I love to speak to audiences about the credit issues I
cover, but I’ll admit – this gig was leaving me with butterflies in my stomach.
Why?
I was speaking to group of financial planners at the Garrett
Planning Network’s annual retreat. I was prepared and I know my topic inside and out, so why was I a bit more nervous than usual?
First, I was speaking to fee-only financial planners. These
are smart people who have all taken numerous hours of courses in
order to offer qualified advice. Most have passed a very difficult exam – the
exam that earned them the right to call themselves Certified Financial
Planners(tm).
And secondly, I wasn’t sure if anyone would show up! (There was a concurrent session.) If they
did, I just wasn’t sure whether my presentation would be interesting or
relevant to them. After all, they are used to working with clients with lots of
money saved and invested – not people with debt – right?
Well, I couldn’t have been more wrong. The room was packed
and my audience was eager to find solutions for the people who have been
referred to them with credit problems. Many of them also do pro bono planning
work in their local communities or churches. They are hearing heart-breaking
stories from people in over their heads and genuinely want to point them in the
right direction.
After my presentation, I had the chance to have dinner with
some of the planners and talk with others in the hallways between breaks. What
an incredible group of people these were! All are fee-only financial planners
(which means they don’t push products for a commission) and many work with
clients who don’t have huge nest eggs, but want to make the best of what they
do have.
At any rate, at the end of my presentation, I presented a
question that I often hear and gave them the chance to respond for this blog.
Here’s the question:
Q: I have $5000 in credit card debt. I just got a new job
with a 401(k) plan that provides a small employer match. Should I pay down this
debt first or keep making small monthly payments and max out my 401(k)? I can’t
afford to do both.
Tomorrow I’ll share the answers I received with you!
Gerri
Detweiler – Personal finance author and Credit Advisor for Credit.com.
Gerri contributes budgeting, debt recovery and savings information online. She
is also the co-author of Stop
Debt Collectors: How to Protect Your Rights and Resolve Your Debts
Gerri Detweiler Credit.com's Personal Finance Expert, Gerri focuses on financial legislation, budgeting, debt recovery and consumer savings information. She is also the co-author of Debt Collection Answers: How to Use Debt Collection Laws to Protect Your Rights, and Reduce Stress: Real-Life Solutions for Solving Your Credit Crisis as well as host of TalkCreditRadio.comTalk Credit Radio. Reach Gerri at creditexperts@credit.com.
Follow Us
