Featured customers currently enrolled in a CareOne Debt Relief Plan, share journey to become debt-free; hear how they juggle family, finances, and more.
Falling into credit card debt seemed much more like an overnight happening, rather than a slow accumulation process. I graduated from college with some credit card debt, but I assumed, (like most college students do), that I would get this wonderful job with a massive paycheck, and I wouldn't have to worry about any of the bills.
Instead of starting off in the "real" career world post-college, I decided on law school instead.
As a full time law student, I literally funded my entire three-years of law school education, (and life), on borrowed money. I certainly wasn't living a lavish lifestyle, but in hindsight, I could have, (and should have), borrowed less. Even though I was in law school, I still had to pay the already existing credit card debt.
I figured out some way to open new cards, transfer balances, and pay existing balances with any extra "living expense" student loan dollars. Think about the significance of this: I was taking on more debt to manage debt. To aggravate an already challenging situation, I continued to spend.
All along I thought: "Once I graduate, I'll be able to pay these bills-no problem."
I graduated from law school and while I was working as a practicing attorney, my pay checks were meager. I could just cover my living expenses with my bi-weekly paychecks, and to make matters worse, now that I was a graduate, I had to begin paying back those massive student loan bills. I wish that I entered a Debt Management Plan (DMP) at this point in my life, but I didn't, and it got worse before it got better.
I ended up losing my job, which meant that I lost my medical insurance coverage. Now, I had some fairly large medical bills and living expenses that I was paying for exclusively with credit cards. Even though I was taking on more debt than I was bringing in income, I didn't see the warning signs. Then, when my longtime boyfriend asked me to marry him, we funded an entire lavish wedding on credit cards.
Shortly after the wedding, I did find employment again, and as a 26-year-old new bride, I finally realized that I had accumulated over $60,000 in credit card debt, and an additional $250,000 in student loan debt. I realized at that point, that I would be dependent on a dual income for the rest of my life. Not to mention, just months after the wedding, I began to realize that the wedding bills were going to last longer than the marriage. I had accumulated so much debt that I would have to work exclusively to pay credit card bills and student loans.
That's when I knew I needed help.
I contacted a CareOne Debt Relief Services credit counselor on a Tuesday night, back in 2007. Within minutes, I felt relief. I knew that it would take hard work and diligence to complete the program, but as long as I stayed committed, I would be free of credit card debt within 5-years. Without entering the plan, as long as I continued to make minimum payments on my cards, it would take me 20 years, (and thousands of dollars in interest), to get out of the debt that took me just 3 years to acquire.
I'm just a few payments away from completing the plan, and there are few things that make me more proud. Being a part of the CareOne Debt Management Plan (DMP) has changed my life. I now pay cash for everything I buy. If I don't have the cash, I don't buy it.
My credit score has improved remarkably, and even though I am still working on that student loan debt, it seems much more manageable than that unsecured credit card debt.
Accumulating credit card debt didn't happen overnight, (though it felt like it), and getting out wouldn't either. With dedication, hard work, discipline, and constantly monitoring my progress with the CareOne Plan, I will actually be free of credit card debt in just a few months.
I can tell you this much: There was nothing that I bought with those credit cards that gave me the satisfaction that paying off those balances has.
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Katy Dinger
Katy has been a customer with CareOne Debt Relief Services since November 2007. She is a legal consultant and enjoys various freelance writing projects during her free time. Facing more than $50,000 in credit card debt upon graduating from law school, Katy knew she needed help. Getting into debt was not nearly as challenging as getting out, but she believes that managing debt is possible with the proper tools and trusted guidance. Follow Katy's story of life on a Debt Management Plan in the My Journey Out of Debt blog.
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Here is My Journey out of Debt