I’m Barely Making My Minimum Payments. What Can I Do? – Pete

By Steve Rhode
Report a Typo

Ask Me
Your Question

Pete wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty. If you would like to help me to help others, there are easy and free things you can do, click here to learn how you can help.

“Dear Steve,

I’m $90,000 in CC and loans. My income was slashed by $50,000. Barely make minimum payments

I need advice?

Pete”

Steve’s Answer:

Dear Pete,

You’ve really made it hard for me to give you a lot of specific advice since I only have limited information.

Your level of credit card debt is high for many but I’ve helped plenty of people that would think that $90,000 of debt was not much at all. It is all relative.

What I can tell you is that you absolutely need to avoid using the credit cards to get by right now and don’t spend down what savings you might have just making minimum payments each month because you are afraid to fall behind.

Time and time again I’ve watched people spend down their savings, afraid to make some tough decisions, only to reach the end of their savings and have no options at all.

If you are not able to make the minimum payments and still put some money in a boring old savings account then you’ve got real trouble brewing.

If you are just limping along right now I would suggest that your first step, the logical first move, would be to see if a debt management program can lower your monthly payment and give you a bit of breathing room.

Click here for debt management information and if that doesn’t solve the current problem then get back in touch with me and we’ll move to Plan B.

Remember this, your lifestyle is based on your income. When your income is cut you’ll also need to make lifestyle choices and that’s where it really hurts. This might mean going out to eat less, less bar hoping, and less things you used to enjoy. It’s not fatal, just difficult to adjust your lifestyle at first.

Big hug.

@GetOutOfDebtGuy

Source: I’m Barely Making My Minimum Payments. What Can I Do? – Pete

Originally posted 2009-01-22 16:02:04. Republished by Blog Post Promoter

Other Related Articles to Read

• I Supported Someone for Three Years That Completely Drained Me. – Jessica (0)
• My Wife and I Are Both Maxed Out on Credit Cards. Where Can We Go? – Alvaro (0)
• How Do You Value Your Quality of Life? Debt Solutions to Fix The Future (0)
• We Are Making Ends Meet But Have No Extra Money to Put Toward Our Credit Cards. – Sarah (1)
• I Lost Most of My Income. How Can I Get My Debts Reduced? – John (0)
• Rebecca And Her Husband Are Struggling to Keep The Business Going (0)
• I Am 60K in Credit Card Debt And They Are Raising My Interest Rates. – Teresa (1)
• I’m Making My Minimum Payments But It’s Getting Tough. – Barbara (0)
• My Wife and I Made Mistakes. I Can’t See a Way for the Family to Get Out of Debt. – Gary (0)
• I Carry Very High Balances On My Credit Cards. – Joyce (0)

Tags: breathing room, lifestyle choices, minimum payments, plan b, trouble brewing