I’ve Been Living Off My Credit Cards While I Started My Own Business. – Phillip

“Dear Steve,

I have over 30K in credit card debt. I have been carrying this around for several years. I was living off the credit card while I started my own business.

I don’t use credit cards anymore, if we don’t have the cash we don’t buy it. But obviously the monthly payments are high, and we are not paying down any principle. I am also working with one of my car loans to adjust the loan since the payment is very high and the car is worth nothing.

Is a Chapter 13 bankruptcy any easier on your credit score than a Chapter 11, or is a bankruptcy a bankruptcy?

Could I negotiate a lower debt settlement with my biggest creditor myself? Have you seen people be successful in doing that? If so, what are some tips, or advice you could give me in dealing with them?


Oh Phillip,

So was starting your business on credit cards a worthwhile exercise? Would you recommend it to others?

Debt settlement would be a foolish approach here. You don’t have any extra money to offer and lump sum payments.

You might be eligible for a Chapter 7 bankruptcy. You won’t know till you go talk to a bankruptcy attorney. Click here to find a local bankruptcy attorney you like. Make an appointment, go talk to them, and then go home and ingest what you learned. There is no reason for you to jump and make a decision on the same day.

Since you said ‘we’ I assume you have a partner or spouse. Take them with you to the bankruptcy appointment so they can be educated about bankruptcy as well. Always best to have everyone on the same page of music.


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.
Damon Day - Pro Debt Coach

Steve Rhode

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