Opportunity Knocks

>> Major funding for "Opportunity Knock$" is provided by the National Council for Financial Opportunities, a nonprofit dedicated to reducing poverty and creating economic mobility by breaking down systemic barriers, increasing equitable access to capital, and making opportunity accessible to all.

Its programmatic areas of focus include financial resiliency, financial accessibility, and income adequacy.

Additional funding provided by the Wells Fargo Foundation, which seeks to strengthen historically marginalized communities by investing in pathways to economic advancement and generational wealth.

Additional funding for "Opportunity Knock$" provided by Balance and Callahan & Associates.

Previously on "Opportunity Knock$"... >> You know how tight my finances are.

I never anticipated being a single mom, but here we are.

I'm tired of living paycheck to paycheck.

>> No, I'm talking about you looking at your spending.

>> Oh, I got to look at my spending habits?

Yes, we spend.

>> I blame him, and he blames me.

Well, luckily, we have this opportunity to kind of look at our finances.

>> How are bills looking this month?

>> I am a stay-at-home mom.

We have three kids.

>> We got to pay the mortgage so we don't live in a car.

>> Every day, millions of Americans must make the choice between paying rent... >> We're behind on rent.

>> We got to pay the mortgage.

>> ...or buying groceries.

>> I live paycheck to paycheck, and sometimes that doesn't even cut it.

>> So we got spaghetti with no meat.

Are you serious?

>> "Opportunity Knock$" is back with our three esteemed coaches and six new underestimated families to create a personalized journey... >> Are you gonna do what I ask you to do?

>> ...that everyone watching can benefit from.

>> I'm just hopeful that I won't always be struggling.

>> Through these families' experiences... >> This is an emergency.

>> ...you will see that a better life is possible with the tools that they are provided.

>> And we're going to turn your life around like you have no idea.

>> Are the obstacles that these families are facing too much?

>> Your mom is sick, too?

>> A loan that I obtained online, interest rate's like 600-something.

>> What I'm seeing is almost 700%.

>> You're looking at bankruptcy.

>> ...or will their coaches help them open the door when opportunity knocks?

>> Hello!

>> How are you?

>> I'm well.

I'm Patrice.

>> I'm Wesley.

>> Hey, Wesley.

Nice to meet you.

>> And this is my wife, Bobbye.

Hey.

>> Bobbye, how are you?

>> I'm good.

How are you?

>> Nice to meet you.

And who's this?

>> This is Tucker.

>> Hi, Tucker.

>> I'm a bit nervous, like, feeling like she's going to come in and just look and tell us everything that we've done wrong and how bad we are with our money.

>> And, you know, not knowing what Miss Patrice is going to say, if she's going to be able to be like, "You're beyond help," or, "You are so far gone that you're basically going to have to just start completely over with everything."

>> I can't wait to dig in.

So, where are we gonna sit?

>> We can sit the table.

>> Right over here.

>> Awesome, awesome.

>> I'm excited.

I'd like to learn about what we can do or what I can do to help my family.

>> Okay.

So, tell me more about you guys.

>> We've been together for about seven, eight... >> A little -- about eight.

Almost eight.

Geez.

It's been eight years.

>> Okay.

Awesome.

And you have children?

>> We have three.

>> Three kids.

How old?

>> 2, 4, and 7.

>> Okay.

So, what do we have here?

You guys have things already laid out for me.

>> Um, this is my W-2s and my pay stub.

And this is our loan information.

>> So, bring me up to speed about why I'm here.

>> We bought this house last -- in the last year.

Less than a month after we moved, I lost my job.

>> And then, two days later, I lost mine.

>> Oh, my gosh.

>> And then we went, like, a month and a half with neither one of us having a job.

And then, I got a job, and he was staying home.

And then he finally got a job, so then we found childcare for the kids.

I worked during the summer and then left that job because of childcare.

>> Yeah, because at that point, we're forking out the same amount of money just paying childcare that she was making.

>> So you haven't been working since then?

>> Mnh-mnh.

>> Okay.

And you did get a new job?

>> Yes, I have been there for a year and a half now.

>> The hardest part is, like, the salary.

So we live on a salary, so, like, when he has to work more, then he doesn't get paid.

>> So how many hours do you estimate you work each week?

>> I really try not to go over 50, but there are weeks that I do hit 80.

>> Wait, wait, wait.

>> Yeah.

>> You've worked 80 hours a week at the same salary?

>> The most I've ever worked was 84 hours.

And I've also worked 55 straight hours.

>> Oh, my gosh.

>> Mm-hmm.

>> You realize you can't keep going on like this.

>> No.

>> What happens if you do?

>> Well, right now, it's just eating me alive, you know?

It's getting to where it's affecting, you know, how I feel about myself, if that makes sense, where I don't ever feel like I'm good enough.

>> We can't pay bills, so we're going to lose our house.

I mean... >> You're going to lose the house?

>> If we continue like this.

>> Yeah.

Yeah.

>> Because, I mean, it's to where we barely make enough to pay everything else.

Like, we just don't have the money to pay mortgage.

>> And I'm sure other bills.

So how have you been surviving?

>> Scraping.

>> Credit -- Well, our credit cards are maxed out, so we can't use those.

And then just scraping, like he said.

Like, we haven't paid mortgage in about three months just because I'm like, "It's lights or mortgage," or, "Food or mortgage."

And with three kids, like, you know, you just... Food's a little bit more important than a house.

>> Okay.

Any other debts or challenges we should factor in?

>> Not really debts.

I'm really hoping to get my teeth fixed because I'm having extreme pain in my teeth.

And, you know, when I went to the dentist, that was 10 grand.

>> How long have you been in pain or uncomfortable?

>> Mm.

Two, maybe three years.

>> Hello.

>> Hi.

Nicole?

>> Yes, hi.

>> Nice to meet you.

I'm Louis.

>> Come on in.

>> Thank you.

>> Welcome to my home.

I'm super nervous to meet Louis because, to be staring at my finances, knowing he's going to look at everything, is a little intimidating, for sure.

>> Wow.

You're ready to work.

Let's sit down.

Let's take a look at what's going on.

>> Perfect.

Thank you so much.

>> So let me take my stuff out.

I want to get to know a lot more about you.

So, talk to me.

First of all, tell me a little bit about yourself.

>> My name is Nicole, and I have two kids.

>> Okay.

And how old are your kids?

>> Valentina is 7, and Giovanni is 5.

>> So, Valentina and Giovanni.

>> I'm in El Paso because I was a military spouse for eight years.

I did get a divorce.

It's very hard to be a single mom, and it's something that I've never, ever thought I'd be in this boat.

But it's a lot harder than I ever thought it would be.

To do all the school meetings, performances, my children are in therapy.

It's just, to make everything happen and still work can be tough.

>> How long have you been divorced?

>> I've been divorced officially for a year.

>> Okay, so it's relatively new.

>> Mm-hmm.

Yes.

>> How are you doing with that?

>> Um, I feel like I'm doing pretty good.

I endured a lot of mental and emotional abuse through it, so I feel like I kind of grieved the marriage within the marriage.

>> Okay.

So you've been getting help?

>> Yes.

I get a lot of help.

My family is a godsend.

So, I live here.

My parents have this house, so I do pay a very low rent.

When I was little, I used to live in this house, actually.

My mom was also a single mom in this house.

>> So tell me more about, like, what do you do for a living?

>> My family has an auto shop.

>> Okay.

>> And I am the receptionist there.

I feel very lucky to be able to work with my parents and my family, mostly because the flexibility.

If my kids are sick, I can leave and go take care of them.

If I have appointments or they have therapies or whatever's going on at school, I can take that time and be there for my kids and attend those things and still work and still get paid.

I do have a bachelor's degree in childhood education.

I don't have my certification, which is why I'm not teaching.

Financially, I am struggling.

I mean, I live paycheck to paycheck.

So I started taking out credit cards, and I almost maxed all of them out.

And I feel like I pay those minimums to be able to use them again because we're so tight.

I also have $20,000 of school loans that I have to start paying here soon.

I currently don't have any health insurance.

Luckily, the kids still do because of their dad, but I don't, so... >> What scares you the most?

>> Living paycheck to paycheck and struggling forever.

That's my biggest frustration right now.

I don't want to live like this all the time.

It's too hard.

And emotionally, mentally, it's too much.

>> What makes me nervous is, we're exposing our finances to a stranger, someone that we don't know.

>> Hey.

>> Hey, Jean.

I'm Donnell.

>> Donnell, nice to meet you.

>> Nice to meet you.

>> Thank you so much for having me in your house.

>> Absolutely.

My wife is in the other room.

>> The nervous part comes into play when I think about our mistakes being exposed.

>> Hey, I'm Jean.

>> Hi.

I'm Tanda.

Nice to meet you.

>> It's nice to meet you, too.

Thanks so much for having me.

>> Oh, it's our pleasure.

>> All of the best people that I know have coaches.

I mean, your best basketball player, your boxers, your, uh -- whoever's out there, you need an expert to tell you exactly what to do.

That's why this journey is so important to us.

>> Well, before we work... >> Okay.

>> ...tell me about you.

>> I am currently a schoolteacher.

I'm in my 28th year, and I'm about spent.

[ Both laugh ] >> So, how far are you into your clock to your pension?

>> Donnell's military, so we've moved, and districts don't talk to districts as far as retirement possibilities.

So it's almost like I've started over when we got here.

>> Gotcha.

>> And we've been here about 13 years.

So that's what I have.

>> Not near retirement.

So we're looking to transition before you get there.

>> Right.

>> Okay.

All right.

And how about you, Donnell?

>> I'm retired military.

I spent 26 years in the United States Army.

>> Thank you for your service.

>> Thank you.

Appreciate that.

I served 26 years in the United States Army.

I worked my way up to be the highest ranking administrative specialist in the Army.

I was the Army National Guard, G-1 sergeant major, and I ran human resources for over 358,000 people.

And it was an extreme honor to be able to support the mission of those that have served before me and after me.

Now, um, I work for the government, and then I also have a organization called Veterans Growing America, and it's an organization that really helps veterans through entrepreneurship.

>> And so how does it work, exactly?

>> So, people become a part of our organization.

They rent a table at our store, and they sell their products and services at our store.

>> How's it doing?

>> It's doing okay.

>> Yeah?

You're making money?

>> We're not making the money that we would love to make.

>> How old are you guys?

>> I'm 55.

>> Okay.

>> And I'm 51.

>> So where are you on your road to retirement?

I mean, you came out of the military with more than 20. so you've got a military pension, right?

>> Yes.

>> Is that enough?

Or you are looking to build a foundation on which to retire?

>> So, yes, her retirement won't cover what we need to cover, as far as living here.

>> I love the Veterans Growing America.

I actually have started a little side business.

I have, like, a little boutique, so I like to buy unique items and sell them.

>> And how is that doing?

>> Last year, I think I made $300.

[ Both laugh ] >> Is it your goal to take this fashion business and make it your career?

>> I hope to be more prosperous.

>> And how does that work?

>> I'm a travel agent.

I became a travel agent through another vendor that was at the store.

She introduced it to me.

And what I do is put trips together for people.

So, I like a certain standard of travel, and that's what I try to get for my customers or clients.

>> Do you know how much your lifestyle costs you today?

>> I just look at our checking account, and I see the money go in, and as the month goes by, it all goes out.

>> Does more than the money that is in there go out?

>> Depends on the month, yes.

>> What about saving for the future?

>> I have my 401(k).

Um, you got... >> TSP.

Yes.

>> TSP.

Yeah.

Can we talk numbers?

'Cause it would really help me get a handle on your -- on your situation.

I know you've got a bunch of papers that you pulled for this meeting, which is amazing.

>> Yes, we do.

>> Take a look.

Thank you.

Okay.

These are your bank accounts.

Let me take a look at this.

We're going to come back to how much you're saving.

I'm looking through here, and what I'm seeing is credit card after credit card after credit card after credit card.

How much debt are you guys in?

>> The dental work, how long have you been in pain or uncomfortable?

>> Mm.

Two, maybe three years.

And it's getting progressively worse.

I've put off a lot of my dental work for the past few years because I will always put their needs ahead of my own, and I will live in constant pain with my teeth to make sure that they're taken care of before I take care of myself.

>> How do you feel seeing him feel like this?

>> It's just very hard just knowing that -- I just feel like I can't really contribute right now.

>> Okay.

And my company is called Redefining Wealth.

And we always start with the fit pillar.

And the fit pillar is about becoming your best self.

You deserve that.

>> Uh... >> Say it with me -- "I deserve that."

>> I deserve that.

Miss Patrice's energy is infectious and inspiring.

It makes me want to do everything better.

>> Tell me about what's going on with the mortgage.

>> So we haven't paid in about three months.

I did try to apply to get, like, mortgage assistance.

>> So how much did it lower the mortgage by?

>> Like, $300, not even.

$250.

>> Yeah, $253.

So we're still looking at, what, $1,200?

>> It's like $1,260.

It's $1,300 a mortgage.

>> Okay.

So what is the lender saying?

>> We have to pay it by like the 24th and then pay it again on the 1st.

So seven days' term.

>> Okay.

I just want to make sure I'm clear.

Pay monthly mortgage amount.

>> Like $1,260.

>> On the 24th.

>> On the 24th.

>> And then again... >> On the 1st.

Yeah.

>> So, basically, pay two mortgages within eight days?

>> Yeah.

>> And then pay it again in December.

And then that would accept the terms of the $1,260.

>> What happens if you don't?

>> I'm not sure.

>> So, it looks like, to me -- I know you said you're not sure what happens, but it looks like this is way more serious than what you just said.

And then you said it with a little smile on your face, but I don't think this is anything to smile about.

Not this part.

The 24th is in five days.

Do you at least have the first payment?

>> We have majority of it.

>> Some of it.

>> We'll be drained.

>> It'll empty the bank account.

>> It'll drain.

>> Okay.

So then, definitely, we won't have the next payment 8 to 10 days later.

>> No.

>> Right.

So it looks like, if you do not pay what they're requesting in this trial period, then it will go to short sale.

>> Having Miss Patrice tell us right there, "You lose your house in a few days," was shocking.

It... Getting that information destroyed me.

If we lost this house, we would be living in the car.

>> And then your worst nightmare comes true.

And then where do we go with the three babies?

>> I don't want to live like this all the time.

It's too hard.

Emotionally, mentally, it's too much.

I'm very emotional, and I cry a lot.

They see me cry enough to where they're like, "Are you okay, Mommy?"

And then they'll offer me hugs.

And then that makes me cry so much more because it's -- it's hard for them to see me that way.

I don't want them to see me that way, but... >> So I just want to share with you that I'm here to help you plan and show you all the resources available to help you.

And I want you to know that you're not alone.

>> Sometimes it's so easy to feel alone in these situations, but thank you very much.

>> Absolutely.

Why don't we start from not where I think where you want to be.

Let's start where you're currently at right now.

I show you that you're making probably about $10 an hour or something?

>> Yeah, it's actually $14, but, um, yeah, I do work about 40 hours a week.

>> Okay.

All right.

So share with me, like, what do you currently have in credit-card bills?

>> I think it's about $9,000 or $10,000.

>> And do you happen to know how much interest you're paying on those credit cards?

>> Some of them are more than 30%.

>> Wow.

That is unbelievable.

What were you spending on?

>> Things we need, like, um, your daily stuff like, you know, toothbrushes, hygiene stuff.

>> Living expenses.

>> Mm-hmm.

>> So, obviously, you can't live off of this because you've been using your credit cards to actually come up with a difference for your living expenses, right?

>> Yes.

I have never had credit cards before until I got a divorce.

I don't know how any of that APR interest -- I don't know any of that.

I feel like no one really tells you what that is until you're in it, and you're like, "Oh, that's really high."

>> And if actually we were on the computer and we take a look at one of the calculators for credit cards, the $9,000 or $10,000 would probably never get paid off.

It would take another decade or two to pay this off.

>> I don't understand how credit cards work.

I was not aware of high APR interest or any APR interest.

I didn't realize that when I pay a bill, most of that is going to my interest rather than to the balance I owe.

>> The wonderful thing is right now that is that your parents have given you a place to kind of be in transition, right?

>> Right.

>> The goal is to get your teaching credential, correct?

>> Right.

I do have to put money up for that, so it will be about an additional $7,000 to $8,000... >> Wow.

>> ...which is something I don't have.

And so in order to get that, it's a year-long process.

And then you'll get your certification at the end.

>> Okay.

So one of the things that we'll have to do is do a budget.

>> Right.

>> I want to go back to when we do a lot of more of the financial coaching is, I want to talk to you about all the reasons why you want to do this and why it's important for you to be a teacher and why it's important for you to get the certification.

Because whenever it gets tough for you, you're not going to quit.

That's a big goal.

>> I'm looking through here, and what I'm seeing is credit card after credit card after credit card after credit card.

How much debt are you guys in?

>> So, we have about, um.

$60,000 in credit-card debt.

>> It's more than that.

>> It's more than that?

>> Has to be.

>> Why do you say it has to be?

>> Because I have credit cards, too.

>> Okay.

So you've got $60,000.

How much do you have?

>> I probably have about $20,000.

I think we have too many credit cards.

We have too many options -- too many options to put things on credit cards, which, you know, when one fills up, use the next.

For some reason, credit-card companies keep sending me increased credit limits.

Increase credit limits allow us to get deeper in debt.

>> So, $80,000 in credit-card debt.

Any other big debts?

Cars, mortgages?

>> Yes.

We have car, we got mortgage.

>> It's three cars.

>> Yeah, we have three cars.

>> Wait.

Why do you have three cars?

>> We have a son in college.

>> And he needs a car.

>> Yes.

>> All right.

As I add all of this up, we're looking at about $120,000 in unsecured debt.

And then there are three car loans and a mortgage.

>> Yes.

Yes, we spend.

>> Yes.

I blame him, and he blames me.

>> What kind of interest rates are you paying on these debts?

>> It's about 28% interest rate.

>> Whoa.

>> It's costing you $33,000 a year just to carry this debt.

>> Wow.

>> We feel it.

I feel it.

>> So, one of the things that I learned to do -- and I don't know how much you guys know about me.

I'm a financial journalist.

I've spent years on "The Today Show" and working with Oprah.

And what I've learned is that you have to follow the money.

You're not alone, right?

Money is so invisible these days.

We don't see it at all, right?

We swipe, and we dip, and we click, and we don't see it, and it just comes out.

But the problem is, it's coming out for so many different things.

>> I didn't know we were spending that much money.

>> It's an eye-opener to look at everything on paper.

Because everything is so digital now, you don't see it being removed from your bank account.

>> This pattern of spending money that you don't have is really gonna have to change.

And the only way it's going to change is if you know where your money is actually going.

>> I've never ran away from, you know, any issues.

I mean, I'm in the military, right?

And so I run toward the fire.

You know, just running toward the fire, you know, lets me know, you know, what issues are out there, and then we could just face them head on.

Any input or feedback that she gives us, I am ready for it.

Uh... >> We are ready for it.

>> Yes, we are ready for it.

>> If you keep going this way, you're looking at bankruptcy.

It doesn't make sense for somebody who's earning a quarter million dollars a year to be thinking about filing bankruptcy, but you are spending so much more than you're earning that that's where you're headed.

>> Next time on "Opportunity Knock$"... >> We want to get this business stuff together, not the like, "Oh, I do this, and I do this and I do this."

>> I want to be a boss, my own boss, 'cause I'm bossy.

[ Laughs ] >> The goal for us is to show you that there are a lot of available resources for you so you don't feel alone.

>> It's very hard to talk about money.

>> One of the things that we can do with the Opportunity Finder is use it to find a counselor who can talk to you about this law.

>> I definitely could use that.

>> Yeah.

And for you, too, if you needed.

>> Major funding for "Opportunity Knock$" is provided by the National Council for Financial Opportunities, a nonprofit dedicated to reducing poverty and creating economic mobility by breaking down systemic barriers, increasing equitable access to capital, and making opportunity accessible to all.

Its programmatic areas of focus include financial resiliency, financial accessibility, and income adequacy.

Additional funding provided by the Wells Fargo Foundation, which seeks to strengthen historically marginalized communities by investing in pathways to economic advancement and generational wealth.

Additional funding for "Opportunity Knock$" provided by Balance and Callahan & Associates.