I get a lot of questions about the best way to get out of debt, but few about the morality of different choices. Here’s a reader email that addresses the issue.
My name is Jodi. I currently owe about $20,000 in credit card debt. I was told by a lawyer that I should file for bankruptcy. I don’t feel right about bankruptcy because it’s my bill and I feel I should at least make an effort with the companies to see if they could lower the amount so that I can consolidate the bills. Can you please educate me as to what would be a better deal for me? Your newsletters are very helpful.
While dealing with debt is pretty cut-and-dried, dealing with the moral obligation to repay a debt is a bit slippery. The type of person you are, your resources and the type of debt you owe all play a part. Over the years I’ve met many people who agonized over the moral dilemma of filing bankruptcy and many others who never gave it a thought. Before becoming a consumer advocate,