Credit Counseling Can Only Reduce Our Payment a Little. – Andy

“Dear Steve,

We went through a rough period when our second child was born and built up some credit card debt. We had been able to coast along with overtime, etc but things have now come to a head. We are a little late on all our credit cards and just staying afloat. I have spoken to a credit counselor and the payment reduction is minimal and makes our budget very tight.

Are debt settlements plans for real? We are concerned with further reductions to our credit scores as we have an adjustable rate mortgage and while rates are going down now, we know we need to refinance, etc. We are heavy on car payments but upside down on the expensive one.

What’s the best approach?


Dear Andy,

Avoid debt settlement. You need to read “The Truth About The Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy.”

It’s easy for me to see this as an outsider but the reality is that bankruptcy is probably your best bet considering your future income may wiggle around and you are already living close to the financial edge. Credit can be easily rebuilt after bankruptcy. The worst scenario would be wasting a lot of time fooling around in other solutions that may never solve the underlying problem, your debts exceed your ability top care for them on your income.

Click here to find a local bankruptcy attorney you like to talk to. Before you may any decision to go into any other solution you must talk to a local bankruptcy attorney to get yourself as fully informed as possible. Only then can you make a good decision.


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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