$35,000 credit card debt spread across 7 cards with APRs ranging from 4% to 17%, $750 month mortgage payment, $800 month cc payment, $60,000 student loans on low-income repayment with $0 payment. Adjusted gross income $24,000, monthly take-home fluctuates between $2000 and $4000, but usually on the lower range. My husband is self-employed.
My husband and I are expecting our first baby and we are living paycheck to paycheck and often in the red. Our income is barely sufficient to cover our expenses and we can't make progress on our debt, and yet we do not qualify for government assistance, we aren't quite in need of debt relief agencies as far as I can tell, and bankruptcy is only a last resort.
We are using YNAB (budget program) and tracking our spending carefully. I am applying for jobs with higher earnings but there are no guarantees. What else could/should we be doing? We also now need an extra $1000 a month for child care and insurance when baby arrives. We are very stressed by this situation and we don't see a way out. Any advice is appreciated!
Bankruptcy should not be your last resort, it should be your first resort.
You need to take rapid action here to make changes that will provide a safe home for your baby to come to. That might mean reordering your priorities.
Filing bankruptcy will clear away almost enough with that one move to meet you new child care obligations.
You should also check Benefits.gov to determine what benefits you might be eligible for to help make ends meet.
I suggest you read Change Your Mindset and then talk to a bankruptcy attorney as soon as possible.
Please post your responses and follow-up messages to me on this in the comments section below.
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