As we've discussed previously more and more people are choosing to live a debt free lifestyle. We saw the Hildebrandt's dig their way out of $106,000 of credit card debt and begin their debt free life (aside from their mortgage). Just like the Hildebrandt's, continued stories of consumers paying off their debt are continuing to emerge.
According to the Nilson Report, a industry newsletter, the average American household has $8,329 in credit card debt. Lois and Clark have that beat tipping the scales at $193,323.79 of debt. The Hildebrandt's had $106,0000. Now we take look at Dawn Warfield.
Two years ago, Dawn Warfield was drowning in $80,000 of debt. Ten times the national average. She admits that living beyond her means and maxing out her 17 credit cards was part of the problem.
"There is always unforeseen expenses, and when you are making the minimum payments on these credit cards, when you think you can't afford to make more than that, they don't go down." said Warfield.
She had a lot going on at one point. She was going through an expensive divorce and was using her personal credit cards to finance opening her second location for her video store business. "Every month I was writing out 17 checks," she said, "And the interest rates ranged from like 6 percent to 33 percent. So it was impossible."
Warfield decided she needed to take matters in her own hands. "I was transferring balances from one card to another, and every time I got a card to a decent interest rate. I felt like one of the cards would come off the promotional interest rate, and I was just never catching up." She sold the second location of her video and stopped using her credit cards and began looking for help.
She sat down one day and called the credit card companies for all of her credit cards. She called all them one by one and asked each on to work with her and lower her interest rates. None of the would help her. They had directed her to a debt management program of a nonprofit Consumer Credit Counseling Service, which was part of Money Management International.
Together, Warfield and a credit counselor, analyzed her bills and expenses and put together a plan to lower her interest rates and get her one monthly payment.
"I don't even have to think about it, which makes it a lot easier for me, because when you have a lot of debt, it's not just financial, but it's emotional, you know, even physical," Warfield said, "You think about it all the time."
She make her payments on time now. Her payment posts to her creditors accounts and she has very low interest rates.
Warfield is on track to have all her debts paid off in five years. She has been in the program now for two years and is now $40,000 less in debt.
"I'm about halfway," Warfield said, "It hasn't been easy, but we're getting there."
If you are feeling hopeless about paying of your debt, DON'T. You can do it. Although, I was able to pay off my $60,000 of credit card debt without the use of a credit counseling agency, both Dawn and the Hildebrandt's received help from credit counseling. If you have tried to work with your creditors to no avail, contact the National Foundation for Credit Counseling. They have trained counselors who will help you asses your situation and help you develop a plan for the most realistic and logical steps for you to follow. The folks at the NFCC are the ones you can trust. Visit nfcc.org or call 800-388-2227.
Watch Dawn's story.
According to the Nilson Report, a industry newsletter, the average American household has $8,329 in credit card debt. Lois and Clark have that beat tipping the scales at $193,323.79 of debt. The Hildebrandt's had $106,0000. Now we take look at Dawn Warfield.
Two years ago, Dawn Warfield was drowning in $80,000 of debt. Ten times the national average. She admits that living beyond her means and maxing out her 17 credit cards was part of the problem.
"There is always unforeseen expenses, and when you are making the minimum payments on these credit cards, when you think you can't afford to make more than that, they don't go down." said Warfield.
She had a lot going on at one point. She was going through an expensive divorce and was using her personal credit cards to finance opening her second location for her video store business. "Every month I was writing out 17 checks," she said, "And the interest rates ranged from like 6 percent to 33 percent. So it was impossible."
Warfield decided she needed to take matters in her own hands. "I was transferring balances from one card to another, and every time I got a card to a decent interest rate. I felt like one of the cards would come off the promotional interest rate, and I was just never catching up." She sold the second location of her video and stopped using her credit cards and began looking for help.
She sat down one day and called the credit card companies for all of her credit cards. She called all them one by one and asked each on to work with her and lower her interest rates. None of the would help her. They had directed her to a debt management program of a nonprofit Consumer Credit Counseling Service, which was part of Money Management International.
Together, Warfield and a credit counselor, analyzed her bills and expenses and put together a plan to lower her interest rates and get her one monthly payment.
"I don't even have to think about it, which makes it a lot easier for me, because when you have a lot of debt, it's not just financial, but it's emotional, you know, even physical," Warfield said, "You think about it all the time."
She make her payments on time now. Her payment posts to her creditors accounts and she has very low interest rates.
Warfield is on track to have all her debts paid off in five years. She has been in the program now for two years and is now $40,000 less in debt.
"I'm about halfway," Warfield said, "It hasn't been easy, but we're getting there."
If you are feeling hopeless about paying of your debt, DON'T. You can do it. Although, I was able to pay off my $60,000 of credit card debt without the use of a credit counseling agency, both Dawn and the Hildebrandt's received help from credit counseling. If you have tried to work with your creditors to no avail, contact the National Foundation for Credit Counseling. They have trained counselors who will help you asses your situation and help you develop a plan for the most realistic and logical steps for you to follow. The folks at the NFCC are the ones you can trust. Visit nfcc.org or call 800-388-2227.
Watch Dawn's story.
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