What to do when there is not enough money to make payments on debt.

We are currently in over our heads with debt. We have approximately 6000 in medical bills and about 12500 in CC debt.

We signed up for a DMP plan and have been making payments each month until this month. My wife lost her job and went back to school. We have 5 in our household and my bring home salary each month is 2600. We have some DCA contacting us and after paying the living expenses and necessities, there is just not any money left to pay on our debts.

I read lots of articles about how to get out of debt but they seem to all require that minimum payments be made and focus on one debt and so on. What do you do when you cannot make minimum payments on your debts and how do you still pay it off?

We want to pay off our debts but at the moment we only have one income which does not cover all so what do we do? I have had some tell me to get another job ,but in my current position I am unable to work a second job for security reasons.

My wife could go to work but with the cost of day care she would only be working to pay that each month. We have one vehicle we are paying on and one that is paid for and we do not have any credit cards available sicne we got rid of them the day we signed up for the DMP.

We do not want to file bankruptcy since I was discharged from Chapter 7 in 2004 but if that is the only way out, then we would consider that. Please, any help you can give would be greatly appreciated. We are so eager to hear that we are not a lost cause.


Dear Charles,

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First off let me clearly state you are not a lost cause. Debt happens.

The issue at this point is threefold.

  1. Identify what led to this problem and put solutions in place to not repeat that again.
  2. Deal with the current unmanageable debt.
  3. Regroup and do better moving forward.

Let’s start with the basics.

I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth. It will give you a great overview of what we need to deal with to get you moving in the right direction.

Then use the free How to Get Out of Debt Calculator to review your options.

After that, come back here and comment about what seems to make the most sense and let’s discuss that.

Does that sound like a reasonable approach?

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.

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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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