I'm rapidly going down hill with my debt and everything else. I used to bring into the household about $5200.00 each month and besides the normal household bills and mortgage of $1400.00/mo I have a truck payment of $630.00 each month and a balance of $34,000.00. I've had the truck for over two years and I don't seem to be making any headway on the balance and recently because of this recession my income has been reduced to around $2800.00 per mo. I thought I was living within my means and then this happened and I don't know what to do. My wife also has student loans in excess of $30,000.00 that we can't pay right now. Does anyone have some advise? I could sure use the help. Thanks
I would suggest that you explore filing bankruptcy. Initial consultations with attorneys are usually free. Please don't let some of the anti-bankruptcy opinions/posters here sway you. The government is in the process of bailing out car makers, banks, insurance companies. Bankruptcy is bailing YOURSELF out.
I agree with Greg seek the advice of a bk lawyer and go through the options when your in so deep there's not much chance of reversing it.
Do some reading and studying before going the BK route--it will stay with you the rest of your life. For the student loans, contact the Ombudsman at the Department of Education and see if they have a program that can restructure some of the loans. I don't know if they've set up any programs on not, but you need to check. The student loans aren't going to go away. If I were you, I'd sell the truck, pay off the loan, and get a used vehicle until you can get back on your feet. Look at ways you can cut your costs. Get rid of your cable. Don't subscribe to newspapers and magazines--go to the library and read them. Get a second job at 7-11 or McDonalds--anything to bring in a little cash.