June’s Story: How Debt Consolidation With a DMP Helped Her Retire Debt Free
By AJ Webber
For June, retirement was supposed to mean freedom: golf, travel, time with family, and the chance to finally enjoy the years she’d worked so hard for. Instead, she found herself carrying nearly $48,000 in credit card debt, and watching her monthly payments disappear entirely into interest charges without making a dent in what she owed.
“It was always in the back of your mind,” she says. “The last thing you thought of when you went to bed and the first thing you thought of when you got up in the morning.”
Running In Place – Life Before Consolidating Your Debts
June’s debt had accumulated gradually, compounded by a period of separation during which she anticipated a property settlement that ultimately never materialized. She had taken on more credit than she normally would have, expecting to be able to pay it down; when that plan fell through, she was left holding the balance.
“I’m not a stupid person,” she says, “but I have to admit I was very naive. I didn’t think the banks would give me a credit card if they didn’t think I could handle it.” Her monthly payment was consuming nearly $1,000 of her pension income and going entirely toward interest. She never missed a payment, but still the balance never moved.
“You’re just running on a treadmill, not getting anywhere,” she says. “And I’m not young. I certainly didn’t want to leave a whole bunch of debt for my family to deal with. And I wanted to be able to enjoy my retirement. Golf and travel and those kinds of things. The only way I could see past it was to get rid of the debt.”
Finding a Way Forward With a Debt Management Program
June found CCS through a search online, made the call, and was surprised by how quickly her debt consolidation plan came together. “I thought it might take a while, but they were able to contact all the creditors and make arrangements really quickly,” she says. “And I didn’t realize that my overdraft could be included, too. I thought I’d have to clear that myself first. But they said no, that’ll all be included. That was a pleasant surprise.”
For June, the math of pursuing a Debt Management Program (DMP) was simple: her monthly DMP payment came in at almost exactly what she’d already been paying just to service her debt. Now every payment was actually eliminating it.
It’s a comparison worth running for yourself too with our specialized debt repayment calculator that can show whether a DMP payment would land above or below what you’re currently paying, and how other debt consolidation options stack up against a DMP.
“Had the payments been more, the decision might have been different,” she says. “But because it was so similar, I thought, I’ve got nothing to lose here. I’m not getting anywhere. I’ve got to get this under control.”
Watching the Numbers Move
Over the next four and a half years, June made every payment without exception. No skipped months, no major disruptions, just steady, consistent progress toward zero. “It was so nice to see it coming down every month,” she says. “I wasn’t seeing that with my credit card bills; they were just the same. But every month on the Program I could see it going down, and especially that last year — wow. This is nothing compared to what I started with.”
She appreciated her credit counsellor’s annual check-ins in the early years, then found she didn’t always need them as things settled into a comfortable rhythm and proceeded smoothly.
“It goes by quicker than you think,” she says. “Five years sounds like a long time, but it goes fast. And if I hadn’t done the program, five years would have gone by anyway, and I’d have been in exactly the same place.”
Life on the Other Side of Debt
June made her final payment earlier this year. The nearly $1,000 a month she once put toward debt is now hers to keep, for continued savings, an emergency fund, and for some anticipated golf trips and travel plans she’d put on hold.
“I can put money away now,” she says. “I don’t have to panic if something happens to my car. I can afford to get it fixed. You’re proud of yourself for accomplishing that.”
She also credits the program with shifting something deeper: her relationship with money itself. “I’m more thoughtful about it now,” she says. “I used to think, friends in similar circumstances seem to be able to afford things I can’t, so you try to keep up. Only to find out some of them were in as much debt as I was, if not more. Everybody’s trying to impress everybody. I don’t feel I need to do that anymore.”
After years of budgeting for her monthly repayments, living within her means has simply become how she operates. “I don’t buy something unless I have the money to buy it.”
And the feeling that comes with that?
“Life is light and airy,” she says. “The debt is just gone.”
For Anyone Hesitating to Consolidate Debt or Payments
When asked what she’d say to someone in a similar position who hasn’t yet made the call, June doesn’t hesitate to suggest that they should find out more about the options they have to consolidate their debt or payments.
“There are options out there. You might be pleasantly surprised to find out that you can get a handle on the debt without spending more than you’re currently spending. And it is a relief to get ahead of it. The years go by faster than you think, and it’s a lot better to come out the other side debt free than to spend those same five years running in place.”
What a Debt Management Program Can Cover, Overdraft Debt Included
June wasn’t expecting her overdraft debt to qualify, and she isn’t the only one. A Debt Management Program can cover most unsecured debts beyond just credit cards, such as overdrafts, payday loans, and unsecured lines of credit. If a DMP turns out not to be the right fit, paying down an overdraft on your own is another path worth knowing about.
Start With a Free Session to Explore Your Debt Relief Options
If a balance like June’s is what’s keeping you up at night, reach out today to book a free session with one of our credit counsellors. Together, you can look at your full picture, credit cards and overdraft included, and lay out what a fixed, manageable payment could look like. You don’t need to go it alone, we’re here to help.
