When I graduated from college, I had about $15,000 in student loans and maybe $5000 in credit card debt. My parents forced me to put every dollar of my paycheck into paying off this student loan when I found a job. Good news is, I paid off the student loan. But as a result, I’ve accrued more credit card debt from all the spending and charges I’ve put on them during the two years. I have about $15,000 in credit card debts now and are already behind on my payments. My current paycheck can only cover rent, car payment, and utilities. If I am to pay the minimum payments on all my credit cards (three total), I will be paying interest forever. Not only that, I cannot afford to pay minimum on all three credit cards. I am afraid that they will soon send this to collection services and I will not be able to fix it. I’m sure I’ve ruined my good credit but how do I recover from this?
What advice do you have?
Do you think debt settlement is a good way to go and do you know of a reputable company that does it? Please help!
Thank you so much,
Since you can only afford the minimum life expenses on your check it would be unreasonable to expect you would be able to save up enough money to settle before your creditors started suing you.
My first suggestion would be for you to read The Honest and Unvarnished Truth About How to Get Out of Debt.
Next, I would urge you to talk to a bankruptcy attorney to find out what bankruptcy would mean for you.
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
If your parents would be willing to lend you $7,500 or so for you to settle your debts quickly then, and only then, would it seem that a debt settlement approach made sense. For debt settlement help I recommend members of the AACC, a group that has pledged to put consumers first.
Please post your responses and follow-up messages to me on this in the comments section below.