Jos and Gabriela received a negative notice from their bank. The couple had paid their credit card's minimum payment with a personal check that was returned for insufficient funds.

The couple has the following (revolving) credit cards:

• bank card (balance of $670.00 at 15.00% interest)
• department store card (balance of $410.00 at 19% interest)
• home improvement store card (balance of $92.00 at 18.75% interest)

They are on a tight monthly budget and are struggling to make ends meet. Their monthly payment history has been only to make the minimum credit card payment since they need available cash for other household expenses. Last month they thought they had enough cash in their checking account to make a card payment, but apparently did not.

Historically, their average monthly allocation for credit card payments is $60.00. But, they do spend about $100.00 on other discretionary things in a typical month.

Their bank is offering a special debt consolidation deal where they transfer all credit card debts to their bank card. Due to their history, their credit score is only 550.

The couple does have money in their Individual Retirement Accounts as well as $1,100.00 in a savings account that they consider their emergency fund.

Write suggestions of what the couple should do to fix their problem.