Income & Asset Building

# people with reduced non-asset related debt (YTD)

4Q3 2022

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Story Behind the Curve

CMCA offers individualized coaching services as part of the agency's Whole Family Approach as well as through the Financial Opportunity Center, which launched in April 2021.  Data below indicates the year-to-date number of CMCA members receiving coaching who have reduced non-asset related debt through participation in these programs.  Non-asset related debt includes student loan debt, medical debt, credit card debt, or other debt not associated with an asset such as a house or car.  

Why Is This Important?

While the exact percentage of people with debt in CMCA's service area is unknown, the percentage of people with debt in collections varied from 23.9% to 35.9%, depending on the county.  The average amount of debt in collections was $2,525.  Reducing debt is an important step in building financial resiliency.  Debt impacts the amount of funds available for other spending or saving and influences credit scores.  

Through Financial Opportunity Center services, CMCA members learn financial management skills such as budgeting, reducing expenses, and lowering debt in order to increase their credit scores.  By helping people improve their financial management skills and credit scores, CMCA supports families in becoming more resilient and in breaking the cycle of poverty. 

Interested in supporting CMCA in this endeavor?  Click here to find out how you can help.

 

Source:

1. Urban Institute. (February 2021). Credit Health during the COVID 19 Pandemic

How We Impact

The Financial Opportunity Center became active in April 2021, during the third quarter of the agency's fiscal year.  FOCs pair individuals with Financial and Employment Coaches to co-create financial freedom plans. Coaches support individuals with tools and resources that allow them to navigate the complexities of increasing income, decreasing expenses, reducing debt, and acquiring assets.  The FOC model is built on four interlocking components: Financial Coaching, Career Coaching, Income Supports and a Shared Data System.  Click here to see how it works.

Interested in helping CMCA make an impact in your community?  Click here to learn more.

Partners

                                                                                                    

The Financial Opportunity Center is provided in partnership with Rural LISC.  With residents and partners, LISC forges resilient and inclusive communities of opportunity across America - great places to live, work, visit, do business, and raise families.

Interested in partnering with CMCA?  Click here to learn more about how you can help.

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