So many people in your community could use your help in improving their financial story. In a country made up of more than 329 million citizens, telling one narrative about credit scoring is simply impossible. There are far too many factors that influence how someone’s financial health is impacted, for example:
- Individual wages
- Ability to handle finances
- Hardships that arise
- Identity theft
- Credit reporting errors
With so many factors contributing to credit health, it makes sense that only 20% of Americans are privileged enough to fall within the “excellent” credit range of 800-850.
With a low percentage of Americans thriving in credit, it’s time to have a serious conversation. The American struggle is real. Find out what poor credit health really means, and what credit repair businesses can do to help their community achieve financial excellence.
The True Narrative of American Finances
Northwestern Mutual’s 2018 Planning & Progress Study shows that the average American has roughly $38,000 in personal debt (excluding mortgage debt). Even as $38,000 sounds like an astronomical figure, we must remember that some Americans have even higher debts to pay.
In a recent article written by Slate, the online publication interviews “Tom and Kate,” a couple who personifies the ‘below-average’ debt narrative. In this story, Tom and Kate got sucked into ‘keeping up with the Joneses,’ and eventually overextended themselves. Even with the means to recover, they continued to mismanage their finances. Tom and Kate got to the point that their wages could only cover the interest on the debt they racked up, which totaled:
- $60,000 in unpaid credit cards
- $18,000 in personal loan debt
- $360,000 in mortgage debt
- Six figures of student loan bills (they lost track of the actual figure)
Tom and Kate aren’t alone. There are a number of other stories from members of your own community that depict massive debts. Especially for Americans who:
- Suffer from historic socioeconomic conditions that forced them into a cycle of debt
- Face hardships like a death in the family, medical issues, and natural disasters
- Have fallen victim to identify theft or credit errors
With more than 80% of Americans below excellent credit, the average American holding roughly $38,000 in debt, and thousands of ‘Tom and Kates’ in this world, it’s obvious there is a great need for credit repair and financial education in this country.
The Impact of Poor Credit on Your Community
The need to improve your community’s financial health may be more vital than you think. Crippling debt has an impact on your community in almost every aspect of people’s lives. From a fiscal perspective, poor credit has obvious effects:
- Increases interest rates
- Increases premiums for auto and homeowners coverage
- Decreases the odds of being approved to rent an apartment
- Decreases the odds of being approved for a mortgage to purchase a home
- Increases cost of cell phone plans
- Increases deposits and ability to turn on utilities
But less known, is the impact of poor credit from a physical perspective - and the impact financial stress has on your community’s health.
A survey conducted by Northwestern Mutual found that 44% of Americans say money is their #1 stressor. The American Psychological Associations (APA) echoes this data, writing that money has been a number one source of stress for Americans since 2007.
Financial stress is more than pressure to pay bills; it also means:
- Physical effects to the body including negative impacts to heartbeat, breath, muscles and brains, which can increase health costs
- Increased high-risk behaviors like alcohol, drug abuse, and overeating, which can make financial stress worse
- Strains in relationships; in fact, 31% of adults with partners report that money is a major source of conflict in their relationship, which can lead to expensive separations
The APA says that Americans with financial stress are also more likely to forgo medical treatment because of financial concerns. The organization cites that nearly 1 in 5 Americans say they have either considered skipping or skipped going to the doctor when they needed health care because of financial concerns.
What It Means to Be a Comprehensive Credit Repair Specialist
Two credit repair specialists get ready to learn more tips to grow their credit repair business at our 2019 Credit Repair Expo!
Perhaps you see what we’re getting at. Helping your community with credit repair isn’t just about sending dispute letters to credit bureaus or collecting checks from your clients.
A comprehensive credit repair business helps clients:
- Alleviate crippling stress
- Afford costs for basic needs like utilities, shelter, and transportation
- Understand finances so they can have a stronger foundation moving forward
- Regain confidence in their financial life
Giving your clients their lives back is the most rewarding aspect of being a credit hero.
If you’re thinking about starting a credit repair business, do so with scale in mind. That means, finding a method that allows you to help as many members of your community as possible. One solution is to find credit repair business software. Technology can help you reduce the manual labor you put into starting your new business, which helps you reach more clients sooner. Credit repair software also helps keep you organized to ensure you’re staying on top of customer needs and providing your clients with a positive experience that gets them back on their feet faster.
Do you want to learn more about how Credit Repair Cloud can help you build your credit repair business, and improve the financial lives of members in your community? Watch our free online training today.