First came health crises, then the overwhelming debt | members only

Aviles chose the DMP. I connected her with Marla Puckett, a credit counselor with 21 years of experience who works at the nonprofit Money Management International (MMI). Puckett started by

gathering enough information on Aviles’ living expenses, income and debts to confirm that at reduced interest rates, she would be able to make payments on an ongoing basis. THE VERDICT: On a

five-year plan, she could do it. MMI’s DMP required a $25 setup fee and an ongoing $59 monthly charge, but it would reduce Aviles’ monthly credit card payments from $3,300 (her total

minimum) to about $2,100. But Aviles still had no reserves for home maintenance and future emergencies. So we took a hard look at her house. She owed $97,000, plus the $50,000 HELOC, on a

home that a local broker, Steven Finkelstein of Russo Real Estate, estimated would sell for at least $420,000. After commissions, closing costs and moving, Aviles could clear about $240,000.

Excluding maintenance and upkeep, carrying the property was costing her a little over $2,100 a month. For roughly the same amount, she could rent an apartment. Would she consider selling

and using the equity to pay off the debt, replenish her emergency fund and give herself a fresh start? THE OUTCOME: Aviles signed the DMP and began making the reduced payments. She also got

ready to list her house with Finkelstein and asked him to find her an apartment. “I love being in a house,” she says. But citing the repairs and upkeep, she adds, “I think not having the

burden is the thing I’ll enjoy most.”