Debt Consolidation Case Studies

Debt Consolidation Case One

Cindy Clemons had a total debt of $12,980.00 and she was three months behind on her bills, with the creditors calling non stop. She could no longer meet the minimum payments on her three creditors. The creditors wanted a minimum payment of $970.00. Her credit report was showing that she was 90-days late and her average interest rate with her three cards was 22%. At that pace it would take her 18 years to get out of debt.

Once she got started into a Consumer Debt Consolidation program her interest rates were reduced to 8.2%, her monthly payments went from $970 to $330 and she will be debt free in 47 months or 3.9 years. The creditors have stopped calling and agreed that after she made three consecutive payments in the program that they would re-age her account to show it never late on her credit report.

$640 monthly savings

$47,520.00 Interest savings

Debt Consolidation Case Two

Robert Swanson needed help with eight (8) credit cards. He had a total debt of $69,703.00 and his average interest rate was 26%. At that pace would have taken him over 75years to be debt free. The creditors wanted a minimum payment of $1,589.00 per month and 1/10 of that would have been going to his principal balance.

After enrolling in a debt management program he now has an average interest rate of 10%, and a new monthly payment of $958.00. He will be debt free in 5.2 years.

$631 monthly savings

$216,497.00 Interest savings

Debt Consolidation Case Three

Mary Summers had a total of 5 credit cards and 3 Medical bills that she needed help with. She had a total debt of $39,849.00. The monthly payment that her creditors wanted was $1,340.00 and her average interest rate was 27%. It would take her 56.5years to get out of that debt.

Once enrolling in a Debt Consolidation Program her new monthly payment is $824.00 and her new average interest rate went to 6%. She will be debt free in 48 months or 4 yrs

$516 monthly savings

$112,542.00 Interest sav