Thank you for your question, it's great that your daughter doesn't want to file for bankruptcy. With a little hard work, it's possible that she can come out of this credit in tact.

If your daughter has a 401(k) plan, depending on her plan she can take a loan from herself, pay off the credit card debt, and then pay herself back plus interest. The good side of this is that she has paid off her debt, but the interest she pays is to herself for her future rather than a bank.

The risk of a 401(k) loan is that if she loses her job or cannot make payments on the loan, she will receive a 1099 the next year for the amount of the loan she didn't pay back. This means she will owe tax on this amount, plus a 10% early withdrawal penalty.

Your daughter can also contact the credit card company directly and ask for a reduction in interest rates, and then pay off the credit cards at a lower rate.

A credit consolidation company can also be used to negotiate debt with creditors, and give your daughter a more manageable "lump sum" payment. However, this will negatively impact her payment.

I hope all this works out for your daughter. I think it's great she's looking for ways to manage her debt on her own, without looking at bankruptcy as a first option.

Please take a moment to mark my service as "great service" so that I may be compensated for my time answering your question. If you do not rate me or rate me below "got the job done", I do not get paid although the cost of the question will be charged to you.