Russ 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.

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“Dear Steve,

My wife and I owe over $250,000.00 in loans, both physical therapists, however not making enough to pay the $1,950.00 a month.

We both have great credit scores because we keep robbing Peter to pay Paul…

Basically getting into more debt..

Add into that 2 kids and wife working less and less…

Any suggestions?

Russ”

The Answer:

Dear Russ,

I think the choices and decisions have already been made for you if you can take a good look. Let’s review the facts.

• You debt has been building for a period of time.
• You are unable to pay for this debt without going further into debt.
• Your income is dropping.
• You are starting to feel pressure and/or stress as a result of this financial weight.

You really only have a few choices here.

1. Reduce your expenses.
2. Increase your income.
3. A combination of reducing expenses and increasing income.
4. Discharge debt with bankruptcy.
5. A debt management program.

I doubt that a debt management program is a serious consideration since you are probably so deep in debt right now that even the minimum payments are out of your reach.

Reducing expenses is logical but means that you’ll have to make some lifestyle adjustments like spending less on fun stuff, maybe move or get a cheaper car. Those are emotionally difficult choices to make and implement.

Increasing income does not sound like a possibility in your current situation so you’ll have to think about job hunting and looking for a new position that pays more.

Russ, none of these things are easy but with the whole peter and paul felony thing the only thing that has happened is that you are down a deep hole that might require the most serious solution, bankruptcy. Please click here to get a free bankruptcy consultation and talk to a bankruptcy attorney. You might find that bankruptcy is not right for you but until you explore all your options you can’t make a good decision about what path is right for you.

Steve