March 2, 2009
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The Miracle of Credit Card Counseling, Pt.2
From Styx to fix.Still, they didn't sense the storm that was brewing. The quick and easy answer seemed to be going further into debt – quickly. Rather then pull the children out of the ‘extravagant' school, they took out another loan to pay for it. Feeding the family without giving up lifestyle was simple too – just charge it on the credit cards. As the cash got tighter, that problem was solved by simply reducing the credit card payments to the minimum. Problem solved (presumably). Soon, however, just paying the bills came down to an "Eeny meeny miney mo..." rationale. They simply all couldn't be paid anymore. At first it seemed like a cute little game. But, while the ‘Alien victims' were crying "Game over, Man", the credit card lenders were saying the same thing. APRs were jacked as high as 32%. Sobriety set in. The long, descending slide was in motion and seemed unstoppable.
Even with the new job that came along, the pay was much lower (the rule during the Bush years). Between credit card payments and the low pay, the downslide continued. From behind, the avalanche of overdue bills kept adding momentum. The lure of asking for (or even accepting) help from family and friends seemed repulsive. They watched Christmas slide by them, as they continued on their hapless journey downward. On the path, they encountered many new spectacles like health and medical problems, adjustable mortgages and finger pointing who all, unfortunately, also jumped on the sled, causing it to gain even more momentum. Up the road ahead they could see another prospective hitch-hiker named "Chapter 13". They really didn't want him on board. Fortunately for them, they still had their Google and managed to navigate a turn into the driveway of a credit card counseling agency called "Clearpoint Financial Solutions".
The good people at Clearpoint took them in, and ended the downslide at that point. Clearpoint charted out a path to recovery and even served as the chauffeur. They worked with the credit card and other creditors to produce a very equitable plan that made everyone happy in the end. Interest rates were slashed, everyone's being paid and the $40,000 debt should gone in three years. The credit rating is being restored and cash reserves are building up. Kudos.