What Do You Think Would Be The Best Way to Deal With This Debt? – Harold


“Dear Steve,

I have credit card debt of about $30,000. I was out of work for awhile, I tried the self employment thing for several years but couldn’t get ahead with that. I now have a decent job, the pay is only about $23,000 a year but it is steady and it’s government and five minutes from my house. All the credit cards (4) are in collections I can’t come up with a reasonable payment with them one is taking me to court and the others are shure to follow.

What do you think would be the best way to deal with this.


Dear Harold,

I’m glad you found a job, and so close to home!

I was not sure from your question if with the new reduced salary if you have funds available to repay these debts. Based on the level of debt you’d need about $600 a month in a debt management plan to satisfy those creditors.

Your situation seems straightforward but the problem here is if just one creditor successfully sues you and it leads to say a wage garnishment then you would be exposed if a second creditor took you to court.

I would seriously doubt that you have a lot of spare cash available each month. If that is the case then I think that you need to seriously consider bankruptcy. Before you make up your mind if that is or is not a reasonable suggestion I would urge you to call a local bankruptcy attorney or click here to schedule a free bankruptcy consultation.

Even if you go bankrupt you can still repay the debts if you feel you need to. The advantage is that after bankruptcy you can do it based on what you can reasonably afford, at 0% interest, rather than being at the receiving end of yet another creditor demand or lawsuit you can’t meet.

Let me know what you decide to do.

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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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