I’ve been reading your advice. I am about to be laid off. I had a business on the side, but just blew the engine in my truck. That side business requies the truck. I can’t afford to fix it and already owe more than it is worth. You advise to pay only “essential bills”. You have advised to “reduce lifestyle” by moving to cheaper houseing. I am willing to do that, but in todays real estate markt, I doubt I could sell my home. I have equity in my home, but not sure how much with todays market. Should I let the truck get repossessed? I have some income from my military retirement and my wife’s job, but that will fall well short of my current debt. I have never been in a situation like this and have excellent credit (part of the problem). I don’t really want to damage my credit, but I’m afraid I’ll have no choice. What can I do?
Wanting to not damage your credit does not change the reality of the situation. So you can’t make decisions based on a wish, we have to deal with reality.
Before we start to do drastic things about the truck I think you should make a job of getting a new job and focus hard on that. Replacing the lost income will be the first battlefield objective.
I would suggest drawing a line in the sand, say 60 days from now, and if you can’t find a new job by then, well then well need to load Plan B.
But first, can you give me some ballpark idea of how much you owe on your house and how much similar homes in your area are worth? Use Zillow.com to look up values and recent sales.
What kind of debt and how much do you have?