We Are So Stressed. How Do We Get Out From Under This Mountain of Debt? – Mary

“Dear Steve,

My husband and I are in deep financial crisis right now. We renewed our flat recently but we still have an outstanding balance of $2500. Then I haven’t paid my credit cards for the past couple of months which now amounted to around $15000.

I still have another outstanding loan where the collection company wanted me to pay the entire balance of $15000. We have two car loans at the moment and we are planning to sell one car to lessen the monthly bills.

The banks keep calling everyday and we feel so stressed and harassed and we have no answer for them. We both have full time jobs but our salaries cannot cover all these bills every month as we still have to pay for food, school and other necessary expenses. To top it all, we’re having our first baby and we don’t have any savings and our insurance will not cover the delivery and medical expenses.

How can we get ourselves out of these mountain of debts?


Dear Mary,

Believe me, I know how stressful being in debt can be. Yuck. What I don’t know is what it is like to be deep in debt with a baby pushing on my bladder.

The problem is when you are in the middle of the stress and depression caused by debt you are more likely to not take any action to remedy the situation simply because the stress and depression lead to inaction. It’s a never ending circle, a self-fulfilling prophecy.

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If you want to break this cycle you need to change one of the variables like income or expenses. I think you’d agree that more income would alter the situation or lowering expenses could make the situation better as well.

With a baby on the way you have more to think about than just yourselves. You’ll have a new precious life that will be dependent on you to take care of them. So now is the right time to take action to fix this situation.

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The best solution would be to fist explore bankruptcy. Bankruptcy is a legal approach that will stop collection calls, eliminate your debt and lower the stress level dramatically. You can click here to find a local bankruptcy attorney.

In your situation bankruptcy seems like the most responsible and logical thing to do. With a baby on the way there is no reasonable expectation you would be able to increase income and the new child will add additional expenses to your household budget. I think you’d agree that we need to find a way to tackle the stress level as well with the child on the way. That leaves us with bankruptcy as a way to eliminate your outstanding debt and stop collection calls.

Before you make up your mind about bankruptcy, one way or another, please go and talk to a local bankruptcy attorney and get the facts.

Please update me on your progress by

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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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