Husband Laid Off and We Are Barely Making It. What Now? – Meredith

“Dear Steve,

My husband got laid off from his job in November 2009 and has not found employment since and everything has fallen on me.

We rent our apartment for the last 12 years and the monthly rent is $885.00.

We have about $115,00.00 in debt. It is a mixture of Student Loans, Taxes, Credit Cards, and Payday Loans etc.

My net pay after taxes every 2 weeks is $1070.88. I want and need to take of my responsibilities. However, I am not sure what to do because when I try to get a consolidation loan to take care of it I am told that my Credit score is too low. I have been with my employer for the last seven years.

My question is what is the best way to handle my debts?


Woman in safari hat looking through binoculars

Dear Meredith,

In a situation like this where the near future expectation for income is not good and you’ve already found yourself in a debt hole, the options are limited.

It seems pretty clear with your mixture of debt that you’ve been struggling for some time. The delinquent taxes and payday loans are a big tell.

What we need to do is clear the decks of the unmanageable debt to leave you room to liv within your income.

Depending on how old the taxes are, they could be discharged with bankruptcy and so could the payday loans and credit card debt.

If we tackle those issues and then attempt to get the student loan payments reduced I think that would give you the breathing room you need.

We need to address the issues student loans and if they are federal loans we can get them into a consolidated program and then into an income based repayment plan to lower the payment. I’ve included a bunch of links to help you with this, below.

I would suggest you click here to find a local bankruptcy attorney and meet with them for free to discuss your situation.

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Please post your responses and follow-up messages to me on this in the comments section below.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Damon Day - Pro Debt Coach

Steve Rhode

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