Til Debt Do Us Part

How can a $3,200 bill end up six years later at more than $10,000? An Ohio man found out after his wedding ceremony was crashed by the Debt Monster, a surly guest who would not leave.

According to U.S. Congressional testimony, the man charged $3,200 on a credit card with a $3,000 limit in order to pay for his wedding in 2002. Over the next several years, interest, late fees, and over-the-limit fees caused his debt to climb.

For a while, the man made whatever minimum payment was asked by debt collectors, just trying to make it from one payment to the next. However, paying the minimum, even more, did not pay off the debt. He continued to pay less than the full amount, and he slipped deeper.

As time went on, even as his salary increased, he picked up new expenses due to changes and several surprise events in his life. As a result, he continued to struggle to pay this debt and other bills. While he paid an average of $1,000 per year, the debt continued to rise.

By 2007, he had paid more than $6,300 on an original debt of $3,200. Yet he still owed about $4,400 more.  The amount owed and paid added up to about $10,700, more than three times the initial debt.   While the fees were later reduced, the story is an example of how credit card debt, even with the best intentions, can turn into a long-term nightmare.

Eventually, the man took the opportunity to use a credit counseling agency to help him take on his debt load. Other choices might have included debt consolidation or debt settlement.