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Debt Management

In February of 2003, I signed up with Money Management International to help me sort out a then unmanageable credit card debt of about $14,000. That will seem like a lot to some and not so much to others. But I was making about $31,000 a year at the time so it was nearly half of what I made in a year. I was robbing Peter to pay Paul as it were. Missing payments, paying short, getting the phone calls and letters from all the bill collectors all the time. So I figured it was this or bankruptcy. I didn't own a home so I couldn't take a second mortgage to pay my bills. And I've always believed in paying what I owed. It was painful for several months to hand over $400 each month. But slowly and surely I watched my balances drop and I was able to pay off some store credit cards on my own. And the consolidated monthly payment was actually a little less than the combination of all the minimum payments I had been making.

Plus, I got to enjoy the sound of silence from my telephone and a distinct lack of collection letters in my mailbox.

In all, the plan has now paid off 3 of 7 credit cards and 2 more will join that stack by the end of this month. By the end of April, 2008 I will not owe anything to the credit card companies.

I have a debit card now and a line of credit with my credit Union. I owe my Dad about $4000 for a car loan. In May I'll be able to take that extra $400 a month and pay more toward that debt. I seriously doubt I'll ever apply for another credit card again.

I highly recommend a debt management plan if you are in the same boat. Peace of mind is worth more than you know.




( 4 comments — Leave a comment )
Dec. 7th, 2007 09:12 am (UTC)
Great to hear of your relatively debt-free near future!

I paid off similiar debts 5 years ago. I am currently obsessive about paying off the balance of my one and only credit every month as I never want to pay exorbitant interest fees ever again.
Dec. 7th, 2007 02:46 pm (UTC)
Yeas, I'm happy at the end of every month when all I have is my debit card and bank account and live within my means.

Dec. 7th, 2007 01:16 pm (UTC)
I'm paying off Tom that way -- and could not be more thrilled with the help.

Dec. 7th, 2007 02:51 pm (UTC)
The prospect of being Debt free is a wonderful feeling.

( 4 comments — Leave a comment )


Wander aka StoneBear
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