“Dear Steve,

My situation is this. I am in credit card debt in the amount of over $10,000. I have recently moved to try to get a better education to get a better job. I am a single mother with three children and do get government assistance in the form of medicaid and foodstamps. Before i moved i just barely was able to make the minimun amount on my credit card payments.

Now that i have moved, i’m looking for a job. I am approximately three months behind on my payments now for my credit cards. I don’t know what to do to get out of this situation. I want to have good credit…i almost have my car paid off…it’s just these credit cards that i’m having trouble with. I would appreciate any advice you could give.

I’m looking for work and am just living on child support and going to college full time. I can’t make the payments for my credit cards….other than finding work, is there any help i could get to get the interest rates down or other options? Thank you. Stacy

what can i do to help my situtation with these credit cards?

Stacy”

The Answer:

Dear Stacy,

Debt problems are best resolved with an increase in income or a reduction in expenses. With your current situation it seems unlikely you are going to be able to increase income enough to make ends meet.

I don’t know how you manage to juggle college and three kids. Heck, I can’t even answer these questions and watch just one 9 month old.

The best course of action is going to be to give yourself a reasonable period of time to find additional income, if you can’t them you are faced with dropping out of college to work, looking for additional benefits you might be eligible for (Benefits.gov), or looking into discharging your debt with bankruptcy.

Even if you don’t want to consider bankruptcy at first glance, you owe it to yourself and your kids to meet with a local attorney and discuss what bankruptcy would mean for you.

At this point the goal is to get you headed down a path that might be able to keep you and your kids safe from a financial disaster.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

@GetOutOfDebtGuy

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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Read the full article at GetOutOfDebt.org, click here: Can’t Afford My Credit Cards. Living on Food Stamps, Child Support and College. – Stacy

“Dear Steve,

I have spent the last 6 years being involved in risky startups and ventures. I have used my life savings for these ventures as well as racked up a good amount of credit card and tax debt.

We just had a baby boy 4 months ago – and I am completely focused on getting out of debt in 2011.

I will have some decent income this year (in the 6 figure range) and 2012 is shaping up to look really good.

How can I negotiate my credit card debt? I have approximately $27,000 in credit card debt and would like to wipe that out. That being said – I still want to do this in a way that least likely hurts my credit score. Are there any good online sites you would suggest? I have called all of them and they will not reduce my interest rates any further. Any suggestions on how to approach?

In regards to IRS Debt – what is the best approach? Just pay off as fast as I can? Probably not an area that I want to negotiate?

Also – my wife did a short sale. What is the fastest way to get her credit back on track?

Thanks!

Ryan”

The Answer:

Dear Ryan,

Getting out of debt for less than you owe and not having it impact your credit are mutually exclusive. It almost seems like the fastest ways out of debt have the biggest initial hit, like bankruptcy and debt settlement. However if you qualify for a Chapter 7 bankruptcy your debt can be discharged in months and you can begin rebuilding your credit right away.

If you are looking to explore settling your debt then contact on of the AACC member companies for help and assistance. These debt settlement companies have pledged to put consumers first in their dealings.

On the IRS debt I would suggest you start with EasyIRS.com for honest and affordable help. I’ve interviewed Jim Buttonow of EasyIRS and he attended my Rally in Raleigh.

On rebuilding credit, just follow this guide.

As part of your journey out of debt I suggest you read this article, “The Honest and Unvarnished Truth About How to Get Out of Debt,” and also meet with a local bankruptcy attorney to be better informed what bankruptcy means for you.

You can click here to find a local bankruptcy attorney and if you’d like a second opinion about your situation or a personal consultation by another debt coach, please feel free to contact Damon Day.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

@GetOutOfDebtGuy

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.

Other Related Articles to Read

• Credit Score Dropping, I Owe the IRS, and Need More Student Loans
• Do I Have to Include All My Debt in Bankruptcy? – Michael
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• On Payment Plan With the IRS but Can’t Afford My Other Debts. – Thomas
• If You Thought the Recession Was Bad, Wait Till You See The Tax Problems Many Will Have as a Result
• Owe The IRS? Former IRS Agent Tells You What You Need to Know to Deal With the IRS.
• We Closed Our ATV Business and Owe Back Taxes. – Wanda
• We Own a Small Business That Has Never Made Much Money. How Do We Get Out of This Mess? – Sierra
• Can I Get Rid of IRS Debt in Bankruptcy? – Julia

Read the full article at GetOutOfDebt.org, click here: I’ve Been Involved With Risky Ventures But Now Want to Clean Things Up. – Ryan

“Dear Steve,

My name is Shawn and i am scared shitless right now, sorry for the language. me and my girlfriend are on welfare because shes pregnant and i have Crohns disease and i am unable to work right now we get 1000 a month for the both of us our rent is 400 and all the other bills we really have pennies to our name. anyways enough of he guilt trip, i was just wondering if u could tell me what i could do i cant afford to pay it back i just have no clue what to do man. please let me know something i can do ive been trying to get a hold of my lawyer but she hasnt gotten back to me yet. hope to hear from you soon .. Could i go to jail?

thank you for your time

Shawn”

The Answer:

Dear Shawn,

You are not going to jail for debts in America. Thankfully you don’t live in Dubai where you actually can go to jail for a debt.

You might want to seek free bankruptcy help from the bankruptcy pro bono resource locator. If you are eligible you’d still have to pay the court fees but you could get legal help for free.

Now some might say that since you are on welfare and have no assets you really don’t need to do anything but with the pregnancy and your Chron’s the last thing you need right now is more stress in your life from these debts. The stress and depression over debts can literally make you sicker.

I don’t know how much you owe but one thing is for certain, there is a solution out there for you.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

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.

Other Related Articles to Read

• My Daughter Has Chron’s Disease and I Don’t Have Insurance. – Pamela
• I’m on Welfare. Debt Settlement Companies Tell Me They Can Get Rid of My Debt. – Kevin
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• My Son Has Chron’s Disease And is Struggling With Debt. – DD
• I am Disabled and Worried About Paying My Credit Debt. – Patricia

Read the full article at GetOutOfDebt.org, click here: I’m Scared Shitless Over My Debts. – Shawn

“Dear Steve,

My husband and I were doing very well with finances until about 2 years ago. We got deeper and deeper in debt, and now we are $35,000 in unsecured debt. I found out I was pregnant 7 months ago and started saving money until my sister came to me for help-to make the long story short I lent her our savings and haven’t received a dime back yet. I am due in March, I work for Fed. Gov’t so I don’t get paid maternity leave. We have about $4000 in bills each month, and we bring in $5000. Without my paycheck, we will be short and will end up being behind on bills.

What should I do?

Should I go to Navy Federal and try to apply for a consolidation loan and explain to them our situation? Our Credit card APR’s range from 9% to 27%.

I am stressing out and need help asap.

Mom”

The Answer:

Dear Mom,

Well I’m afraid the path was made fairly clear the moment your dear sister failed to give you the money back.

The problem here is that without any emergency fund to tied you over on maternity leave and then the increase in daycare expenses or the reduction in income once the child is born, I bet you just won’t be able to either make ends meet or catch up latter.

In a perfect world a debt consolidation loan might do the trick to consolidate your credit cards down to a better rate.

The first step will be to plan how much you could afford to pay each month on a consolidation plan for the cards after you factor in your post-baby financial reality.

If Navy Federal turns you down or you want to check for a better rate then look at the peer-to-peer lending network, LendingClub. If you end up going with LendingClub, I would be happy to be an investor in your loan.

So, give me an update in the comments section of your question on the site and let me know how much you think you’ll be able to afford after the baby is born. If the consolidation approach isn’t going to work for you, let me know and we’ll come up with a Plan B.

Big Hug!

@GetOutOfDebtGuy

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.

Other Related Articles to Read

• I Read a Debt Settlement Book by Mandy Akridge and Thing of Settling But Navy Federal is Coming After Me. – Jake
• Navy Federal Credit Union – DIY Credit Counseling Repayment Plan Terms
• Navy Federal Credit Union Won’t Stop Hounding Me. – Bryan
• Navy Federal Credit Union Told Me to Go Bankrupt. – John
• Everything is a Mess With Navy Federal Credit Union. – Lesley
• I Owe Navy Federal Credit Union $17,000. – Garr

Read the full article at GetOutOfDebt.org, click here: I’m a Stressed Out Baby Momma and Need Help. – Mom