How Do I Get Out of Debt With Bad Credit? – Robert

“Dear Steve,

My wife and I have been trying for a long time to get out of debt. We are current on all the payments most of the time but nobody will give us a chance with a loan. We even tried Lending Club but they turned us down.

We are working all the hours we can and still can’t get out of debt. We have no savings. I think we will be just making minimum payments forever and never be able to have a child or be able to afford to buy a house.

We have $45,000 in combined credit card debt and now we sometimes have to put grocerries on the cards because we don’t have enough money left. The debt was primarily from stupid mistakes we made when we were younger but we learned our lesson and now know never to charge something we can’t afford to pay off.

I think our lives are over and we are only 30 years old. How do I get out of debt with bad credit?


Concept of daily routine

Dear Robert,

Heading down the same path you are on it might almost never be possible to get out of debt. Sorry, but that’s just the truth. When you are stuck in minimum payment hell the only way to break out of that situation is to either increase income, reduce expenses, both, or some sort of intervention.

Your question How do I get out of debt with bad credit? really resonates with me because the battle I see you having is not against the money part but against the loss of your life as you see it looking forward.

In my free book people can download, “The Path to Happiness and Wealth” I talk about the terrible fate of being stuck on the gerbil wheel of debt. For some it is a life sentence unless they take action.

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While Lending Club does make unsecured debt consolidation loans, just like any lender they have screening criteria. If your credit score is low it can be tough to get a loan. And as you said you already tried that route and they denied your application. I know it is not going to comfort you, but many readers have been able to qualify for such loans and consolidated their loans successfully.

Considering the fact you have important future goals and wishes you want to achieve that are somewhat time sensitive, like have a family, then I think the most logical first solution to explore here is to talk to a local bankruptcy attorney and learn more about your ability to get a legal fresh start and second chance.

You can click here to find a local bankruptcy attorney and talk to them for free about your specific situation. Get the facts and then you can make an informed and educated decision if bankruptcy is right for you.

It sounds to me as if you’d be able to file a chapter 7 bankruptcy and clear away your debt in about 90 days. Following that you’d be able to immediately start building that emergency savings account to protect yourself. You’d also start to put yourself in a better position to think about how to achieve your future options, like having a child.

But there is no sense wasting a perfectly good mistake, I always say. Learn what you can from this situation and don’t repeat those mistakes moving forward.

Also, consider a close examination of your income and expenses before you try to have a baby. You’ll need to make sure you have a plan to live on just your salary or make some other arrangements before then.

Here are some more links that will help you learn about what bankruptcy really means.

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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