and save money on interest.
By collaborating with her MSA Money Coach, Felicia found peace of mind.
With the path to financial security more discernible every day, Felicia now thinks positively about retirement, too.
Felicia attributes her success to the plan she and her Money Coach created based on simple steps. Having this plan let her regain control of her life and clear the way to a bright future.
If your path to financial well-being seems blocked, remember that it’s not the end. A Money Coach will work with you to design an easy-to-follow plan based on your goals and lifestyle. Speak with a Money Coach today!
When Estelle entered the My Secure Advantage (MSA) Financial Wellness program, she learned a key point about trying to achieve financial goals: you may have the resources, but knowing how to use them may ultimately determine your level of success. “I was tired of hiding from my student loan debt of almost $100k, despite having […]
The pandemic is affecting us all. Times are uncertain, but this can also be a time to really get your financial life in order and learn some money-saving hacks. We at MSA are here to help you craft your own personal financial reboot. One way to get started is to review your debt situation and […]
When Sonny got up the courage to try the financial wellness program, My Secure Advantage (MSA), she found more than a debt solution: “I was in debt and learned about this program through [my employer]. As the Training Coordinator at my [store], I was teaching new employees about all the different services [our EAP] offers […]
A budget can help you get rid of debt and improve your credit. Use the following steps as starting points: Step 1: Establish a plan to reduce and eventually eliminate credit card use. Once you’ve stopped using the card(s), focus on getting rid of the debt. Use your budget to plan and record how much […]