The Couple Drowning in $190,323.79 of Debt Challenge.

I received an email from a couple who are $190,323.79 in debt. There is actually more than that, but this is strictly their credit card and auto debt, not including their mortgages. The couple has asked my input and what I think they should do.

We're going to call this "The Drowning in $190,323.79 in Debt Challenge". The couple has agreed for me to discuss their plight, but wishes to stay anonymous. So we will also refer to the challenge as the New Adventures of Lois and Clark: This Looks Like a Job for Superman. The couple will by referred to as Lois and Clark after one my favorite comic book couples.

Both Lois and Clark are business owners. According to Clark three years ago the couple was debt free other than their mortgages for their home and rental properties, plus their auto loan debt. Business had been great and they had at one time over $100,000 in savings. Not to mention credit scores in the 800's. How could this have a happened? It looks as though they had been financially responsible for quite sometime to have FICO credit scores, substantial savings, and low debt like that.

I have written many times before that I believe no matter how much debt you have it is your responsibility to pay back every penny. Do what you have to do. Get a second or even a third job, rent a room, sell things you don't need. Just whatever it takes. But these two really need to do something fast.


Here's a look at their debt:

Credit Card 1: $14,638.06

Credit Card 2: $22,542.71

Credit Card 3: $15,470.21

Credit Card 4: $22,038.19

Credit Card 5: $15,061.56

Credit Card 6: $4,993.44

Credit Line 1: $1,221.76

Credit Line 2: $10,369.99

Medical Credit: $2,987.93

Home Improvement Loan: $5,438.57

Auto Loan: $25,271.19

Money Owed to Family: $2,500


Business Credit Personally Guarantee:

Credit Card 1: $37,605.23

Credit Card 2: $10,184.95


This is a tough one as their debt surpasses their income. So they are basically bankrupt. It is generally always darkest before the dawn, but I feel if there is a will there is a way. I was once in $60,000 in debt and the debt exceeded my income, but things did turn around and I paid of every penny. I hope to encourage Lois and Clark to do the same. Let's hear from you. What do you think Lois and Clark should do? Where should they start? File Bankruptcy, Consumer Credit Counseling, Keep trying to pay it off, leave the country?