You Can Beat Debt

One of the key messages here at Free Money Finance is that you can get out of debt -- if you develop a plan and stick to it. This article from MoneyCentral called Four Journeys Back from Debt Hell. It details the stories of four people who managed to tackle their huge credit card balances. Here are summaries of their stories:

• Danielle Rhoades...racked up a $10,000 balance on her credit card. Result: "I was never so proud as the day I paid it off," she adds. "It was March 15 when I actually had my whole paycheck to spend. I took my money and bought a plane ticket to see my boyfriend in England -- and I spent it all!"
• Vige Barrie recalls the endless phone calls from collectors. They were coming after the $60,000 she owed on more than 10 credit cards. Result: Now she has an additional card and pays both in full every month. If she doesn't, she knows what could happen, and says emphatically, "I never want to go there again."
• Thousands of young adults could tell a story much like Paul Canady's: "I got my first credit card by filling out an application at the university center because they were giving away free T-shirts. I didn't think I'd actually get the credit card, and lo and behold, not only did I get it, but it also came with a $2,000 limit . . . In retrospect, that's just absolutely ridiculous. That's where Canady was six years ago -- tethered to multiple credit card companies by the $15,000 he owed. Result: "I've got all the credit card statements that say zero balance. I'm thinking about framing them in a montage or something, to say it's possible to get out."
• Owing roughly $100,000 was not Susan's biggest problem. Underlying her distress was the shame of not being able to support herself and her daughter, despite having a doctorate and nursing and medical degrees. Result: "My credit rating is golden . . . It's really quite a miracle!" Susan says. "I also have a profound belief in a higher power, which was never there. It is basically a spiritual program, and that's what we come to rely on."

If you're in a similar debt situation, read these stories for inspiration. Then develop a plan and stick to it. If you do, you too can beat debt.

Comments

[neuman]

Why do people use credit cards at all? Why not just use a debit card!

[beloml]

If you use a debit card you're vulnerable to theft. Someone in Egypt stole $5,000 out of my hubby's account using a fake debit card. We were fortunate that our credit union covered the loss.