Employee financial stress spikes as debt rises. Credit card debt is at an all-time high according to the latest data from the Federal Reserve Bank of New York. TrustPlus Personal Financial Coaches can help.
At TrustPlus we’re often asked by prospective customers, “what topics do your personal financial coaches cover?”
The short answer is it’s easier to describe what TrustPlus coaches don’t offer, mainly investment advice, tax preparation, investment products, and legal advice.
If it’s causing your employees financial stress then chances are TrustPlus Personal Financial Coaches can help.
And they are stressed about their finances, given recent data from the Federal Reserve Bank of New York and from the Financial Health Network.
Credit card debt, costs for financial services set records
Credit card debt is at an all-time high, especially among younger workers who “may have overextended during the pandemic.”
Plus, workers are paying more for financial services than ever before, so there’s no better time than now for employers to explore adding personal financial coaching to your benefits packages.
Topics TrustPlus Personal Financial Coaches cover
TrustPlus Personal Financial Coaches have helped 100,000+ clients nationwide tackle the following issues, to name a few:
- Debt (medical, credit card, auto, student, collections, wage garnishment);
- Credit repair, improvement;
- Savings (emergency, retirement, life goals);
- Budgeting.
As TrustPlus Senior Financial Coach Denae Hannah, AFC®, CFEI® tells clients:
“The first session, we establish a rapport and build trust. Together we review your credit report and cash flow, explore financial concerns and dreams, identify the first steps to take and by when. You’ll leave our first session with clarity on actions to take before our next session where we will go over your progress and questions, and identify the next set of steps on the path to achieving your financial dreams.”
TrustPlus solves for employee financial stress and debt
TrustPlus solves for employee financial stress and debt, at the end of the day, while helping them to strengthen credit and build emergency and retirement savings.
Every client is different, with their own financial goals and dreams.
Just like every customer is different, with their own worker mix and idea for how TrustPlus can help alleviate organizational pain points which drag on profits and impact.
Some customers have a lot of workers struggling with medical debt, others with student loan debt, still others with credit card debt and collections debt.
TrustPlus Personal Financial Coaches engage one-on-one with workers on an ongoing basis, providing on-demand expertise, resources, and tools tailored to each member of your team.
The results are often life changing.
Yakaira’s story is but one example.
Yakaira eliminated nearly $100,000 in student loan debt, vanquished her collections debt, and improved her credit score, with support from her TrustPlus Personal Financial Coach, Tiffany.
Yakaira’s story: Navigating credit card debt and student loan debt
Yakaira has always been passionate about assisting veterans in her community and using her background in clinical social work to support them.
“This population is usually underserved; it’s like they’re not seen,” Yakaira said.
One way she wanted to help was by buying a home and converting it into housing for homeless veterans. But she encountered some financial obstacles in the process, including issues with her credit.
Deleting delinquent accounts on Yakaira’s credit report
Yakaira was shocked to find two delinquent accounts on her credit report, including a retail credit card that had been charged-off.
Unaware of the annual membership fee and automatic renewal when she signed up for the card, she accrued late charges on unknown fees, with notices sent to the wrong address.
Feeling misled, Yakaira attempted to dispute the bill herself but could never reach the right person, often being shuffled between departments without resolution.
“It became a big headache because it’s like no one wanted to take accountability.”
She reached out to her Financial Coach, Tiffany, through TrustPlus, a benefit offered by her employer. Yakaira received coaching to dispute the account with the retailer and submitted a formal complaint to the Consumer Financial Protection Bureau, resulting in the collections account being dropped.
“It was always great speaking to her, especially when dealing with matters that are out of my hands. I never felt judged by her,” Yakaira said.
Another thing in the way of Yakaira owning a home was her student loan debt.
During her graduate studies, she took out two loans totaling over $61,000 to finance her education. Yakaira made every effort to keep up with the monthly minimum payments but struggled to keep up as payments increased over time.
“Dealing with student loan debt is tough. It messes with your peace of mind,” Yakaira said. “Everyone wants to buy a home and invest when they start making decent money, but student loans make it challenging. It’s like, ‘Wow, can’t we catch a break?’”
Yakaira was aware of the Public Service Loan Forgiveness (PSLF) program but it wasn’t until she met with Tiffany that she understood the eligibility requirements.
Tiffany walked her through the recertification process and identified missing qualifying payments that were affecting her eligibility. Yakaira’s perseverance paid off: she received forgiveness for her entire $93,465 student loan debt balance.
“It was so shocking to me to see a zero balance. I feel relieved because I can focus on other things now.”
Improving Yakaira’s credit score
Yakaira experienced a 37-point increase in her credit score, moving her up into the “good” credit tier.
This motivated her to pursue her goals, including purchasing her first home in the Dominican Republic. She is excited to keep improving her credit and invest in property in the United States.
“Working with Tiffany has definitely lifted a big load off my back,” Yakaira said. “Having support and consistency was definitely helpful; otherwise, I would not have been able to accomplish all I did on my own.”
[Yakaira’s story first appeared on Neighborhood Trust Financial Partners’ client stories page.]
Schedule a time with TrustPlus to discuss reducing employee financial stress so your organization can perform at its best.
