Welcome to One Cent at a Time. Let’s start with a true story I read in an online forum recently.
Steve recently lost his job at a sporting goods manufacturing company, he has 3 credit cards each with high balances. He now lives on emergency fund (What exactly is an emergency fund)and a little help from his wife’s income as a play school teacher. They have two children of age 10 and 6.
Because of a combined debt of $25K he has to pay $500 per month to keep his credit card active and credit score in-tact. But, he obviously can’t afford to make that payment every month. He has the below options in front of him