“Dear Steve,

I have read most of what is on your web-site and none of your helps apply to us. We are currently probably over $22,000 in debt. It may not seem like a lot to you but to us it is enormous. We have NO car payments and haven’t for over almost 20 years. We pay cash for used junk boxes. Our mtg payment is $458.00/month and that is without tax and insurance, tack on about $125 to cover that. We cannot even rent a 2 bedroom apt for even near that. We have 7 children living at home. Our eldest son is in college on a free ride academic and financial scholarship. Our eldest daughter is married, so that is 6 children under the age of 18. We are 9 people living in an 1800 sq. foot home in a not so great neighborhood. There are several houses on our street in forclosure so we probably couldn’t get what we paid for it at 97K about 11years ago. Selling is not an option. My husband use to have a fairly decent job but due to the fact this his boss was incompetent and did alot of things wrong, my husband was made the scape goat in 2006 and was fired. Up until then we were keeping our heads above water.

He worked two other jobs in his trade for about a year and a half but because he was under qualified for those positions, and they were the only ones offered to him, he basically lost them too. He went 8 months searching for a job with no success. Finally someone referred him to a completely different field as a 911-Telecommunicator and he was hired instantly. He is the best one we’ve been told over and over and they all love him there. This job paid less than half of what he was making in 2006, thus this is when it started to get bad. We had to use our credit card to buy things like hot-water heaters, car repair, dentist bills, doctor bills, gas, clothes and sometimes food. My husband got a second job at the same time as a pizza delivery man and that worked for a while until the recession hit and he couldn’t make what he spent in gas. He also at the same time was going to college full-time, on 100% financial aid and received his Bachelor’s Degree at 49 years old in May 2010. I was so proud of him. So he worked 2 jobs, studied full-time and raised 8 children.

We have no luxuries and have had NONE for years. I cut everyone’s hair including my own and no I am not trained. I have not been able to work because of his revolving schedule and no one else to care for the children nor take them to their extra-curricular activities like Marching Band, plays, girl scouts. Our children do not get private lessons or private school. We buy all our clothes at the good-will or get them free at church. Our home needs repair and so doesn’t our cars. We are down to one car now the other has no brakes.

We have not had a family vacation since January 2004. My husband saved all his spare change for 8 years and we took 4 days to go to Cincinnati for our 25th anniversary. It was the first time we had been alone in over 12 years. He managed to save just above $600 so that was our splurge. Nine days later, in July 2010 my husband had a stroke. It was minor and he recovered and is back to work but cannot work overtime too much because he is exhausted. The docs told him to stay out about 3 months but he went back after less than one because of our financial picture. We now have medical bills ranging in the 3K area. That is included in the 22K I referred to before. We are about to hit our limit on our credit card. We have made all payments up to date yet it is getting to the point now when we just don’t have enough at the end of the month and borrow from peter to pay paul. It is a cycle. I applied for food stamps immediately after my husband’s stroke and we got $687 per month in food stamps which has been a tremendous help. My kids are all on state-sponsored health insurance again, a tremendous help.

So where do we cut out? The yearly taxes are due at the end of this year and our home owners and car insurance and we don’t have it. I had always had it before but this year I do not.

We are considering defaulting on the credit card which is at $325/month now. Do you have any suggestions?

Desperate in KY

Kristina”

The Answer:

Dear Kristina,

The good news is you’ve already looked into public benefit programs and you are getting those benefits. The solution here is very clear, you need to go bankrupt.

With your husband’s medical situation, the number of kids still at home, and the overall financial situation it is unlikely that if you went out to find part-time employment you’d be able to radically turn this situation around.

The more logical solution is for you to seek pro bono (free) bankruptcy help here. And since you are already on benefits you’d most likely quickly qualify for the free help to go bankrupt. The odds are pretty good you’d qualify for a Chapter 7 bankruptcy and your debt would be discharged in a few months.

Immediately after filing you would stop paying your creditors. You would then be able to save the $400 or so each month so you can buildup an emergency fund in a savings account.

At this point there is almost no further to fall. It’s time to stop slipping down the slope, take decisive action, and do the most responsible thing you can for your kids and go bankrupt to protect your family moving forward.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

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.

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Read the full article at GetOutOfDebt.org, click here: We Are Just Making It On Food Stamps, My Husband Had a Stroke, What Should We Do? – Kristina

Samantha

“Dear Steve,

My husband and I are young and when we were first married times were really touch since he was self-employed and didnt always have a check coming in ends were hard to meet.

Once I even had to take a personal loan out in order to keep the utilities on. Then we got back on our feet and kept paying on it and tried to find me a car as we only had one vehicle and needed two. We had no credit and no down payment so we were told to take out a personal loan together and it would build up our credit.

With him being self-employed for so long (now he has a steady full time job in addition to working on his on on the side) we had to refinance both a couple of times just to get buy. We don’t live above our means. We have a truck payment (still only one vehicle that is a gas guzzler) and those two loans on top of rent and basic expenses. We stay behind on the truck and loan and now we have a new born daughter.

How do we get our head above water while still giving her the world with out filing for bankruptcy?

Samantha”

The Answer:

Dear Samantha,

Thank you for writing to me and trusting me for help and advice.

Based on what you told me it looks like you might not have been living above your means but certainly right near the edge of them.

You are suffering from a chronic condition facing many, young and no credit. That leaves you vulnerable to high priced and expensive loans or financing. Often people turn to the buy here, pay here, car lots that will finance but at very high rates of interest.

Congratulations on your new baby girl. I’m sure she is precious and that you want a different future for her, other than what you’ve been living through.

After reading your question a couple of times I’m wondering if what you are referring to as a personal loan is actually a payday loan. Your statement about having to refinance them a couple of times makes it sound like a short term loan, just like a payday loan. Once some people get into the revolving payday loan trap, it is very, very hard to get out from under it.

Since you are renting and only have the revolving personal loan along with the truck payment, I’m not convinced that bankruptcy is the right course of action for you. In fact, it does not sound like your issue is too much debt, but actually too little income.

It sounds like your husband is doing the best he can with working two jobs and he might be at the limit of what he can make that way. With a newborn at home, it would be nearly impossible for you to go out and work unless you had some sort of free daycare.

With your income being so marginal I would guess that you are probably eligible for some government benefits such as food stamps (now called Supplemental Nutrition Assistance Program, SNAP) and WIC (food program for Women, Infants, Children). See this link for more information. There is also a very good online tool that will show you if you are eligible for SNAP.

Some people feel like they are too proud to use benefits but I for one am happy to pay taxes that assist others in need and trouble. I can understand the pride thing but you can’t eat pride. These benefits are available and you could use them and that will free up some of the money you are spending now so you can actually get ahead. Living just behind on payments is not a safe place for you to be right now.

Other benefits you may be eligible for include Medicaid and rent assistance as well. All of these are benefits waiting for you to claim them. You should also contact your local county department of public health or social welfare office to find out what else might be available in your area.

I can’t wave a wand and give you free daycare so you can go out and work, or increase the money your husband is making at the moment, but if you engage in an exhaustive search for benefits and you are eligible for them, that will be a blessing and a relief.

Big Hug!

@GetOutOfDebtGuy

The Answer:

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Read the full article at GetOutOfDebt.org, click here: Samantha Says “My Husband And I Are Young And Don’t Want to File Bankruptcy. What Do We Do?”