Recently, a Wisconsin family managed to get out of debt to the tune of around $106,000.
The Hildebrandt family found themselves owing the large load of cash after getting into trouble with personal loans and credit card debt. The family consulted with a credit counseling service in order to get debt help.
Credit counseling services can offer a number of options for consumers who are trying to get out of debt. One of those options is debt management, where credit counselors come up with a payment plan to help consumers manage money and debts.
In order to make sure they could make their payments, the Hildebrandts found ways to cut back on spending.
“They eliminated all discretionary spending,” a Consumer Affairs report noted. “They bought clothing at thrift stores, eliminated gifts, and purchased only generic and store brands at the grocery store.”
Russell Hildebrandt, the family’s father, also ended up taking a second job in order to help make ends meet. After five years of managing money, the Hildebrandts were given the Professional Achievement and Counseling Excellence (PACE) 2009 Graduate Client of the Year Award in honor of their efforts.
According to the Federal Reserve, more families like the Hildebrandts may be making progress when it comes to trying to get out of debt. The Fed reported that household debt dropped by 1.75 percent during the second quarter.