Signed up with MMI (MoneyManagement Intl) about 1 year ago. Now my wife is not working full time which is about 2000 hit to our monthly income. It’s possible that in the next 6 to 12 months she’ll have a better paying job than she had – in the mean time were are about $1,000 short per month. Our MMI DMP payment is ~$1,300.00. Also, the budget I did which leaves us about $1,000 short is very tight and assumes nothing happens which would cause us to have to spend any more money (major care repair, home repair, etc…)
We have some back taxes we are paying on just under $10,000.00 to the IRS. Also, city, state and local taxes less than $1,000.00 in total.
Paying on some medical expenses, probably less than $1,000 total. Just paying enough to keep them from going to collections (about 75 per month).
We have only 1 car payment now (only have 1 car).
I like MMI they have been very helpful and have reduced our debt by about 10K in about 12 months. I have a meeting with them soon to discuss our situation…
What options do we have. Really don’t want to do bankruptcy – if we can avoid it. What about debt settlement? Is this really a viable option? I hear of so many scams where people loose there money and the debt doesn’t get settled, because the company goes under. Can you do this settlement process yourself? Help, really don’t know what to do.
Feel free to use my online How to Get Out of Debt Calculator to check the most common options.
For me the situation comes down to this, you can’t afford your debt management plan minimum payment so we need to look at alternatives.
I know you want to avoid bankruptcy but do you really want to do that for a logical reason or an emotional one?
About 70% of bankruptcy filers qualify for a Chapter 7 bankruptcy and discharge their debt in a few months. If you did that you can easily rebuild your credit, lessen the stress on your current life and finances and most importantly, put yourself in a position to save money now when you most need a financial safety net.
Let me ask you just one question, do you want to spend the next five years trying to fix the past or the next two years fixing the future?
Please post your responses and follow-up messages to me on this in the comments section below.