Financial guru was once credit crunched

By Sonya Colberg

Published: October 2, 2008

She had it all. Marcia Brixey had a nice house, a good job, a loving husband with a good job, cool vacations, a cute dog named Arfie ... and a big secret.

Then one day, Marcia Brixey’s dog, Arfie, gobbled down a ham bone and became so ill, he had to be rushed to the veterinarian for emergency surgery.

The Brixeys were overjoyed that their beloved Schnauzer-poodle mix survived, but the ordeal was not over. The second shock hit with the arrival of the vet’s bill for $1,200.

They didn’t have the money and couldn’t put it on their maxed out credit cards. They had to borrow from Brixey’s parents.

"I never want to be in that situation again,” Brixey, 53, said.

Brixey’s here to tell you she and her husband had a secret $10,000 credit card mess that they overcame, and so can you. She now helps people free their financial jams and has written a book, "The Money Therapist: A Woman’s Guide to Creating a Healthy Financial Life.” She’ll speak in Oklahoma City on Oct. 10.

Brixey found it was easy for her and her husband, Steve, to rack up $10,000 in credit card debt.

"We had a really good reason for that, but I don’t remember what it was,” she said with a laugh.

People are definitely secretive about credit card debt, said Jennifer Wallis, 36, vice president of Consumer Credit Counseling Service of Central Oklahoma, which provides free credit counseling. It’s not unusual for people to keep debts from their spouses or best friends.

"To a lot of people, it’s a shameful secret,” Wallis said.

"It’s just not very sexy,” Brixey said wearily about credit card debt.

But sexy is the feeling of freedom when you get credit card debt under control, she and other experts say.

"Credit card debt is the No. 1 reason people call us,” Wallis said.

All people need to know they aren’t the only ones in a credit card bind, she said. And with the right tools and education, it’s fairly simple to get out. Wallis said about two-thirds of her clients manage to break the credit card bind after they’ve adopted some lifestyle changes and become aware of spending habits. Another one-third need the service’s debt management plan, which costs a set-up fee of $40 and a sliding fee of up to $35 per month.

Brixey started digging out of debt by asking her credit card company for a lower interest rate. She was amazed they dropped it to 9 percent from 15 percent, lowering the interest payments to about $90 monthly from about $150.

The nonprofit Consumer Credit Counseling Service of Central Oklahoma also sometimes can help get interest rates and finance fees lowered, Wallis said.

If you prefer to handle it, approach your credit card company with a smile in your voice and appeals at your fingertips from other credit card companies that offer you lower interest rates, Brixey said.

If you have no luck with the first person you talk to, politely ask to speak to the supervisor and repeat the process. Say you’re a long-time customer and don’t want to go to another credit card company.

"A ‘no’ to me means ‘maybe yes, later.’ Do that with each creditor,” she said. "That can make a huge difference.”

Regardless of how that turns out, Wallis said you’ve got to learn to live on what you make. To make them less accessible, hide the credit cards, give them to trusted friends or put the credit cards in your freezer. Or cut them up. But don’t cancel them, because that could negatively affect your credit score.

If you continue to occasionally use your credit cards, make your payments on time and pay at least the amount of the finance charge above the minimum payment.

At the end of the month, do you ever feel as if you have no idea what happened to your money?

You’re not alone.

"We’re a nation of unconscious spenders,” Brixey said.

That’s why money experts say you need to write down every little thing you buy — including those you put on your credit card — for two to four weeks.

"Most people, when they start probing their budgets, are shocked when they find out where their money’s going,” Wallis said.

Your list of guilty but soon-forgotten pleasures may include CDs, DVDs, lattes, magazines, bottled water, lunch out, fast food stops and movie rentals.

Look at the list and ask Where can I cut back?

"Instead of drinking lattes, I drink drip coffee with all the goodies in it. You can save $2 per day,” Brixey said.

Brixey, from Silverdale, Wash., recently stopped at an outlet mall that sold Coach purses, starting at $75. She didn’t buy one.

"Why do I want to carry around something that looks like everyone else’s?” Brixey said.

Beyond getting your credit cards under control, there are other ways to save money without too much pain.

"In order to have more money, you have to spend less than you earn. It’s just like dieting,” Brixey said.

Take the automatic and regular route. If possible, have a percentage of your paycheck automatically placed into a savings account. Also, when you get a cost of living increase or pay raise, put the additional amount into savings and live on what you were living on before, Brixey said.

Though the phone calls and savings are tough, Brixey said the alternatives can be more difficult. She recently learned of a woman who gives her children sponge baths because the water has been turned off. The young mom takes out payday loans to buy food, but the high-interest money is usually spent on alcohol by her husband who just lost his job. The car she drives belies the family’s dire situation, Brixey said.

"We’re financial frauds. We’re trying to live this illusion,” she said.

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