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How to Pay Off $20,000 in Credit Card Debt

When high IRS and New York State taxes continued to eat away at Terrence’s income, he reached out to Consolidated Credit for help.

Coming up with large sums of money to pay back credit card debt is seemingly tough enough as it is. And trying to pay off $20,000 in credit card debt can seem even more insurmountable. But when the debt keeps on piling up and no matter how hard you try to whittle it down, it seems like a never-ending task. So how do you roll back up the hill without falling right back down?

The start of the challenges…

Terrence’s challenges arose as a result of New York state. When you can’t pay off back taxes you owe quickly, penalties and interest can stack up quickly. In fact, the IRS can assess interest up to 25 percent that compounds daily.

“Basically, I owed too much in taxes to pay each year, so I had to supplement buying with credit cards.”

So, most of Terrence’s income was going to pay off those tax bills. He was using credit cards to cover daily expenses. On top of this, Terrence moved homes and had to use his credit cards for the heavy costs of moving.

By the time Terrence decided he needed help and called Consolidated Credit, he owed over $21,000. He wanted a solution that would allow him to pay off his debt faster in a way that worked for his budget—without damaging his credit.

“Consolidated Credit’s debt management program was remarkably helpful with my credit rating taking it from low end of ‘fair’ to the high end of a ‘good’ rating.”

With few options left, Terrence sought out the help of professionals…

“I researched online and read reviews,” Terrence explains. “Consolidated Credit appeared to be what I needed.”

Initially, Terrence was reluctant because he was afraid he would be losing control of his budget by committing income to the program for monthly payments to pay off his debt.

“I was reluctant because I knew or at least suspected that I would be assigning my own funds to the program. That meant a regular monthly payment and I was worried I would lose control of the situation.”

After making the call, Terrence was still a little hesitant as to whether or not he was going to “hold up his end of the bargain.” However, he was certain he was taking the right steps to ensure his debt would be eradicated.

“The process at Consolidated Credit makes sense—a lot of sense.”

Getting professional help…

After enrolling in Consolidated Credit’s debt management program, Consolidated Credit’s team worked with his creditor to lower the interest rates on the seven credit cards Terrence enrolled in the program, Consolidated Credit was able to provide him with a three-year plan to pay off his debts.

“Consolidated Credit negotiated better deals than I could have on my own by far,” Terrence says.

It’s a trend that many of our clients see. They may call their creditors on their own to negotiate lower rates, but they can’t beat the rates they can get through Consolidated Credit. On average, we work with creditors to reduce interest rates to between 0-10%.

“It’s a great, effective service. My problems with debt were solved by working with Consolidated Credit. They provide a great service.”

Getting out of the debt hole…

Terrence recalls the day he finished the program.

“It was a very good day. A great feeling.”

Now that his debt is under control, Terrence has found happiness in the little things like taking his wife out to dinner more often now that they have a budget plan and a little more cash in their pockets.

“Having access to the additional funds in my monthly budget is the BEST feeling.”

Lessons Learned…

Some of Terrence’s takeaways from speaking with our team of professionals gave him a little more clarity in regards to how debt functions. And he has this advice for others in a similar situation.

“Get help and get it soon. The longer you wait, the worse it can get. You are throwing good money after back. And use Consolidated Credit—they know how to do this.”

“I would absolutely recommend Consolidated Credit because it works and specifically, it lends one discipline. I could not have done this on my own at all.”

Terrence says Consolidated Credit helped him learn five key lessons along the way:

  • A credit card is not my money.
  • Paying a minimum balance monthly is a lose, lose proposition.
  • Professionals in debt management can get better rates that I can.
  • I tend to be my worst enemy when it comes to managing debt – often choosing denial over wisdom, so getting outside party to help is crucial.
  • Freedom from debt is a right.

Looking for the smartest means to pay off $20,000 credit card debt? Call us for a free evaluation with a certified credit counselor.


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