• Skip to main content
  • Skip to primary sidebar

Ask Liz Weston

Get smart with your money

  • About
  • Liz’s Books
  • Speaking
  • Disclosure
  • Contact

Q&A: What to do about heavy credit card debt

April 10, 2017 By Liz Weston

Dear Liz: I have a lot of credit card debt and am just able to make minimum payments. I feel like after doing this for four years now that I am not getting ahead. I will be 61 this summer and don’t have much saved for retirement. My rent keeps going up along with other expenses. I have an 11-year-old car that is in need of maintenance but don’t have the funds to do it. My question is, what would happen if I walk away from the credit card debt? Will I be facing garnishment?

Answer: Yes, you could be sued and face wage garnishment if you simply stopped paying your debts.

You could consider a debt management plan offered through a credit counselor, which could lower the interest rates you pay. You can get referrals from the National Foundation for Credit Counseling at www.nfcc.org. But you’d be making payments for the next five years or so, when you could be putting that cash toward your retirement.

A Chapter 7 bankruptcy, by contrast, would take a few months and legally erase your credit card debt to give you a fresh start. Bankruptcy is often the best of bad options when you can’t make progress on your debts. Consider meeting with both a credit counselor and a bankruptcy attorney so you understand all your options.

Related Posts

  • Q&A: Forgiving credit card debt

    Dear Liz: Recently you wrote about debt being forgiven after seven years, but in your…

  • Use a credit card like a debit card to avoid debt

    Dear Liz: Here's a suggestion for the reader who prefers a debit card to a…

  • How to pay off your credit card debt

    Dear Liz: I'm confused about paying down credit card debt. Some say to pay the…

  • Opt out of credit card offers

    Dear Liz: I am receiving many unsolicited credit card offers in the mail and am…

Filed Under: Credit & Debt, Credit Cards, Q&A, Uncategorized Tagged With: Bankruptcy, credit card debt, Credit Cards, q&a

Primary Sidebar

Search

Copyright © 2025 · Ask Liz Weston 2.0 On Genesis Framework · WordPress · Log in