The short of it is, we're about $70K in CC debt, 1st Mortgage $235K, 2nd Mortgage $60K. No car payments. I can get detailed about how we got here, if necessary, but that's where we are debt-wise.
We've canceled all our cards, and 2 have been reworked into a standard unsecured loan with payoffs in 5 years. One had been reworked temporarily with a lower payment, but that has just gone back up. We're barely coming out even...by the skin of our teeth and with help from our families with groceries. At least we're not adding to the debt. However, we have $0 savings, and we're not able to put anything into savings. Both our cars have been neglected in maintenance, and mine in particular is in dire need of repairs that we just can't afford.
Basically, our financial situation is almost unsustainable at this point and almost lost the house at the end of last year. We're both working full time right now, although my schedule would allow me to pick up a 2nd job. Two kids, elementary and middle school. $0 savings for college for them. At this rate, they'd be out of college by the time we could start to save - I'm afraid even with a 2nd job, it'll be too late for our oldest.
My thoughts are to file now (7? 13? I have no clue), get the fresh start with all the lessons we've learned so we can start to save for the kids' college and be able to live without the monkey on our backs. My wife, OTOH, has a serious moral wall to overcome (she used to work for Commercial Credit/CitiFinancial and developed quite a snobbish attitude towards non payment of "obligations"). To me, the kids shouldn't suffer due to our screw ups.
Thoughts? Advice?
We've canceled all our cards, and 2 have been reworked into a standard unsecured loan with payoffs in 5 years. One had been reworked temporarily with a lower payment, but that has just gone back up. We're barely coming out even...by the skin of our teeth and with help from our families with groceries. At least we're not adding to the debt. However, we have $0 savings, and we're not able to put anything into savings. Both our cars have been neglected in maintenance, and mine in particular is in dire need of repairs that we just can't afford.
Basically, our financial situation is almost unsustainable at this point and almost lost the house at the end of last year. We're both working full time right now, although my schedule would allow me to pick up a 2nd job. Two kids, elementary and middle school. $0 savings for college for them. At this rate, they'd be out of college by the time we could start to save - I'm afraid even with a 2nd job, it'll be too late for our oldest.
My thoughts are to file now (7? 13? I have no clue), get the fresh start with all the lessons we've learned so we can start to save for the kids' college and be able to live without the monkey on our backs. My wife, OTOH, has a serious moral wall to overcome (she used to work for Commercial Credit/CitiFinancial and developed quite a snobbish attitude towards non payment of "obligations"). To me, the kids shouldn't suffer due to our screw ups.
Thoughts? Advice?
I think we had conned ourselves into believing we were doing both..... and trying to set the example, "You borrowed it, you have to pay it back." But yeah, having to get help (no matter what form - for the groceries or to pay a bill) I'm realizing we weren't. 
Closed November 2010
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