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Finding Relief After Being Unemployed and Out of Savings

Finding a faster way to pay off credit card debt you took on covering income gaps.

Even as businesses reopen and the jobs report begins to improve, the U.S. unemployment rate still sits at 10.2%. Roughly 16.3 million people are unemployed.[1] Some households have faced a situation where both spouses have lost their jobs, leaving them to rely on savings and credit cards to get by until they can find new sources of income. When savings runs out, credit card debt can add up quickly.

That’s the situation that Victoria and her husband found themselves in. On top of that, Victoria was expecting and now found herself without health insurance. So, once they found new jobs and started generating income again, they were looking for a way to pay off their credit card balance fast, so they could focus on the new member of their family.

Their challenges started with back-to-back layoffs…

“My husband and I were expecting our daughter,” Victoria says, “and we had just lost our good jobs at a factory.”

Victoria and her husband hadn’t lived extravagantly. In fact, they only had one credit card. They’d even been good about saving for a rainy day, but with no income, their emergency fund ran out quickly.

“We were cautious with spending, but our savings was quickly spent on bills and needs, plus medical costs, as I no longer had insurance.”

Once their savings were drained, they were left to rely on their credit card to get by. The balance quickly shot up to $3,500 before they were able to find new employment.

They heard about a solution from a relative…

Her husband’s grandmother told them about Consolidated Credit, a company that specializes in helping people pay off high-interest rate credit card debt as quickly as possible.

Consolidated Credit provides free credit counseling. A certified credit counselor reviews your budget, debts, and credit to see where you stand. Then they recommend solutions that can help you get out of debt and save money.

If you need help because you have bad credit or too much debt, the credit counselor will see if you qualify for a debt management program. This is a professionally supported repayment plan where your creditors agree to reduce or eliminate interest charges applied to your balance. This allows you to get out of debt faster, while reducing your total monthly payments by up to 30 to 50%.

“I was nervous and ashamed,” Victoria admits. “I felt bad I needed help, but I swallowed my pride for our family’s sake.”

The credit counselor put her at ease…

“The representative was extremely kind and helpful,” she recalls. “He explained things to me over and over again until we both knew I completely understood everything.

After enrolling in the program, her interest rates are the lowest she’s ever had. On average, clients who enroll in the program see their interest rates drop to between 0-11%.

Now, Victoria is just one year away from being debt-free. As she’s worked through the program, Consolidated Credit’s team has been there to help.

“It’s so easy to get a hold of someone and talk to a real live person. And each person I talk to knows everything about my account and is glad to help.”

“They never make me feel bad about being in debt and I hear and feel no judgment when speaking with them.”

“I’m extremely satisfied with the outcome of this program and over the moon with the customer service.”

She’s has also taken advantage of free financial education resources along the way…

As one of the nation’s largest nonprofit credit counseling organizations, Consolidated Credit also provides a range of free financial education resources. It’s part of their mission as a nonprofit to help clients build financial literacy, so they can achieve and maintain financial stability long-term.

That way, once a client gets out of debt, they can stay that way.

“I truly feel like my life is for the better financially since being on the program. It has made me realize the importance of money and debt management.”

Victoria also says that her credit has absolutely improved since being on the program.

Although score improvements are not guaranteed, enrolling in a debt management program creates no negative notations in your consumer credit report like you see with other debt relief solutions.

What’s more, many people who start the program with bad scores like Victoria did see their scores improve. The program helps them build positive credit history.

What are the biggest lessons that Victoria has learned?

“I learned how much interest rates are a joke and end up hurting you if you have a bad credit score,” she says. “Looking back over the years, I could be extremely well off if I’d been taught properly about money management. Quit buying things you don’t NEED! Be wise with your money and don’t live outside your means.”

She’s taken these financial lessons to heart, and may be debt-free even sooner…

“If we get another stimulus check,” Victoria explains, “the money will be put directly to paying off this debt and hopefully getting further ahead on other bills.”

While you’re enrolled in a debt management program, you can use any extra funds you receive to pay down your debt faster. Simply call the customer service line and they’ll help you arrange the payments.

Latin couple happy to be debt-free

She’s looking forward to the feeling of making that last payment and already knows how they’re going to celebrate.

“We’re going to open a savings account for our daughter. I’ve wanted to since I found out we were pregnant.”

And now, like her husband’s grandmother Sandra, Victoria will recommend Consolidated Credit to any friends and family who are struggling to pay off their credit card debt.

“I’m forever grateful for all this company and the people have done for me and my family.”

If you’re facing a similar situation after being unemployed, we can help. Talk to a certified credit counselor today.

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