Credit Card Consolidation Program is Not Working For Us. – Peter

“Dear Steve,

My wife and I moved about 10 months ago for me to start a new job and it seems that our debt situation has gotten worse to the point of now wondering if we can make it month to month. We are both currently employed but it seems that our paychecks are not covering our debts. We went through a credit card consolidation program that I am unsure if it has worked or even working. Well it can’t be working since we are barely getting by. We have several credit cards, rent, school loans, a car payment, medical bills, babysitter fees, etc., and we cannot seem to get ahead. We also have 2 little ones that we worry about as well.

I guess my question is what is the best course of action? My wife and I have tossed around the idea of bankruptcy, but I do not want to go down that path. I also had thought about debt counseling, but am unsure of how it works. I (we) need some help and guidance and any suggestions or avenues to take would be greatly appreciated.


Dear Peter,

While I’m not certain which program you used it sounds like it was a credit counseling or debt management program where the company takes over paying your creditors and may be able to reduce your interest rates.

For people just limping along month-to-month a reduction in interest rates might be fine but it’s a reduction in monthly payments that’s really needed.

If we look at possible solutions, an unsecured debt consolidation loan might be a good choice if your credit score is still good. I like for unsecured debt consolidation loans.

If your credit score is shot and that’s not a possibility then we need to look at alternative solutions that can reduce your monthly payment. Those solutions would include debt settlement and bankruptcy.

Many people have a knee-jerk reaction about bankruptcy but it’s really the only program that gives you legal protection from creditors and a fresh start to deal with the old debt and do better moving forward.

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Before you make any decision about bankruptcy I think you should read The Honest and Unvarnished Truth About How to Get Out of Debt and find out what the real deal is.

So let me ask you, do you feel it is better to avoid bankruptcy and limp along for the next five years or so or file bankruptcy and get a fresh start so you can begin to save money again and protect your family moving forward?

Please post your answer in the comments.


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.
Damon Day - Pro Debt Coach

Steve Rhode

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