Credit card debt is haunting Portland, Ore., businesswomanJackie Kauffman, but her bank has no solutions to offer other thanlate fees and added interest charges. She said she feels like heronly option is to default.

“The recession hit me hard and I've done everything I can to beresponsible with my money,” Kaufman said. “I never imagined I wouldbe in such a bad place financially.”

Recently she heard about a new program – a way out of herfinancial mess, and she plans to become a member of the $915million Unitus Community Credit Union in Portland to take part.

The program, Ultimate Payoff Loan, is designed to help memberssuccessfully reduce or eliminate credit card debt and become morefinancially stable.

“My sister is a member of the credit union and she casuallymentioned it and I felt a wave of what I guess, was relief passover me,” said Kauffman. “It's not a magic bullet from what Iunderstand, but it might be a way to get out from under this cloudof debt and finally get some sleep.”

According to Laurie Kresl, vice president of planning and businessdevelopment, Unitus wanted to give members an in-house opportunityto educate themselves and improve their finances, as opposed to“going it alone” or seeking help from a debt managementcompany.

“The best place for someone to get help dealing with debtshould be their local credit union, not from a debt managementcompany with whom they have no prior relationship,” Kreslsaid. “Educating our members and giving them the rightfinancial tools and support remain top priorities for Unitus.”

According to Unitus, the average household credit card debtexceeds $10,000—that's in addition to other forms of debt, such asmortgage, car and school loans. A $10,000 loan, however, can takeas many as 30 years to repay if only minimum payments aremade.

Unitus' launch of its Ultimate Payoff Loan follows a successfulpilot program conducted last year, the credit union said, in whichparticipating members consolidated their loans and committed tosteps that would help them get out of debt

To participate in Unitus' Ultimate Payoff Loan program,borrowers such as Kauffman with multiple credit card accounts mustconsolidate smaller balances into a short-term, fixed-rate personalloan, allowing them to accelerate debt reduction.

They must also commit to financial discipline by making minimummonthly payments on other credit cards and loans, applying anyexcess funds towards the Ultimate Payoff Loan, and avoidingadditional credit card and other unsecured debt. Once thefirst Ultimate Payoff Loan has been fully paid, Unitus willcontinue working with committed members by providing additionalloan consolidation until they are debt free.

“Our goal is to help our members achieve financial successthrough education and partnership. In some cases, this meanshelping them responsibly end the cycle of debt accumulation so theycan continue moving forward in their lives,” concluded Kresl.