Why We Call Our Work “Financial Empowerment”

Talking about finances can involve hard painful moments. But there we were, on a Tuesday afternoon at a Sound Outreach financial coaching session with our client Justine Gordon – and we were laughing. Just a few months ago, that wouldn’t have happened, but along with new financial management skills, Justine was feeling something she hadn’t had in a while: trust.

Even though we were enjoying this particular session, Justine tells us it’s never easy to talk about money. “It’s a huge source of frustrations,” she says. “I’m 51, I’m poor – and I have a Master’s degree. I feel like I should have money.”

Justine came to Sound Outreach via our Center for Strong Families, where she received employment assistance. Our employment coach noticed her financial situation and connected Justine to Silke Bone, one of six accredited Financial Counselors on our financial empowerment team. Justine has been meeting regularly with Silke for over a year. Their relationship has taken time to grow, but now it is strong and based on trust, now they can laugh together. Even after Silke changed locations to meet with clients in Spanaway, Justine did not change counselors. She preferred to travel so she could continue her financial counseling with Silke.

justine-silke-counseling

Justine had been working hard at reducing her debt, but without the right information, her efforts did not lead to positive outcomes. This is where Silke’s financial coaching has been most valuable. “Having somebody as an advocate who is available and accessible is extremely helpful because you don’t get that anywhere else,” Justine said. When she signed on with a debt consolidation company that caused more harm than good, Justine says Silke stepped in with precisely the advice she needed: it was not her fault, but she would have to take control of the process.

Silke encouraged Justine to be active in speaking to her lenders and banks so they can see her as an equal partner in resolving her accounts. Using that advice, Justine paid off thousands in debt by being in control of the debt consolidation process. Silke views her role as mainly keeping Justine on track and focused on concrete actions, but Justine thinks the counseling helped her in a way that went beyond finances: “I took the power back,” said Justine. “Silke made me feel no shame.”

Justine has made so much progress in a relatively short period of time. “I had no idea what credit is,” she said about her first attempts to tackle her finances. When she attended one of Silke’s free workshops on building credit, a switch flipped and she thought, “In our society, nobody offers that information. That is something everyone who has a credit card should go to.”

Justine truly inspires us with her persistence. We are proud to work with her on her journey toward financial stability. If you feel similarly inspired, please consider making a donation that will help Sound Outreach continue supporting our clients to help themselves. In addition to financial empowerment services like the ones Justine described, our entire Sound Outreach team is connected to a continuum of integrated services that help clients advance from insecurity to stability to prosperity.

For more information about our services and ways you can get involved, please visit www.soundoutreach.org/services/

Credit Up Loan Guarantee Fund- Judith’s Story

Judith is a first generation American who started her own cleaning business two years ago.  She had no credit, but needed a car to get from house to house, so she went to predatory auto lender– a “buy here, pay here” dealer, and ended up with an APR of 21.58% and monthly payments of $568. She grossed $3,800/month in her business. Twenty six months of on-time payments later, she still owed $16,000 on the loan, but her vehicle was only worth $12,000. Even though her credit score had climbed into the high 600’s as a result of her on-time payments, she couldn’t find a financial institution to refinance her to a lower rate.

Judith met with one of our financial counselors who thought she would be perfect to be our first test case with our Loan Guarantee Fund. This fund is held by Sound Outreach at Harborstone Credit Union to help reduce the risk of defaults when they lend to our clients.

Because we knew Judith made vehicle payments on time at $568/month for more than 12 months, and because we guaranteed half of any potential default, Harborstone refinanced her auto loan to below 5%, bringing​ her payments to $377/month, which saves her $191 monthly, and a total of $6,500 in interest over the next 48 months of payments. We have high hopes for Judith’s success and for our continued partnership with Harborstone Credit Union!

The Little Family Foundation believes so strongly in the ability of our new Credit Up Loan Guarantee Fund to have a real, measurable and direct impact on the cycle of poverty that they have offered to match all new donations in order to significantly grow our fund and to support our Financial Counseling program!

For every dollar donated, half will go toward our CreditUp Financial Counseling Program, and half will be matched up to $10,000 and placed in our Loan Guarantee Fund. Reaching our $20,000 goal would mean that Harborstone Could loan up to $400,000 to our clients in order to help them end the cycle of poverty!

Will you join us in the fight to end poverty in Pierce County?