“Dear Steve,
I owe $10,000 on four credit cards and can only make the minimum payment. I will never get these debts paid off. I am not behind but I’m having a hard time making them.
Debbie”
Dear Debbie,
If you can make at least the minimum payments then you might want to click here for debt management information. In a debt management plan your interest rates will be reduced and more of your payments will go towards the debt.
But I’m concerned with that approach. If you are not behind and struggling to make the minimum payments then it is doubtful that a debt management program will work for you since that while the interest rate will be lower, the monthly minimum payment will be about the same.
So let’s say you make payments for three years and then find yourself in a situation where you can’t keep making the payments. While your debt will be lower at that point, you’d probably have to look at bankruptcy as a solution. You will have just wasted three years of your life making payments that never solved the problem.
If that does not sound like a good outcome for you then you might want to consider bankruptcy now and if you feel compelled to repay your debts, you can do so after bankruptcy. There is no legal obligation to do so but nothing is stopping you either.
Before you decide what to do I would suggest that you contact a debt management company and a local bankruptcy attorney and see which of those solutions sounds like a better approach for you.
Please let me know what you decide to do.
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