Quick Answer: Single moms with $15,000+ credit card debt should avoid debt consolidation companies when the debt stems from insufficient income rather than overspending. Financial experts recommend addressing the underlying income problem first, as consolidation won’t solve monthly cash flow shortages for basic expenses like gas and groceries.
“Dear Steve,
Hi Steve, I am a 35 year old single mother, who has about $15,xxx.xx in credit card debt. I’ve been robbing Peter to pay Paul, and need a smart way out.
Can you please give me insight, as to how I can get out of debt, without using a debt consolidating company? I’ve been considering using one of these companies, but am apprehensive because I’m afraid that it might be a bad idea. What do I do?? It’s so stressful, because I don’t make enough money each money, to pay all of my bills and still have money left over for gas, groceries and emergencies.
Each weekday I send one short email: one money story that caught my attention, why it might matter to you, and one manageable thing you can do with it. A couple of minutes, and a dad joke.
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Sarah”
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Dear Sarah,
Thank you for reaching out to me for help.
Here is the good news, we can get you headed in the right direction so slow down the worrying and stress. You are now on a journey to deal with this.
The issue isn’t if a debt consolidation company is a bad idea, it is if it is the right solution. That’s not something we are going to know without you doing some homework.
But here is what I am assuming from the start. I suspect you wound up with the debt because you had to make ends meet. Slowly the balance has been creeping up and you’ve found yourself having to charge even basic things like gas and food that you are not able to pay off on a monthly basis. I’m guessing you have no savings account or emergency fund and you are just limping from month to month.
If I’m generally right about your situation I don’t think a credit counseling or debt consolidation company is going to be the right approach. I think we actually need to look at more of a comprehensive intervention to give you a chance of breaking this cycle.
And Here is Where Your Life Begins to Change for the Better
I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth and The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy. They 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.
Once you’ve identified a company you want to work with, then follow my step-by-step guide on how to check out a debt relief company.
Please post your responses and follow-up messages to me on this in the comments section below.
Before You Sign Anything: Run any debt relief contract through the free Contract Decoder to spot hidden fees and unfair terms. Check the company’s complaint history with the Scam-O-Meter.
Compare Your Real Options: Most debt relief companies won’t tell you about all your options — especially the ones they can’t profit from. Credit counseling has a 21-27% completion rate. Settlement resolves about 1% of enrolled debts fully. Bankruptcy has a 95% discharge rate — and protects your retirement. Take the Find Your Path quiz for a recommendation based on your actual numbers.
