Do We Have Any Viable Alternatives Other Than Bankruptcy? – Paul

“Dear Steve,

I have piled up over $60k of credit card debt over the past couple of years. My gross income has been in the $55k range for the past two years. I am in a business where my income should continue to grow but with minimums around $1300 per month I’m very close to falling behind on these and/or my mortgage.

Do we have any viable alternatives other than bankruptcy?


Dear Paul,

The most logical step would be to see if you can work out a modification of your mortgage to reduce the payment. You can do this by contacting your lender and seeing what they can offer you. Same thing with your credit cards, contact those banks as well.

Now once you have done that, don’t be surprised if they tell you there isn’t anything they can do. They offer little help to anyone that is current on their payments. They don’t want to offer relief at that stage and reductions and adjustments are typically reserved for people who are behind on their bills. I know, it sound illogical, that’s because it is.

If you get frustrated with that process or you want to get into a consolidated repayment plan that might reduce your credit card balances, then click here for debt management information. A debt management or credit counseling plan is not a perfect solution but it is a good first step to try before leaping for bankruptcy in your situation.


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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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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