Success Story: Relief for Tax and Credit Card Debt

With tax debt and credit card debt, Laura needed financial direction and relief.  Working with Aaron, her trusted MSA Money Coach, was just the ticket.  Together, they established and accomplished two main goals: creating a spending plan and eliminating debt.  Here’s how….

Spending Plan

Problem:  For Laura, spending was all over the place, and she wasn’t sure how she could move forward with all of her financial issues.  “I needed assistance organizing my thoughts and my money to see what I can/cannot do.”

Solution:  “Aaron was thorough and direct.  He helped me organize my incoming and outgoing amounts in a clear, easy-to-understand format.  Once I understood that, he shared with me a budget formula that would help me keep better track of my spending.”

Coach Aaron provided a tool that helped Laura track her expenses and form a budget that fit with her lifestyle.  Once she got her spending under control and had a budget in place, they could start focusing on debt.

Debt

Problem:  Laura and her husband have a $400k mortgage, $46k in credit card debt, and owe the IRS $20k.  As Laura put it, “I am trying to work with IRS/State Tax to make a payment plan on a multi-year debt (thanks to a crooked tax preparer).  We have credit cards we are trying to pay down/off, and a high mortgage.”

Solution:  Because Laura got her spending under control, she had a better idea of how she could start eliminating debt while meeting other expenses.  Coach Aaron’s suggestion of using a credit consolidation program also helped her get on track and lessen the weight of debt.  “He connected me with a debt consolidation program that has helped me to significantly lower my interest rate on credit cards (from 29% to 3%!) and get rid of unwanted extra debt.”  All in all, the consolidation program reduced Laura’s monthly payment to $688; whereas, before it was in the thousands.

Laura also had another helpful resource available to her, for dealing with the multi-year tax debt.  MSA members can work with a team of trustworthy Money Coach Tax Specialists and use MSA Tax Preparation Services.  Whether the goal is preparing taxes, answering tax questions, or fixing tax issues, the MSA Tax Team can help.

All in all, Laura and her Money Coach were able to organize her spending and get a debt management plan in place that provides some financial peace of mind knowing that the debt will be eliminated.

Laura was very pleased with the consultations and the outcome:  “Aaron was smart, understandable and forthright.  NO PUSSYFOOTING around!  That is exactly what I needed.  I truly appreciate his knowledge and candor.”  Coach Aaron’s ability to get right to the point and help Laura establish action steps helped her move forward.

Do you have financial challenges to overcome or goals to accomplish?  Work with an MSA Money Coach.  Call 888-724-2326.

Information provided in this article is for informational purposes only and is not intended to offer specific personalized investment, financial planning, tax, legal or accounting advice. We recommend that you consult an attorney, tax advisor or accountant regarding your unique circumstances.