DEBT CONSOLIDATION************** DEBT RELIEF

It might be best if she was to negotiate a payment schedule with each individual debtor. No payment to a 'middle-man'.

I would highly recommend she buy or borrow Dave Ramsey's book The Total Money Makeover.

Can she afford the payments? Could she afford to pay more than the minimum payment each month? Those are two major considerations. And a lot more needs to be considered before consolidating.

The problem I've seen with people who get into too much credit card debt is that they consolidate so they have a regular lower monthly payment, but then they run up the credit cards again and just keep getting in deeper and deeper until they may have to consider bankruptcy.

I do think that bankruptcy is definitely a last resort in these circumstances because it can ruin your credit for years. And they have made it harder to file. Depending on assets, one could be made to pay back at least a portion of the debt under Chapter 13, where the court (or whoever decides) sets the amount and the payment, and it's usually for 3 years. It still has a very bad effect on your credit.

And no, I've never filed bankruptcy - but my best friend works for our local Chapter 13 office and I do know what can happen.

I'm assuming she's married to your brother. What does he think and is his credit going to be impacted?

I don't know about running up credit card debt if you consolidate. The only time i consolidated (we were only talking about $8,000) the bank made me cut up ALL my credit cards.

On 8/26/2014 boby said:

I don't know about running up credit card debt if you consolidate. The only time i consolidated (we were only talking about $8,000) the bank made me cut up ALL my credit cards.

Just wondering...did they make you close your accounts also? I only ask because two people I know who consolidated were basically told not to use their credit cards, but they didn't make them close the accounts. So they could still charge...and unfortunately one of them did and wound up in trouble again.

On 8/26/2014 missyw1 said: Better to file bankruptcy IMO.

The OP did not say she could not afford to make payments.

She charged frivolous things. She needs to pay back not file bankruptcy and be absolved of her overspending.

If she doesn't change her spending habits, nothing will help. She needs to work on paying them down and giving up her "splurges" first.