Sarah 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,
We are making ends meet but have no extra money to put toward our credit cards.
We have no breathing room. We can’t leave town to go see our family without worrying about being able to pay our bills. We are making ends meet but have NO breathing room and can’t even put extra towards our credit cards to pay down the debt. We want this so bad but have no means of doing it. We’ve looked into a debt settlement company but I read up on debt settlement and no one had anything good to say about it. Is it true that whatever you don’t pay back to the credit companies you have to claim as income? Is there anything we can do besides bankruptcy?
Sarah”
The Answer:
Dear Sarah,
I’m afraid the debt God’s have spoken and without additional income, bankruptcy is the most logical answer here. Click here for a free bankruptcy consultation with a local bankruptcy attorney.
Why is that? Since you have no money extra and you’re just getting by on what you’ve got right now, there is no money to even think about doing credit counseling or debt settlement. Enrolling in either of those options is not a route to make this go away.
If you can’t increase your income or reduce expenses to free up extra money to promise a payment on your cards for the next seven years then a friendly meeting with a bankruptcy attorney is the best way to proceed.
