Farmington Hills-based GreenPath Financial Wellness received a million dollar grant from the United Services Automobile Association to provide credit counseling services to low-income communities of color and military families in nine areas of the states -United.
Along with the funding, GreenPath, named Crain’s Best-Managed Nonprofit 2021 for its focus on diversity, equity and inclusion, will provide financial counseling and debt management programs to help financially struggling families reduce their debts and improve their credit rating.
The USAA-funded initiative will target Phoenix, Colorado Springs, Colorado, Tampa, Florida, Annapolis, Maryland, New York, Austin, Dallas, San Antonio and Chesapeake, Virginia.
The new grant builds on $ 1 million provided by the USAA in January 2021 to address employment, education and economic disparities between communities of color and the military community in Bexar County, in Texas.
âThe USAA is committed to helping improve the economic mobility of underfunded communities because we believe all Americans should have the opportunity to rise up on their merits,â said Justin Schmitt, assistant vice president of USAA’s corporate responsibility, in a statement.
âGreenPath’s intentional goal of increasing the financial literacy of 4,000 customers, reducing their debt by 20% over 12 months and improving their financial confidence aligns with our goal of improving financial preparedness within the company. army and our local communities. “
Through the grant, GreenPath Certified Counselors will provide individuals and families in the nine regions with budgeting, debt management, student loan counseling, credit report reviews and credit counseling. lodging. Clients will also receive financial support to help them adopt good financial habits, set goals and make financial decisions.
As one of the nation’s largest financial advisory firms, GreenPath provides one-on-one advice to over 100,000 people and over 160,000 educational assignments each year.
The Bexar County pilot project included 98,000 counseling sessions, educational activities and digital engagements. More than half of those advised have increased their credit rating. And those who signed up for GreenPath’s debt management plan have paid off an average of one-third of their debt when annualized, the association said.
The nonprofit, which operates on a budget of $ 48 million, and its subsidiaries work directly with individuals, banks, credit unions and employer partners across the United States from more than 33 sites, by phone and online support.
Its clients have repaid over $ 250 million in debt through GreenPath’s debt management programs.