We Make Good Money But We Are Drowning in Debt. – Joe

“Dear Steve,

My wife and I have always been in debt. We currently have about $90k in unsecured debt, a $256k mortgage, and $30k in car payments. We earn about $150k per year between the both of us. We have two small children. We are literally drowning right now. We both have very limited part-time jobs don’t bring in much money. We aren’t behind yet but we will be soon.

Are we in a bankruptcy situation? Are there organizations that could assist us?

Thanks for your help!


Dear Joe,

It is quite possible that you are in a situation that might be appropriate for bankruptcy.

The issue really is if your situation has tipped into a cesspool of never ending debt that can’t be solved with simple debt management interest rates reductions but needs financial intervention.

I assume from what you wrote that you attempted to get some part time jobs to dig yourself out of this hole. While a valiant and responsible step, I seriously doubt that it will result in a meaningful change in your situation.

Bankruptcy might be the tool you elect to implement to address your situation but ultimately you will need to autopsy what it was that led you into this position to begin with, and don’t repeat those mistakes.

Ultimately I can’t tell you exactly which solution you should pursue, so I suggest that you evaluate both debt management and bankruptcy by speaking with a debt management company and a local bankruptcy attorney. Before you make up your mind to do anything hear what each solution provider has to say and then mull it over and take decisive action.

Please update me on your progress by

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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P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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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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