Jerry and Sue Bailey, from Jackson, Michigan, managed to pay off an astounding $92,000 in credit card debt, which had accumulated since 1992 and lasted until 2005 over 17 different credit cards. They used these cards to finance numerous expenses such as two weddings, vehicle repairs, and various home upgrades, including a new roof according to a Fox Business article.
“I never thought it would happen to me, it happens to others,” said Sue Bailey when discussing their overwhelming combined debt to Fox Business. She continued, “There’s a certain embarrassment about being in this position because we believe in repaying our debts.”
When they reached out to their local credit union for guidance in spring 2005, they were advised to declare bankruptcy, but they rejected this advice. “We just don’t believe in that,” Sue Bailey told Fox, adding, “We believe in paying what we owe.”
They were referred to GreenPath Debt Solutions, a non-profit credit counseling agency. GreenPath and similar agencies assist consumers struggling with their financial commitments by formulating a feasible plan for debt management to clear outstanding debts.
The agency mediates between their clients and the creditors to agree upon manageable monthly payments and lower interest rates. Clients then pay a monthly sum to the agency, which then disseminates that money to the creditors until all debts are resolved. With GreenPath’s support, the Baileys cleared their debts within five and a half years.
It was a challenging journey. Through careful budgeting, significant sacrifices, and earning extra income by picking up additional work, Jerry and Sue’s struggle against their outstanding debts ended in October 2010. When GreenPath informed them that they had finished repaying their debts, Jerry Bailey was stunned.
“I asked her to repeat it because I wasn’t sure,” he shared with Fox.
His advice to anyone grappling with significant debt is, “Put a small amount from every paycheck into a savings account. Accumulate it for when adversity strikes since it’s inevitable.” Regarding credit cards, Jerry cautioned, “only have one, but make sure to pay it off every month,” as reported by Fox.
For some individuals, transferring balances from high APR cards to 0 balance transfer cards can be an effective initial step towards becoming entirely debt-free.
