Financial well-being July 19, 2015 By
A former customer recently contacted me to discuss a debt consolidation loan. Several months back, we charged off her checking account with a balance of around -$150.00. She called to ask me if she could borrow against her used car, because she had several high-interest debts she needed to pay off. I set up an appointment for her to come into the bank so I could learn more about the real reason behind her need for money, and more importantly, I wanted her to know the reason.
I discovered her issues began when her car broke down. She needed $500 for repairs and didn’t have an emergency fund, so she turned to a payday lender. When the loan came due, she didn’t have the money to pay, so she took out another payday loan—from a different lender—to make the payment on the first loan. This cycle continued several more times, all from different payday lenders, and then she started opening credit cards to make the payments. At this point, she owed $3,500 to payday lenders and credit card companies all because of one $500 loan.
I took the time to show her this website and walked her through the budgeting tool. After spending time together, I told her that while I could not loan her the money, I would do everything I could to help her get her finances back on track.
Two weeks later, the customer called and said a family member was willing to lend her $5,000 to pay off her car, her credit cards, the payday loans, and even her charged off checking account balance at our bank. The customer wanted to know if we would lend against the funds. I helped her deposit the $5,000 into a CD and set up a $5,000 loan she could pay off in just 24 months. Now she is getting her finances back in order while making payments on a loan that will help to reestablish her credit.
This is a great example of how one decision can affect your financial well-being. I encourage you to use our tools, read our articles, and come in to visit with our staff. We are here to help support your financial choices and be a financial mentor as you strive to Spend Life Wisely.
