These Financial Planners Don't Bite...Part I

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