neckindebt Posted October 12, 2008 Report Share Posted October 12, 2008 I am a contractor and due to housing decline I can no longer pay my personal bills. I have a sole proprietorship. I have one house that has been on the market for over a year. I was laid off 2.5 years ago and started this business. I have been reinvesting in the business and living on credit cards. I have come to the point that I can no longer live off debt nor can I afford the monthly payments. I have tried 5 times to get consolidation loans but cannot because of consumer debt. I have no equity in my personal home. I cannot refinance or borrow on my investment home because it for sell. I have tried to negotiate for lower interest/payments on two of my highest credit cards but they turned me down because I could not make the lower payments.Anyway, I have decided to concentrate on mandatory expenses only and let the credit card payments slide until I can sell the house and pay them off. Is this a good option? I have never not paid my bills and only been late a couple of times in the last 30 years. Perhaps there is some advice for me. Link to comment Share on other sites More sharing options...
willingtocope Posted October 12, 2008 Report Share Posted October 12, 2008 Hey there, welcome. We'll help if we can.First...you're not alone. Most of us on the board here have been through similiar things. Its not easy, but you'll get through it.Anyway, I have decided to concentrate on mandatory expenses only and let the credit card payments slide until I can sell the house and pay them off. Is this a good option? I have never not paid my bills and only been late a couple of times in the last 30 years. Perhaps there is some advice for me.Is this a good plan? Yes. Keep your family fed and clothed and transportation...and housed, if possible. Let the credit cards slide for now.If you have little or no income coming in, you might want to go talk with a couple of BK attornies to see what your options are. Given the direction the economy in general is headed, what are the realistic chances of your income improving in the next year or so. If the answer is "little to none", then now is the time to do the BK...not 6 months from now when you've spent all your retirement and are looking at a large tax bill for early withdrawal.... Link to comment Share on other sites More sharing options...
swtprncess281 Posted October 12, 2008 Report Share Posted October 12, 2008 Have you looked at possibly getting a second job? Perhaps a few extra hours a week on another job can take care of at the very least the minimum payments on your credit cards. I would try to preserve, if at all possible, 30+ years of good credit history. The second job may not be anything to write home about, but at least it will keep you above water until things get better and you don't have to let all those years of good credit history go down the drain.This is only my 2 cents. Link to comment Share on other sites More sharing options...
CleverCynic Posted October 12, 2008 Report Share Posted October 12, 2008 Depends what's worse to you, a second job or minimum 7 years bad luck. It seems you should only have to pull in another few hundred a month, so maybe not so many hours. The biggest hurdle is not feeling like a failure by having to get another job, but the pride isn't worth it. The goal is to succeed, by whatever means necessary. Link to comment Share on other sites More sharing options...
neckindebt Posted October 12, 2008 Author Report Share Posted October 12, 2008 Thanks for your replies. Since I am self employed, my second job is working on small projects in my shop such as cabinets and furniture. The biggest problem I have is the investments that have not sold. When they do sell (and I have reduced the price) I can pay these bills. Link to comment Share on other sites More sharing options...
CleverCynic Posted October 12, 2008 Report Share Posted October 12, 2008 I don't think a second unprofitable task within your existing business qualifies as a second job. You have to define your own reality though. If you are going to decide that it's ok because something may or may not sell in the future, you're still essentially deciding to put off another job. Your credit is going to be dinged and the damage will be done. Guaranteed income is the purpose here for the second job. Keeping yourself busy in after hours only feels productive without solving any problems. You're not being accused of being lazy! You just have to find something that truly works and merits your time. Link to comment Share on other sites More sharing options...
debtmamma Posted October 13, 2008 Report Share Posted October 13, 2008 Hey there, welcome. We'll help if we can.First...you're not alone. Most of us on the board here have been through similiar things. Its not easy, but you'll get through it.Is this a good plan? Yes. Keep your family fed and clothed and transportation...and housed, if possible. Let the credit cards slide for now.If you have little or no income coming in, you might want to go talk with a couple of BK attornies to see what your options are. Given the direction the economy in general is headed, what are the realistic chances of your income improving in the next year or so. If the answer is "little to none", then now is the time to do the BK...not 6 months from now when you've spent all your retirement and are looking at a large tax bill for early withdrawal....What cards/companies do you have? I caught an AWFUL cold/cough and asked if I could skip a payment, GEMB and BOA made my minimum payment to be ZERO for 2 months with just a phone call, no change on reporting etc. Willingtocope is right, take care of your basic expenses and family, if you have something extra after the basics this month, pay your utilities a month ahead of time or buy a gift card to the grocery store you shop at. Link to comment Share on other sites More sharing options...
smurfette in nyc Posted October 13, 2008 Report Share Posted October 13, 2008 Willingtocope is right, take care of your basic expenses and family, if you have something extra after the basics this month, pay your utilities a month ahead of time or buy a gift card to the grocery store you shop at.I agree. If you are able to keep a roof over your family's head, and be able to feed and clothe them, that is a blessing! Taking care of your family is far more important than your paying your credit card bills. I hope you are able to find a solution to your current financial problems soon, and wish you the best of luck. Link to comment Share on other sites More sharing options...
swtprncess281 Posted October 15, 2008 Report Share Posted October 15, 2008 If you have reduced the price and the investments will likely sell, I think again, it would be wise to find a second source of income to help cover what you can't pay until you get the homes sold. I just say if it is only going to be a few months until you are back on your debt it isn't worth causing the kind of damage you can cause by just not paying them. TRUST ME, you'll be thankful you put in the extra effort. You can't possibly realize the effects of bad credit until you have it, and by then it's to late to change the decisions that caused it. YES, feed your family and keep a roof over their heads, but do what ever you can to keep these accounts our of collections and in good standing. Link to comment Share on other sites More sharing options...
admin Posted October 15, 2008 Report Share Posted October 15, 2008 If you can't pay your bills, you have limited options: 1. Don't pay them2. If you have cash, negotiate a settlement3. Earn more money4. Cut down on expenses5. File bankruptcyUnfortunately, there are no easy answers. Link to comment Share on other sites More sharing options...
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