Here is a question I received from a reader:

I was listening to one of your interviews on the wsradio archives. What does the person that has a moderate amount of debt, $19,000 in credit card debt in my case, but is current on all accounts, do?  I&39;ve been able to stay current, but am afraid I will not be able to much longer.  I&39;ve eliminated every discretionary expense I can such as cable TV, the newspaper…  and am on a budget.  I&39;m trying to sell one of our cars to get out of that payment but have not been successful as yet.  My income barely meets our basic monthly expenses, food, mortgage, gas… and credit card minimums.  Any extras or emergencies go on the card.  Would debt settlement be an option?

A: First of all, you should be applauded for trying to do everything you can to stick to a budget and control your spending. I know that is not easy to do. It sounds, though, that you have come to the conclusion that your income is not enough to pay living expenses and cut your debt, much less save for emergencies.

At this point, then, you have a couple of options to look at: increasing your income, reducing your debt, or both.

I don&39;t know enough about your situation to suggest ways to increase your income, but from your email it sounds like you have a job and may have a spouse. If either of you can generate some extra income, it might be enough to help you accelerate your debt payments. I would encourage you to really think about this, even if an answer doesn&39;t come immediately. (I am going to send you a complimentary copy of Invest In Yourself: Six Secrets to a Rich Life, the book I wrote with Marc Eisenson and Nancy Castleman, which talks about how important it is to have an "Ace In The Hole.")

At the same time, $19,000 is a good chunk of credit card debt, and you&39;ll need to find a way to get it paid off. I would like to recommend you get a free debt consultation and find out whether credit counseling will work for you. If it won&39;t, then debt settlement may be another option for you to consider. Either way, the consultation is free and confidential, and won&39;t affect your credit.

I realize that because you are current right now, you&39;re probably not anxious to do anything that would affect your credit rating. But don&39;t let that cloud your decision. The most important thing to focus on right now is getting out of debt so you can start saving for the future. You can always rebuild your credit when you are debt-free. While your credit is important, also think about what that debt is costing you each month, and how much you will be able to save and invest when it is paid off.

Let us know how things turn out for you!

Gerri Detweiler – Personal finance author, radio host and credit expert. Gerri contributes budgeting, debt recovery and savings information online.