We Make Good Money But Just Don’t Have Any Extra at the End of the Month. – Shon

“Dear Steve,

We make good money but just don’t have any extra at the end of each month. we have about 25,000.00 in credit card debt. some left over for years some we paid off and then recharged fixing up our house. We filed bankruptcy about 7 years ago and never want to do that again. Guess we didnt learn much from our mistakes! We are paying so much interest each month that we can’t seem to get ahead even when we work overtime.

Would debt settlement be an idea for us or no? Does it affect your life like bankruptcy? Will it have any affect on the Parent Plus loans we have for our college age child?


Dear Shon,

A debt settlement approach can lead to collection calls and the possibility of being sued if you don’t have the cash on hand to settle in a relatively short about of time. It will also leave a black mark on your credit report for seven years. I’m not confident yet that makes sense for you. I don’t want you to get solution focused. We need to explore the situation to find the best solution.

You made a statement that intrigued me. You said, “Does it affect your life like bankruptcy?” I’m wondering how bankruptcy impacted your life or if the reason you have a lasting impact is because you never rebuilt your credit again.

If you have a credit score above 660 then my primary recommendation would be to examine would be a debt consolidation loan through an outfit like LendingClub.com. An unsecured debt consolidation loan can help your credit since you would use the money to payoff your current debt and since the debts would be paid in full there would be no negative repurcussions for paying it off. I’d explore the LendingClub.com option first. If you do decide to go the LendingClub.com route, let me know what your loan number is and I’ll help fund it.

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Outside of that my concern is that you’ve found yourself maxed out again. In digging out of this hole we need to explore options that will allow you to repay your debt and save money at the same time. Without credit to fall back on you will need an emergency fund or savings account if you find yourself in a tough spot and need some money. Unless we free up some room for saving, it won’t take much to trap you in a bad situation.

The bottom line is we need to resolve this situation so you can move forward and life your life within your income.

Does this sound like a reasonable approach?

Post your updates to me 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.

Damon Day - Pro Debt Coach

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