Ask The Get Out of Debt Experts Debt Settlement

Credit Solutions Says Debt Settlement Won’t Really Hurt Credit Report. – Dodi

“Dear Steve,

Well, my husband and I have had a familiar to launch; that is, we got married and had children while living with his parents. We lived with them for more than 10 years, and because we had low rent and very little bills, we decided to create some of our own. We got a credit card to begin establishing a credit history, started a checking account. At the time we really didn’t understand how credit really worked and so one card led to several and very soon we owed way more than we took in so paying bills on time became a real problem. It took years but eventually we’d sunk our credit and my in-laws were retiring and selling their home (and we weren’t invited to come along.) Simultaneously, I found a “solution” (Credit Solutions) online to help us with our bad debt.

At the time it seemed great. I stop paying my bills and then save $$ up to renegotiate/settle my debt with these credit companies. They made it sound so easy, and when I asked them what it would do to my credit score, they said it would show on the report, but that credit cards only make up a tiny percentage of the whole.

Well, the economy tanked and everything went crazy for awhile and we moved in with my parents, just temporarily until we could get things in order. That was almost three years ago and my inlaws didn’t move, but now my parents are and I still have like $20,000 in what is now considered deliquent debt and we have to find a new place to live.

We paid settled a couple of cards, but it seemed that every time we saved up something went wrong. A car needed major repair or something. I went to our bank to ask for some kind of loan/line of credit so I could pay off this toxic debt and start building up something new.

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But of course they turned us down because of the debt. I am scared of becoming homeless, I feel helpless and hopeless. I really don’t know what to do. I want to go back to school, but I can’t afford it and with this STUPID credit debt I wouldn’t be able to get a student loan anyway.

It sucks to be so much more responsible when you are older and still be punished for the mistakes in your youth. We don’t use credit anymore. We use cash for everything.

I don’t really know what my question is, but I freaking out and I don’t see how we are going to be ok.

I don’t really know what my question is, but I freaking out and I don’t see how we are going to be ok.


Dear Dodi,

It is time to take back your life. I think this insanity must end.

It’s interesting that the path you took to settle your debt and avoid all the bad credit stuff actually landed you in worse bad credit.

If you had opted for bankruptcy at the time you elected instead to pursue debt settlement you’d be on your own, in your own place and rebuilding your credit.

Please don’t hate me for saying what you need to hear, you’ve made almost all the wrong choices here to achieve your future dreams. But as I always say, there is no sense wasting a perfectly good mistake. It’s time to learn from it and move forward.

Until you get this past debt situation resolved, your future goals will be almost entirely off limits and unobtainable. You can’t keep pushing this past debt into the future and relying on the kindness of others for more than a decade.

I think you should click here to find a local bankruptcy attorney and go talk to them. Discuss your situation with them and then make an educated decision if you want to stay on the current path or take charge and take responsibility for a different future.

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This is the time you need to ask yourself, do you have a greater responsibility to fix the past or fix the future?

And if you decide that bankruptcy makes logical, rational and prudent sense in your situation, then avoiding credit moving forward is the wrong thing to do. You need to get back into the credit game to rebuild your credit score and report, it’s important for the future, like buying a home or car. It’s actually relatively easy to do.

Credit was never the enemy, unaffordable credit was. If you can trust yourself to drive a car without swerving into oncoming traffic, or own a sharp set of knives without stabbing someone, with awareness you can use credit without it resulting in problem debt.

And if you do decide to file bankruptcy it will not only close the door on this past debt but allow you to do something you should be doing now, but evidently can’t, save money in case of emergencies.

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.

1 Comment

  • Dodi,

    Steve is amazing at providing the correct advice. There are plenty of companies out there willing to help you. Many of which, as you have found out, aren’t very helpful. If you can not do it on your own, then bankruptcy is probably the best option. Like Steve mentioned, had you filed three years ago you would have spent approximately $2000.00 to file bankruptcy, the debt would be behind you, and hopefully you would be in a much better financial situation today with an improved credit rating. Learn from the past and make a plan for the future. Most importantly you need to act on the plan.

    You are off to a good start by seeking help from Steve. Now make some plans and put them in action.

    Best of Luck

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