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Home > Ask The Get Out of Debt Experts > Pawned Jewelry to Make My Mortgage Payments And Can’t Keep Up With Payday Loan Payments. – Pete

Pawned Jewelry to Make My Mortgage Payments And Can’t Keep Up With Payday Loan Payments. – Pete

Income: $116K + most years a 15% bonus

Home: Owe $300K and probably worth $280K, bought in 2009 for $315K with FHA 5% mortgage, $2750/month

Debt: $90K + $23K aginst my 401K

No savings except for $54K in my 401K

Total payments every month are greater than my take home pay and I have run out of savings. Trying to not go 30 days overdue on anything I started getting payday loans about a year ago. I now am 2 months late on the mortgage, 60 days late on many other payments, and have a couple of collection agencies after me.

My fiance could not find a job when we relocated 3 years ago but has gone back to school and will graduate next month. I do not have high hopes that she will find a job and be able to help any time soon. Mom has her house on the market and plans to move in when that happens.

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She expects to give each of the kids $20K from the sale and plans to give $500/month to the house expenses. Bonus in December is not a sure thing but there is a good chance I will end up getting $10K after taxes. There is a good chance that I will also receive $25K in the next year from inheritance. I have a $5000 payday loan and need to make a payment of $950 today. I know it is totally crazy that I have gotten to this point.

We pawned some jewelry yesterday so I do have $1000 in cash but there are many other bils that have to be paid. I get paid next Friday and it will take my entire take home pay to pay the mortgage so that I do not go 3 months behind. I beleive that if I can get through the six months to a year that I can dig my way out of this situation but at the moment seem to have run out of options.

I need to do something drastic this week. I am considering doing a hardship withdrawl from my 401K for the 2 months of mortgage I am behind. Until I saw your site I was planning to go see a CCCS. I’m also thinking about just telling the payday loan people that I can’t continue making payments and hope there is some other options that can be worked out. Is there something that I have not considered that would be a better option to get me through the next 6 months.

This is your chance to be a hero and help out this person by providing your feedback and answer to the question in the comments section below.

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About Consumer

Consumer
This is information that was submitted by a third party and not generated by GetOutOfDebt.org or Steve Rhode.
  • http://www.consumerrecoverynetwork.com/ Michael

    Hi Pete,

    With the detail you provided it does sound like you can turn things around given the 6 months time you suggested you would need. Some of the potential help you listed are could-be’s and may not come through, or come through in time to keep things going in a way that you need.

    I would encourage you to speak with a bankruptcy attorney about your options in a chapter 13 repayment plan. Your income suggests you would not likely qualify for a chapter 7. Talking with the attorney does not mean you are hiring and filing. You may learn that chapter 13 is a direction you can take to force creditors into a payment arrangement they would not otherwise agree to – and only in the event some of the things on the horizon that could help you do not come to fruition.

    Could you reply with a comment and break down the 90k debt by creditor/balance/interest rate?

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