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I’m Living in a Trailer With My Girlfriend and Interest Rates on Cards Are High. – John

“Dear Steve,

I make 30,000 a year, have 12,500 in credit card debt and an un-secured loan for 10,000 (borrowed to buy the trailer I’m living in) lot rent is 240 a month loan payment is 250 a month and min payments on cards total 250 per mth. My live in girlfriend makes enough to cover her personnal bills and has plenty left for food, fun and entertainment for the family. I’m 48 , she’s 29 and we have a baby on the way!!! I’m scared I’m in over my head.

We pay all our bills on time and have no bad debt or collections. Several of my cards have been sold to other companies which are charging higher interest. My 5 cards range from 500 credit to 4700 credit with interest from 9.99 to 19.99. All my cards are charged to 85 or 90% of there max…

Do I need to seek help and what kind would be best….I would like to take on a mortgage in 2-3 years.


I asked my friend Mike Killian to answer your question for you. I wanted to make sure you got an answer as quickly as possible as I’m a bit backed up at the moment. I’ll be watching the comments on this question and be around to help if you need me.


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.

Dear John,

Clearly you do need some help. The fact that you pay all debt on time and have nothing in collections leads me to suggest that you might avoid bankruptcy by seeking debt counseling. At the same time I am reading that you have mostly unsecured debt, which allows bankruptcy to be more favorable for you.

First of all you should be calling each creditor to see if interest can be lowered. Secondly, if you do not already have a monthly budget, get one started immediately and see how your month-to-month finances are going. Thirdly I would at a minimum talk to a counselor listed in your local phone book. At the same time I would not make any commitment to a debt counselor without first weighing all they say and the costs involved and then gather information on filling bankruptcy. Many bankruptcy attorneys will offer a free initial consultation. From that consultation and from the free info you gather from a debt counseling agency, you should have enough information to make an informed decision as to the proper course of action.



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About the author

Mike Killian

Mike Killian is founder of Learning Credit and Debt Management. He has been writing and teaching about credit and debt management issues for over 12 years. His articles have been referenced by various members of the media, including MSNBC and The Motley Fool. Mike has also offered debt elimination seminars to businesses and community colleges for many years. He has an MS in counseling and is a nationally certified as a Personal Finance Counselor. Mike can be found at

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