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We Have 10 Credit Cards With High Limits All Maxed Out. – Melissa

“Dear Steve,

We have 10 or so credit cards some with high limits all maxed out. Able to barley make minimum payments. Getting harder to keep up.

We have 4 kids and are trying our best to keep up on debt. We have closed most of the cc. We had an idea of taking all our money that doesn’t go to everyday living and start eliminating one or two cards per month until we get to the bigger ones which will take a few months each but could eliminate all within two years but how do we keep from lawsuits while doing this?

We are not overly concearned about our credit as it is starting to go bad and we can build it again once we pay off the debt. We would like to stay away from credit cards in the future, and now. Once we can eliminate the debt we won’t be living paycheck to paycheck.


Dear Melissa,

The plan will only work if you have enough money each month to make the minimum payments on all the cards and then add an extra amount towards one of them till paid off. One approach to digging your way out is called the debt snowball approach. Follow the debt snowball link and you can learn all about how to do this.

But when you say you are just barely making the minimum payments, now I’m worried. It does not sound like you’ve got enough money to dig yourself out of debt each month. If you took all the credit card payment money and applied it towards one card at a time the others will go delinquent, the rates will be raised, the balances will increase and you will probably be sued by one or more of the cards.

If the minimum payments are a struggle then a debt management plan is not a reasonable solution. With the maxed out gaggle of cards I am sure your credit score is down so trying to get a balance transfer is out as well. And since you are just barely getting by I’m afraid we are left with only one good solution, bankruptcy.

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In bankruptcy you will either be given a payment plan based upon what you can afford and after a period of time any unpaid debt will be forgiven, or the debt will be discharged straight away. I would urge you to click here to make an appointment with a local bankruptcy attorney you like. Go in and ask all the questions you can think of. Then go home and mull it over for a couple of days. There is no need to rush into anything.

I’m concerned that the debt was run up in the first place. Were you just living beyond your means? How did this happen? Unless we can autopsy the reason you got here in the first place you risk falling into the same trap again in the future.

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.


P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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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.

1 Comment

  • Steve thank you for your response. After lots of research and taking a very close look at our finances we are going to make the min. on all cards. We are tightening the belt with no more eating out, stops at convience stores and coupon clipping etc. This will leave us with a decent amount each paycheck to put into savings and once a month put all that extra to one card at a time. I felt we were paycheck to paycheck but when you look at the whole picture and knock out the unneccessary things we aren’t so bad. It make take some time and not living like we are used too but it will happen without bad credit scores, debt help or bankruptcy. I encourage anyone else in this situation to look at the whole picture because there are things we can all cut out for a while that we think we can’t survive with out. We have also been buying store brand using cuopons and watching for sales at all store’s and have cut our grocery bill every two weeks from $400 to $250. That has free’d up a lot of money.

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