Single Mother with Credit Card Debt: Lisa’s Story
Lisa is a 35-year-old single mother with growing credit card debt. Lisa turned to using her credit cards more frequently after her separation because she did not want anything to change for her children. She has a job and $2,000 in monthly income, and her house mortgage is about $800 a month.
Although she thought she thought she could manage, this led to the overuse of her credit cards. Lisa was expecting a raise, which she was banking on to help pay off some of her debt, but it did not come through and left her in a vulnerable position.
No longer able to make minimum payments for her credit cards, Lisa contacted us at Allan Marshall & Associates to help. Our counsellors and Trustees were able to relieve her anxiety and reassure her that this happens to many individuals, and we can help her through it.
Lisa decided to move forward with a Consumer Proposal. Her Credit Card debts were as follows:
| Car Loan | $24,000 |
| Credit Card 1 | $8,700 |
| Mastercard | $18,900 |
| Total | $51,600 |
The LIT worked with Lisa’s creditors and the offer (proposal) was accepted. Lisa was to pay $200 in monthly payments for 60 months, totaling $12,000 without interest. Once completed, all the balances of her previous debts were eliminated.
In this scenario, Lisa avoided Bankruptcy through a consumer proposal, and at the end of her obligations, she was no longer in credit card debt. She learned about her spending habits through her counselling sessions and now the purchases she makes are within her budget. Plus, her children are not suffering and in fact, do not even notice a change in lifestyle.
