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Home > Ask The Get Out of Debt Experts > I’ve Been Using Credit Cards to Help Make Ends Meet. Robbing Peter to Pay Paul. – Esperanza

I’ve Been Using Credit Cards to Help Make Ends Meet. Robbing Peter to Pay Paul. – Esperanza

“Dear Steve,

My monthly income after taxes is 1,700. Mortgage payment is 928( It includes insurance and taxes. It is not enough to cover my expenses, I don’t, eat out. No movies. Home to work, No cable. Only internet. The equity in the house is 24,000. If I sell it I can get 15,000. Renting will be the same as paying the mortgage. I am thinking to share the house or move with a friend who will help with the expenses. Credit cards have been used to make up the income deficit/What can I do to pay the debt, Please give me a light. Thank you again.

What can I do to get rid off my debt?


change5 narrow

Dear Esperanza,

You didn’t let me know how much credit card debt you have.

Nevertheless, the underlying issue remains the same. The goal we have to achieve is to get your life to fit within your income. The way we do that is by either increasing income, reducing expenses, or a combination of the both.

Clearing away the unmanageable debt is good to do but only if you are also willing to make changes to make sure you don’t need to rob Peter to pay Paul just to make ends meet in the future.

Bankruptcy is a legal fresh start and second chance but we need to make the most of it to help you move forward with your financial life.

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.

Your idea to rent a room or move in with a friend is a good step to investigate. It will help you to reduce your expenses.

I would discuss selling the house with the bankruptcy attorney. It may not be necessary and depending on what state you live in the equity in your house may be protected in your bankruptcy.

Don’t give up hope. I see a bright light at the end of the tunnel here. All we need to do is adjust your income/expense equation and get you setup in a new financial life that you can afford.

Change is often difficult but always opens new doors.

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.
  • Esperanza

    THANK YOU VERY MUCH FOR YOUR ANSWER. My monthly income after taxes is 1700. The equity is 25,000. No downapyment. If I sell it I would make 15,000. Mortgage and credit cards are only in my name. If i rent is going to be the same as my monthly payment. I have used the credit cards to make up an income deficit. I am thinking to share the house or move with a friend.

    Waht can I do at this moment, I can’t afford this 600 monthly. What can I do to get rid off the credit cards debt.

    • Steve Rhode

      Bankruptcy is the swiftest way to eliminate debt. It will take 90 days or so to discharge the debt.

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