Steve recently lost his job at a sporting goods manufacturing company, he has 3 credit cards each with high balances. He now lives on the emergency fund (What exactly is an emergency fund)and a little help from his wife’s income as a playschool teacher. They have two children 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

1. Declare bankruptcy – For him to continue to look for decent jobs, he can’t do that
2. Settle his debt – Since he lives on an emergency fund, he doesn’t have the money needed to settle his accounts
3. A little side business to continue to pay minimum due amount – This will hamper with his preparation for job interviews. A side business that earns $500 per month is not an easy task.
4. Talk to a credit counselor – Getting help from a credit counselor, surely this is one of the best ways to deal with the situation, read more about Credit Counselling.

But it is not the best option available for you, a simple effort can bail you out of the situation, your card issuer deals with cases like Steve’s 1000 times a day. Instead of looking help elsewhere, try looking into the card companies itself for help.