Shane is Out of Work, Out of Money and Out of Time


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“Dear Steve,

I lost job January 3, 2008 and now have $30,000 in card debt plus $30,000 in personal loans.

Should i use debt settlemant company? I know bankruptcy is bad.


Dear Shane,

While you want to shed your debt, I don’t think there is any reasonable expectation that you would be able to do that via a debt settlement program or even via a credit counseling program. In an optimal use of the debt settlement approach you would need a lump sum of money to use to settle the debts for less than you owe. Otherwise you’ll have to make monthly payments into a debt settlement fund or into a credit counseling program.

Without a new job or reliable income, making any sort of monthly payment promises would probably be simply throwing good money after bad since the payments you make will most likely not eliminate your debt.

While bankruptcy is a serious undertaking, and there is a stigma associated with bankruptcy, it is the only legal way to control or discharge your debts in a legally managed plan and in a more impartial way than under the arbitrary terms that the creditors agree to.

You might feel like bankruptcy is bad for you but I just don’t think that until you actually speak to a local bankruptcy attorney you’ll have a perception about bankruptcy rather than specific knowledge if bankruptcy is the right step for you to take.

At this point I think it is more responsible for you to do what you can to move forward with your life and create a better future than trying to repair the past which is beyond your control. If you do decide that bankruptcy is right for you but you still want to repay your debts, there is nothing preventing you from doing that after your bankruptcy.

Shane, don’t assume anything about bankruptcy, instead, get the facts. Click here for bankruptcy information.

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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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