I’m a 42 year old professional, recently divorced. I took all the debt, left him all the assets, i.e. collateral, for a 401k distribution as settlement, which I’ve basically been triple taxed on and came out still far down in the hole. Then I got laid off and have been in the process of starting my own company back up, but have been unable to secure any capital to properly fund the venture, nor to sustain myself through the transition of my new receivables, thanks to my bad credit still lingering and remaining behind on my obligations. I make a good income and have only needed the global fix, so to speak, to consolidate and settle out the remaining accounts and have something reasonable to contend with.
Given my situation, what would you recommend for me? I’ve quite honestly been so distraught and depressed and anxious, it’s severely affected my focus, my relationships and my health. I’ve looked everywhere and tried everything. I feel like I’m constantly backstroking and spinning my wheels, getting nowhere. I had a commitment for a loan that fell through and now I’m in serious dire straits, facing eviction, repossession, no funds to appropriately operate my business, pay expenses or take care of daily survival necessities at the moment. Any advice you would have to offer would be greatly appreciated, as I’m literally hanging by a thread. Thanks so much.
First off, let me share this video with you I recently made. It describes the emotional path you are on. You can read more about this here.
What I need for you to do is to see if you can find a way to separate your emotional reaction from recent events from that part of your brain to processes issues in a reasonable and logical manner. It’s a tough request for me to make for sure.
I’ve got some initial ideas that will allow you to close the door on this situation and move forward with an opportunity to have a new financial life but I have some questions first.
- Can you please describe for me the type and amount of debt you currently have and if you have any assets of any value still in your name.
- What line of business are you in?
I’d suggest you read How to Get Out of Debt. The Honest and Unvarnished Truth and The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy. They will give you a great overview of what we need to deal with to get you moving in the right direction.
Then use the free How to Get Out of Debt Calculator to review your options.
Please post your responses and follow-up messages to me on this in the comments section below.