Worked with a nonprofit counselorCredit cardsAbout $70,000
Johnika's 49-Month Debt Management Plan: Paying Off $70,000 on Eight Cards
Johnika Dreher owed about $70,000 across eight cards after furnishing a new home. Her bank referred her to a nonprofit debt management plan that lowered her rates; she finished in 49 months, paying a monthly fee under $50.
Video by Money Management InternationalPublished September 20, 2022Breakdown updated September 15, 2026
“2022 NFCC Brighter Financial Future Award: MMI client Johnika Dreher” by Money Management International. We didn't make this video; it loads from YouTube when you press play.
Where Johnika started
Johnika and her family moved into a large house when their son was two, and furnishing it pushed their spending up. Within a few years, about $70,000 in debt had spread across eight credit cards.
What Johnika did
- 1
She enrolled in a debt management plan with Money Management International (MMI), a nonprofit credit counselor.
- 2
She shared what she owed, and MMI set up the payment plan and let her creditors know.
- 3
She gave up all of her credit cards and didn't open any new lines of credit.
- 4
She paid a monthly MMI fee that she remembered as less than $50.
- 5
She kept up with payments for 49 months until the debt was paid off.
- 6
She later volunteered as an MMI Peer Advocate and received the 2022 NFCC Brighter Financial Future Award.
What you can learn from it
Big life changes can grow balances
Johnika's debt built up in just a few years after a move into a large home that needed furnishing. Checking the budget after a major purchase can catch rising balances earlier.
Expect to set credit cards aside
Johnika had to give up all of her cards and avoid new credit. The FTC notes a plan may require agreeing not to apply for or use more credit until it's finished.
Know the monthly fee up front
Her fee was under $50 a month, as she remembered it. The NFCC says some agencies charge a set-up fee of $75 or less and $25 to $50 a month, sometimes with income-based waivers, so ask about fees first.
Plan for a multi-year commitment
Her plan took 49 months. The NFCC says debt management plans typically take three to five years, so it helps to budget for the long haul.
Before you copy this path
Johnika's fee, interest rates and 49-month timeline were specific to her creditors and her agency's terms. Another person's balances, income and creditors could lead to a different cost and length.
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
Can you use credit cards while on a debt management plan?
Usually not. The FTC says someone on a plan might need to agree not to apply for or use any more credit until the plan is finished.
Source: consumer.ftc.govIs a debt management plan the same as a debt consolidation loan?
No. The CFPB describes a debt management plan as one monthly payment to a credit counseling organization, which then pays creditors, while debt consolidation is a new loan from a bank or credit union that combines debts.
Source: consumerfinance.govWhat are the monthly fees for a debt management plan?
Fees vary by agency, so ask about them first. The NFCC says some agencies charge a set-up fee of $75 or less and a monthly fee between $25 and $50, and income-based fee waivers may be available.
Source: nfcc.orgSources
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
More stories
All stories
Worked with a nonprofit counselor
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.
Worked with a nonprofit counselor
How Lavell Paid Off Five Maxed-Out Credit Cards With a Nonprofit's Help
Lavell's debt started with a card that came in the mail when he was a teenager and grew to five maxed-out cards. A nonprofit counseling agency set up a plan estimated at about five years and got one card's rate cut from 24% to 2%; he says he's now out of credit card debt.
Paid it off themselves
How Mandy Paid Off $102K in Student Loans With Side Jobs and the Snowball
Mandy Velez left school with $75,000 in loans and a $40,000 salary in New York. She used the debt snowball, took on dog walking, babysitting and freelance writing, and paid the last $32,000 in about eight months.
Your story starts with the whole picture.
List your debts once and see your debt-free date and which options fit. Nothing you enter leaves your browser.