Debt Management for Older Adults - National Council on Debt Settlement •Debt Management Plan...
Transcript of Debt Management for Older Adults - National Council on Debt Settlement •Debt Management Plan...
Agenda
1. Changing environment
2. GreenPath’s approach
3. Collaboration with NCOA
4. Ideas for practitioners
80%Of American
households carry
some form of debt 69% Say non-mortgage
debt is a necessity
1 in 3Americans have
$0 saved for
retirement. $0 Saved for
retirement
American families are struggling.
Row 1 Source: http://www.cnbc.com/2015/07/29/eight-in-10-
americans-are-in-debt.html
Row 2 Source: Labor Center Berkeley;
http://laborcenter.berkeley.edu/pdf/2015/RetirementSavingsCrisis.pdf
Row 3 Source: Boston College;
http://crr.bc.edu/wp-
content/uploads/2016/01/IB_16-2.pdf
American families are struggling
Source: CFSI. United States Census Bureau reports there are 318.9 million people in the USA as of 2014.
$1.2 TStudent loan debt
as of 2015
compared to
$0.2 TIn 2003
Source: https://www.nerdwallet.com/blog/credit-card-
data/average-credit-card-debt-household/
“The past few decades of
widening inequality can be
summed up as significant
income and wealth gains
for those at the very top
and stagnant living
standards for the majority.”
-Fed Chair Janet Yellen
Icon credit: https://thenounproject.com/efingo/collection/ideas-reborn/?oq=idea&cidx=0&i=366935
So we have to thinkdifferently.
It’s more than having a stable, well-paying job and a house. (Plus the white picket fence.)
Remixing
When the American Dream fades, people lose faith. With no tools, they feel powerless.
Making it work…
138 million Americans are struggling financially and have no access to financial services.
…for everyone
Center for Financial Services Innovation
We musttake new approaches.
Icon credit: https://thenounproject.com/imicons/collection/chess-solid/?oq=challenge&cidx=0&i=71311
Insights will help usovercome hurdles.
Icon credit: https://thenounproject.com/search/?q=BRAIN&i=652648
Prototype: Our private Facebook group
Clients are using our Facebook group to motivate one another and share their American dream. What we’re reading is surprising. Most want more joy, peace and time out of life. Few mention material things.
Increase Resiliency
Spend less than you earn, establish
emergency fund, build credit, make
informed decisions
Improve Cash Flow
Reduce fees, reduce interest, stop living pay check
to pay check, manage bills
Defuse Crisis
Stop collection calls, stabilize housing,
stop garnishment, etc.
Achieve
Dreams
Financial wellness means helping people progress toward achieving their financial dreams.
Grow Assets
Save for retirement
& other goals
We mustengage new types of
partnersIcon credit: https://thenounproject.com/imicons/collection/chess-solid/?oq=challenge&cidx=0&i=71311
New Areas of Collaboration
Core Member
https://s3.amazonaws.com/cfsi-innovation-files/wp-content/uploads/2017/01/19213602/2015-LMI-Paper-FINAL.pdf
Our counselors are heroes.
Credit: https://www.nerdwallet.com/feature/credit-counselors-made-difference-improved-lives-2015/
SunShine Hefferon
GreenPath is proud to announce 3 of our Financial Experts were recognized in the
2015 “30 Credit Counselors Who Make a Difference” list.
Tina PonderJeffrey Arevalo
Our clients are heroes too.
In November 2015, Katie Atkinson successfully completed her plan with GreenPath, paying off $55,000 in credit card debt.
“It’s amazing, now! When I put the debit card in the ATM, I’ve got this balance and it’s almost the next payday, it’s just incredible. To me, GreenPath was that life ring that they threw, when my waves of debt were crashing in.”
Our Team• Over 430 employees in 16 states
• Approximately 85% of our employees serve clients directly
• “Client Advocates” – First Contact Team
• “Financial Experts” – Counseling Team
• “Client Success Specialists” – Ongoing Support Team
Our Team
Client Advocates
It takes courage to reach out for help with your finances!
Advocates listen to a client’s needs, validate their first step towards improving their lives, and help assess the correct
service to connect them with.
Our Team
Financial Experts
Financial decisions are complicated.
Our counselors bring empathy, knowledge, and a holistic approach to navigating even the most difficult situations.
Our Team
Client Success Specialists
“The best-laid plans of mice and men often go awry.”
Changing financial behavior can be difficult!
Our team is there to help clients resolve challenges and follow through – encouraging and motivating clients to succeed.
Our Process:
1. Review current financial
situation and goals
2. Look at the credit report
3. Create a detailed monthly
budget
4. Develop a customized
action plan
*Member receives a copy of
the budget and action plan
FINANCIAL
WELLNESS
EXPERTS
Budget with
customized
action plan
Debt
Repayment
Options
Housing
Concerns
Student
Loans
Credit
Reports and
Scores
Financial
Education
Community
Resources
Holistic Financial Counseling
Debt Options • ‘Emergency’ budgeting
• Debt Consolidation Loan
• Debt Settlement
• Debt Management Plan
• Hardship Programs
• Non-Payment
• Use of Assets / Home Equity
• Bankruptcy
1. Helps clients repay debt 100% in full
2. Enables debt to be paid off faster, with less $$
going to interest
Lowered interest rates (to 0% in some cases)
Waived late & over limit fees
Accounts re-aged
Debt Management Plan (DMP)
3. Monthly fee for a DMP
Based on amount of debt being managed
Averages approximately $35
Mortgage Delinquency and Default
Explore all options for resolving the mortgage
delinquency.
• Discuss changes necessary to retain the home
• Establish a budget, set priorities and determine strategies
• Discuss workout options such as traditional forbearance, re-
aging, permanent modifications, and/or foreclosure process
• Call the lender/servicer and help with paperwork
Persona #1: Gary
• Gary is a former teacher that had to retire early due to a car accident. He is now on permanent disability.
• He is 30 days past due on his mortgage and explained “working with his lender is so difficult”. He also has relied on credit cards to cover some medical expenses.
• He lives alone and has short term memory issues resulting from his auto accident.
• Ex-wife is on mortgage, but does not live in the home
• “I am worried that I cannot have the small things and live a normal life”
• Struggles with understanding written forms sent by his lender, but is embarrassed to admit it.
Persona #2: Constance
• Constance is a single woman, supporting 2 grandkids, as well as her disabled adult son.
• She had been ill resulting in missed work and the opportunity for overtime was removed.
• In a 6 month window she had a $800 car repair and needed to replace her furnace.
• These expenses caused her to fall behind on her property taxes, and the tight nature of her budget plus the needs of her family resulted in around 25k in credit card debt.
• She is worried about what can happen if she does not pay her taxes
• This stress has caused her to consider leaving the home, or filing bankruptcy, but she is scared of what this might mean for her family.
Questions in Small Groups
Can you think of situations where you’ve heard of a client who needs these services?
What questions do you have about what these clients could expect?
Our Team
Outreach and Partnerships
A central part of GreenPath’s strategy is to work with partners that can help us reach clients in need of financial counseling.
We have over 20 staff members focused on reaching out to support these partners.
Building trust with partners and demonstrating value to them is an essential part of achieving our mission.
Integrating Financial Counseling
is an effective strategy
https://www1.nyc.gov/assets/dca/downloads/pdf/partners/Research-SupervitaminReport1.pdf
GreenPath – NCOA Collaboration
• Most practitioners don’t know of reputable resources
• Referring is not a regular practice
• Need for debt help amongst older adults in increasing
• Counseling staff at GreenPath could benefit from better understanding of this population’s needs
• Toolkit: Bit.ly/NCOA-GPFW
• Immediate counseling by phone
• In person appointments
Eastern time hours (phone)
Monday – Thursday 8a.m. - 10p.m.
Friday 8a.m. - 7p.m.
Saturday 9a.m. - 6p.m.
Contact GreenPath 866-217-0543
Questions in Small Groups
What questions might you be able to ask of clients to determine if they could benefit from counseling?
Would it be possible to incorporate such questions into your process?
What barriers might there be to incorporating referrals for counseling?
How could we help you to overcome these barriers?
How do I refer?
“You should contact GreenPath. Their financial experts have helped a lot clients that I know. It doesn’t cost anything to talk with them. They'll help you address the issue that you’ve mentioned, plus develop a plan to relieve the financial stress you are feeling.”
Be positive!
• Portray the referral positively
• Warm transfer/call with the member
• Call yourself!
Help prevent clients
from taking the wrong path!
What was the biggest benefit you got
out of the counseling ?
“Ericka was great. She made me feel very comfortable and provided me with great information and a clear path on where to start. I really appreciated having her as the Financial Counselor.”
“Getting a handle on a 30% interest credit card bill.”
“I understand so much more about how to get my credit score up.”
“A budget was really helpful to view. Education of repayment options for debt was useful and beneficial to my financial situation.”
“Realistic look at my debt repayment plan (doing the math)”
“I had lost control over my finances and kept experiencing overdrafts even though it was my best intention not to get further in debt. The stress of my situation was making me suicidal. I am much better financially and mentally now”
Next Steps
• Sign up as a community partner
• Complete your own counseling session
• Review the toolkit at Bit.ly/NCOA-GPFW
• Attend future webinars greenpathlive.com
866-217-0543www.greenpath.com