For the next five months, Connex Credit Union will be working closely with five participants to see who can become the most fiscally fit to win a $3,000 grand prize. Each participant has been paired with a Connex Financial Advocate who will offer real-world, practical advice on how to reduce debt, build savings, and many other helpful financial tips and advice. Connex received over 140 applications for the second annual ConneXfactor competition! Below is our fifth update on Frances B.
Frances B.: Almost debt-free!
Coach: Frank Pomarico, Hamden Branch Manager
Frances is continuing to monitor her spending and she is on track with her emergency savings goal. Our recent one-on-one session was very exciting because we set a plan for when all credit card debt will be paid off. According to our plan, Frances will be debt-free of her credit card debt within one year! We concluded that once Frances has paid one debt off, she will then put that monthly amount toward another credit card balance. This method is also known as the snowball method. This is a systematic plan to pay off multiple debts, starting with the debt that has the smaller balance or has the highest interest rate and then progressing to the larger debt or one with the smaller interest rate. It doesn’t matter which tactic you choose; they both keep you motivated to tackle a seemingly large financial hurdle!
This focused plan will allow Frances to pay her debt down sooner than she originally expected. We also calculated how much additional income Frances would have in the budget once these sizeable debts are eliminated. She is very excited about this realistic financial plan, and the progress she’s made so far! This plan will also allow her other two program goals to be realized: 1) Continue building an emergency savings and 2) Re-establish her independent lifestyle. – Frank Pomarico, Hamden Branch Manager
Do you need help with a method for paying down debt that keeps you motivated? Join our ConneXfactor contestants and let our Financial Advocates work with you to create a financial plan and a budget to help you achieve your goals. Stop by any branch or get started online today!