Chase & Mila have medical procedures scheduled this month, both are retired and living under a fixed income, and their credit cards are starting to reach their limits. They pay their bills each month but the overall debt is not going anywhere and it is starting to become difficult to buy household goods. They have been retired for 5 years but work seasonal part time jobs to help pay for bills. Harold got hurt on the job and had back surgeries that kept him out of work and stressed out financially for months. They are approaching their 60’s and feel like their credit card debt is as old as they are and at times they feel that they are “robbing paul to pay peter,” when they budget and pay their bills each month. Their credit cards have high interest rates, payments are starting to become more difficult, interest rates just went up on multiple store cards, and it is starting get more tough to pay for their necessities. Harold exclaimed they are starting to have a hard time to pay for groceries and for medicine. “Majority of our fixed income is going towards accounts with high interest rates,” he said stressfully. Their financial goals are looking for immediate debt relief and their top goals are to reduce the overall principle faster within the next 5 years, pay off debt with 1 single payment, be able to finally build a healthy credit profile, and start to enjoy retirement rather than struggling to survive.
Total Income: $5800
Total Accounts: 12
Credit Score: 580 & 610 (below poor+ collection debt)
Credit Utilization: 83% (almost maxed out and paying high interests on debt)
Spending: $3500 in monthly payments. High interest rates between 24-50%