Client Profile: Troy W.
An Alaska man struggles with debt, divorce and his daughter
When Troy divorced his wife, he walked away with $3,800 in debt. But he racked up an additional $20,000 in attorney fees, child support, mortgage and other bills.
He and his ex-wife split custody of their now-5-year-old daughter, while he took full custody of the debt. Troy says he did it to protect his daughter and “my daughter’s mom,” but it also turned out to be a smart move for him.
That’s because, like all marital debt, regardless of the amount, both the husband and wife are responsible for it. Since Troy had more income, he protected his credit score by making sure the debt was paid off on time. If his wife had taken some of that debt and not paid it, Troy’s credit score would have been damaged right along with hers.
Still, Troy struggled to pay off the debt. Nothing worked until he landed at Consolidated Credit.
Troy asked his creditors for help…
“I tried negotiating with the credit card companies on my own, but they wouldn’t work with me. They said, ‘We can’t do anything for you,’ so I just accepted that.”
Troy learned about Consolidated Credit while at work…
“I had a chat with a presenter during a financial literacy session at my job. When he realized how much debt I was in, he asked me if I had heard about Consolidated Credit. I had, but I also heard that using a debt management program can damage your credit. He told me, “No it would help you far more than it would hurt you.’”
Troy made the call…
“Sheila enthusiastically and very brightly explained the benefits of the debt management program. She was just so full of energy and positive vibes, you could hear her smiling over the phone. I couldn’t help but feel better talking to her.”
Sheila was on the case…
“She made some phone calls and had my interest rates reduced significantly – exactly what I needed to pay down my debt.”
If Troy hadn’t found Consolidated Credit…
“My next step would be talking to a bankruptcy attorney,” he says. “I didn’t want to file bankruptcy. My ex was on my credit cards, and had I filed for bankruptcy, all that debt would’ve ended up on her.”
Troy has a couple years left on the program. He wants to get out sooner so he can prepare for retirement…
“There are things that I don’t use anymore, so I’m selling them on Craigslist to generate more cash to put towards my debt,” he says. “I’m turning 50 soon. If I don’t hurry up and pay my debt, I won’t have any cash freed up to enjoy my life the way that I would like to in retirement.”
Troy learned some lessons…
“The biggest lesson is that you really cannot manage your debt without having two things: a budget and a spending plan. You don’t realize how much money you’re spending without having a plan and tracking your dollars. Something I’ve been forced to do lately is sit down and say, ‘OK, here’s my income, here are my bills.’ I look at that and say, ‘I can’t eat lunch out five days a week,’ so I carry lunch to work.”
Troy wants those burdened with debt to seek help…
“If you feel like there is no end, call Consolidated Credit,” he advises. “They took the responsibility of negotiating lower interest rates and payment plans that work for my budget. I didn’t have the skills to negotiate with the credit card companies – I tried but it didn’t work. I felt like I had no power. If you do not want to file bankruptcy and don’t want that on your record, Consolidated Credit is the answer to help you get through this stuff.”
Once he completes the program…
“I definitely won’t be getting credit cards,” he says. “Hopefully, I’ll have enough cash to go sit on a sunny beach somewhere, take a deep breath and relax. It’s going to feel good to be out of this mess.”
Are you torn between bankruptcy and debt management? We can help you decide…
If you’re confused about using a debt management program, call us at 1-888-294-3130and a certified credit counselor will be happy to assist. Or you can request a Free Debt Analysis online.
