Jessica Lee, a 42-year-old single mother from New York, was living what many would consider a successful life. With a Master’s degree and a full-time job in a reputable company, she seemed to have it all under control. However, beneath the surface, Jessica was grappling with a mounting financial burden. Following a divorce and an unexpected medical emergency for her daughter, she found herself struggling with high interest rates and multiple debt payments. This debt challenge seemed like an impossible task to fix on her own. However, when discussing her situation with a close friend, Jessica was recommended American Consumer Credit Counseling. After discussing with a credit counselor, Jessica was able to work with them to get her finances under control and find financial freedom. Read on to hear about how she made that happen!
Finding financial freedom from the debt challenge she had on hadn was crucial for their future! Read her story.
Jessica’s Debt Challenge : Her Burden of Debt
Jessica was managing her bills alone, on one income, for the first time in years. Facing $30,000 in unsecured debt spread across credit cards and medical bills, her situation was more than overwhelming. With credit interest rates as high as 22%, she was juggling monthly payments that barely covered the interest. She was making no real progress towards paying down the principal.
With this debt hanging over her head, Jessica was skipping outings and trading her wants for her needs. She was in a desperate need to make a real dent in her debt. When her financial stress even began affecting her ability to enjoy life and plan for her and her daughter’s future, she knew she needed help. Here is some more details on how she got into this situation in the first place!
Unexpected Medical Bills:
With the unexpected medical expenses she had to incur on her daughter she accumulated a sizeable amount of medical debt. Her insurance would not cover all of the expenses pushing her to use her credit cards as a fall back plan. With the recent changes in her relationship she was managing paycheck to paycheck. Therefore, she was not prepared for anything out of her routine expenses. The heavy reliance on credit card debt pushed her towards accumulating more and more debt.
Cost of Living:
Jessica faced rising rent, utility bills, and the basic needs of her household. All of these expenses stretched her finances really thin. The economic changes following the COVID era were not in her favor either. With increasing costs on almost everything it was impossible to make ends meet without relying on credit cards.
Her heavy dependency on credit cards was what led her to this situation mostly. However, being the strong mom she was, she was determined to get out of this situation for the sake of the well being of her family.
An Essential Turning Point: The Road to Financial Freedom
Hoping for a change, Jessica turned to American Consumer Credit Counseling (ACCC) after a recommendation from a friend who had successfully navigated similar financial waters. Skeptical at first, she couldn’t deny the remarkable way her friend’s financial situation had improved. In a last-ditch effort, she made the call that would set her on a new path.
Jessica had an average interest rate of 26% across the seven creditors and almost 50% of their monthly payments were going towards paying the interest rather than reducing the principal amount of debt. However, Jessica was immediately put at ease by an ACCC counselor who took the time to understand her unique financial situation.
On their call, Jessica was able to outline her full financial situation. Her counselor was able to help her create a budgeting plan that would balance her debt payments with a savings plan to prevent further medical debt. The counselor also helped her enroll in a Debt Management Program (DMP). This program consolidates her numerous high-interest debts into one manageable monthly payment with a reduced average interest rate of 8%.
Jessica’s Path to Financial Freedom: Overcoming her Debt Challenge
The debt management program helped Jessica gain financial control back. The methodical process helped her see some light at the end of the tunnel. From seeing no enc to paying off her debt she could now work within a plan that helped her pay off her debt under five years! This was a huge win for Jessica given that she had her daughter’s future to plan and take care of!
Having to start fresh as a single mom wasn’t easy. at least now she could do it without the burden of debt hanging over her head! She was committed to keep the communication open with the expert credit counselors at American Consumer Credit Counseling. the organized budget, as well as the structured debt management program not only gave her clear direction but also gave her a road map and the ability to work towards bigger financial goals for her and her daughter’s future.
Jessica’s Heartfelt Gratitude:
Reflecting on her journey, Jessica shares,
“Before ACCC, I felt like I was drowning in debt with no way out. The counselors at ACCC gave me hope and tangible solutions. They were with me every step of the way, providing financial education and support that went beyond just managing debt. I learned how to budget, save, and most importantly, how to avoid falling back into debt. Thanks to ACCC, I am not only debt-free but also have savings and a clear plan for the future. I can finally focus on my daughter’s needs and our life together without the cloud of debt hanging over us.”
Key Takeaway rom Jessica’s Debt Challenge:
Jessica’s story is a testament to the power of seeking help and the effectiveness of debt management programs like those offered by American Consumer Credit Counseling. Her experience highlights the importance of personalized financial solutions and ongoing support in overcoming debt and regaining financial stability. Jessica continues to advocate for financial education and the services of ACCC, hoping to inspire others who find themselves in similar situations.
See if Credit Counseling is Right For You!
When You are Ready to Regain Control of Your Finances:
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Contact ACCC and connect with a professionally trained, independently certified counselor who will:
- Evaluate your financial situation to determine a feasible payment plan – This is where you obtain a comprehensive picture of your financial situation, including your debts, expenses, and income.
- Assist in creating a budget that meets your needs – Create a suitable budget while paying off your debt. Coming up with a plan together with your counselor to exclude unwanted expenses and work towards debt relief.
- Help develop a debt management plan, consolidating your debts into a single monthly payment – Consolidate the money you owe so you can make a single payment each month to ACCC. The company makes payments to all your creditors on your behalf. This enables you to stay current with your payments. Also, it reduces the stress of having to make separate payments to your creditors.
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The counselor will collaborate with your creditors to:
- Seek potential reductions in finance charges, late fees, and over-limit charges – Working with your creditors for a possible reduction in your interest rates, late fees, over-limit charges and the time it will take to pay off your loan.
- Negotiate extended deadlines for existing debt repayments – Working with your creditors to negotiate payment deadlines, so that you align your debt management program with your budget.
