Latest Posts
Home > Ask The Get Out of Debt Experts > We Are Living Above Our Means And Can’t Make Our Payments. – Pam

We Are Living Above Our Means And Can’t Make Our Payments. – Pam

“Dear Steve,

Where to begin. We got ourselves in a huge amount of debt, around $20,000. I can’t make the payments as we are living above our means.

When we bought our house our incomes matched the house, then I lost my job and had to take a lesser paying position. My husband’s job was moved out of the country and he has been floundering since then.

I now work 50-60 hrs a week to try to make our monthly regular expenses. My husband is working very part time and will take early Social Security in July to try to bring in extra money. We lived off of our credit cards until that bottomed out. Now we are in huge trouble with creditors calling us, and don’t know where to go. I am afraid to answer phone and husband is no help at all with this. Also, have brought expenses down to a bare minimum.

Do I want to go for a bankruptcy or do I want to go for a debt management plan. I have been able to make some credit card payments, just can’t pay everybody what they want. In 3 months I will have capitol one paid off and that will free up enough to start paying on one of the larger cc.

Pam”

The Answer

 

Dear Pam,

It’s good that you recognized what it is that lead to your financial demise. Some was under your control, some not.

I think the heart of the situation right now is if you are either still using the cards to get by or you are not able to make all of the minimum payments on all the cards. It sounds like you are not able to make sufficient payments to keep everyone happy.

I would suggest that you not enroll in a debt management plan at this time. Instead, I’d like for you to make an appointment and go see a local bankruptcy attorney for a free bankruptcy consultation.

With you already living at the bare minimum level, I think it is unlikely and unreasonable to expect you to live at that level for the next six years, which is about what a debt management plan might take. During that time, all it would take is one unexpected expense to put you behind and then all the years of debt management plan repayments would have been wasted.

If you want to repay your creditors what you can reasonably afford to, there is nothing preventing you from repaying them after you go bankrupt.

At this time in your life you need to spend the next six years saving money instead of making some payments that are unlikely to remedy the situation.

Get Out of Debt Free Hotline
debt settlement helpstudent loan help

About Steve Rhode

Steve Rhode
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.

Get My FREE Get Out of Debt Guy Newsletter

It is the smart thing to do.

I promise to keep your email safe and secure.

Close

I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.

You can unsubscribe at any time with just one click.

After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.


  • It will keep you posted on the latest scams.
  • You will be alerted to the latest articles.
  • You will wind up smarter than everyone else dealing with debt.

Get My FREE Get Out of Debt Guy Newsletter

It is the smart thing to do.

I promise to keep your email safe and secure.

Close

I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.

You can unsubscribe at any time with just one click.

After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.


  • It will keep you posted on the latest scams.
  • You will be alerted to the latest articles.
  • You will wind up smarter than everyone else dealing with debt.