Woman shares her strategy to paying off $20K in credit card debt

By GMA Team

A few years ago, Tracy Schultz was drowning in credit card debt.

The Massachusetts resident said she was going through a breakup and covering rent on her own, and she started spending more money than she had.

"It started out just trying to cover the difference in rent, like, I would charge my groceries," Schultz told "Good Morning America." "And then the issue became spending for feeling better."

The 42-year-old said she wound up racking up a balance of about $20,000.

"It got to the point where I didn't have enough in my budget to cover the minimum of what was due every month. And that's when I realized that I was in trouble," Schultz said.

Schultz said she turned to a nonprofit debt management program for help.

Courtesy Tracy Schultz

Tracy Schultz opens up to “Good Morning America” about how she paid off her credit card debt and found the help she needed.

"They contacted my creditors and set a payment each month that was doable," Schultz said. "It was good because I knew exactly how much I was going to have to pay every month."

With a program in place, Schultz consolidated her payments into a set amount each month and gradually paid off each balance. Schultz also tracked her spending and aimed to make purchases only in cash.

Today, she is debt-free and says the biggest lesson she learned is to avoid impulse buys and to stop using credit cards.

"When you charge, it's like, the money's not even real," said Schultz.

Nonprofit debt management programs are often available for people in debt at no cost.

The organizations work directly with creditors to reduce interest rates on debt and create manageable payment plans.

The key is to avoid high-fee "debt settlement" companies that promise quick fixes. Look instead for nonprofits that are certified by the National Foundation for Credit Counseling.

Schultz's advice to others who want to follow in her footsteps is to reach out for help.

"There is help available," she said. "It's great to actually feel like you're taking control of a situation rather than being a victim of your own bad choices."