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I Am Current on Everything And Have Good Credit But I Owe Too Much. – Robyn

Because of the volume of submitted questions, I am behind in personally answering every single one. I need your help. I am publishing the question below for you to answer. Please help this person by adding your response and advice in the comments section of the original question. Click here.

“Dear Steve,

I have $28,000 in debt over two credit cards = $20,000 on one card, $8,000 on the other. I own a home, have $68,000 in student loans. I am current on everything and have very good credit (I’ve never been late on a payment on anything, my only ding is my debt to income ratio), but with mortgage and student loans, I am struggling and am only able to make minimum payments. I want get out of my credit card debt! I have only owned my home for a year and cant refinance, so that’s not an option.

My biggest concern is that I don’t want to ruin my credit. I have looked into debt consolidation programs, but they wanted me to not make payments on my cards. Are there any options to reduce credit debt without screwing my credit?


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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.
  • Damon Day

    Sorry, I meant Cards at the top of my last post. My d key is starting to stick a little on my laptop for reasons unknown to me, but likely known to my 3 year old. :-)
    .-= Damon Day´s last blog ..Tasc – The Association of Settlement Companies – A Closer Look =-.

  • Damon Day

    Hey Robyn,

    What are your interest rates on the two cars? Steve mentioned a peer to peer lending network to me the other day. It is called Lending club. You can check them out at

    In your situation, if a debt consolidation loan will help you and you have good credit (660 or higher) it could be a great recourse for a loan to lower your credit. If you lower your interest rates via a new loan and you continued to pay at least the same amount every month, then you will be applying more toward your principle and paying down the loan faster.

    If you are worried about your credit, the only way to not negatively impact your score is to either stay current and continue to pay, or pay off the loans via a new loan.

    However, you also have to be on the lookout for the hit you could take by closing the two cards after payoff. Sometimes after payoff, the bank may lower your credit or close the cards for you. However, I would rarely if ever advocate carrying debt just so a creditor doesn’t close your account or so you don’t take a hit. It sounds like getting out of debt is the most important thing for you.

    So checking out Lending club and let us know your results.
    .-= Damon Day´s last blog ..Tasc – The Association of Settlement Companies – A Closer Look =-.

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