An Extra $450? Really?

In her blog this week, Penny writes about her second meeting with Coach Mary…and how Mary found $450 to pay down her credit card.

“Mary had taken the bills and my paystubs and worked out an amazing budget for me.  Where did she find all of that money? It was unbelievable. My first job was to write out a check to my credit card for $450. I've never paid them that much before.” 

Coach Mary was able to review Penny’s entire financial picture and start making recommendations on how to tackle debt and increase savings.  She reviewed Penny’s income, bills and then her spending habits.  She created a budget that would be a challenge for Penny.  But, in the end, give Penny the financial future she is looking for.  Her first recommendation was to take a large chunk of money from “want” spending and use it to pay down her credit card.  This reduces her interest payments and speeds up how fast that credit card would be paid off.  

Penny’s situation is not unique, we recommend talking with a Summit Financial Coach to help you figure out your best options for your situation.