I have been unemployed since 2010. I had inherited some money when my father passed away in 2005 and was able to continue meeting my needs and paying my bills.
Unfortunately because of emotional issues, I really did not have a good grasp of the kind of money I was spending. I was able to renegotiate my mortgage and keep my house but I continued to spend money on credit cards thinking I could pay it off at any time and things would work out when I got a job.
I did indeed pay my credit cards off several times. Unfortunately, I kept right on charging and it has taken way too long for me to find another job. I have been living off my father’s inherited IRA but my monthly bills are now so high I will be out of money in another 3 months or so if I continue to fail at finding employment.
I can no longer afford to make my monthly payments for all the credit cards. I have gotten myself into this mess and I don’t know how to get out of it. I have several health conditions including out of control diabetes which has become out of control partially because of the stress in my life.
In order to pay my mortgage, buy food, medicine, pay insurance (including health insurance costs of $600.00 per month), gas, utilities, etc., I just can’t make all the credit card payments anymore. I live in constant fear and worry.
I am not delinquent on any of my payments but I realize I can no longer fool myself and keep paying out bills of over $600.00 month in credit cards. I honestly don’t know what to do. I have never not paid my bills except for my mortgage when I was working on getting it redone.
It has taken a couple of years but my credit is finally fair to good again and now I guess I am going to have to ruin it again. I really would appreciate any advice you can give me. I am trying to get some assistance from my health insurance company so that my co-pays will be waived and I can go to co unseling for severe depression and the uncontrolled spending. Thank you so much for your help. God bless you.
Let me preface this by saying all of what I am about to say is my personal opinion. So accept it in that manner.
I would submit that the inheritance was a classic example of putting off to tomorrow what you can with fixed resources. Without changing the underlying situation, one day those resources run out.
It’s no unusual to see strained family relationships results as the pattern then becomes one of being bailed out again, and again.
Out of control financial problems lead to stress and depression. Those conditions can lead to greater health problems. And the downward spiral continues.
Your situation is going to be changed wither with intentional planning by you or as a result of the action of others. In other words, you either take definitive action to change this situation or you will have to be bailed out again or wind up being sued.
As much as you feel out of control here, the reality is that for this moment, you are in the drivers seat, can accept responsibility for your current situation and take the action needed to change it.
I’d suggest you first 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.