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Meet Erin
Week 2Age: 43
Occupation: Teacher and coach
Location: Plano, TX
Salary: $61,000
Why she needs a makeover:
Erin is a schoolteacher who wants to take charge of her finances--and, as a single mother, she doesn’t want to pass on bad money habits to her daughter. She’s anxious to create a budget, pay down her debt and not be living paycheck-to-paycheck.
What She Said
“I hate being depressed about my finances.”
Erin's parents never taught her how to manage money, and she’s considered turning to consumer credit counseling before, but she's wondering if advice from a LearnVest Certified Financial planner could help her instead. Currently she has $11,000 in credit card debt, a car loan for $11,000, medical bills—and $400 in predatory payday loans.
Erin has a good salary, and is ready to learn. “I hate being depressed about my finances,” she says. “I really think it’s keeping me from having meaningful relationships with people. I just hope I’m not beyond help.”Her Outlook
“I really think [my finances are] keeping me from having meaningful relationships with people. I just hope I’m not beyond help.”
- Erin makes $54,000 a year as a teacher, and also has a part-time job.
- Along with child support, that brings her HHI to $61,000.
- She has $11,000 in credit card debt, a car loan for $11,000, medical bills—and $400 in payday loans.
In Five Years ...
“I want to be out of debt.”
Erin says: I’m feeling very overwhelmed! The most difficult thing for me is managing my spending. I want to shop and buy new clothes for me and my daughter, and knowing I don’t have the money for that is making me crazy.
I’ve also learned that my payday loan is sucking me dry! The interest rate is unbelievably high and I need to pay it off as soon as possible.
This process is really forcing me to face my fears about my finances.Our Expert
Stephany
Planning Experience: 9 Years
Kirkpatrick,
CFP®
Best Financial Decision: Setting up retirement savings in my early twenties - time really is money!
Financial Motto: Save big now, spend big later.- Your car is costing you too much—you can only afford to pay $200! Go to CarMax to see your options for trading it in, and think about fuel economy (gas prices are just going up!).
- Picking up 2-3 extra substitute teaching shifts per week will earn you $100 extra in net pay per month. Apply that to your debt to save THOUSANDS in interest on your credit cards.
- Take LearnVest’s Get Out of Debt Bootcamp and then make a list of every debt you have, so we can prioritize the debts that need to be paid off ASAP.