Worked with a nonprofit counselorCredit cards$20,000
How Tracy Paid Off $20,000 in Credit Card Debt Through a Nonprofit Plan
After a breakup left her covering rent alone, Tracy Schultz ran up $20,000 on credit cards and couldn't keep up with the minimums. A nonprofit debt management plan worked with her creditors on one monthly payment she could afford, and she paid it all off.
Video by Good Morning AmericaPublished May 15, 2025Breakdown updated September 15, 2026
“How one woman paid off $20,000 in debt: She shares her debt management strategies” by Good Morning America. We didn't make this video; it loads from YouTube when you press play.
Where Tracy started
Tracy was paying rent on her own after a breakup and started putting groceries on her credit cards to cover the difference. Over time the spending became a way to feel better, and her balances grew to about $20,000 until she could no longer afford the minimum payments.
What Tracy did
- 1
She reached the point where the minimum payments on her cards were no longer affordable.
- 2
She enrolled in a nonprofit debt management program, which contacted her creditors.
- 3
The program set a fixed monthly amount she could manage, combining her card payments into one set payment.
- 4
She tracked her spending and aimed to pay for purchases in cash.
- 5
She paid down each balance over time and cleared the $20,000 in a few years.
What you can learn from it
Notice when spending changes purpose
Tracy's charges started as a way to cover a rent gap and later became about feeling better. Spotting that shift early can make it easier to tell a short-term stopgap from a pattern that needs a plan.
Unaffordable minimums are a signal
Her turning point came when she couldn't keep up with minimum payments. That's a reasonable moment to talk with a nonprofit credit counselor instead of waiting for balances to grow.
One payment, sent through the agency
In a debt management plan, the person makes a single payment to the credit counseling organization each month, and the organization pays each creditor. That's how Tracy went from several card bills to one set amount.
Ask about fees before enrolling
Nonprofit credit counseling is often free or low-cost; ask about fees first. The CFPB notes that credit counselors may charge fees for some of their services.
Pair the plan with new habits
Tracy tracked her spending and tried to use cash, so new charges didn't pile up while old balances came down. The FTC notes a plan may require agreeing not to apply for or use more credit until it's finished.
Before you copy this path
Tracy's payment amount and timeline reflect her own balances and creditors. Interest-rate changes, fees and plan length vary, and the FTC notes plans can take 48 months or more.
Watch out: You may have to stop using or applying for credit, and a plan can take 48 months or more. Ask about fees first.
Find a nonprofit counselorCommon questions
How does a debt management plan work?
A credit counselor sets up a payment schedule with the person and their creditors, and creditors may agree to lower interest rates or waive certain fees. The person then deposits money each month with the credit counseling organization, which pays the creditors.
Source: consumer.ftc.govDoes nonprofit credit counseling cost money?
It can, so ask about fees first. The CFPB says that although most credit counseling organizations are nonprofits, counselors may charge fees for some of their services.
Source: consumerfinance.govHow long does a debt management plan take to pay off credit cards?
The FTC says a debt management plan can take 48 months or more to complete. People on a plan may also need to agree not to apply for or use more credit until it's finished.
Source: consumer.ftc.govSources
By DebtCheckUSAEditorial Team. This is our summary of a video we didn't make, and nobody paid us to include it. It's one person's experience, not financial, tax or legal advice. Advertiser disclosure
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