Learn how to rebuild your credit

Jeannine Smith calls Paula Reed her “discipline coach.”

At least three Fridays every month, Smith meets with Reed at her office at Rural Dynamics Inc., 2022 Central Ave., for a stop that is equal parts pep talk, visit with a friend and a financial consultation.

All of it is laced with a healthy dose of jokes and gentle barbs between Reed, a financial coach at RDI, and Smith, who came to RDI two years ago and enrolled in the Credit Builder program.

When Smith first came to RDI, her finances were no laughing matter as her debt load was heavy.

“Sometimes, I wanted to give up,” Smith said in Reed’s office earlier this month. “It hit me like a flood and I was sinking, but now I’m treading water and hoping that I can stay floating.”

Reed, RDI and a lot of hard work on Smith’s part have done a lot to help Smith feel that things are manageable.

“You can see the light at the end of the tunnel,” Smith said. “There is hope knowing it can get better.”

But it’s not easy.

“I have a longer road than some,” she said.

“And shorter than others,” Reed answered.

Both stressed there is no shame in coming to RDI for help.

“Life will give you those hiccups,” Reed said, adding that even though she works in the industry, it doesn’t mean that she is immune from moments of weakness, too.

Anybody can get off track, but RDI is there to help.

Once Rural Dynamics helps people manage their debt or survive the crisis, Seth Lutter, another RDI financial coach, said they often need coaching to help them start looking toward the future. That’s why a year ago, Rural Dynamics started its Credit Builder program.

Lutter said the program shifts from asking what went wrong, to what are your goals and what can you do to make it happen.

The program works to increase clients’ financial literacy, increase their credit scores, and increase their savings.

In just 13 months, RDI has enrolled 180 people in the Credit Builder program. One man’s credit score jumped by 150 points in one year.

Anybody can come in for help. You can’t make too much or too little to request help.

One Malmstrom airman was about to lose her security clearance — and therefore her job — because her credit score was too low, the release said. Now her debt is under control, her credit score is up and she’s preparing to buy a house.

The coaches begin by analyzing a person’s finances and credit score and then the coach helps prepare a plan. People pay $30 a month to have access to their financial coach as often as they need. A United Way grant provides scholarships to people who can’t afford the monthly fee.

United Way President Gary Owen said the Credit Builder program advances United Way’s goals to help people manage their expenses and build their savings.

“Improving people’s credit scores helps them get better loan rates, lower insurance rates and in some cases qualify them for better jobs,” he said. “The Credit Builder program also works to establish and improve struggling families’ credit and increase their savings for retirement and emergencies. Rural Dynamics is helping people find financial stability.”

Reed, Lutter and the other financial coaches at the nonprofit Rural Dynamics Inc. can help you maintain your solid financial footing or they can push you toward a big goal.

“We fix anything involving a dollar sign – whether it’s debts or expenses, improving your credit score or saving to buy a house,” Lutter said. “Whether you’re in a good place or a bad place financially, it’s always good to have someone else look at your finances to make sure you’re making good decisions.”

Rural Dynamics sees between 3,000 and 4,000 people every year.

Many face financial crisis and even now that most people have recovered from the recession, 42 percent of Montana households don’t have enough assets to survive at poverty level for three months without income.

It’s not uncommon for people to bring in a box of unopened mail because they were too afraid to deal with notice after notice.

“Credit counseling is really about taking control of your situation,” Lutter said. “Even if it might seem gigantic and scary, there are people like us that are here to help.”

To contribute

United Way of Cascade County asks for money once a year to fund programs such as Rural Dynamics’ Credit Builder Program. People can give monthly or one-time gifts through the website at www.uwccmt.org or can send donations directly to United Way at PO Box 1343, Great Falls, MT 59403.

Are you financially fit?

Ask yourself the following true or false questions to see how financially fit your family is:

• You have a clear idea where you want to be financially and are working toward that goal.

• You have a budget.

• Your budget includes fun things, like eating out and entertainment.

• You pay all of your bills on time and in full.

• You save at least 10 percent of your paycheck each month.

• You have at least three months’ worth of expenses in your savings account.

• You have a retirement account and are putting money into it regularly.

• You know how to get a free copy of your credit report and have done within the last year.

• You are using less than a third of your available credit.

• You have health insurance.

Scoring: Count up how many questions you answered with TRUE.

Perfect 10: You are a financial whiz and are well prepared to tackle all of your financial dreams!

8-9: You are doing better than most. Keep up the good work!

5-7: You’ve done some great work, but you are still missing some key steps to reaching full financial fitness.

2-4: You’ve taken the first steps to financial fitness, but you still have a lot of work to do.

0-1: You’ve got a lot of work to do, but don’t worry – it’s never too late to start working to improve your finances.

Are you in financial trouble?

• If your paycheck is delayed a week, you’d be late paying some bills.

• You don’t know how much debt you have.

• You spend more than 20 percent of your paycheck on debt.

• You can only afford to pay the minimum payment on your debt.

• You’ve gotten a new loan to pay off your old loan.

•You are paying your monthly expenses with credit cards or savings.

Scoring: If you answered true to any of these, you are in financial trouble.