I’m Glad He Listened To Me
An acquaintance of mine – Phil (not his real name) earned a good living and from all appearances was doing well. In 2011, he asked me for advice as to his credit card debt. His story was no different than many people with excessive credit card debt – (but that means nothing when you are the person whose story it is!). He had $150,000 of credit card debt, his house was underwater and, at that time, his credit score was just over 700. His minimum monthly payments on the credit card debt totaled $3,750. The interest rate on the cards averaged nearly 20%, so he was paying $30,000 in interest per year.
He was earning good money (and still does) – in excess of $250,000 per year. With earnings at that level, he was not a candidate for any type of bankruptcy. His income was too high for a Chapter 7 and in Chapter 13, he would have had to pay off 100% of the credit card debt over 5 years. His problem – like anyone who ends up with anywhere from $20,000 – $200,000 of credit card debt – he was in the Credit Card Trap! – when all of your available cash each month goes to make the credit card payments – you can never reduce the balances because when you need to buy something – with no cash left – you charge it! Phil had no savings, no cash reserve and was miserable.
I explained to him that I’d take the minimum payments he was paying (the $3,750 per month) and use that money to settle all of the debt and pay the attorney fees and have him out of debt in 18-24 months. I told him it was not “Debt Settlement” like the BS you hear on TV and radio – that is was “Debt Resolution” the program I personally created, developed and refined and which we use for our clients. Phil’s big concern was, “What will happen to my Credit Score?” I told him, it will do down, and then it will go up and to not worry – as long was he wasn’t applying for a mortgage in the next 3 years – it won’t matter.
Phil listened to me. I settled all of his debt in 18 months. His credit score dipped at one point to 595. Today, his credit score is 833, he has no debt, his house is no longer underwater and he has saved $100,000 over the last three years. Every time he sees me – he smiles.
I’m glad Phil listened to me. It makes me feel good, but you know what? It really makes Phil feel good 🙂
Debt resolution was the right solution for Phil. Sometimes bankruptcy is the better option. The goal is to take the steps to preserve future income for you and your family. The step to accomplishing that goal is to shed the debt in the fastest, least costly method. Our job is to find the smartest solution for our clients — and then to get them to listen to us! Whether you are earning $60,000 or $260,000 or have $20,000 or $200,000 of credit card debt – the situation is the same – your life will improve dramatically when you get out of the Credit Card Trap.
Here is a shout out – to all the Phils out there who we have not yet had the privilege to help – you should learn about your options and attend our next FREE seminar this Wednesday or call us and come in for a FREE CONSULTATION. And if you are not in the Credit Card Trap – you should suggest this to your friend if he happens to confess to you that he is!
Have a great week,