Florida has the second-highest credit delinquency rate nationally, according to a report by personal finance company WalletHub. Only Nevada has a higher rate.
Edgardo Arroyo of Miami found himself tens of thousands of dollars in debt and was determined to work his way out.
“Imagine no job, making no money and a baby coming into our lives,” Arroyo said.
Like thousands of Americans, Arroyo knows what living under the weight of mounting debt is like. He lost his job near the start of the pandemic. Unemployed for months, Arroyo first spent all his savings.
“It’s about where we’re gonna live, what we’re gonna do, how we’re gonna make the payments,” he said.
When his son was born in December of 2021, Arroyo was still unemployed. He maxed out his credit cards while racking up around $30,000 in debt. He said his credit score crashed to below 500.
“I started using my, you know, the cards for the groceries, for gas, we were going through everything we can financially to survive,” Arroyo said. “I was receiving two to three calls per day, ‘Hey, we need your payment’. I was super desperate. Can you imagine? What I’m gonna do, I have a family to support.”
Budgeting and negotiation are keys to finding a way out
Arroyo said he had restless nights and long talks with his wife, wondering how they could dig out of debt.
“I had ups and downs,” Arroyo recalled. “I broke down many times, like what am I gonna do?”
In 2022, he contacted a nonprofit organization called the Money Management Institute. He said they helped negotiate with his creditors to establish a fixed payment plan, lowering his interest rate to approximately 3%.
“At the end of the day, we’re trying to figure out if there is enough at the end of the month to make any sort of payment towards the creditors, and if so, how much is that?” Thomas Nitzsche, Vice President of Public Relations for the Money Management International, said.
The organization published a study that found in 2024 there was a 48% increase in Florida residents seeking credit card debt relief. The study found the average Floridian carries over $28,000 in debt.
“Every generation is really seeing a pinch. I think it’s just the, you know, extended period of inflation that we’ve seen, and wages haven’t kept up with that pace of inflation,” said Nitzsche.
Still trying to keep pace, Arroyo’s repayment journey improved his credit score by 144 points and helped him rebuild his life. With renewed courage, he launched a business to assist companies in expanding their brands in the Latin American market.
He said he’s grateful for what feels like a second chance.
“Working for my family, for myself and I’m happy,” Arroyo said. “I cannot tell you that I have peace at all, but I’m happy.”
Arroyo said he no longer uses credit cards and does not plan to do so in the future. He’s also on track to pay off all his debt by next year.
The Money Management International had this advice for anyone who is struggling.
If you can only make the minimum payment each month, you should consider getting budgeting advice and advice on negotiating with your creditors.
