Here is my predicament. I was recently layed off and most likely will not be returning to that profession. I'm probably going to have to retrain into something else. I don't see myself back in the workplace for at least a year.
My prior years I did a lot of reckless spending, but had always made enough money to bail myself out. Well about 4 years ago I saw a huge downturn coming in my trade (automotive designer) so I started paying things off , liquidating some assets and saving as much as possible. As is seems I didn't start soon enough. This last year was one paycut after another ($40k worth) which ened up with me losing my job a couple of weeks ago.
So far I'm not in a terrible place.. I have some savings and haven't gotten behind on anything. I think I can last about 8 months maybe a year. In the meantime I've contacted my mortgage (and second) companies to try and do a loan modification, I've also contacted my CC company and explained the situation to them.
Now I'm about $45k upside down on a house in one of the worst states (economic-wise) that I can be. I have about $18k in unsecured debt, owe $7k on a car , and $12k on a Rec. vehicle. I also have another vehicle paid for, 4 other rec. type of vehicles plus some other assest I have collect thru the years. All these items are paid for.
Here's what my plan is, if I do get some lienency from my creditors I think I can make it, if not my first thing will be to try a short sale on my house. Then try and work with the CC company. If these don't work then foreclosure on the house and walk away from the CC ... or should I consider BK ? Or should I just try and sell all my assets which still won't cover what I owe ? (house, CC, vehicle)
I do know when I do re enter the workforce I will most likely be making a third of what I have in the past. This is going to effect how much I can afford as far as the house and living expenses go for sure.
I am in panic mode, so far in life I've never had to face this. I know I will get thru it but I just don't want to make any mistakes like I have in the past.
My prior years I did a lot of reckless spending, but had always made enough money to bail myself out. Well about 4 years ago I saw a huge downturn coming in my trade (automotive designer) so I started paying things off , liquidating some assets and saving as much as possible. As is seems I didn't start soon enough. This last year was one paycut after another ($40k worth) which ened up with me losing my job a couple of weeks ago.
So far I'm not in a terrible place.. I have some savings and haven't gotten behind on anything. I think I can last about 8 months maybe a year. In the meantime I've contacted my mortgage (and second) companies to try and do a loan modification, I've also contacted my CC company and explained the situation to them.
Now I'm about $45k upside down on a house in one of the worst states (economic-wise) that I can be. I have about $18k in unsecured debt, owe $7k on a car , and $12k on a Rec. vehicle. I also have another vehicle paid for, 4 other rec. type of vehicles plus some other assest I have collect thru the years. All these items are paid for.
Here's what my plan is, if I do get some lienency from my creditors I think I can make it, if not my first thing will be to try a short sale on my house. Then try and work with the CC company. If these don't work then foreclosure on the house and walk away from the CC ... or should I consider BK ? Or should I just try and sell all my assets which still won't cover what I owe ? (house, CC, vehicle)
I do know when I do re enter the workforce I will most likely be making a third of what I have in the past. This is going to effect how much I can afford as far as the house and living expenses go for sure.
I am in panic mode, so far in life I've never had to face this. I know I will get thru it but I just don't want to make any mistakes like I have in the past.
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