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Blogging for Change Blogging For Change
by sitecore\kmcgrigg on April 14, 2010

Throughout Financial Literacy Month, the blog will give voice to consumers who have overcome financial challenges. Through their own words, these consumers will tell you about what it was like to be in and repay unmanageable debt. They will also share inspiring words about the many ways their lives have changed as a result of their debt repayment efforts.

Following is Sarah’s story.

Although I had knowingly indebted myself for most of the tens of thousands of dollars I needed to repay for a very meaningful purpose, I also felt scared and irresponsible about money before and during the time I built up the debt. After finishing repaying all that money, I felt victorious. My last payment was in October and at the following Thanksgiving (the only day my entire family spends time together) I announced at the table that I had finished all the repayment to a very happy and congratulatory reception. What a great feeling, something I had never felt around money before.

During the course of repayment, I found myself becoming increasingly financially stable and flush. While I still don't have a lot of money "to my name" I've developed a sense of courage, if that's the right word, as opposed to fearfulness about having enough. I use the word courage, not security, because I don't know if I really believe security is very real, but I'm no longer afraid of not having enough. I'm currently supporting me and my son in a manner that feels good and seeing myself as taking car e of what needs to be taken care of fairly well.

I didn't have or use credit cards before intentionally utilizing them and incurring that large debt and again now have and use none.

I suppose the best benefit of finishing with the repayment is the knowledge that if I apply myself one step at a time toward anything, even if it appears insurmountable at the moment, I can go far.

With appreciation,

Sarah W

Check back often for more stories about real people who have overcome the burden of debt. And don't forget to visit FinancialLiteracyMonth.com for a wealth of information about improving your own financial situation.

Comment(s)

Kim at MMI says:
April 20, 2010
Website: http://www.moneymanagement.org/Community/Blogs/Blogging-for-Change

I am the community manager for MMI; I have worked with MMI for more than 15 years. I totally understand the need to research the role a Debt Management Plan (DMP) plays in your credit reports. Creditors are solely responsible for reporting to a credit bureau and each creditor maintains their own policies on what information is reported. Some creditors may update their report to a credit bureau on “past due” accounts to a “current” status after receiving our proposal letter, after your first deposit, or after your third successful deposit. That being said, your credit report is a statement of your payment history. Anytime you do not pay an account as originally agreed, there is a possibility that a creditor may place a derogatory note on your credit report. Since your DMP likely involves reduced payments or waiving of interest, some creditors may report your account as being paid through a credit counseling agency. While I do not know the full details of your situation, there may be some solutions to this issue that a counselor can help you identify (such as confirming acceptance or coordinating the creditor due date with your disbursement date). Therefore, I highly recommend that you call and speak with a support counselor about your specific situation—their job is to help.



Roberta Sam says:
April 19, 2010
Website: MMI

How will this plan effect your credit score.



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