The End in Sight:
Happily Seeing the Light After 13 Long, Indebted Years

Loretta Davis said the straw that broke the figurative camel's back was a $200 payment to a credit card that, when her statement arrived the next month, proved to have reduced her impressive debt to that creditor by only 50 cents.

"It was devastating because it became crystal clear to me, at that point, that I was never going to be able to pay off my debt," she said. "As I look back on that horrible day, it's hard to believe that GreenPath has, in so short a time, helped me get to a place where I have so much hope. I am so glad I found you."

With more unsecured debt than she ever made in salary in an entire year, Davis felt that she had dug herself into a hole from which she would never emerge. She was depressed, terrified and feeling hopeless. She had six major credit cards in use, most of which were maxed out, and was paying as much as 29.9 percent on some of the debt. Every month, the debt kept growing.

"Between high interest, fees for making phone payments and a few unexpected medical expenses, there was nothing I could do on my own to take the balances down," said Davis who was shocked to learn that credit card companies could raise her interest frequently as her debt grew. Customer service representatives at the card company cited high debt-to-limit ratios as a reason for the increases, but they didn't lower her interest rates when they raised her limits.

Fortunately, GreenPath was able to help.

With the help of her counselors and customer care representatives, Davis now pays reduced interest rates and pays down her debt by following a solid plan. For the past year, since starting her debt management program, she has lived a credit card-free life, tracks her spending and balances her budget. This means she also has a target date for becoming completely debt-free. Happily, the date is very realistic and only about a year away.

Davis obtained her first credit card in college and felt like she had been fighting the battle of ever-growing debt ever since - more than 13 years. Rather than help her lead a productive life, her cards seemed to work against her, keeping her in debt. Before finding GreenPath, she wondered how she could ever achieve success and lead a bountiful life.

"I'm the first to admit I didn't know what I was doing when I used my credit cards to supplement my income," she said. "And, by the time I realized my error, it was already too late."

Davis, working diligently at two jobs to achieve her goals and a better financial future, offers this advice to others:

"Whatever you are doing with credit, stop now and evaluate your situation fully. If you're not sure whether or not your finances are out of control, talk to a counselor at GreenPath. And, if you are sure your finances are out of control, talk to a counselor at GreenPath."

Money Wise Michigan Kids Honored as National Role Models

Harrison Noh of Bloomfield Hills, Mich., an eighth-grader at East Hills Middle School, is the 2008 overall, national winner of an annual financial literacy poster contest sponsored by the National Foundation for Credit Counseling (NFCC). Christopher Saker, also of Bloomfield Hills and a fifth grade student at Way Elementary School, won in the contest's elementary school category. Each student's hard work, creativity and understanding of financial responsibility were recognized by GreenPath and the NFCC with a plaque, recognition in the U.S. House of Representatives and a combination of cash and savings bonds.

"It is clear that these creative and talented young men have a solid foundation upon which they can build their financial futures," said Jane McNamara, president and CEO of GreenPath Debt Solutions. "We hope their attitude will rub off on others."

Noh's winning entry featured hand-drawn dollar bills visually presented to represent the idea of a three-dimensional portrait of a boy putting pennies in a piggy bank. Saker's picture was a highly detailed drawing of a dollar bill decorated with visual tips for future financial success.

The "Be Money Wise" poster contest is designed to engage students in thinking about how to manage money by allowing them to express themselves through art. The theme of this year's competition was "Financial Responsibility Begins with Me." The two won from nearly 2,000 posters submitted through NFCC-member credit counseling agencies around the country.

Poster by national poster contest winner, Harrison Noh