How To Get Out Of Debt

How Do I Get Out of Debt With Credit Card and Student Loans?

Written by Steve Rhode


Dear Steve,

Between credit cards and student loans I owe $41,000. That does not include my house or car that I lease. I am not behind, but as of next month I will be, due largely to lack of child support. I work 2 jobs and make roughly $28,000 a year, without child support. I have one child at home who will graduate in May.

What is my best option? Bankruptcy, consolidation or a lending company such as Prosper? I am panicking and have no clue which way to go!



Dear Jenny,

So it sounds like your debt has finally built up to that magic amount that is just too much to handle. Typically what happens is expenses exceed income, credit is then used to help make ends meet. Eventually the credit payments build to a point that is just not sustainable.

At time like this the options are to increase income, reduce expenses, or a combination of both. It sounds like you’ve done a magic job of making it on $28,000 a year and I doubt there are many more expenses to cut.

I would contact the state agency that deals with the collection of child support and see if they can assist you with legal efforts to collect the support your child was entitled to.

You should also visit to see if there are any public benefits you are entitled to but not receiving.

When it comes to the credit card debt and student loans, can you provide me with some additional information on the amount of credit card debt and the type of student loans you have? Just post an update in the comments section below.

With a bit more information I can get you headed in the right direction.

How to get out of debt when you are making little income.

In the meantime here are some posts worth reading.

1. The Get Out of Debt Guy 8 Easy Steps to Eliminate Your Debt Checklist
2. How Do I Get Out of Debt Quickly? Change Your Mindset.
3. How to Get Out of Debt. The Honest and Unvarnished Truth.
4. The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy

See also  How Do We Get Rid of Our Debt So We Can Go to College?


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.


  • I have a direct sub, direct unsub and direct parent plus, totaling $16,663. I have a visa ( $15,000) discover ($$4000) and a lowe’s, Kohls, and a couple of other small ones. There is an order against my ex, but he lost his job, again, and only pays $200 a month of the $594 he is supposed to pay. (This includes the back pay for non payment for almost 5 years). I don’t even have anything of value other than my house. I lease my car because my 12 year old car got to the point this summer that it was going to cost more to repair than it was worth, and I mistakenly assumed my child support would be there.

    Thank you!

    • The fastest and least expensive way to breathing room then is going to be bankruptcy for the consumer debt and get the federal loans into an income drive plan. The Parent Plus loan after you consolidate it into it’s own loan will have to go into the Income Contingent Repayment (ICR) program.

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