Friday, April 03, 2009
Real Stories: Credit Card Debt Abolished and an Extra $115K for Retirement
By Dupaco Makeover Artist Lisa Mescher
Sally* had called in about a month ago wanting to see if we could do something with their Discover card as the rate was killing them. I reviewed their financial profile and quickly realized that paying off Discover was only going to be a temporary fix as the Sally and her husband, Todd*, had their share of unsecured debt.
Luckily, they did have equity in their home and we were able to put together a home equity line of credit to pay off all of their unsecured debt. This saved them $450 each month.
Then we had a good discussion about spending habits as well as saving for the future and I showed them the Roth IRA calculator.
Sally committed to saving $100 every month for right now until she gets her budget reworked. Then she can bump that up to $300 a month starting in July when we set up an appt with Dupaco Financial Services, which could give them an additional $115,000 to supplement their retirement savings.
I know the savings componenet is going to be a work in progress, but I am confident that Sally and Todd will follow through on this. They were just amazed at the amount of money we saved them each month by consolidating their credit card debt and ecstatic about the idea of having an additional $115K set aside by retirement.
* Not the member's real name.