I’m in Debt and Talked to CCCS and They Said They Could Not Help Me. – Ray


“Dear Steve,

I have about $75,000 in credit card debt on 3 cards. I know I have been spending beyond my means and I have already changed my ways. I didn’t have any trouble paying my bills until a few months ago, when several things that needed cash added up.

I have never been late on payment of any kind, and I have continued paying my mortgage and other bills. I have recovered and want to begin repaying my creditors (all three are Chase cards), but they have continued to rack up late fees, increased interest, and now “over the limit” fees, since the interest is so high, it put me above the limits.

The repayment plan they’ve offered is 6% apr and if I start repaying, I will have $27 to live on each month, not counting money to savings and incidentals, like car repairs, periodic child care, etc. CCCS was not able to help me. I make a very good income and I am able to pay my bills, now; I just need a bit of a break on the interest or payment terms, so I can save a bit and get rid of credit cards for good (I stopped using all of them when I no longer could pay the bills).

I’ve talked to two debt settlement companies and I don’t want to go that way. Their BBB ratings are all “F’s” and I know I spent the money I’m fine paying it back under livable terms.

Is there help for someone in my situation out there, or is this the best I am going to be able to get?

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.


Dear Ray,

A monthly credit counseling or debt management plan is not going to help you here. You absolutely can’t live on $27 or even with a necessary budget that leaves you with $27. That margin is not safe. Just one unexpected expense will sink the repayment plan.

I’m glad to read that you recognized how you got in this situation and that you are now reformed. There is nothing so educational as clarity. And now it is time for the last step in your education, you need to go bankrupt. Here’s why.

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Bankruptcy is the only solution in America that will allow an independent entity, the court, to put together a binding repayment plan that will be based on what you can afford at 0% interest. That part of your debt that the court feels you can’t repay, will be discharged. But even if it is discharged, you can still repay your creditors if you feel you have a duty to do so. Highly moral people can go bankrupt and repay their full debt. It is just that bankruptcy gives you protections as a consumer and a debtor that you otherwise don’t have.

Find a local bankruptcy attorney, call to schedule a free bankruptcy consultation, and go learn what bankruptcy will mean for you. It might be painful, but in your situation it is necessary.

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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.
Steve Rhode
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