{"id":228,"date":"2016-08-31T17:26:52","date_gmt":"2016-08-31T17:26:52","guid":{"rendered":"http:\/\/stories.kera.org\/debt\/?p=228"},"modified":"2016-09-13T22:20:20","modified_gmt":"2016-09-13T22:20:20","slug":"surgery-plunges-this-family-into-long-lasting-credit-card-debt","status":"publish","type":"post","link":"https:\/\/stories.kera.org\/debt\/2016\/08\/31\/surgery-plunges-this-family-into-long-lasting-credit-card-debt\/","title":{"rendered":"Surgery Plunges This Family Into Long-Lasting Credit Card Debt"},"content":{"rendered":"<p><em>Struggling under a pile of debt isn\u2019t something unique to those with low-paying jobs. The typical Texan carries nearly $4,700 of credit card debt, according to CreditCards.com. That balance tends to increase\u00a0as income goes up. \u00a0<\/em><em>Despite bringing home $90,000 a year, one\u00a0North Texas family is struggling to reduce a cache of credit cards.<\/em><\/p>\n<hr \/>\n<p>Brenda and Rene Munguia both have full-time jobs with benefits.\u00a0She works in the total loss department at GM Financial. He works for MidTech International as an auto painter.<\/p>\n<p>Rene paints cars for friends and neighbors on the side, too, in his home auto shop in the North Texas\u00a0suburb of Ovilla, 20 miles southwest of Dallas. Brenda calls the shop his &#8220;man cave\/moneymaker.&#8221;<\/p>\n<p>Rene&#8217;s auto restorations provide extra income Brenda and Rene need, despite having jobs they love that pay well.<\/p>\n<p>They\u2019re in debt to the tune of about $30,000.<\/p>\n<p>\u201cIt\u2019s like $25,000 in credit cards, and a little over $6,000 in medical,&#8221; Brenda said.<\/p>\n<div id=\"attachment_177\" style=\"max-width:100%;  width: 900px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-177 size-large\" src=\"http:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia7-1024x683.jpg\" width=\"900\" height=\"600\" srcset=\"https:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia7-1024x683.jpg 1024w, https:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia7-300x200.jpg 300w, https:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia7-768x512.jpg 768w, https:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia7-1360x907.jpg 1360w, https:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia7-800x533.jpg 800w, https:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia7-450x300.jpg 450w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><p class=\"wp-caption-text\"style=\"max-width:100%;  width: 900px\" >Rene Munguia works to restore a &#8217;62 Ford Thunderbird for a friend at his home in Ovilla. Photo\/Lara Solt<\/p><\/div>\n<div class=\"quotemark \">\u201cYou try and borrow from Peter to pay Paul, and you know, just get deeper into debt.&#8221;<div class=\"quote-source\">Brenda Munguia<\/div><div class=\"quote-rating-0\"><\/div><\/div>\n<h5>Debt Creates\u00a0A &#8216;Domino Effect&#8217;<\/h5>\n<p>The Munguias&#8217; debt didn\u2019t come on after a job loss or a major purchase. It happened when Brenda was off work for about eight weeks recovering from hand surgery.<\/p>\n<p>She had to pay her health insurance deductible and some doctors&#8217; bills up front. She only made 60 percent of her salary while on <a href=\"https:\/\/www.healthinsurance.org\/glossary\/short-term-disability\/\" target=\"_blank\">short-term disability<\/a>.<\/p>\n<!-- meta slider -->\n<div style=\"max-width: 1000px;\" class=\"metaslider metaslider-flex metaslider-290 ml-slider\">\n    \n    <div id=\"metaslider_container_290\">\n        <div id=\"metaslider_290\">\n            <ul class=\"slides\">\n                <li style=\"display: block; width: 100%;\" class=\"slide-293 ms-image\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/09\/munguia_graphic_v1.jpg\" height=\"650\" width=\"1000\" alt=\"\" class=\"slider-290 slide-293\" \/><\/li>\n                <li style=\"display: none; width: 100%;\" class=\"slide-294 ms-image\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/09\/munguia_graphic_v2.jpg\" height=\"650\" width=\"1000\" alt=\"\" class=\"slider-290 slide-294\" \/><\/li>\n            <\/ul>\n        <\/div>\n        \n    <\/div>\n    <script type=\"text\/javascript\">\n        var metaslider_290 = function($) {\n            $('#metaslider_290').addClass('flexslider'); \/\/ theme\/plugin conflict avoidance\n            $('#metaslider_290').flexslider({ \n                slideshowSpeed:3000,\n                animation:\"fade\",\n                controlNav:true,\n                directionNav:true,\n                pauseOnHover:true,\n                direction:\"horizontal\",\n                reverse:false,\n                animationSpeed:600,\n                prevText:\"&lt;\",\n                nextText:\"&gt;\",\n                slideshow:true\n            });\n        };\n        var timer_metaslider_290 = function() {\n            var slider = !window.jQuery ? window.setTimeout(timer_metaslider_290, 100) : !jQuery.isReady ? window.setTimeout(timer_metaslider_290, 1) : metaslider_290(window.jQuery);\n        };\n        timer_metaslider_290();\n    <\/script>\n<\/div>\n<!--\/\/ meta slider-->\n<p>That was enough to throw the family&#8217;s whole budget off balance. Brenda said\u00a0getting into\u00a0debt created\u00a0a domino effect.<\/p>\n<p>\u201cYou try and borrow from Peter to pay Paul, and you know, just get deeper into debt,&#8221; she said. &#8220;And by the time &#8230; you\u2019re starting to buy groceries with credit cards, get gas with credit cards, and it\u2019s just a never-ending story.&#8221;<\/p>\n<p>And with $25,000 weighing down the credit cards, Rene said the minimum payment each month is about as much as his family can afford.<\/p>\n<p>He doesn\u2019t feel good about that.<\/p>\n<p>\u201cI feel like it\u2019s never going to get paid off, No. 1. Because if you make the little minimum payment, you\u2019re never going to finish, period,&#8221; he said. &#8220;And then what happens is we end up rolling it into another card with a lower interest, and it goes and it goes and it goes and you never finish.\u201d<\/p>\n<div class=\"quotemark \"><\/p>\n<p>&#8220;It doesn\u2019t matter how much you make or how little you make. People use credit cards because it\u2019s easy.\u201d<\/p>\n<p><div class=\"quote-source\">Angela Lair, credit counselor<\/div><div class=\"quote-rating-0\"><\/div><\/div>\n<h5>LIVING EXPENSES DON&#8217;T LET UP<\/h5>\n<p>The Munguias have their expenses, too.<\/p>\n<p>They have a teenage daughter, Nalaya. She needs school clothes and participates in\u00a0extracurricular activities.<\/p>\n<p>They have three dogs and also own a home. If the roof leaks or the air conditioner breaks, they can\u2019t just ignore it.<\/p>\n<p>\u201cYou have to put it on the credit card; you have to,&#8221; Rene said. &#8220;How are you going to come up with $2,000, you know?\u201d<\/p>\n<p>That\u2019s the tricky thing about credit card debt \u2014 you can\u2019t stop living while you pay it all off. Creditors don\u2019t push &#8220;pause&#8221; on your debt while you save up to cover the balance.<\/p>\n<div id=\"attachment_173\" style=\"max-width:100%;  width: 900px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-173\" src=\"http:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia3-1024x683.jpg\" alt=\"Brenda Munguia and her daughter, Nalaya, 13, (left) wrap ribbon around their fruit trees to keep squirrels away at at their home in Ovilla, Texas on Saturday, August 27, 2016. (photo \u00a9 Lara Solt)\" width=\"900\" height=\"600\" srcset=\"https:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia3-1024x683.jpg 1024w, https:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia3-300x200.jpg 300w, https:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia3-768x512.jpg 768w, https:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia3-1360x907.jpg 1360w, https:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia3-800x533.jpg 800w, https:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia3-450x300.jpg 450w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><p class=\"wp-caption-text\"style=\"max-width:100%;  width: 900px\" >At their home in Ovilla, Brenda Munguia and her daughter, Nalaya, wrap ribbon around their fruit trees to keep squirrels away. Photo\/Lara Solt<\/p><\/div>\n<p>Angela Lair is a certified credit counselor with <a href=\"http:\/\/www.transformanceusa.org\/\" target=\"_blank\">Transformance<\/a>, a nonprofit\u00a0in Dallas.<\/p>\n<p>&#8220;It doesn\u2019t matter how much you make or how little you make,&#8221; Lair said. &#8220;People use credit cards because it\u2019s easy.\u201d<\/p>\n<p>In other words: If your paycheck won\u2019t quite cover the cost of new shoes for your child, or a higher-than-expected electric bill, a credit card\u2019s got you covered.<\/p>\n<p>Then comes time to pay.<\/p>\n<p>\u201cYou think, &#8216;Well, I was going to pay this off, but <em>this<\/em>\u00a0bill just came in, and I really need to pay <em>this,&#8217;<\/em>&#8221; \u00a0Lair said.\u00a0&#8220;So before you know it, you\u2019re falling into that cycle of making your minimum payments each month.&#8221;<\/p>\n<div class=\"quotemark \"><\/p>\n<p>\u201cPut it this way: I\u2019ve been down hard, but I\u2019m not going to lose what I\u2019ve got. I\u2019m going to fight for it.\u201d<\/p>\n<p><div class=\"quote-source\">Rene Munguia<\/div><div class=\"quote-rating-0\"><\/div><\/div>\n<h5>Small Changes Make Small Difference<\/h5>\n<p>The Munguias have enough money to live on, but not enough to make a real dent in what they owe. Angela Lair said the minimum payment cycle is more costly than most people realize.<\/p>\n<p>\u201cOn a $4,000 balance, making the minimum payment, on an interest rate of 18 percent &#8230; it will take you about 61 years to pay that off,&#8221; Lair said.<\/p>\n<p>Sixty-one years.<\/p>\n<p>Here\u2019s how the math breaks down. The minimum payment starts out at about $80 a month and slowly adjusts down as the card is paid off.<\/p>\n<p>The <em>interest<\/em> is unforgiving. When all is said and done, you\u2019ll have paid $22,084 \u2014 more than $18,000 of that pure interest.<\/p>\n<div id=\"attachment_176\" style=\"max-width:100%;  width: 900px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-176\" src=\"http:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia6-1024x671.jpg\" alt=\"Rene Munguia works to restore a 62 Ford Thunderbird for a friend at his home in Ovilla, Texas on Saturday, August 27, 2016. (photo \u00a9 Lara Solt)\" width=\"900\" height=\"590\" srcset=\"https:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia6-1024x671.jpg 1024w, https:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia6-300x197.jpg 300w, https:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia6-768x503.jpg 768w, https:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia6-1360x891.jpg 1360w, https:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia6-800x524.jpg 800w, https:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia6-450x295.jpg 450w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><p class=\"wp-caption-text\"style=\"max-width:100%;  width: 900px\" >Rene Munguia earns supplemental income by painting cars from his home garage. Photo\/Lara Solt<\/p><\/div>\n<p>&nbsp;<\/p>\n<p>Lair said groups like Transformance can help people work with creditors to lower interest rates and go over spending habits with a fine tooth comb.<\/p>\n<p>At the end of the day, her best advice is the simplest:\u00a0\u201cStop using your credit cards,&#8221; she says.<\/p>\n<p>Brenda and Rene Munguia are trying to do that. They\u2019ve also started buying off-brands instead of name brands. They bundled cable, internet and phone to take a\u00a0bite out of those bills.<\/p>\n<p>They even refinanced Brenda\u2019s car, extending the loan from four to six years. That lowered the monthly payment by $200.<\/p>\n<p>Still, nothing seems to free up enough money to make a difference.<\/p>\n<p>\u201cI always say next month, I\u2019m going to pay a little bit more,&#8221; Brenda said. &#8220;And that little bit more never comes.\u201d<\/p>\n<!-- meta slider -->\n<div style=\"max-width: 750px;\" class=\"metaslider metaslider-flex metaslider-260 ml-slider\">\n    \n    <div id=\"metaslider_container_260\">\n        <div id=\"metaslider_260\">\n            <ul class=\"slides\">\n                <li style=\"display: block; width: 100%;\" class=\"slide-171 ms-image\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia1-750x500.jpg\" height=\"500\" width=\"750\" alt=\"\" class=\"slider-260 slide-171\" \/><div class=\"caption-wrap\"><div class=\"caption\">Brenda and Rene Munguia and their daughter, Nalaya, 13, at at their home in Ovilla, Texas. Photo\/Lara Solt<\/div><\/div><\/li>\n                <li style=\"display: none; width: 100%;\" class=\"slide-179 ms-image\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia9-750x500.jpg\" height=\"500\" width=\"750\" alt=\"\" class=\"slider-260 slide-179\" \/><div class=\"caption-wrap\"><div class=\"caption\">Rene Munguia works to restore a '62 Ford Thunderbird at his home in Ovilla. Photo\/Lara Solt<\/div><\/div><\/li>\n                <li style=\"display: none; width: 100%;\" class=\"slide-180 ms-image\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia10-750x500.jpg\" height=\"500\" width=\"750\" alt=\"\" class=\"slider-260 slide-180\" \/><div class=\"caption-wrap\"><div class=\"caption\">Rene Munguia works in his home garage restoring a '62 Ford Thunderbird. Photo\/Lara Solt<\/div><\/div><\/li>\n                <li style=\"display: none; width: 100%;\" class=\"slide-178 ms-image\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia8-750x500.jpg\" height=\"500\" width=\"750\" alt=\"\" class=\"slider-260 slide-178\" \/><div class=\"caption-wrap\"><div class=\"caption\">Rene Munguia washes the windshield of a '62 Ford Thunderbird in his home auto shop. Photo\/Lara Solt<\/div><\/div><\/li>\n                <li style=\"display: none; width: 100%;\" class=\"slide-172 ms-image\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/stories.kera.org\/debt\/wp-content\/uploads\/sites\/16\/2016\/08\/Munguia2-750x500.jpg\" height=\"500\" width=\"750\" alt=\"\" class=\"slider-260 slide-172\" \/><div class=\"caption-wrap\"><div class=\"caption\">At their Ovilla home, Brenda Munguia and her daughter, Nalaya  wrap ribbon around their fruit trees to keep squirrels away. Photo\/Lara Solt<\/div><\/div><\/li>\n            <\/ul>\n        <\/div>\n        \n    <\/div>\n    <script type=\"text\/javascript\">\n        var metaslider_260 = function($) {\n            $('#metaslider_260').addClass('flexslider'); \/\/ theme\/plugin conflict avoidance\n            $('#metaslider_260').flexslider({ \n                slideshowSpeed:3000,\n                animation:\"fade\",\n                controlNav:true,\n                directionNav:true,\n                pauseOnHover:true,\n                direction:\"horizontal\",\n                reverse:false,\n                animationSpeed:600,\n                prevText:\"&lt;\",\n                nextText:\"&gt;\",\n                slideshow:true\n            });\n        };\n        var timer_metaslider_260 = function() {\n            var slider = !window.jQuery ? window.setTimeout(timer_metaslider_260, 100) : !jQuery.isReady ? window.setTimeout(timer_metaslider_260, 1) : metaslider_260(window.jQuery);\n        };\n        timer_metaslider_260();\n    <\/script>\n<\/div>\n<!--\/\/ meta slider-->\n<p>Both Brenda and Rene say they\u2019ll continue to to cut corners on spending wherever they can. Rene said he\u2019ll take side jobs painting every car in the neighborhood if that&#8217;s what it takes to stay afloat.<\/p>\n<p>\u201cPut it this way: I\u2019ve been down hard, but I\u2019m not going to lose what I\u2019ve got. I\u2019m going to fight for it,&#8221; he said.<\/p>\n<p>It\u2019s a fight this family is determined to win.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Struggling under a pile of debt isn\u2019t something unique to&#8230;<\/p>\n","protected":false},"author":7,"featured_media":175,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"audio","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-228","post","type-post","status-publish","format-audio","has-post-thumbnail","hentry","category-one-crisis-away-drowning-in-debt","post_format-post-format-audio","byline-courtney-collins"],"_links":{"self":[{"href":"https:\/\/stories.kera.org\/debt\/wp-json\/wp\/v2\/posts\/228","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stories.kera.org\/debt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stories.kera.org\/debt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stories.kera.org\/debt\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/stories.kera.org\/debt\/wp-json\/wp\/v2\/comments?post=228"}],"version-history":[{"count":31,"href":"https:\/\/stories.kera.org\/debt\/wp-json\/wp\/v2\/posts\/228\/revisions"}],"predecessor-version":[{"id":300,"href":"https:\/\/stories.kera.org\/debt\/wp-json\/wp\/v2\/posts\/228\/revisions\/300"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stories.kera.org\/debt\/wp-json\/wp\/v2\/media\/175"}],"wp:attachment":[{"href":"https:\/\/stories.kera.org\/debt\/wp-json\/wp\/v2\/media?parent=228"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stories.kera.org\/debt\/wp-json\/wp\/v2\/categories?post=228"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stories.kera.org\/debt\/wp-json\/wp\/v2\/tags?post=228"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}