27-year-old tries debt management plan
Reducing interest rate reduces stress
"Sherri"* is a 27-year-old woman who works full time and has about $11,000 on credit cards that built up while she was in college. Admittedly, she says overspending was easy when she got out of college too.
She was paying high interest rates on her credit card balances. Those rates increased as she got close to her credit limits. She also has student loans. When she talked to her counselor from LSS Financial Counseling, they figured out the best payment plan for her situation.
LSS's Debt Management Plan was discussed, and she decided to try it as soon as possible. She wanted to get her interest rates down, consolidate payments and make progress on paying off the balances, rather than simply paying the minimums, which barely covered the interest.
Sherri had a follow-up phone call with her financial counselor three months after setting up the Debt Management Plan. She is thrilled!
Her credit score has already increased by 30 points and the ease of making one monthly payment has taken some stress away. She reports now enjoying opening her credit card statements because she can see the balances going down. She's no longer just treading water with the debt.
Based on her financial counselor's recommendation, she has also begun adjusting her budget and will start to adding a little extra to her DMP payment in the future. She now feels that she is making progress.
Learn more: If you are worried about your debt, contact LSS Financial Counseling. The first six counseling sessions are free if you, your church or your employer use Everence services.
*Her name has been changed to protect her confidentiality.