How Can We Pay Down Our Enormous Debt? – Sharon

“Dear Steve,

We have nearly $21,500.00 in debt from Credit Cards, Home Equity Line of Credit, and College School Loans. This does not include our home loan/mortgage or vehicle loan. Credit cards alone are almost $6,500.00 of this debt. We want to be debt free and would like to be able to afford to send our children to private school.

How can be pay down our enormous debt? Is there a smart way of taking out a personal loan to pay off the total lump sum in one monthly payment?


Dear Sharon,

It is interesting to see what one person calls enormous as to another it would be small. It just proves that it is not the amount of debt that you have that makes it oppressive, it is how it impacts your life that is most important.

Let me tackle the fantasy that someone is going to give you a personal loan to pay off this debt. Rather than get a loan, you are more likely to get scammed in looking for a loan.

I hear the wish in your question that you want a quick solution to make the pain go away quickly. But rather than reacting to your situation and leaping at a loan, let’s approach the situation logically.

You’ve secured a bunch debt against your house with the home equity line of credit (HELOC) and I really hate to see that. Once a loan is secured against the home it places your property at risk of loss if you can make those payments.

Student loan debt is among my least favorite type of debt. It comes with such harsh consequences if you can’t pay it


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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