Outreach in Action
Stuck in a web of debt? Outreach has suggestions that can help.
by Jo Mayer and Paul Crandall
Spider webs abound in the summer, with multiple intricate shapes and designs. But no matter how they look, webs share a common purpose: trapping prey. Many of our Outreach clients find themselves trapped in a web of debt from which they struggle to free themselves. But unraveling the strands that are keeping folks stuck in their debt isn’t easy.
Fortunately, Outreach board member Jackie Scheller is well-versed in helping people create livable budgets. A retired vocational and alternative education teacher and a life-long entrepreneur, Jackie has a knack for identifying ways to save money while still enabling people to get what’s needed.
As a free Outreach service, Scheller meets one-on-one with Outreach clients, by appointment, to review their income and expenses and help them move closer to living within their means.
We asked her some questions about the process she uses.
- When you meet with clients, what are the first few things you focus on?
We talk in general about work, transportation, family and how things are going. In other words, we “break the ice.”
- What are some of the difficulties you help clients deal with, and what do you tell them?
Every client has a unique scenario, so I try to focus on help they think would be beneficial to them. To get to the underlying budget crisis issues, we discuss income and expenses. This discussion includes identifying sources of assistance they use. Often it is obvious where the huge expense is that is tapping their resources, and at other times it is hidden. Once identified, the client leaves the first meeting with homework that may include contacting a bank, insurance provider, or energy provider or doing some work to bring income and expenses in line. At the first meeting a worksheet is completed and a copy is shared with the client.
- Do you make recommendations to your clients that would be applicable to the rest of us? If so, please share them!
Yes, it is almost always worth contacting your auto and home insurance provider(s) to review coverage at renewal time. Don’t just write the check for the increased premium(s) without doing this first. Paying more than the car is worth, annually, for auto insurance, especially when there is no loan, is a big financial burden and a waste of money. Most can insure older, paid-off cars with basic PL/PD and Comprehensive and save big by avoiding collision insurance. PIP (Personal Injury Protection) is actually a medical insurance question, so make sure your car insurance company has your medical insurance, Medicare, or Medicaid information, which will save you money on premiums.
I also stress the importance of writing down or using your phone’s Notes feature to track everything you spend. It’s a forced “stop and think moment” when we do this, which can help to forestall impulse purchases you may regret later.
Lastly, making a budget is key to getting a handle on financial freedom. You can’t fix what you don’t know.
Many Outreach clients are trapped in a web of debt. Outreach volunteer Jackie Scheller has advice to help free clients from that web. Image credit: Robert Anasch on Unsplash.com
This column is sponsored by Stockbridge Community Outreach, our local food pantry, crisis, and referral center located in the Stockbridge Activity Center (old middle school) near Cherry and Elm streets in Stockbridge. Office hours are 1-3 p.m. Monday, Wednesday and Friday and by appointment. [email protected], 517-851-7285, or find us on Facebook
