In Two Years, Woman Reduces Her Debt by Half
Her first steps were to scale down her small business, get rid of most of her credit cards and get professional help.
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September 25, 2009
Not long ago, Dawn Warfield was $80,000 in debt, owning 17 credit cards and making minimum payments on them. But her decision to take matters into her own hands before it was too late set her on a firm course to financial survival.
"I was transferring balances from one card to another, and every time I got a card to a decent interest rate, I felt like one of the cards would come off the promotional interest rate, and I was just never catching up," she told CNN.
Her first steps were to scale down her small business, get rid of most of her credit cards and get professional help. After a thorough analysis of her finances, the advisor was able to consolidate her multiple payments into one and significantly lower her monthly debt-service expenses as well the interest rate, according to the news source.
Now "only" $40,000 in the red, Warfield hopes to be debt-free within five years. In the meantime, the consolidation has freed her mind to focus on helping her video store business thrive.
Among organizations that may help those affected by credit card debt is the nonprofit National Foundation for Credit Counseling. It is also a great resource for consumers who would like to learn more about how to avoid being tricked into accepting high-interest credit cards that can lead to excessive indebtedness.
Of course, the best way to avoid debt is to live within one's means, spend less than the household income, and use credit and loans only in emergency situations.
According to industry statistics, the average American household has $8,329 in credit card debt.
Not long ago, Dawn Warfield was $80,000 in debt, owning 17 credit cards and making minimum payments on them. But her decision to take matters into her own hands before it was too late set her on a firm course to financial survival.
"I was transferring balances from one card to another, and every time I got a card to a decent interest rate, I felt like one of the cards would come off the promotional interest rate, and I was just never catching up," she told CNN.
Her first steps were to scale down her small business, get rid of most of her credit cards and get professional help. After a thorough analysis of her finances, the advisor was able to consolidate her multiple payments into one and significantly lower her monthly debt-service expenses as well the interest rate, according to the news source.
Now "only" $40,000 in the red, Warfield hopes to be debt-free within five years. In the meantime, the consolidation has freed her mind to focus on helping her video store business thrive.
Among organizations that may help those affected by credit card debt is the nonprofit National Foundation for Credit Counseling. It is also a great resource for consumers who would like to learn more about how to avoid being tricked into accepting high-interest credit cards that can lead to excessive indebtedness.
Of course, the best way to avoid debt is to live within one's means, spend less than the household income, and use credit and loans only in emergency situations.
According to industry statistics, the average American household has $8,329 in credit card debt.
