What would you do?

Question

I need serious advise. I am 8 months pregnant. About to deliver in the next few weeks. My husband and I own our own business. Over the last few months, business has dropped considerably. We are lucky if he gets 2 jobs a week now and each job gives us about $300. We also have a 7 year old. We were just about living paycheck to paycheck before (we were able to save a couple hundred that we have since depleted). My cobra payments alone (to cover the delivery) are $400 a month. My mortgage is about $1700. Everything else is pretty typical. Utilities, food, etc. I've tried to cut down on the food but even buying ramon noodles and mac n cheese with some other basics is at least $30 a week. I have two credit cards but they only have a limit of 500 each. And both are at about 200. I've been putting the groceries on there. What would you do?

Answer 1

hmmmmmmmmmm

2600 a month

move someplace that costs 1000 instead

cut back to one car

maybe give up cable if you have too

for 4 people food is gonna be $700 a month no matter what

Answer 2

Ok, the husband is getting 2 jobs a week at $300 apiece. That gives $2400 a month. Lets say $2000 after taxes. The house alone eats 85% of your income. Think about it. Each hour your husband works has 51 minutes dedicated to the mortgage and 9 minutes paying for everything else.

That house is the anchor sinking you to the bottom of the ocean. You need to get away from it. Hopefully, you are in a position where you can sell it. Lets hope that property values have not dropped or that you owe more than the house is worth. Get to a realtor and figure out fast how much you might be able to sell it for and see what it would take to get out of that mortgage. Don't forget to think about realtor fees and stuff like that.

Lets say that when times were good the husband brought in 6 jobs a week. After taxes, I am guessing it would have been something like $5500 per month. That mortgage is still about 31% of the budget. That is still pretty high. It sounds like you got into a house that was above your means. There have been lots of shady mortgage shennanigans in the past few years. Lots of lenders giving out mortgages they should not have done. Do not get attached to the house. Do not see it as security for you family. It is a financial death trap. If you try to keep it you will more than likely lose it in foreclosure.


One more note. How much is the house worth? By my guess (assuming a 30 year note with an 8% interest rate) the house would be like $200,000. I am not sure if the value of the house will affect any attempt to get on assistance. What is the house worth and what are the terms?

Answer 3

Consider selling the business or picking up another job. You need the money for the new baby, and need to be as stress free as possible for your health and the babies health. You can also try selling unused things in a yard sale or eBay to pick up some extra cash, but that is not a long term solution. Some things have to change, your husband needs to get another job, and when the baby is old enough to be left with a sitter or family member, then you should get a job as well even if it is part time.

Answer 4

Your husband may need to get a temporary job somewhere until business picks up again. You on the other hand should rest, and help with the business only when you can. If you have family that won't hold it against you I say ask for their help. Also there are plenty of governtment assistance, like food stamps & the such. Go here and check it out:
http://www.fns.usda.gov/fsp/
Hope it helps!

Answer 5

Until you are able to work again, your husband needs to step up and be the MAN of the family and get a second job. I have many times in my past went and got a second job to either make ends met of to just be able to save for the future. He needs to know there is no shame in that, and it's alot better than getting on public assitance.

Answer 6

I would pray and hope that my family and I would get through this. I would go to a family member and ask them for advice or help. Try to cram in one more job like waitressing (maybe like 2 days out of the week for 4 or 5 hours or less) so you make a little more. I hope you guys overcome this. I am sure you will.

Answer 7

Try to find a non-profit org through a local church. There are many that can help you out in a time of need. There is one locally called InterFaith, I am not sure if there is one near you, but they can help with groceries and household items.

Answer 8

I would sell the house and get out from under that mortgage payment. Move to an apartment.

Answer 9

Here is a link to a great savings list.
Take a look at this and see if it helps with any other areas you can cut spending.

http://www.freewebs.com/savingslist/

Answer 10

He needs to get a second job before you can consider doing anything else.