Strategies for Overcoming Debt and Achieving Homeownership

Show Notes

• Guest: Naomi Peden
• Host: Tara Alderete
• Publication Date: March 4, 2025

Highlights

• 1:05 | Naomi walks Tara through a typical day for a nonprofit housing counselor.
• 3:25 | Naomi talks about how debt can impact your housing situation.
• 7:53 | Naomi shares her best advice for consumers struggling with debt.
• 11:25 | Tara and Naomi talk about how individuals and organizations can help remove the stigma of debt.

Episode Transcript

Note: Transcripts are machine-generated and may contain errors.

Tara: Hey, there. I'm Tara Alderete with MMI, and this podcast is all about debt and breaking the debt stigma. And we share inspiring stories from MMI clients that were able to pay off significant debt in a short period of time. But today, we're going to do something a little different, and I'm really excited about it. On this episode, I'm talking to Naomi Peden, a housing counselor here with us at MMI. Naomi will be sharing her insights on how debt can affect housing options and, of course, strategies to overcome challenges. Here at Money Management International, we believe that financial challenges aren't meant to be faced alone, and financial wellness is a journey. On this podcast, we hear stories of people whose lives have been changed by MMI, and we also hear from the dedicated partners helping to make a difference.

These stories are unique, personal, and inspiring. Stay tuned. We're sharing each guest's long story short. Naomi, welcome to the show.

Naomi Peden: Thank you, Tara. I'm happy to be here.

Tara: I'm really happy to be talking to you. So, before we jump in and get started, why don't you just tell us a little bit about yourself and your career with MMI, what you do and how you came to us.

Naomi Peden: Sure, no problem. So I started at MMI, I've been with MMI for about a year and a half. I came over through a merger with CCCSMD. And the reason why a lot of people ask me, why did you choose housing counseling? The reason why is I have such a passion for helping people. And by MMI being a national organization, I thought that is the place where I need to be, in order to allow me to, you know, reach my goals and help as many people as I could.

Tara: I love it. So, Naomi, as a housing counselor, what does your day typically look like?

Naomi Peden: It's, you know, a lot of calls, busy. We do get a lot of calls, but typically everyday people just trying to figure it out, trying to figure out how can they, you know, navigate through their finances in order to make their lives better for them and their family.

Tara: So you're helping them overcome challenges and get their money right so that they can achieve that goal of homeownership?

Naomi Peden: Yes. I think the biggest obstacle that anybody faces is step one. You know, without the plan, you know, it just seems so overwhelming. Especially when you're going through something like that, everything is overwhelming. So starting with step one, by reaching out, getting that help, you know, to help navigate you in order to get the plan so you know exactly what step one is, I think that's the biggest. The biggest success story there is. You know, getting that step one.

Tara: You must enjoy this job so much, really getting to help people.

Naomi Peden: Yeah, I love. I'm. I'm appreciative every day.

Tara: I bet you are. So, you know, Naomi, typically, you know, we said a little bit about this in the intro, but typically this podcast is focused on debt and really breaking that debt stigma. And we've heard so many inspiring stories about clients that have been able to overcome obstacles to pay off their debt and really change their financial outlook. It is so important because I think debt can affect people in so many different aspects of their life. So from your perspective as a housing counselor, how can debt affect your housing situation? Maybe share some examples and things that you've seen.

Naomi Peden: We have to start from, you know, the beginning of where it starts. Usually what happens is people are supplementing their debt for the increase of things their income doesn't support, you know, the price of everything that they have. So at some point, they become overwhelmed by it all. And I say the saddest thing that I've seen is people are no longer themselves. You know, you no longer… you're so overwhelmed that normally, if you met that person, you would say, oh, my gosh, they're so nice. And. But now that you meet them because they have this serious circumstance going on with their, you know, financial situation, they're just not themselves anymore.

Naomi Peden: And that's the saddest part to me is. And that's what I really, you know, focus on, is, let me get you back to being you. Sure.

Tara: So especially when you're thinking about achieving a big life goal like homeownership, I think for a lot of people, it can seem sort of maybe even overwhelming and out of reach for some people. And then to your point, if you add feeling not yourself because of the weight of debt or just the cost of living, you know, that sort of downward spiral, it can almost feel impossible. So that makes a lot of sense to me. So what advice would you give for individuals or families with rising debt?

Naomi Peden: Well, the first thing I would tell people is always tell people, stop. Just take a moment.

Tara: Okay.

Naomi Peden: Take a moment, breathe in, and then call MMI. Really just stop. Because the thing is, at some point, and this is what I tell all my clients, at some point, the decision will have to be made. And you want to be in that driver's seat making the decision. And what I mean by that is, you know, I want to decide what I can reduce, what I can live without other than having someone else decide for me. Yeah. And the Only way that you can do that is really coming up with a plan and doing, taking that first step.

Tara: So I love this idea of taking the first step because I think it's so important whether we're talking about what does my credit say about me, how do I get to buy a home, how do I get to start a budget? You are very right. I think just committing to that first step is so, so important. And then you just gain momentum from there. And it's wonderful.

Naomi Peden: Yeah.

Tara: When you say, take a deep breath and then call MMI, tell us a little bit about what MMI can do for clients that do have rising dead. How can MMI help?

Naomi Peden: Well, I think the first thing, and this is like to try to erase some of that stigma behind calling MMI. One of the things that I really want people to understand is that I feel like all the counselors here are here for a reason. We want to help people. So just as much as we're helping the client, the client is also helping us because the client is also allowing us to achieve our dreams, our goals of being able to make a positive impact on someone. But when they call in, I think the CEO Jim Trigg said it the best is that no judgment, just help. And that's what we bring to the table. We're going to walk you through, you know, go over your income, your expenses together, create that budget, and give you an action plan that tells you, here's step one. Yes, this is what you need to do.

And I really think that really, you know, moves people forward to where they're really excited about the process.

Tara: Wonderful. So it's real solutions without judgment and just help. And I, and I love it. And I think that's one of the most important things for people to understand. And so, you know, I, when I think about debt and asking for help and things like that, it's interesting because debt is such a common issue. I think it's one of the things that almost everybody might have in common, but yet we talk about it so very little. Why do you think debt is so hard for people to talk about?

Naomi Peden: Well, I think initially people may feel ashamed, you know, because especially when you find yourself in over your head, where you find yourself drowning, you're. You can't believe that you've let it get that far. So a little, you know, a shame come with that. And you just don't understand how this happened to you. And then on the other hand, I also think if people, you know, don't want to be or don't want to appear to seem as though they're not financial savvy, they're not knowledgeable with their financing. So, so they don't want that stigma on them, saying, well, how didn't you know? You know, and I tell people all the time, I love financial literacy. I've been a, I've been doing a budget for over 30 years. I learn stuff still every day.

So it's not that you, you know, you're not going to wake up and know everything, but it is a journey. And, you know, the, the sooner you start the journey, the better you'll be.

Tara: Yes. Take that first step. Right?

Naomi Peden: Take the first step. Yes.

Tara: So I did want to ask another question because I think sometimes you may have a different perspective, see different things as a housing counselor. So for folks that are looking to buy a home, you know, we've talked about debt as a common obstacle that many people face, but are there any other fairly common obstacles to homeownership that people face or stories that you might be able to share, things that people can watch out for to position themselves for successful homeownership?

Naomi Peden: Yeah, definitely. What I tell people is it's extremely important for you to know your own bottom line. It's just important for you to understand what you're comfortable with. And I'm just going to share my experience. For example, I like to feed the neighborhood kids. So in that, because I do my budget and I include that in my budget. So I know that if an officer told me, oh, you couldn't afford this amount of house with this monthly mortgage payment, I know that's not really realistic for me because of the things that, you know, I hold dear. I don't want to not be able to feed the neighborhood kids just so I can have this amazing, you know, a bigger house or whatever with a higher payment.

So I think the first thing that anyone should look at before they even start looking at houses is starting with a budget, learning your bottom line, and knowing and standing on what you're comfortable with as far as a mortgage payment. Because you have to understand that this is a 10-, 15-, 20-, 30-, even sometimes 40-year commitment that you're making. And so you just want to be comfortable with the decision, with the final outcome.

Tara: Great advice. And you know, I think creating a budget is so important no matter what you're doing. You know, I say this all the time, and so it may even be a repeat, you know, but I, I really think this way. When you're thinking about financial wellness, I always think about a puzzle. And you Know, when I'm starting a puzzle, the first thing I do is put those corners together. You can't do that puzzle until you have your corners and your budget is a corner, and then everything else falls into place. So whether it's removing debt, whether it's buying a house, planning to own a house and still do all the things that you like to do, maintain, go on vacation, all those different things really starts with a budget. And that is something MMI can help with.

I love that you said that. That's great advice. So I want to go back a little bit to breaking that stigma. We've talked a lot about this. How do you think organizations like ours here at MMI are working to break the stigma around debt and other financial issues? And how are you personally fighting that stigma?

Naomi Peden: Well, I think that being more open, you know, things like this podcast, just letting people know, making them aware that there is resources that's available for you that you. You don't have to walk this journey alone. And it's really important in choosing the right partner that you want to walk the journey with you, because you definitely want somebody again, you know, that has an understanding. You know, I say all the counselors here, we've, you know, been. We've had our own financial trials and ups and downs and lows. So we not only bring experience when we're counseling, but we bring that understanding and that compassion. We want you to succeed, almost as if not more than you do. We want you to know that you can absolutely do this.

You know, just take that step. We don't ever tell people it's going to be easy. You know, we don't ever say that because it's not easy. Right. It's not always a walk in the park, but we also tell people it's very much doable.

Tara: Yes.

Naomi Peden: You have it in you. You can do this. Here's the plan. Let's do it.

Tara: Gosh, Naomi, you're so inspiring. I want. I want to build my budget with you. I have to tell you. And I know, I know that our counselors are so wonderful. And every time I talk, you know, to you, I just feel so good about the ability for people to do what they have to do to achieve their goals, no matter what they are. So in your career of helping people achieve their financial goals, are there any stories that stand out that you could share? Of course, considering confidentiality and things like that, yeah.

I've really been blessed with a lot of success stories. But the one that I say stands out the most is I received A call, you know, out of the blue one day, and it was from a client that I had counseled a year before. And I couldn't make out the call. The call ended up being longer than what it should have because I just could not make out what they were saying. And the reason why is because they were literally crying so much. I couldn't. I was trying to make out what they were saying. I didn't know if they were upset or, you know, if something was going on, but they literally were calling me to tell me how much money they had in their savings account.

Naomi Peden: They could not believe it. They just, they could not believe the initial call with them was due to utility cutoff.

Tara: Oh.

Naomi Peden: And now a year later, they're saying, I have this money in my savings and all my bills are being paid on time. But that conversation was very difficult. I still get emotional when I think about it. By the end of the call, we both were crying, but I was. I was just extremely happy for them. But that's just how overwhelmed the emotions they, you know, that they had at that time were thinking, look how far I've come in just a year. Yeah. And that story just really sticks with me.

I just be amazed, you know. And it all started from that step one.

Tara: You have said so many great things today that I will think about. You know, that step one is the most important thing, you know, the most important step you can take. It is a journey. And you do not have to walk this journey alone. And then just really thinking about not only, you know, the fact that that first step can lead to success in being able to save and pay off debt, but also achieve a goal like homeownership, something that you can start to use to build a legacy and pass down to members of your family, your kids, other generations. It's just so inspiring and it's exciting. I love all the things that you've been able to share with us today. So last question is just if you have any final pieces of advice or inspiration for any of our listeners today.

Naomi Peden: Let's get started on making, you know, helping you become you again. And the way that we can do that is just give us a call. I think that is just really important. Just quickly, one of the other stories that I had is a person, a client called me and just to let me know that they were on their way, headed out to the park with their grandchild. And the reason why they called me is because initially, like I said, you're not yourself when you're overwhelmed with debt. You're just not yourself. And so they had not been spending much time with their grandchild as they hoped. And so they just wanted to let me know, hey, I'm headed to the park with my grandchild because they felt that relief of that burden of that debt.

So, you know, by enrolling in the debt management program at MMI… so we have really good days where we have some amazing stories from our clients.

Tara: Well, Naomi, thank you so much for being on today and for sharing those stories with us. I loved talking to you. And yes, just take that first step and pick up the phone and call MMI.

Naomi Peden: Thank you. Thank you for having me.

Tara: Thanks for listening to this episode of Long Story Short, brought to you by Money Management International. To learn more about our work and how we're helping people in all walks of life repay debt, balance their budget and find lasting financial peace of mind, visit moneymanagement.org.

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