I’m Current But Maxed Out and Want to Get Out of Debt. – Julia

“Dear Steve,

I have 45k in credit card debt I am single just started a new job which is based off of commision. I am current on all of my bills no lates or over limits I am at 80% of limits, however I can only pay minimum payments on the bills. Please give me some idea as to what to do. My experian credit score is 692.

thank you


Dear Julia,

Thanks for reaching out to me for help.

There are two approaches towards tackling this. One is to be smart about how to apply your payments to get out of debt faster. There is a free service from my friends over at ReadyForZero.com that can help you pay down your debt in a mathematically efficient way to best utilize the money you have. This approach will require that you make at least all the minimum payments but have some extra money each month to pay down on the highest priority debt to tackle. When you visit the ReadyForZero.com site it will make more sense.

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

The second logical approach would be to explore the possibility of an unsecured debt consolidation loan to lower your highest interest rate cards and reorganize your debt into something you can better afford, and then take advantage of the ReadyForZero.com approach.

It is still possible to get unsecured debt consolidation loans and about 70% of the loans issued through LendingClub.com are for consolidation. LendingClub.com is a peer-to-peer network where people like you and me help to fund loan requests of other people like you and me.

If you decide to go the LendingClub.com route then let me know what your loan number is by posting it in the comments below and I’ll help to fund your loan.

If the debt consolidation loan seems like something you’d like to pursue, I’d get on it. Their cutoff is around 660 and while your credit score is higher at the moment, it’s not much higher.

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The positive about both of these approaches is they will not hurt your credit and in fact help your credit as you dig your way out.

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

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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