Massive Credit Card Debt, Three Kids in College, and Getting Nowhere. – Mike

My wife and I are both employed and make decent money $125,000 a year. We have three in college. We never get any financial aid because the formula does not take into account the massive credit card debt that we have $45,000, we also have our own student loans from making career changes. After we make a little more than the minimum payments there is nothing to send to the colleges so we are borrowing everything to send them to college. My children are borrowing as well. We have moved to a smaller house, we had to borrow from our pensions to get out from under the previous mortgage. So now we have a new mortgage plus the pension plan has to be paid back over three years.

I work, not kidding here, two full time jobs to get everything paid throughout the year and we go nowhere, usually a little more in debt.

Would it be better to pay college bills currently? This would certainly result in us getting behind in the credit card bills and destroy our credit. But would that help us settle with them for less?

This is your chance to be a hero and help out this person by providing your feedback and answer to the question in the comments section below.

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6 thoughts on “Massive Credit Card Debt, Three Kids in College, and Getting Nowhere. – Mike”

  1. I think it’s great of you to help your children.  We are in the same situation.  I took the debt from my previous marriage, which I am unable to pay off.  I’m paying the minimum so I won’t ruin my credit.  I’ve done this for 3 years now.  Is there any way to get the credit card companies to help you without you ruining your credit first?

  2.  Kudos to you and your wife for wanting and paying for your kids college education! Try having your kids apply to scholarships. They may award them greatly. But whatever happens I hope everything works out for you!!!

  3. Have your children pay for their own college tuition.  Nowhere is it stated that parents must pay for their children to attend college.  Its great if you can, but you don’t HAVE to.  To take money away from your retirement is just insane!  Are they going to support you when you retire?  

  4. Hi Mike,
    You are in a tough situation but I debt settlement is a very tough road to go down.  You want to make sure that you have explored every option available to you.  There are credible debt relief providers that can talk through your creditor mix and your personal situation to help you explore if debt management or debt settlement is the correct option for you at this time.  I strongly encourage you to shop for a provider in your area.  Please be sure to validate the company through the Better Business Bureau.  I would also encourage you to leverage any online communities featured by a company you may be interested in and ask actual customers what they are experiencing.  Wishing you the best of luck with your decision.
    Suzanne Coblentz
    Social Media Manager

  5. It’s pretty noble you’re paying for your kids college, but remember this, you need to take care of each other first.  I assume you have maybe 20-25 years until retirement age.  They have about 50.  They can take on more debt than you can at this point in life, because for every dollar you’re spending on the kids, you’re losing that plus interest towards you retirement.

    Once you make that decision you need to decide if 45k of debt is worth ruining your score for the next 7ish years.  Will you be financing any big purchases in that time period, or cosigning anything?  What most people don’t realize is that your score doesn’t matter until you actually need to use it.  So if you don’t plan on getting any loans, by all means declare bankruptcy.

    If you’re morally against bankruptcy, miss a month or two of payments on your CC’s.  When they start calling, start negotiating payoffs.  Aim for a payoff of 20% of the balance, with the realization they might only go as far as 50%.  Usually theyll give you a year to two years to payoff the balance with this negotiation tactic.  But you can’t miss a payment, or theyll cancel the program.


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