Recovering from a Contractor Gone Wrong…Without Bankruptcy
- UpdatedSep 19, 2024
- Pamela L. encountered debt problems after a botched home renovation
- She turned to Freedom Debt Relief for assistance and to avoid resorting to bankruptcy
- Pamela says she appreciated the way Freedom Debt Relief explained the process and worked with her along the way
When Pamela L. set out to build an addition on her house, she had no idea she would end up with a shaky foundation, sub-standard plumbing and an unlivable home. Nor did she realize that in redoing all the work, she’d end up with no retirement savings, maxed-out credit cards and a mountain of debt.
She chose the Freedom Debt Relief program to help her pay what she could without resorting to bankruptcy. “I have worked as hard as I could to keep my Beacon [credit score] up, to keep my credit established…I knew if I went in bankruptcy, it would mess all that up,” Pamela said.
Bankruptcy, she added, “is so final. It seems like it lingers on your record forever.”
With the Freedom Debt Relief program, “I knew my Beacon [credit score] would go down…but it would eventually come back — and it wouldn’t be on my record that I actually went into bankruptcy.”
Plus, “it was my debt. Hands down, I feel like if I owe it, then I need to pay it,” Pamela said. So even though she was struggling, she wanted to pay what she could. The Freedom Debt Relief program was a way to get the help she needed.
Pamela noted that the Freedom Debt Relief representatives explained everything about the process up front and said she felt that the monthly payments she made were reasonable. She also appreciated the support she got from Freedom Debt Relief throughout her journey. “You have to stick with the program. I needed that structure. I needed that to help me to focus.”
“It was a long process, but it paid off in the end and saved me a lot of money,” Pamela said.
Today, Pamela says her credit score has recovered, she has completed the work on her home and refinanced her mortgage. “Thank goodness I found Freedom and went this route,” she concludes. “There were little bumps in the road along the way, but all-in-all, it was, for me, the best option. A win-win.”
Debt relief by the numbers
We looked at a sample of data from Freedom Debt Relief of people seeking debt relief during August 2024. This data reveals the diversity of individuals seeking help and provides insights into some of their key characteristics.
Credit card tradelines and debt relief
Ever wondered how many credit card accounts people have before seeking debt relief?
In August 2024, people seeking debt relief had some interesting trends in their credit card tradelines:
The average number of open tradelines was 14.
The average number of total tradelines was 24.
The average number of credit card tradelines was 7.
The average balance of credit card tradelines was $15,681.
Having many credit card accounts can complicate financial management. Especially when balances are high. If you’re feeling overwhelmed by the number of credit cards and the debt on them, know that you’re not alone. Seeking help can simplify your finances and put you on the path to recovery.
Credit card debt - average debt by selected states.
According to the 2023 Federal Reserve Survey of Consumer Finances (SCF) the average credit card debt for those with a balance was $6,021. The percentage of families with credit card debt was 45%. (Note: It used 2022 data).
Unsurprisingly, the level of credit card debt among those seeking debt relief was much higher. According to August 2024 data, 89% of the debt relief seekers had a credit card balance. The average credit card balance was 15659.
Here's a quick look at the top five states based on average credit card balance.
| State | Average credit card balance | Average # of open credit card tradelines | Average credit limit | Average Credit Utilization |
|---|---|---|---|---|
| Connecticut | $18,817 | 9 | $28,218 | 75% |
| Arkansas | $18,773 | 7 | $24,237 | 96% |
| New Jersey | $18,372 | 9 | $26,611 | 79% |
| New Hampshire | $18,255 | 8 | $25,170 | 81% |
| Massachussettes | $17,942 | 8 | $25,538 | 77% |
The statistics are based on all debt relief seekers with a credit card balance over $0.
Are you starting to navigate your finances? Or planning for your retirement? These insights can help you make informed choices. They can help you work toward financial stability and security.
Tackle Financial Challenges
Don’t let debt overwhelm you. Learn more about debt relief options. They can help you tackle your financial challenges. This is true whether you have high credit card balances or many tradelines. Start your path to recovery with the first step.
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Debt Solutions
