Worked with a nonprofit counselorCredit cards
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.
Video by WXYZ-TV Detroit | Channel 7Published September 16, 2021Breakdown updated September 15, 2026
“GreenPath, a Michigan based nonprofit, helps families regain financial wellness after burden of debt” by WXYZ-TV Detroit | Channel 7. We didn't make this video; it loads from YouTube when you press play.
Where Lavell started
Lavell received a credit card in the mail as a teenager and used it heavily one Christmas, buying gifts for others. To keep up, he eventually opened four more cards and pushed those to their limits too, with one card alone reaching $30,000.
What Lavell did
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He hesitated at first but decided to accept help from GreenPath, a national nonprofit that began in Michigan.
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GreenPath gave him a debt management plan and told him it would take about five years.
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GreenPath negotiated with a credit card company on his behalf, and that card's interest rate went from 24% to 2%.
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He followed a payment plan built around what he could afford.
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He stayed with the plan and says he's now completely out of credit card debt.
What you can learn from it
One card can turn into five
Lavell's debt began with a single card that arrived in the mail and grew to five cards at their limits. Covering one balance with new credit is a common way debt spreads, and it's worth pausing before opening another card.
A multi-year estimate is normal
Lavell was told his plan would take about five years, which gave him pause. The NFCC says debt management plans typically take three to five years to complete.
Rate cuts depend on the creditor
His counselor got one card's rate lowered from 24% to 2%. The FTC says creditors may agree to lower interest rates or waive certain fees, so it's fair to ask a counselor what to expect from each creditor.
Get fees in writing
Nonprofit credit counseling is often free or low-cost; ask about fees first, and get any quote in writing before you sign up.
Accepting help is a real step
Lavell says he didn't want to do it when he first heard about it. His advice now is to always accept help.
Before you copy this path
The 24% to 2% change applied to one of his cards and reflects that creditor's terms; other creditors may offer smaller changes or none. His timeline and payments were built around his own income and balances.
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 a debt management plan lower credit card interest rates?
It can, depending on the creditor. The FTC says the counselor develops a payment schedule with the person and their creditors, and creditors may agree to lower interest rates or waive certain fees.
Source: consumer.ftc.govHow much does a nonprofit debt management plan cost?
It varies, so ask about fees first. The NFCC says some agencies charge a set-up fee of $75 or less and a monthly fee between $25 and $50, and some people may qualify for a fee waiver based on income.
Source: nfcc.orgHow many years does a debt management plan take?
The NFCC says debt management plans typically take three to five years to complete. Lavell's plan was estimated at about five years.
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
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