IMPACT
in Rapid City
Your Generosity in Action
Thanks to your support, United Way of the Black Hills is proud to share real stories — told in the words of our partners — that show how your generosity is making a difference every day.
Consumer Credit Counseling Service of the Black Hills
Our agency does not prescreen anyone. We do not have an application process where only the motivated are accepted. We serve the community at large. They just have to ask for help. But that does not mean it is easy to ask for help. Anyone can come in for counseling or take an education class.
Throughout life we make decisions that can affect our future. We acquire habits, some good, some not so good and some indifferent. I met with a lady, Kathy, who had acquired some habits, unknowingly, that caused some financial stress. She had come in looking to learn how to budget.
She had retired with a good pension and combined with Social Security, a good income. She liked to shop the TV networks channels and bought items for the home when she determined she liked them. She had never really worried about money but because of her pension, however, she also did not save additional retirement funds.
As one income was lost, the spending (not so good) habit continued, and debt started to build. She was struggling to make ends meet. As we reviewed her checking account statements, we determined where the excess spending was going. Not on large amounts, but small purchases multiple times throughout the months.
As I started to point this out, she had stated that she knew she needed to make changes but did not know how to go about it. Her different credit card and loan accounts did not necessarily have large balances individually but combined totaled to more than 15k.
First, we needed to determine how we were going to pay off the debt. Accounts were nearly maxed and that put a lot of downward pressure on her credit score. A consolidation loan was out. There were two accounts that totaled roughly a third of her debt that could not be accepted – paid off, through Navicore. A DMP without these accounts included would not make a big enough dent by itself to balance the budget.
We did some brainstorming. She wanted to make changes. With her leading budget adjustments, we cut some streaming services, reduced drug store runs for her favorite candies and eliminated some of the multiple line items attributed to Amazon services. We were getting closer.
She thought there would be a possibility that her brother might “refinance” the debt not included into a DMP. He did, and the budget worked comfortably. We were even able to incorporate a savings amount into the budget that will provide for unanticipated expenses.
We have met each month for the last three and each time the budget is more refined, her savings are growing, and her smile continues to grow. Sometimes necessary, people are often afraid of change. Sometimes difficult, we must first recognize that change is needed. We must then be willing to make the changes necessary. When acted upon, as in this case, change can lead to a brighter financial future.
Thanks to generous donors like you, United Way of the Black Hills is able to make stories like this possible!