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I’m Panicing About My Debt Situation. – Walter

“Hi.. I’m Walter.. a single (never-married) 38yo.. guy in Richmond Va… no kids.. renting small apartment w/ no room-mates.. (except for 2 free-loading cats)..

Was laid-off September 2010..

During the initial shock and horror of this, I drew out the majority of my retirement savings.. from an IRA-account,Only to realize that claiming unemployment was (in my situation) more “user-friendly” than I’d anticipated…

…Though I began collecting the un-employment compensation.. it was still a very bleak, and depressed winter.. :-(

Feb 2011 found Job#1 …a good, likable job in a Tv station.. which was my original career-field.. .. yippie…!!

March 2011 was offered Job #2…
a job with a large non-profit agency.. helping persons w/ disabilities….

It was a bit more money, and more benefit-perks.. and a chance within my preferred career-ideal.. So Yay again!!..

So, I professionally, and gracefully left Job #1 for #2, only to discover that the immediate, and higher managers with Job#2 were MEAN… It was a very TOXIC environment.. and though I really TRIED to tolerate it..
for my own self-respect and sanity…on April 15th.. I resigned.. (in a professional manner)…

(I know it sounds like the passive approach to quit, but at that moment it was an assertive victory to leave)…

In the few weeks since, I have been job searching.. But having left Job#2 voluntarily, I can guarantee that I won’t quality for unemployment.. (and I am can’t face the idea of a “he-said she-said” battle / investigation, with Job#2 which would occour, if I did apply for unemployment…

Though they had already filled my position.. I have been told, that I will be soon(?) be welcomed back to the Tv station.. and I’ll have Job#1 back…

I’m glad.. but I have no guarantees.. and I am broke… with current, and past-due bills threatening to mark up my credit… :-( And, no cash on hand..

Lastly, I have looked at public-assistance options, and plan to meet and apply during this next week (week of May 2)..

I appreciate any guidance and support that you’d suggest.. I am really beginning to panic..!!!

What should I do?… I do have a small amount left in an IRA…. should I draw that out, to save my credit.. and to pay rent..

I do have a few antique-instruments I could try to sell.. but honestly, I’d rather keep them, and too I don’t know if I could get what they are truly worth… or will be worth in just a few more years..

Again, I thank you for providing this wonderful resource!!

Walter”

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The Answer

Dear Walter,

We can take of the the residual mess later so turn your panic off, if possible.

As you learned, by taking money out of retirement accounts to tread water all it has done is left you further down the road but with less money.

Until the TV job opens for you, I’m a bit jealous about that, I’d only take money out to cover your basic minimum living expenses and let the other bills go. Once you get back on your feet and employed again, you are probably going to have to follow that up with a house cleaning financial fresh start, a real second chance, bankruptcy. Bankruptcy at that point will clear the decks of the residual financial carnage that will be left.

So until then I would move the fear and thoughts of collection calls, and credit report marks from the front of your thoughts to the back. When you start to get collection calls I’d welcome each one like a long lost friend and be cheerful and cordial as you describe you can’t pay.

You can cringe in fear and cower or you can embrace the experience with enthusiasm and vigor.

The situation you are in now, sucks. But you were not just hit by a tornado, you don’t have terminal cancer, and you are not on fire. It’s just a bad thing, not the worst thing.

If you’ve got another place to sleep then move out of the apartment and we’ll just stack that onto the other debts to deal with later. Right now it’s just survival time. Food, shelter, and clothing are the order of the day.

While you might not be eligible for unemployment you are eligible for other benefits so get all you can. Start your benefits search here.

Walter, I really do care about what happens to you. Please keep me posted by updating me in the comments section below.

Big Hug!

Im Panicing About My Debt Situation.   Walter
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Steve Rhode

    Walter, one way to help improve your outlook on a daily basis is for you to comment on the questions of other readers. No only can you provide them with some moral support but it will make you feel better as well.

    No worries, we’ll get through this. I’d think the SNAP benefits for food will be a great asset for you to explore.

    I’m here for you buddy.

  • Itsstillfriday

    THANK YOU STEVE!!, for your quick response, and for the very practical advice!!
    Your advice really hit home with that little-inner-voice, which has also been saying, keep it simple.. focus on the day-to-day basics! So again, I appreciate the re-assurance.. … :-)
    I’ll dig into the benefits website you linked me to.. and..I’ll for sure, keep you up with the latest happenings here!!… In the meanwhile, I’m looking forward to reading helpful comments from your other subscribers!! Thanks!! Walter

  • Itsstillfriday

    THANK YOU STEVE!!, for your quick response, and for the very practical advice!!
    Your advice really hit home with that little-inner-voice, which has also been saying, keep it simple.. focus on the day-to-day basics! So again, I appreciate the re-assurance.. … :-)
    I’ll dig into the benefits website you linked me to.. and..I’ll for sure, keep you up with the latest happenings here!!… In the meanwhile, I’m looking forward to reading helpful comments from your other subscribers!! Thanks!! Walter

    • http://GetOutOfDebt.org Steve Rhode

      Walter, one way to help improve your outlook on a daily basis is for you to comment on the questions of other readers. No only can you provide them with some moral support but it will make you feel better as well.

      No worries, we’ll get through this. I’d think the SNAP benefits for food will be a great asset for you to explore.

      I’m here for you buddy.

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