How Can We Get Out of This Credit Card Debt Since We Are Unemployed and Laid Off? – Bobbie

“Dear Steve,

We have about 50K in credit card debt. My husband got laid off the end of Jan. 2010, with little in savings we can’t make our monthly payments with my income and his unemployment. Trying to figure out if we should try to work with the credit card companies themselves or do to a debt management/settlement program or what??? Also I just had surgery a week before my husband was laid off and now all of the medical bills are coming in.

How can we best help ourselves? Is it better to work with the credit card companies themselves or through a DMP? And what can I do with a medical bill that will not take payments, let it go to collections?


Dear Bobbie,

You can best help yourself by going bankrupt. A debt settlement program or a debt management / credit counseling program is not the right path here.

The key factor is that with your current combined income you are already struggling. Entering a solution at this time that is based on years of continued monthly payments is crazy since there is no current reasonable expectation you will be able to successfully complete the plan. Both credit counseling and debt settlement are highly ineffective strategies to getting out of debt.

Based on the information you shared it seems the only expectation to get a fresh financial start without lawsuits and aggressive collection activity in your situation is bankruptcy. Click here to find a local bankruptcy attorney you like and go talk to them, please. Please!

And if the sound of bankruptcy sends shivers up your spine and makes you feel bad, tell me why in the comments section below. Let’s talk about it.


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.

Do you have a question you'd like to ask me for free? Go ahead and click here.
Damon Day - Pro Debt Coach

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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.
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