I Took a Salary Cut, My Mother Got Dementia and Cancer and I Had to Take Care of the Colostomy. – Bill

“Dear Damon,

I had to take a $18000 salary cut due to a company wide reorganization. In addition, my Mother was stricken with Dementia and Cancer and I took care of her especially after her Colostomy to go around the tumor.

I had made a promise to her that I would not put her in a nursing home and although it cost me dearly, I kept my promise and paid her back only a smidgen compared to her unconditional Love for me. She passed away recently and although she is in a better place, I am hemorrhaging with payday loans and unsecured debt.

I also have one car that the engine blew ($2200 to fix) and has a $5500 car loan balance and a Mini-van used as security for a Citi-financial loan that the transmission went out ($1400 repair). My wife and I have one car that is running ($5000 loan balance).

I have to leave the home I am renting because I can no longer meet the rent of $1400 and we are looking to downsize. Are there any alternatives to working out a manageabl e arrangement to pay off pay day loans and what options do I have on a car that is a major loss but still has a $5500 loan on it.

Are there any alternatives to working out a manageable arrangement to pay off pay day loans and what options do I have on a car that is a major loss but still has a $5500 loan on it.

Bill”

Hello Bill,

I am sorry to hear about what you went through with your mother.

Regarding the finances it sounds to me like providing for the basic neccesities for your family right now is more important than paying for the broken car and the payday loans.

While I don’t know enough to give you specific steps you should take, You need to look at your current and expected future income and decide if you can realistically afford to pay these and likely other debts you have. If not, it may be time to consult a bankruptcy attorney. Or perhaps you need to let some of these debt payments go for a few months to allow you to get back on your feet and generate some additional income. If you are having to move because you can’t afford your rent, we need to make sure to prioritize the cash that you do have coming in.

Damon is a talented independent debt coach that provides in-depth assistance and consultations for people struggling with debt. If you want a personal debt coach to help you through a difficult situation or want assistance to find secret discounts offered by debt settlement companies I think Damon Day is an excellent person to contact for advice and assistance. He can be reached directly at DamonDay.com

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