$147,000 in Credit Card Debt, Yes, it Can Be Paid Off

All I needed was a credit card with some room on it. A TV for my daughter’s dorm. How hard could that be. There it was. In the mail with all the regular bills, a collection notice.

Aw come on, I pay my bills, all of them. Things were tight, but collections? I opened the envelope and read my name at the top of a notice I would see many more of. How many? That was a question I did not dare answer. My spouse had trusted me for years. How could I have dropped the ball this bad.

Time to take a real look at our bills.

24 credit cards maxed out or close to it.

  • 2 American Express
  • 6 Bank of America
  • 4 Discover
  • 5 Chase
  • 4 Citi
  • 1 Home Depot
  • 1 Target
  • 1 JC Penney

Total Debt on these cards, $147,000.00

I hated that number, I paid my bills every month. It didn’t matter, nothing I did brought the balances down. So I kept getting new cards.

But now, I couldn’t do that. We have a good income and really can’t be without access to credit for business use. So we cannot file bankruptcy or do anything that damages our credit long term. The interest charges are the real problem. I can make the payments.

I know, so why am I in collections? I got mad at my old bank MasterCard. They kept raising my rates for no reason at all. So I figured I’d punish them and not pay them for a while. I had been a good customer and thought they would call to discuss the issues. Poof, I am in collections. I will get that fixed. It was so frustrating.

In the meantime all my cards have been raising my rates at an incredible speed. My payments are going to the moon. Our income is being overwhelmed by the interest charges.

I looked at debt settlement. That may be legal, but it looks and smells like something on the very edge of the law. I want to pay my bills. I produced this problem but need a solution that won’t destroy our credit.

I found it. It is called a debt management program. It is not a loan it is a way to coordinate all my creditors so that I can pay them off, for real. I want them gone. I nevertheless needed access to credit and that could be done easily.

In short:

  • I saved 10’s of thousands of dollars in interest payments alone.
  • My credit did not get hurt, in fact as I made timely payments on my program my credit score went up.
  • The whole course of action was completed in less than 5 years. Each creditor got paid in complete.
  • There are no negotiations; all authentic debt management companies follow the same rules established by the creditors. Those requirements are the same for every authentic agency.
  • My interest rates came down dramatically. Most of my debt came down to between 0%-2%.
  • The fees the debt management company charged were painless. It really was insignificant to my interest savings.
  • My counselor told me he could help get us approved for a mortgage if I needed one. It is a service they provide for their clients.
  • I was able to keep one card out of the program for business, travel etc.

I am now debt free and sleep much better.

Oh, the TV for my daughter, I wrote a check to pay for it.

Hope that helps a little.

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