Reader Question: My husband and I are currently in Baby Step 2, and paying off all our debt except for our home. A friend recently told us to pay off everything except for the credit card debt. She says we can then settle for a far less amount and not have so much money going out the door. This feels a little unethical to me. What are your thoughts?
There’s a good reason this idea feel unethical to you — it is unethical! Would a good friend, a smart friend, encourage you to do something as dishonorable as not pay a bill you’re morally and legally obligated to pay? I don’t think so.
If you’re able to pay your bills, you pay your bills. It’s as simple as that. Now, if you honestly can’t pay the bill, and you have to settle upon a mutually agreed upon amount with the creditor or collector, then it’s okay at that point to try and reach a settlement.
Otherwise, it is a simple question of ethics. Pay the bill.