Debt Management for Older Adults

Agenda 1. Changing environment 2. GreenPath s approach 3. Collaboration with NCOA 4. Ideas for practitioners

American families are struggling as they age

American families are struggling. 80% Of American households carry some form of debt 69% Say non-mortgage debt is a necessity 1 3 Americans have in $0 saved for retirement. $0 Saved for retirement 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/wpcontent/uploads/2016/01/ib_16-2.pdf

American families are struggling $1.2 T Student loan debt as of 2015 compared to $0.2 T In 2003 Source: CFSI. United States Census Bureau reports there are 318.9 million people in the USA as of 2014.

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 Source: https://www.nerdwallet.com/blog/credit-carddata/average-credit-card-debt-household/

Economic insecurity is changing

So we have to think differently. Icon credit: https://thenounproject.com/efingo/collection/ideas-reborn/?oq=idea&cidx=0&i=366935

CONFIDENTIAL

Remixing It s more than having a stable, wellpaying job and a house. (Plus the white picket fence.)

Making it work When the American Dream fades, people lose faith. With no tools, they feel powerless.

for everyone 138 million Americans are struggling financially and have no access to financial services. Center for Financial Services Innovation

We must take new approaches. Icon credit: https://thenounproject.com/imicons/collection/chess-solid/?oq=challenge&cidx=0&i=71311

Insights will help us overcome hurdles. Icon credit: https://thenounproject.com/search/?q=brain&i=652648

We found a new vision for the American Dream from our clients.

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.

Financial wellness means helping people progress toward achieving their financial dreams. Achieve Dreams Grow Assets Save for retirement & other goals 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.

We must engage new types of partners Icon 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/wpcontent/uploads/2017/01/19213602/2015-lmi-paper-final.pdf

This isn t just our mission. It s our passion. https://thenounproject.com/search/?q=hike&i=385

We are proud of our impact Over 200,000

Our counselors are heroes. GreenPath is proud to announce 3 of our Financial Experts were recognized in the 2015 30 Credit Counselors Who Make a Difference list. SunShine Hefferon Jeffrey Arevalo Tina Ponder Credit: https://www.nerdwallet.com/feature/credit-counselors-made-difference-improved-lives-2015/

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.

How do we tackle the work?

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

Holistic Financial Counseling Budget with customized action plan Community Resources Debt Repayment Options Financial Education FINANCIAL WELLNESS EXPERTS Housing Concerns Credit Reports and Scores Student Loans

Emergency budgeting Debt Consolidation Loan Debt Settlement Debt Management Plan Hardship Programs Non-Payment Use of Assets / Home Equity Bankruptcy Debt Options

Debt Management Plan (DMP) 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 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, reaging, 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

http://cfed.org/programs/integrating_financial_capability/

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

GreenPath NCOA Collaboration

Contact GreenPath 866-217-0543 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.

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!

Help prevent clients from taking the wrong path! Portray the referral positively Warm transfer/call with the member Call yourself!

What was the biggest benefit you got out of the counseling? A budget was really helpful to view. Education of repayment options for debt was useful and beneficial to my financial situation. 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 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. Realistic look at my debt repayment plan (doing the math) I understand so much more about how to get my credit score up.

Next Steps 866-217-0543 www.greenpath.com Sign up as a community partner Complete your own counseling session Review the toolkit at Bit.ly/NCOA-GPFW Attend future webinars greenpathlive.com