I’m So Embarrassed About My Financial Situation. – Frances

“Dear Steve,

I’m desperate for help…you see I’ve been so embarassed about my financial situation that I’ve just been stuck repeating the same behavior for years. Now I’m unemployed and back at home with my parents and my two children living off of my EDD Benefits.

I really want to use this time to create a plan to get out of debt, but my brain is frozen – I just don’t know where to begin. Should I file for bankruptcy if my debt is no greater than 20k? I don’t have credit card debt, my debt consists of medical bills in collection, traffic tickets in collection, 2 payday loan (online scam) in collection etc. If I consult with a debt consultant will they tell me whether or not I should file for bankruptcy?

If I consult with a debt consultant will they tell me whether or not I should file for bankruptcy? To clarify do they have a legal duty to let me know that I should in fact file for bankruptcy or I can get out of debt by consolidating?


Dear Frances,

I understand the embarrassment part but you really don’t need to be embarrassed with me. I’ve seen it all over the years and what I’ve learned is that really bad debt happens to really good people.

Nobody wakes up on a Tuesday and says, “This would be a great day to run my finances into the ground.” It just happens. But the key is you can’t let it define you or rob you of your self-esteem.

I’d suggest we start with you slowly and deeply reading How to Get Out of Debt. The Honest and Unvarnished Truth.

If you watch my video on that page you’ll recognize the stage of debt you are currently in. I do.

The choice about what tool to use to deal with your debt is not dictated by the amount of your debt. The most important factor is how the debt you have impacts your life and what are the reasonable expectations for dealing with it.

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Here is your homework. I want you to read the page I gave you the link for above and I want you to use the free How to Get Out of Debt Calculator to review your options.

Once you do that, come back and post what you think might be a good path to follow and I’ll guide you in the right direction.

Does that sound reasonable?

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.
Damon Day - Pro Debt Coach

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