Overcoming the Credit Card Debt Trap w/ Kim Parr


Kim Parr

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Why do you think it was so easy to fall into the debt trap?

The mindset that it is OK to go into debt and the amount of credit extended to us.

By having good credit scores and a fairly high income, I felt we could “afford” things because we had enough credit to cover it.

What was the defining moment that made you realize that you needed to get out of debt?

The turning point was when my in-laws lost their home to foreclosure after losing their jobs in the economic downturn.

They had a huge amount of credit card debt that they rolled into their mortgage. When their jobs dried up, they lost their house.

It made me realize that if we lost a job or had an emergency, we could face the same situation. That’s when we vowed to get out of debt and be financially responsible.

What obstacles did you have to overcome in paying off your debt?

We had to redefine our whole attitude toward spending and saving, which is hard to do when you’re set in your ways.

How much total debt did you have?

The debt consisted of $30,000 in credit card debt and $70,000 in student loans.

How long did it take to pay off your debt? (If still paying on it, list how much you’ve paid in what time)

We paid off $30,000 in credit card debt 17 months.

What’s your best tip for someone finally want to get out of debt?

Just get started. Don’t be overwhelmed by the total number. Set a small goal of paying off the first portion of the debt and build from there. It gets easier once you take that first step.

Check out Some of Kim’s Awesome Posts on Debt

How We Paid Off $30,000 in Credit Card Debt

Does Credit Card Debt Have You Stuck?

Things I Could Have Bought with $30,000 Lost to Credit Card Debt

  • http://www.myquicklawyers.com/ debt_help

    Unless we become frugal, we can never get out of debt trap. Debt consolidation would help to some extent; it doesn’t leave negative impact on your credit. debtconsolidationcare or 2DebtConsolidation helps people get rid of delinquent debts.

  • http://www.facebook.com/bruce.chilcott.5 Bruce Chilcott

    My first 15 years in taxation I never saw a 1099C, cancellation of debt income. Now I see them all the time. Credit was way too easy pre-recession. Don’t fall for it again.