“Dear Steve,
Since my husband passed away several weeks ago, I no longer have his income to count on for our bills. I’m already fighting foreclosure so it’s no surprise that I’m having a tough time trying to carry the load alone. I’m working on plans to grow my small business as well as some other sources of income but till something breaks I know I have to put my budget on the Ultimate Diet and I’m doing just that by eliminating every unnecessary expense.
One item on the top of my list is my car. I have a 2007 Lincoln Navigator SUV which I really love. I use it for traveling to craft shows in the southeast where I sell supplies and teach classes for extra income. If I have to trade it in on something cheaper, so be it. But I’m wondering if it’s possible to get it refinanced?? The payments are a whopping $650/mo and that’s a huge strain on me right now. On the other hand, it’s about 75% paid off. My payments are current. I don’t know much about cars but I know I’ll need to stay in an SUV to carry all my merchandise to the shows. What would be your recommendation, given my circumstances?
Thanks in advance for any suggestions,
Barb”
Dear Barb,
I’m so sorry to hear about the loss of your husband.
The underlying issue here is that you’ve had a significant reduction and already facing possible foreclosure.
Since you have to find a way to adjust your new life to fit within your new income, it might be time to make some big life changes.
That might include selling the home you can’t afford and the vehicle. With a more modest income it would make sense to consider getting a smaller vehicle that is much more fuel efficient. For example a Mazda CX-5 gets a combine 30 MPG while the 2007 Lincoln Navigator gets about half of that.
So, tackle the housing issue first. Nothing else is going to fit in place till we tackle that. If you are upside down in the house me might need to consider so more aggressive approaches to dealing with the debt.
Let’s not forget that we’ve got to deal with the debt your husband left. See How to Handle the Bills After the Death of a Loved One.
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