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I Do Not Want to File Bankruptcy and Want to Avoid Credit Cards Forever. – Carin

“Dear Steve,

I am a high school teacher-same school 24 years. We had a house fire 4 years ago, fought insurance company, ran up credit cards, then paid them all off. Then my husband’s job was disappeared; found a new one-not paid; now fighting the owner for non payment, looking for another. Credit cards maxed out. I want to pay off all and then get RID OF ALL CREDIT CARDS forever, and live within the means of my own paycheck as savings. I used to have good credit but now don’t because of all of this. I do NOT want to file for bankruptcy, especially since this will most likely be a temporary situation.

After reading many sites, I applied for a loan through this site (liked what it said) and was turned down, saying: “Derogatory public record or collection file. Proportion of balances to credit limits is too high on bank revolving or other revolving accounts,Time since delinquency is too recent or unknown,Too few accounts currently paid as agreed.The foregoing are the factors provide by the reporting agency that resulted in your credit score being below our minimum credit score requirement.”

All my payments are just a month behind, and I do not have a derogatory public record! Did I do something wrong? I can pay the loan, I just need a chance to get this organized and behind me.

Thank you so much for your help in this field.



Dear Carin,

Thank you for being a teacher. I have a great love and affection for teachers and know how hard it is to teach. My mother was a teacher for decades.

The notice you posted says “Derogatory public record or collection file” and it must be the recent collection activity that has impacted your credit report, not a derogatory public record.

This negative and delinquent credit history you’ve experienced will remain on your credit report for the next seven years.

I understand you do not want to file bankruptcy and you feel this is a temporary situation so your logical option is just to wait the situation out and then focus on dealing with the bills when the temporary situation is resolved.

I have no way of knowing what your credit score is but if you go to you can get one credit bureau score for free and use their online credit score simulator to see how changes will impact your score.

Also, you statement about avoiding credit cards forever is not the prudent way to go. If you want to rebuild your credit score and improve your credit history you need to maintain cards but not run them up. The current situation is not because of credit cards, it is because the cards were maxed out.

Just as background on this I think this other article will be of interest. See Dave Ramsey’s Hatred of Bankruptcy and Credit Cards Makes No Logical Sense.

If you investigated filing bankruptcy and determined it was a logical action to take you would most likely be able to discharge your debt in 90 days and begin rebuilding a better financial future, now. Alternatively you should expect that a focused effort after income starts coming in should take five years or more.

The reasonable path to follow here would be to investigate bankruptcy and also draw a line in the sand, say 30-60 days from now. If the income situation has not been resolved by then you can proceed with bankruptcy and get the legal second chance and fresh start you are entitled to.

You can click here to find a local bankruptcy attorney and talk to them for free.

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 what you should look for and expect from a good debt relief company.

Bankruptcy Articles and Posts You Must Read

To get ready to read the information below with the right frame of mind, please first read How Do I Get Out of Debt Quickly? Change Your Mindset.

Bankruptcy Advice

Life After Bankruptcy

Filing Bankruptcy Yourself

Please post your responses and follow-up messages to me on this in the comments section below.

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About Steve Rhode

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.
  • Harvey

    JML – go Blow Hard somewhere else. It’s good that you have your beliefs, stick with them. We’ll all be fine without you.

    • JML

      I do as I please no one tells me what I am going to do

  • JML

    You think by blocking me from commenting is going to stop me yes I believe getting rid of credit cards is the answer and the only way to stay out of debt I don’t care what you think about me or my method I know it’s right. The right thing to do is get rid of the credit cards plastic surgery party

    • Steve Rhode

      How were you blocked from commenting is you are commenting?

      • JML

        Try Facebook

      • Steve Rhode

        Yes, I did block you on Facebook because you just keep saying the same thing over and over and over. Similar to the point you posted here.

        Your point was that you don’t like credit cards and I think you not only made your point, but had a wide latitude and number of comments on FB to express your points of view and opinions even when I was able to show you some of the assumptions you make regarding the safety of debit cards is not true.

        It was my opinion that on Facebook you went from participating in a greater conversation to just becoming repetitive and annoying.

        If you can promise to stop being antagonistic and repetitive I’ll give you another chance in the future.

      • JML

        I cannot change my views they are right and I have a right to state my views you can believe whatever you want about me I have done no wrong I don’t care if you did block me you still won’t stop me

      • Steve Rhode

        The issue here is not about your views. You can believe zebras are pink for all I care.

        And you did state your views. Over and over and over on Facebook.

      • JML

        And so did you trying to correct me how did that work out for you trying to correct me

      • Steve Rhode

        I don’t even know how to respond to that comment.

        You can say ‘A’ and I can show you clearly that ‘B’ is true using authoritative facts. If you want to continue to believe ‘A’ then go for it. I’m not trying to change your mind.

        The point of responding with authoritative facts is so others can understand the basis of the different position, reference the sources, and make up their own mind.

      • JML

        They are authoritive facts if one loves debt and wants to just get by for the rest of there lives and not have any money leftover at the end of the month that is if we go with your facts as for me I am sticking to a cash only lifestyle with no credit cards

      • Steve Rhode

        And you wonder why I blocked you on Facebook.

      • JML

        And so did you trying to correct me so how did that work out trying to correct me

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