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View Poll Results: What would you do to survive? (Multiple Choice)
Keep the house at all cost - stop paying everything else 14 22.58%
Stop paying credit cards 7 11.29%
Stop paying loans 1 1.61%
Cut non-essential bills like cable, internet, cell phones 43 69.35%
Sell the car to get rid of that payment and buy a $500 junker 33 53.23%
Walk away from the house - move in with relatives 4 6.45%
Work as many minimum wage jobs as you can find 25 40.32%
Put the house and car up for sale, and stop payments 5 8.06%
File for Bankruptcy 8 12.90%
Other 10 16.13%
Multiple Choice Poll. Voters: 62. You may not vote on this poll

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Old July 15th, 2008, 02:09 PM   #1
MT-Dawg
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Default Financial Scenario - What Would you Do?

A Scenario that could happen in the near future:

- Just lost your $60K/year job through indefinite layoff.
- Unemployment will give you 50% of your take-home pay per week ($400 no tax).
- You have a $1000 a month mortgage for the next 25 years, a $500 a month car payment for the next 4 years and credit card/loan debt totaling $50K built up over the last 20 years.


What would you do to survive?
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Old July 15th, 2008, 02:15 PM   #2
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Call the credit card company and tell them you won't be paying your monthly payment. Do everything you can do to trade out of the $500 a month vehicle. Most importantly, work with your mortgage company to make your house payment if at all possible. Work side jobs for cash whenever you have the opportunity.
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Old July 15th, 2008, 02:15 PM   #3
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Try to sell what you can. Look for another job or two.
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Old July 15th, 2008, 02:15 PM   #4
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Immediately deposit $1000 for emergencies while paying minimums to everything.
part-time job to accelerate payoff of revolving debt.
Then move to paying off vehicle.
In all this, focus on nothing but neccessities to include the occasional dinner out, and movie night to keep from going insane. Cut cable, cell phones, all luxuries.
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Old July 15th, 2008, 02:18 PM   #5
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get a junker, call the mortgage and credit card companies to work out a pay schedule.
make payments. buy clothes at the resale shop. work your fucking ass off no matter what.
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Old July 15th, 2008, 02:19 PM   #6
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Sell car, then look for jobs 18 hours a day.....you'll find something. Hell, look online for jobs out of state, it would be better than being jobless in MI. Like stated above, never stop trying. You never hear stories of wealthy people saying "I just gave up and then everything worked out for me."
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Old July 15th, 2008, 02:22 PM   #7
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Surf gl4x4 all day and get some stuff from Sandals.
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Old July 15th, 2008, 02:27 PM   #8
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Quote:
Originally Posted by clint357 View Post
You never hear stories of wealthy people saying "I just gave up and then everything worked out for me."
ROFLMAO!



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Surf gl4x4 all day and get some stuff from Sandals.


or get a job at spromart
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Old July 15th, 2008, 02:28 PM   #9
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my family comes first. even if I put a substantial downpayment on the house 5 years ago (or when it was refinanced then given your 25 year out of a presumed 30 year note) chances are that there is little to no equity in the house.

my credit can be rebuilt. while I would be doing what I could to work my ass off and regain lawful, legal employment I would be making some very careful calculations as to whether or not it was even remotely worth it to continue payments on the house.

I honestly don't see how the rest of the scenario would apply to me. I've never had a car payment that high, and do all I can to plan in such a way as to hopefully not have one that high in the foreseeable future.

Credit Card debt at 50k amassed over 20 years? While I have had spikes during home repairs/improvement projects that's another figure I just can't fathom.
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Old July 15th, 2008, 02:38 PM   #10
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This whole scenario is basically an average situation I have been hearing from friends and relatives who work in the Automotive business - Something that "Could" happen to them.

Personally I would do what I could to keep the house....credit card debt can be negotiated down and the luxuries eliminated ($500/month car, cable, cell phones, etc.) But you need some place to live...your credit can get trashed and rebuilt over time. But if you still have the house you still have something with value. Realestate has always been a good long term investment.

I too would work as many jobs I could and not rely on the unemployment.
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Old July 15th, 2008, 02:43 PM   #11
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whatever.....

the correct line of action is to spend every cent you have on lottery tickets, increasing your chance to hit the big money.
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Old July 15th, 2008, 02:46 PM   #12
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Quote:
Originally Posted by MT-Dawg View Post
But you need some place to live...your credit can get trashed and rebuilt over time. But if you still have the house you still have something with value. Realestate has always been a good long term investment.
If the house you are struggling to pay a 25 year note on, is significantly upside down in value, and you still have to factor in the price of utilities, property taxes, maintenance/repairs then in many circumstances it can be more beneficial on a strictly paper level of walking away and renting.

Worse than the scenario you spelled out, are those with similar debts piled up, but instead of that 25 year note, they have an ARM coming due, and a house that appraises for 30% less than their current mortgage balance...
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Old July 15th, 2008, 02:47 PM   #13
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Do what I have to do to survive. Find another career.

I don't understand why it is so hard for some to realize that they can do more than one thing in life.
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Old July 15th, 2008, 03:04 PM   #14
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i dont consider a cell phone a luxury. they're cheaper than a home phone line and you need a phone to get calls for possible employment. internet isn't completely a luxury anymore either in that same respect.

also, i would like to know how you guys think you can call up CC companies and negotiate down debt. what honestly happens if you simply stop paying on them? aside from a ruined credit score.
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Old July 15th, 2008, 03:07 PM   #15
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Quote:
Originally Posted by Lothos View Post
i dont consider a cell phone a luxury. they're cheaper than a home phone line and you need a phone to get calls for possible employment. internet isn't completely a luxury anymore either in that same respect.

also, i would like to know how you guys think you can call up CC companies and negotiate down debt. what honestly happens if you simply stop paying on them? aside from a ruined credit score.
You might get a prepaid phone, use for incomming calls only, the library has a computer with internet access
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Old July 15th, 2008, 03:21 PM   #16
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You might get a prepaid phone, use for incomming calls only, the library has a computer with internet access
When you are talking about bills, neither of those cost much, and the inconvenience could cost you much more.
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Old July 15th, 2008, 03:29 PM   #17
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Quote:
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also, i would like to know how you guys think you can call up CC companies and negotiate down debt. what honestly happens if you simply stop paying on them? aside from a ruined credit score.
You still owe them the money. But it will cost them a lot of money to get it from you if you refuse to pay.

You can call and explain that you WILL pay the debt, but you need different terms to take care of it.

Or you can be as ass and say you will pay half without issues, or they will have to come after you for the full amount.
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Old July 15th, 2008, 03:41 PM   #18
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I would live off the 6months emergency savings and unemployment till something worthwhile came along.
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Old July 15th, 2008, 03:42 PM   #19
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Quote:
Originally Posted by 84Scrambler View Post
Call the credit card company and tell them you won't be paying your monthly payment. Do everything you can do to trade out of the $500 a month vehicle. Most importantly, work with your mortgage company to make your house payment if at all possible. Work side jobs for cash whenever you have the opportunity.
x2
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Old July 15th, 2008, 05:20 PM   #20
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I would live off the 6months emergency savings and unemployment till something worthwhile came along.
Ooooo! Moneybags!

Just having to take a lower paying (shorter hours, same pay rate) job and my wife being out of work caused us to burn through savings pretty quickly. The real hurt was retirement funds tanking and losing at least $250,000 over the next 20 years.
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