Milwaukee – Mariza and Geffrey Gordon have been living paycheck to paycheck, burdened by nearly $40,000 in credit card debt that largely stemmed from their wedding expenses. After Mariza was laid off and received only two months of severance, the couple turned to CNN’s Savings Challenge for help.
Financial coach offers a clear path
Budgeting educator Tiffany Aliche met with the Gordons and was struck by their mutual support and willingness to seek assistance. “They were so supportive of each other,” Aliche said, adding that many people stay stuck because they avoid asking for help.
Given the limited time frame of the Savings Challenge, Aliche focused on the debt that was “the pin sticking them the most.” She noted that the couple’s $1,400 monthly minimum payments were draining their cash flow.
Dreamscaping and realistic goals
Aliche asked the Gordons to imagine their lives ten years from now – an exercise she calls “dreamscaping.” The couple listed goals such as owning a home and an investment property, taking occasional vacations, launching their own businesses, and contributing to individual IRAs alongside their workplace retirement plans.
“We were so caught up in the now and stressed about the present we hadn’t put thought into what we want for the future,” Mariza said.
Concrete repayment options
After reviewing their situation, Aliche suggested two steps: checking with the National Foundation for Credit Counseling (NFCC) for a structured repayment plan, and exploring a personal loan or balance‑transfer card with a lower interest rate.
The NFCC offered the Gordons a five‑year plan that would lower their monthly payment to $900 – a $500 reduction from their current minimums. The only condition was that they could not use any revolving credit during the plan’s term.
“Given our situation, we don’t feel that option is the best fit for us right now, as we want to maintain some flexibility in case we need access to credit,” the couple wrote.
Credit‑score hurdles
When the Gordons approached a local credit union, they learned that until their credit scores improve, they would not qualify for a personal loan at a favorable rate or a balance‑transfer card that could provide up to 21 months of interest‑free repayment.
Mariza expressed their next goal: “We want to get our score high enough to get a balance‑transfer card.”
Looking ahead
Aliche emphasized that becoming debt‑free is only the first step; building net worth requires disciplined saving and investment. She encouraged the couple to continue budgeting, track progress, and keep their long‑term vision in focus.
The Savings Challenge will check back with the Gordons in a few weeks to assess progress and adjust the plan as needed.
Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.
