I Have No Money to Pay My Increasing Debt. – Peter

“Dear Steve,

I’m a salary plus commision salesperson who’s bottom fell out. My company implemented 30% pay cuts on both salary and commision. Combine this with the slow economy and and I’ve made 40% of last years salary. I have moved to a much smaller apartment and still have no money to pay my increasing 20,000 debt. My cards are 6 months past due and i even have a few “cash store” quick loans that I can no longe pay.

Is there a way other than bankruptcy to get out from this. should i be concerned about wage garnishment, legal action? I am 4 months behind so maintaining my credit is no longer a concern. Making a bad situation really bad from wage garnishment and so on is my true fear.


Dear Peter,

There really is no logical way out of this other than bankruptcy and you should absolutely be concerned with getting legal action and your wages garnished.

Dude, you’re drowning in debt. If you were drowning in water what would you do? You’d probably tread water or get the hell out of the pool, right?

Same thing here. You either need to get your life to fit at least within your income so you don’t get further in debt each month (treading water) or you get the hell out of the debt pool by filing bankruptcy and starting over.

This is all difficult stuff to deal with mentally. But one thing is for certain here, you are on a fast downward spiral. Moving to a cheaper apartment was a smart move but taking on more debt and payday or cash store loans is the final nail in your coffin.

I would strongly suggest, and with a sense of urgency, that you find a local bankruptcy attorney you like, make an appointment, and go in to talk to them. Learn what bankruptcy would mean for you.

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.

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

Damon Day - Pro Debt Coach

1 thought on “I Have No Money to Pay My Increasing Debt. – Peter”

  1. I have been in debt for the past 7 years and now I am tired from running from it/ignoring it. I am about $23,000 in debt which $17K is a student loan and $6K is credit card debt which has gone into collection agencies. I want to consolidate everything and just pay one affordable bill a month but cant get approved for anything on my own. i just cant seem to figure out what to do or how to get out of debt and I am only 23 years old.


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