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Personal Finances / Credit Cards and Consumer Debt
|Subject: Bankrupt or try to 'gut it out'?||Date: 10/29/2012 7:04 PM|
|Author: aoeuid||Number: 306073 of 310325|
I have taught school for 24 years (counting this one).
My personal finances are a BIG MESS right now. I'm currently behind on NO PAYMENTS to ANY ONE (in fact, I have never been charged a late fee in my whole life and my credit score is easily over 700), but . . . I have raided all of my savings.
My net monthly income is about 2,500. My wife brings in an additional 500. So, a total net monthly income of 3k.
But, our monthly expenses are about 3,350k. Leaving us with a NEGATIVE monthly cash flow of 350 bucks.
We live in a nice home. I have not checked home values lately. But, I would estimate ours at around 150k. About ten years ago we got our mortgage (CNB) on our home for about 112k (at a fixed rate of 5.6% for 30 years). I think the buying price we paid was like 121k.
We owe CNB 93,500 on the mortgage. We have a SECOND mortgage on it with Meritrust - we owe them about 28k at 5.25% fixed for about 14 more years. So we MIGHT still have about 30k in equity in our home. I don't know. It has not been appraised in a long time.
My wife thinks she can make 1k per month with her own home/business cleaning business (self-employed). She wants to be self-employed because we have three daughters ages 5, 7 and 9. She thinks the cost of daycare, and the fact that she doesn't trust any daycare, makes her having a normal JOB, 'impossible' for her. I don't think she'll make more than 500-700 pe