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EPISODE 44 - FINANCIAL QUICK FIX (Brooke)

NAME: Brooke
AGE: 32
ANNUAL INCOME: $42,000
DEBT ACCUMULATED: $70,470+

GOAL: To buy a home

To pay off family debt and become financially responsible.

Alison's Plan

Being in the red was exacting a heavy emotional toll on Brooke. Her debt had her backed into a corner. It was affecting her health as well as her ability to make good on outstanding family loans.

Brooke was desperate for a way out of her financial mess. Her debt had overwhelmed her both physically and emotionally, especially since some of it was family debt. I gave her a plan to repair the financial damage.

  • First I told her to "Find the Leak and Plug it" – she was spending cash and couldn’t account for it. I gave her $20/wk for incidentals along with orders to track every penny of it.
  • Then I suggested she start a "Financial Hope Chest", even small deposits would give her the beginnings of a nest egg for the future.
  • Next I urged her to "Make a date with a Trustee". Brooke was in over her head and didn’t have the income to make any inroads on her debt.
  • Finally I told her to "'Fess up to her Family". It was past time for her to be honest about her desperate financial circumstances.

OUTCOME

There’s a new financial road ahead for Brooke and she’s more than capable of staying on it. She’s cut her monthly spending by $1,130, eliminated her shortfall and alleviated her stress. She’s come clean with her family and has made a commitment to pay them back before declaring bankruptcy. She still has a long road ahead but she’s headed in the right direction.

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