I’m on SSDI and in Debt But I Don’t Want to Hurt My Credit Score


Dear Steve,

Lost job in 2007 became total disabled in 2012 now on total SSDI. I have credit cards, and student loan in the range of $28,000. which would be the best way to go as for getting out of debt I’m hardly getting by each month. I’m not late on payments and I have a credit score of 741. I’m not wanting to hurt my credit score. I’ve tried to get personal loans but they wont help because of the SSDI and they turn me down.

Where do I turn?



Dear Brigetta,

Putting all emotional misperceptions aside, the place you should most likely turn is to a bankruptcy attorney.

I would imagine that you’ve continued an unsustainable situation further into the future because you are afraid or concerned about your credit score. That prevents you from making fully informed decisions.

If your top priority is your credit score then the answer is simple, live within your means, pay your bills in full, and don’t go further into debt.

But I’ve yet to meat anyone who ever said they received too much money on SSDI. Typically people are just hanging on.

I would not even be shocked if your debt level has gone up since you became disable or stopped work. Typically when people fear for their credit score they go further into debt.

The reality is your credit score should be your last concern at this point. You should first get your finances under control so you actually can live within your income and not have to use credit.

Credit scores are crazy simple to rebuild after a bankruptcy. Just read this, this and this.

It’s impossible to give you a direction on the student loan debt but if it is private student loan debt and you have defaulted past the statute of limitations in your state then you have a defense to stop the suit. If they sued you and won the case, as long as you have little in the way of assets and your income is from public benefits, they could not garnish you. The bankruptcy attorney can give you legal advice about this situation.

See also  It's Been 25 Years and I Want the Old Student Loans Discharged. - Jennie

If it is federal student loan debt and you have a Social Security determination you are permanently disabled, you can apply for a full discharge, click here.

Don’t make the classic mistake of being afraid of the wrong thing here. You might find some value in The Saddest Avoidable Mistake People Make When Getting Out of Debt.


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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Damon Day - Pro Debt Coach

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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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