We Went to Credit Counseling and Our Payment Was Higher. – Dan

“Dear Steve,

19,000 dollars in credit card debt. Fixed income of 1400 per month SS and maybe 1000 a month in extra earned income. Payments to Credit Cards are currently 450 per month. (11,000 of the 19,000 is on a zero interest card due to begin to charge interest in six months) – Card companies not willing to negotiate. Credit counseling company will actually increase the payment by 150 dollars a month..not lower it. No assets to mortgage.

We want to pay off our debt..not default on it..but just need to spread it out over 5 years…not sure whether debt reduction or lawyers or what is the best way to go.

That is our question..your advice.


Dear Dan,

Honestly, it sounds like what you are really looking for is a Chapter 13 bankruptcy. If you went that route you’d repay your debt over three to five years at 0% and whatever was not repaid by the end of the bankruptcy would be discharged without any tax penalty.

Bankruptcy sounds scary but it is the only way for a consumer to receive any legal protections from creditors and get a reasonable repayment plan based on what you can afford, and not what the creditors want like in a credit counseling program.

Before you rush to any judgment about bankruptcy click here to find a local bankruptcy attorney you can talk to for free. Check it out and then give me an update in the comments below and tell me if that doesn’t address your needs and concerns.


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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