Worked with a nonprofit counselorSeveral debts$40,000
How Elizabeth Paid Off $40,000 With Help From a Nonprofit Credit Counselor
Elizabeth, from Yulee, Florida, owed about $40,000 after an emergency home project. A nonprofit credit counseling agency worked with her creditors to cut her interest rates, and she paid the whole balance off.
Video by News4JAX The Local StationPublished December 13, 2024Breakdown updated September 15, 2026
“A Yulee woman paid off $40K in debt. Here's how she did it” by News4JAX The Local Station. We didn't make this video; it loads from YouTube when you press play.
Where Elizabeth started
Elizabeth, who lives in Yulee, Florida, built up about $40,000 in debt. She told News4JAX it came from an emergency home project, not holiday shopping, though she admits she tends to buy more than she should for the people on her gift list.
What Elizabeth did
- 1
An emergency home project pushed her debt to about $40,000, and it wasn't made up of small purchases.
- 2
She turned to Money Management International, a nonprofit credit counseling agency, for help.
- 3
The agency worked with her creditors to lower her interest rates; she said a rate of about 19.9% dropped to 1.9% on one account and 0% on another.
- 4
The agency's counselor described the process as starting with a spending plan built from income, assets, creditors and monthly living costs.
- 5
She paid off the full $40,000 and says she has learned from her mistakes going into the holidays.
What you can learn from it
One big expense can start it
Elizabeth's balance didn't come from small purchases. It followed an emergency home project, which is a different problem to plan around than steady overspending.
Interest rates made the difference
Her biggest change was the rate she paid. The FTC notes that when a counselor sets up a debt management plan, creditors may agree to lower interest rates or waive certain fees, so results depend on each creditor.
Start with a spending plan
The counselor in the segment said the work begins with what comes in, what goes out and what the person's priorities are, before any repayment plan.
Ask about fees first
Nonprofit credit counseling is often free or low-cost; ask about fees first. The CFPB says counselors may charge for some services and suggests getting a price quote in writing.
In their words
“It wasn't even small purchases.”
Before you copy this path
Rate cuts like Elizabeth's depend on what each creditor agrees to, so other people may see different rates. The segment doesn't say how long her payoff took or what fees she paid.
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 nonprofit credit counselor get interest rates lowered?
In a debt management plan, the counselor works out 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 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, and it suggests getting a specific price quote in writing.
Source: consumerfinance.govHow do I know if a credit counseling agency is trustworthy?
The CFPB suggests asking what services the agency offers, what its fees are and what qualifications its counselors have. It warns against organizations that push a debt management plan as the only option before analyzing someone's finances.
Source: consumerfinance.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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