I’m 62 Years Old With $48K in Debt and I’m Drowning in Payments. – Wayne

“Dear Steve,

Retail management – 62 yrs old -owe 48000 in credit card debt-

I owe 48000 in credit card debt. At this time I have been able to keep payments current but not much longer. Pay around 1500 a month in credit card payments. Ive talked to counselors but see no different in the amount paid. I need to be paying around $800. monthly to get back ahead. HELP!!!

Wayne”

Dear Wayne,

There are a number of factors here that are of concern. Probably the one of most importance for me is your age and then your occupation.

Retail management is a fine occupation but in this temporary age of economic uncertainty it is probably not a well underpinned career at the moment if retail demand slows at all. I’m not trying to rain on your parade, just looking cautiously at the reality of the moment. The good news is the economy will improve and the future will be brighter.

As far as your age, I view debt problems like an investment adviser would look at portfolio choices based on age. For someone closer and closer to the potential end of the earning life I always feel much better taking bold and decisive action to take the best advantage of the remaining earning years. Now is not the time to take risky financial gambles like making payments that drain your resources when you can least be able to refill them.

My next concern is what led you to your current balances. Was it spending beyond your means, unavoidable expenses that wound up on cards because you did not have any cash saved, or was it just trying to make ends meet over a period of time? While I don’t know for sure, you need to and you must be honest with yourself how you built up the debt. I always say there is no sense wasting a perfectly good mistake and it would be a terrible waste of a life lesson to not learn from the stress and pain you are going through right now. Examine it, learn from it, and don’t repeat it.

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When you say you spoke to a counselor and the payment wasn’t lower I am assuming you spoke to a credit counselor. While a credit counseling debt management plan (DMP) can offer some benefits such as lower interest rates and bring past due payments current, it can’t reduce the monthly minimum payment down lower than about what it is now. In your case the problem is cash flow, not interest rates.

So based on your age, earning potential and cash flow the most logical solution is to not delay in seeking the wise advice of a bankruptcy attorney. Bankruptcy will allow you to reorganize your debt immediately and if your situation allows you to file for a Chapter 7 bankruptcy you could be out from under this debt in a matter of a few months. Once the debt is discharged you can get back to work doing what you need to be doing at this point in your life, saving money.

And Wayne, if you are worried about how bankruptcy will impact your credit score, don’t be. The credit score can be easily rebuilt and the number lifted again using my easy guide here. What can’t be easily recovered is time and income earning time is the most precious commodity you’ve got. That’s what we need to save and hold precious.

You can click here to find a local bankruptcy attorney and if you’d like a second opinion about your situation or a personal consultation by another debt coach, please feel free to contact Damon Day.

Please update me on your progress by

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.

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