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We Live Paycheck-to-Paycheck But Don’t Want to Hurt Our Score to Get Out of Debt. – Lori

“Dear Steve,

My husband and I are in over 65k in credit card debt. We make the minimum payments every month on all our cards. We are in good standing with all of them, but we live paycheck to paycheck and we have no savings. We also don’t want to hurt our credit score. I was wondering what my options are financially, should we look into consolidation, settlement or bankruptcy?

Any advice would be greatly appreciated.

Thank you,

Dear Lori,

Yours is a situation I see often. People make often illogical choices to stay current on their debts but only really leave themselves in a lingering and dangerous financial situation.

So as it stands now, you are maxed out, unable to afford any more debt or additional payments. And you have no cash saved in case of an emergency.

While having a good credit report or credit score is desirable, your desire to achieve that is leading you down a deep and dark hole.

Here is what I’m assuming.

  1. You have no assets to sell or loads of cash laying around.
  2. The situation is getting pretty stressful for you and living month-to-month just doesn’t feel safe.
  3. Being able to save cash in the bank to protect you in case of an emergency is a goal.
  4. You are unable to increase income or money available to pay down debt each month.

If that sounds like your situation then you need to click here to find a local bankruptcy attorney.

Sure, bankruptcy will result in bad credit, but that can easily be repaired with a little time. I can even show you how to do that. But wasting years limping along, maxed out, without a viable way to break the cycle, will only invest years of time you could have used to overcome this situation.

Maintaing good credit for every day of your life is not the primary goal. It seems to me the primary goal here is to return you back to a position of equilibrium where you can live within your income, and save money at the same time.

READ  Carol Wrote Me And Asked "Would You Advise Debt Consolidation?"

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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