Member Success Story: Getting Rid of Debt Before Retirement

Dana, age 42, had just refinanced her home and was looking at 29 more years of paying $632 a month. Wanting a stress-free future, she met with a MSA Money Coach in hopes that she could squeeze those 348 payments into 15 years and retire more comfortably at the age of 62. Her Money Coach assured her that together they could create a debt management plan that could help her move towards the future she dreamed of.

Dana’s positive experience, during her first consultation with James (her Money Coach), set the stage for a productive partnership:

“James jumped right in and asked very pointed, direct questions to take full advantage of our time and assist with my goals. He fulfilled all his deliverables so that we could be prepared for our next session. I appreciated very much that he did not speak down to me or try to give me too much information that was not necessary. He was able to hone in on my needs, acknowledged them so we were both on the same page.”

Initially, James walked her through a spending plan. As a result, they discovered that she broke even each month, was putting extra money towards a personal loan, and even had $150 left over for savings. Her personal loan would be paid off in one month, which meant she would have $600 more to put towards her $11k car loan and $69k mortgage.

Pulling all the details of income and expenses together, James calculated a Debt Elimination Report that included the following projections:

1. Make total monthly debt payments of $1,632 (which includes the extra $600)

2. Reduce total debt payments (principal and interest) from $97,669 to $88,504, and be out of debt in 4.7 years, instead of the current projected 11.4 years (representing a reduction of $9,166 and 6.7 years)

3. Once all debts have been paid off, invest the same monthly payment amount (at a 0.0% interest rate) and accumulate a savings account balance of $126,826 over that same time period

Dana was overjoyed with the estimations: “I appreciated very much the debt elimination plan he outlined for me that incorporated a couple long term goals. It made it seem more tangible to have that plan in my hands.”

Through the consultations, Dana not only got a plan to eliminate debt, but the ability to boost her savings. She received an action plan to help her achieve her dream of a stress-free retirement in her early sixties.

Dana had this to say about her experience: “James is WONDERFUL,” and working with him “was the best thing ever!!” Why? “He helped me to feel confident with the direction of my choices in my financial goals…” and, “He was very encouraging! I would definitely recommend him to anyone!”

A Money Coach can help you achieve your own goals, whether it’s getting rid of debt, saving for retirement, or both. In fact, MSA Money Coaches can talk about virtually any financial topic and help you work through any financial challenge. Start working towards your goals today by calling 888-724-2326.