I Don’t Know Where to Start to Get Out of Debt. – Alice

“Dear Steve,

I have a lot of debt due to credit cards and 2 mortgages i have a condo and i owe more on my mortgages than my condo is worth. so refi is not an option.

Well my question is i would like to start getting out of debt but do not know where to start i heard story about Debt conslodation and debt managment company that said do not use them you will get more in debt with them and i want to try to stay away from filing Bankrupcty any ideas how to get started lagitamently?


Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

Dear Alice,

Before we jump to the selection of the vehicle, we first need to figure out where we are going. I know you said you would like to start getting out of debt but before simply reducing some balances it would be important to have a conversation with yourself or a debt coach like Damon Day about what the end game is. Is it simply that you want to lower some balances, move towards a life without or with less debt, or maybe to just reduce balances to a level your are emotionally comfortable with?

It seems that without even looking at the credit cards, the most pressing matter is the mortgage situation. You could still spend years digging out of credit card debt only to be permanently sunk in a mortgage situation that is not resolvable without legal intervention.

Probably one of the most important questions you need to contemplate is if you want to spend the next seven years digging yourself out and living a budgeted life and digging out or spend the next seven years recovering and rebuilding.

Post your insights in the comments and let’s take it from there.

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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