Drowning in debt
Question: My wife and I are having money issues. Currently I am looking for work and collecting the max for UIC. My wife brings home 2000/month.
We have a house that was appraised at 175,000 but is worth more on the open market. Mortgage is 142,000 and we have a line of credit at 28,000. We have credit card debts totaling 6,000 and a small loan of 4,000. We are not behind on anything but right now, we have to keep borrowing to pay the bills. Total bills are about 1200/month including our 300 car payment which is paid in full next month.
My wife is too embarrassed to seek help. Any suggestions? Other than finding a job quick!
Answer: Seek help.
Everyone gets embarrassed by financial problems, but ignoring the problem won’t solve the problem. Talk to a credit counsellor or a bankruptcy trustee. They will offer you a free initial consultation, and they can explain all of your options.
One option to consider would be to sell the house, and use the money to live until you are back to work. Obviously finding a job soon would also help. A consumer proposal or a personal bankruptcy may also be options, but a consultation is necessary to explore all of the options and then decide which option is best for you and your family.