“Dear Steve,
I was laid off a year ago and apply to jobs/agencies daily to no avail. I am using up what little money I got from a slip and fall lawsuit that I had to accept a horrible offer on which is my small savings acct. and I am really scared – once it’s gone, I can’t afford my mortgage for my small condo, car ins., living expenses and a horrible $600/month health ins. cobra pymt!
I was told I can’t modify my mortgage since I am unemployed. I have no where I can go, can’t sell since I owe more. I have not paid any of my charge cards in 8 months, since I can’t afford it. I am afraid to go bankrupt at 50 years old, my mortgage adjusts next May…..OMG….I can’t sleep at night, my phone rings constantly from creditors, I am so depressed, worried, anxious. I am on the ext. of unemployment which ONLY covers the mortgage and soon that will end. What do I do? Help me!
I am unemployed, using my savings to live and unemployment and can’t pay my charge card bills, what do I do?
Fran”
The Answer:
Dear Fran,
First, take a deep breath, I’m here now. We can work through this together.
The stress is amplified by the fear and collection pressure you are under. That stress leads to depression if unchecked and depression leads to inactivity and inactivity leads to you just waiting for all the bad stuff to happen to you.
First, forget paying on the credit cards. They are not a priority debt. Your mortgage, utilities and health insurance is much more important. But even then, you are running out of savings and the unemployment is going to stop soon, you say.
So, everything aside, the number one priority is to find a replacement for the income. If there is nothing available in your area, you need to move to a place their are jobs. Some parts of the country don’t have enough applicants for all the jobs available. Take North Dakota for example. The unemployment rate there is 60% lower than the national average.
At 50 you don’t need to worry about feeling like you are at the end of the road. I hear 50 is the new 30 since we are all going to be working till we are 90.
If you decide that relocating before you run out of cash is the way to go then stop paying your mortgage. The best approach will be to tidy up all this unmanageable debt with bankruptcy so you can get a true fresh start some place else. But the key here is if you’ve waited too long and used up all your available cash. Hopefully you have enough to move and pay a deposit on a rental unit someplace else. You’ll also have to pay for bankruptcy.
And bankruptcy will stop the collection calls and leave this debt behind you. Your credit can get rebuilt once you have income coming in again.
Poll – Vote Now
Loading ...
If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.