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My husband and I recently sat down and figured out how deep in debt we really are..$60,000 in credit card and personal unsecured loans. We are self employed (own a restaurant) so about half is from business expenses (slow times, startup, etc). Right now, everything is paid on time. Most of the credit cards are maxed out. It's getting harder and harder to make the minimum payments every month and the debt is not going down. We pay ourselves after the business bills are paid, and can't always guarantee that we will get paid at all.

What is the best place to start? Any suggestions?

From your post it is clear that you're not delinquent yet but finding it difficult to payoff the debts.

In such a situation the best thing to do is debt management program. This will help you by reducing your monthly payment. Here you have to make a single payment to the debt management company rather than many to different creditors. In addition, dmp will also affect your credit score positively. As you start paying off, your credit score starts improving.

You can also try Do-It-Yourself program.

Sub: #1 posted on Wed, 07/30/2008 - 12:59

phoenix phoenix
(Posts: 1445 | Credits: 275.44)

I agree. Look into a dmp first and see if you can afford the monthly payment. If you can not afford the monthly payment for a DMP than you may want to look into a debt settlement program. It is a hardship program that will get you one monthly payment around half of what you were paying and will get you out of debt in 36 months or less. It does hurt you credit though. However if you are a good candidate for settlement your bills are either about to start falling behind or already are so the fact it hurts your credit is irrelevant.

Sub: #2 posted on Wed, 07/30/2008 - 20:00

mobile0311 mobile0311
(Posts: 1817 | Credits: 104.57)

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