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We Are at the Point Where All We Can Do is Pay the Minimum Payment. – Robert

“Dear Steve,

Well we are to the point where we are basically paying the minimum payment on everything, using credit cards for grocerys and gas to get to and from work. we cant refinance our house cause our value of our house really dropped and now we owe to much than what the house is worth. we are truthfully about $70,000 in debt. We have been holding our heads above water for a while but it seems that we are slowly inching under the water. I am trying my hardest to do everthing that I can for my wife and 2 small children, but it doesn’t seem like I can do anything else.

I am down to 1 Credit card which is almost at its limit and the other ones I have closed and have them at the lowest apr that I can get them. I have consolidated credit card before and I am still paying on them today. In my eyes I only have 2 options, debt settlement or bankruptcy. what are my choices and what do I have to do to get out of debt?


Dear Robert,

We have a technical term for people in a similar situation, “screwed.”

Now that your debt has increased to a point where you are having to use credit to make ends meet, unless you can significantly increase your income to change the formula, then the most logical solution is bankruptcy.

Bankruptcy gives you substantial benefits in preventing collection calls, stops any lawsuit, and eliminates your debt without any tax liability. You’ll probably qualify for a Chapter 7 bankruptcy and your debt will be eliminated within months. Bankruptcy will cost about $1,500.

With the debt settlement approach you will default on your debt, hurt your credit, wind up in collections, potentially sued and risk a wage garnishment. Debt settlement will cost about $10,500.

Which approach sounds like the one you want to follow?

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My suggestion would be for you click here to find a local bankruptcy attorney and go talk to them first.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.


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.

About the author

Steve Rhode

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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