Ask The Get Out of Debt Experts Getting Out of Debt How To Get Out Of Debt

I Feel Like I Can Finally See Hope About My Debt. – Maria

“Dear Steve,

First of all I want to say the BIGGEST thank you to you. I’ve been in debt for over 7 years and finally came to accept it and decided to really do something and your blog is just so informative and really uplifting – I feel like there is a light at the end of the tunnel. an honest information about all that i considered a black cloud over me. THANK YOU!

I own a home for 5 years now. My mortgage balance is probably the same as what I’d get now if I were to sell my condo (since RE prices dropped), or maybe I get slightly more than I owe. I am enrolled in a hardship program with my mortgage company for about 2 years and that gave me an interest rate of 2.3% currently (which is great).
However, my credit card debt has been growing with years. I pay it monthly (no delinquency or late charges) but I never manage to pay it off.

My credit score is not bad either (fluctuates between upper 600s and low 700s). I owe about $30K between Chase and Citi credit cards and a loan of $8K ( so $38 K total). I have monthly income and potentially debt settlement would be a great option for me, but I was also thinking about filing for bankruptcy Chapter 7. However I don’t want to lose my home. I don’t even care about the credit score anymore – I just want to be debt free (mortgage is ok)

What do you recommend as the best solution for me? Is Bankruptcy an option and could I keep my home then?

Thank you for your help!


Dear Maria,

Well thank you.

Debt does not have to be the dark, fearful, depressing, monster people need to fear. Rather than a condition which defines us it can simply just be what it is.

In reality it’s a bit like anything else; a sour orange is not a reflection about your self-esteem or value to yourself and others. It’s just a sour orange.

READ  Key Steps to Get Out of Debt

The emotional burden we place on ourselves is self-inflicted when it comes to financial troubles. You see what you appear to be saying is that you are just treading water or worse. Without some intervention it is highly unlikely you are going to do yourself out of this hole any time soon. Some action is needed to break this cycle and try to prevent another lost seven years.

While you want to also keep your house we need to factor in what’s going to happen when the mortgage adjusts and things change in the future. It might just be that the real estate market in your area isn’t going to recover quickly. If not then we need to think about your entire situation.

It also doesn’t sound like you have cash on hand to settle your debts right now. In that case it would be a tough path to follow to let your debts default and hope to save enough money to settle them before they sue you.

I’m not sure if bankruptcy is right for you but I do have a solution. You can click here to find a local bankruptcy attorney and talk to them about your specific situation. At least that way we’d get a better understanding of the pros and cons you’d face.

After you talk to the bankruptcy attorney, you can also chat with my friend Damon Day for free as well to get a quick free consultation about your situation.

But along the way as you check out these different resources I want you to keep coming back here and letting me know how things are going. Once you are armed with the facts, then we can make a smart and educated decision.

We need to get you into a position where your credit score is consistently above 750. The spot you are in now with your credit score is not optimal. You might want to consider monitoring your credit score for free using Credit Karma.

READ  Key Steps to Get Out of Debt

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.

About the author

Steve Rhode

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.

Leave a Comment

Scroll to Top