My Student Loans Have Just Come Due and I Can’t Afford Them With My Credit Cards. – Deb

“Dear Steve,

I would really like some advice on what I can do to pay down my credit cards and student loans. I currently have a mortgage ($91,000), second mortgage ($21,000), credit cards ($19,500), and student loans ($30,000). My annual income is $40,000-$42,000. I have my home rented out to cover only my mortgage payment and my student loans have just come due from being in deferment. I feel like I am sinking….fast.

Thank You,


Dear Deb,

If your student loans are government backed loans then I’d look at the Income Based Repayment Program, or IBR, as a way to possibly lower those payments.

If you can’t or that does not provide you with enough room you might want to checkout a Chapter 13 bankruptcy which may lower your second mortgage amount due, allow you to make your student loan payment, keep your house, and pay what you can afford on the credit cards.

This may be very beneficial if your combined mortgages are for more than your property is actually worth.

If you don’t get your finances rearranged so you can afford the student loan payment then the loans will just tick away running up the balance with interest. And if you defaulted on the loans, well, nothing good happens.

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 post your responses and follow-up messages to me on this in the comments section below.


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.

Do you have a question you'd like to ask me for free? Go ahead and click here.
Damon Day - Pro Debt Coach

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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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