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I’m Looking for Government Help in Cutting Our Unsecured Debt. – Anita

“Dear Steve,

I’ve been doing some research about possible government help in cutting our unsecured debt. We are a family of 4 with only my husband working. We have over 19k in unsecured credit cards. This year has been really tough with the gas prices going up and our electric bill skyrocketing. I am not behind on any bills; however I only can squeeze by the minimum payments. We have stopped using our cards and I have only been transferring the balances when an offer comes along. Our house has been for sale for the last 6 months, actively lowering the price-but there aren’t many buyers coming through as the market is so slow! My husband and I have great credit scores and I really don’t want to mess with them, but I would really like to loosen the grip. Can you offer me any advice?

Thank you so much for your time and knowledge,


Dear Anita,

While you may hear, see and read advertisements about Obama or government plans to cut debt. They really don’t exist.

Here is an example of an advertisement I saw this morning online.

The reality is the government only offers one sure fire way to reduce or eliminate your debt and it’s called bankruptcy.

Bankruptcy is a government backed and approved legal process to help citizens when faced with debt they can no longer manage.

If you are just treading water now it does not sound like a credit counseling program is going to be beneficial for you. I would suggest that before you get fooled into any of these “government backed” ads for debt relief that you click here to find a local bankruptcy and go talk to them.

I know you are worried about your credit score, but that can be rebuilt after bankruptcy. And the reality is in your situation a good credit score is really an artificial number, you are drowning.

I’ve witnessed thousands of people make foolish decisions to chase some debt relief miracle in order to protect their credit score, only to wind up broke, sued, and eventually bankrupt reactively. Be proactive, go talk to the bankruptcy attorney now.

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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