Get Out of Debt Guy - Steve Rhode

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



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.

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

Big Hug!
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