Getting out of debt can seem virtually impossible to some. This is especially true for those who have been forced to live off their high interest credit cards. However, one lady has done it by eliminating $38,000 in credit card debt and Wisconsin residents finding themselves in a similar predicament can do the same.
After finding herself in $38,000 worth of credit card debt, this frustrated consumer decided to do something about it. The customer contacted a credit counseling agency that helped her develop a plan for paying off her credit card debt in four years. The plan required her to close all of her credit card accounts and stop using credit cards. Although admittedly difficult at first, she is now free of all credit card debts and excited about her new financial freedom. One drawback however, is that some businesses such as rental car agencies and hotels often require a credit card. This savvy consumer has maneuvered around that obstacle by using her debit card for such transactions. From the money she has saved by eliminating her credit card debt, she has built a surplus of funds to cover any holds or deposits that come with using a debit card for such transactions.
The consequences of inaction in debt situations like this can be avoided. Such consequences may include wage garnishment and low credit scores which can greatly diminish a person’s ability to obtain credit on big ticket items such as a mortgage, car and other loans. While partnering with a credit counseling agency is one option for eliminating debt, those who are facing financial challenges can also consider bankruptcy as an option. Consumers should be aware however that each state has its own bankruptcy rules that consumers filing in that state should be aware of.
Paying off high interest credit card debt is a triumphant victory to financial freedom. However, for those facing financial challenges, there are still other options available. Wisconsin consumers who find themselves in a cycle of debt should consult a debt relief specialist to learn more about their options.
Source: Dailyfinance.com, “Living Without Credit Cards: She Made It Work, and You Can Too,” Michele Lerner, March 13, 2013