Barbara* faced substantial credit card debt while on a relatively low income. While judgment proof, Barbara wanted to make payments on the debt she owed and she had been making minimum payments, but much of her payments were going to interest, making it difficult to pay the debt off. Barbara decided to contact the Consumer Law Project for Elders (CLPE) at Connecticut Legal Services, Inc.
The CLPE advocate helped Barbara put together a hardship affidavit to send to her credit card company. As a result, the credit card company agreed to restructure Barbara’s debt of over $5,000. The old minimum payment had been $108 and the old interest rate had been 11.99%. Given these values, it would have taken the client 18 years to pay it off and she would have paid approximately $5,000 in interest alone. Under the new debt agreement , Barbara now had a minimum payment of under $100 with a substantially lower interest rate of 1.99%. With these new repayment terms, it will take Barbara 5 years to pay off the debt and she will pay less than $300 in interest, saving Barbara nearly $4,500, thereby allowing her to live debt free.