OK, I’ve got a friend who has about 15-20K of credit card debt that is really handcuffing him right now. He has a hard time making more than the minimum payments, which leads to him not making much of a dent in the balances. He does work hard for about 50-60 hours a week, but these bills pretty much keep him from doing more than breaking even financially. He does pay all his bills on time, but I don’t think he has any savings at all.
Up until now, he’s basically just been paying his bills as they come in, and getting killed on interest. I’d say this has been going on for about 2-3 years or so. Is there a better way for him to go about this? Maybe a loan from a bank at a more reasonable rate? I’ve heard of debt consolidation (mainly on late night tv commercials), is this a real option or how do you do something like this?
He’s really trying to keep up his credit, so he’s only considering options that would not hurt it at all.
Any advice for him?