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How We Paid Off $89,000 in Credit Cart Debt and Saved Our Marriage

Courtesy Mary R.
By Mary R. as told to Michele Lerner

Around the time my husband Larry and I had been married for more than 30 years, we finally faced the reality of our financial situation: We owed $88,557 in credit card debt.

We had been living from paycheck to paycheck because my husband was switching careers and had been looking for work for about a year. Even though I was working, we had to use our savings to cover our living expenses, and eventually relied on credit cards to make ends meet. We even had to take out a payday advance loan once or twice.

We weren't behind on any payments and we weren't thinking about bankruptcy or anything like that. But we were tired of living hand-to-mouth.

The debt just kind of crept up on us. We'd always used credit cards, but using them more for that year sent the balances up high. My husband was doing the budgeting and bill paying the best he could, and I really wasn't engaged in the process for a long time.

I don't blame him at all for the situation, though, because I should have been more responsible about our money and looked into what was going on.

The Split

It wasn't any one thing that sent us to get help, it was just that we didn't want to live from paycheck to paycheck anymore and we could tell we would never pay off our debt by making the minimum payments. We went to ClearPoint Credit Counseling Solutions, a nonprofit credit counselor, for help. Some of the debt was in my name, some in his, and some in both of ours. They negotiated with our creditors for lower interest rates and set up our debt management plan.

But then it got more complicated because we separated. It wasn't the debt that caused our marriage problem; it was that we weren't communicating with each other.

We lost our house to foreclosure during this time because once we separated, neither one of us could afford the house payments.
However, we both were really committed to the debt management plan, so we set up a system where I deposited my part of the payment into his account and the funds were transferred to the debt management fund. Our payment was around $2,800 a month.

The Sacrifices

Thankfully, we were both employed by the time the debt management plan started in 2009. As soon as we got on the plan, our payments were lower than they had been, so that helped. But we knew we had to make changes because we had mismanaged our money for a long time.

The biggest thing was that we downsized -- a lot. I moved into an apartment that was half the price of the first one I found, and Larry moved into a small place, too.

We sold a lot of furniture when we split up, and I got rid of my car and drove a car my mom sold to me instead. I made interest-free payments to her. I got rid of cable TV and just learned how to live within a budget.

While we were separated, I took Dave Ramsey's Financial Peace class and that was another positive life change. I learned to manage my own budget carefully while we were separated, figured out which bills to pay with each paycheck and how much I had to live on after making the debt management payment.


We were separated for about 20 months and then we reconciled. My husband went to Dave Ramsey's class with me, and together we learned to be intentional about our finances.

Recombining our households also made it easier for us to find money to pay down what we owed.
We finished paying off all our debt in May and now all of the money we used to spend on the debt management plan goes into our savings and retirement accounts. We've been living only on cash and an ATM card from our bank since 2009 and we never intend to use a credit card again. (We don't want one at all because we don't ever want to be tempted to use it and accumulate debt again.)

Building a New Future -- Together

Best of all, we were able to buy five acres of land with our grown kids. They live in a house on the property and we're slowly building a home for us on the land, too. When it's ready, we'll sell the mobile home we're living in now. It's like a dream come true.

I can't say it was easy, but four years came and went and we survived it -- paid off our debts -- and it was well worth the effort. On top of all that, we recently celebrated our 35th wedding anniversary.

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James Mack

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April 01 2014 at 5:04 AM Report abuse rate up rate down Reply

The best way to get rid of debt is to live below your means for a while, but of course that's easier said than done. Here are some of my tips:
1) Start by selling everything you don't need.
2) Cut eating out as much as possible.. aim for eating on less than $2/day (definitely possible).
3) Cut back on transportation costs. Drive a cheap car (Honda Civic), get cheap $25/month insurance (check Insurance Panda), use GasBuddy for gas.
4) Don't bite off more than you can chew with rent/mortgage or whatever house cost you have.
5) Pay off all your debts one by one. Start with the highest interest ones.

March 10 2014 at 1:08 PM Report abuse rate up rate down Reply
Mel Thompson

Your story has a happy ending - that awesome! However, I hear and help so many people whose credit card debt is a ongoing nightmare because there so many SCAMS and pitfalls. The debt industry is a minefield: this includes debt counseling, debt consolidation, settlement, attorneys and relief. I recommend if you are in severe debt, then pursue a dual strategy of a) Learning about the debt industry b) Get help from people who used to have the problem but now don't..

October 26 2013 at 6:54 AM Report abuse rate up rate down Reply

Well, this is all very heartwarming, but, there are a few things to point out. Part of the reason that this worked for them was that she had an income the whole time, and he was without income only for a short period of time. They also walked away from their house, which probably hurt their credit rating but significantly cut their monthly expenses. She had help from her mother with a no interest car loan. Many of us have had extended periods of unemployment, which when combined with mortgage or rent payments, student loan payments, utilities, food, and credit card payments, creates an impossible situation for most people. For many, foreclosure, default on credit cards, and bankruptcy become the only choice, and credit counseling is not an option.

August 29 2013 at 10:05 PM Report abuse +1 rate up rate down Reply

Hey what is credit cart debt? Her spelling is off!

August 29 2013 at 7:46 PM Report abuse rate up rate down Reply

This truly great. We did it too and we both feel so much better for it. Now we pay in cash and don\'t have the burden hanging over our heads, much less stress in our lives. We can now take an occassional trip and enjoy things together that previously, we could not. Makes a big difference and I am sure you will be blessed you did it too.

August 29 2013 at 6:48 PM Report abuse +1 rate up rate down Reply

I can really relate to their story, me and my husband, have been married for almost 30 years now, and had to deal with the same credit problem, but at least we have not been in dept as much as they ahve been. My husband, loved using credit cards, and i just got too dependent on them, on a daily basis, for daily expenses, and we lost control of our home accounting. I was a stay at home mom, and worked hard to take care of the home, and our son, and my husband, had his business career. When I finally decided to stop using the credit card, becuase my husband blamed the crisis on me, I started to get control of the home again, and the accounting. So, now, I keep an accurate record of all the expenses, and payments, and most of all, keep a daily close relationship with my husband, on all the expenses, and our bank account, and that keeps us close, and also in control, of the home, and our finances every day.

August 29 2013 at 7:48 AM Report abuse +2 rate up rate down Reply
1 reply to ungertorelli9's comment

Me have been married, huh?

August 30 2013 at 8:21 AM Report abuse rate up rate down Reply

what a waste for greed or is it need 30yrs for $90K debt....

August 29 2013 at 7:18 AM Report abuse rate up rate down Reply