Start Cutting Immediately to Save a Sinking Ship

An acquaintance came to me the other day and told me a sad story. She has been unemployed since December and unable to find work. Her husband also lost his job around the same time and although he has since found another, they went four months with no income and his new job pays considerably less than the one they lost. When you factor in her unemployment, they are now living on about 30% of what they made before. When all this happened initially, she called the bank that has her mortgage and asked for a period of forbearance. It was granted, but now that time is up and their situation has not improved and they have blown through the savings that they had. The family is now in danger of losi

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11 Responses to Start Cutting Immediately to Save a Sinking Ship

  1. Broken Arrow says:

    Wow, that’s surprising.

  2. Joan says:

    So, if their credit cards were at $0 in December when all this started, that would mean they were charging an average of $6,666 a month…plus not paying their mortgage? Hooo-weee. The kids may not be stupid, but the adults?

  3. Jackie says:

    It’s situations like these, ones that are largely avoidable, that make me mad when someone declares bankruptcy. They couldn’t do anything about being laid off, but to keep spending and not take logical steps to reduce their debt load are just so maddening.

    That said, I hope that they get their finances going in the right direction. I hate for anyone to get in desperate straits even if it is mostly their fault. I just hope they don’t take a shortterm view of their debt and think that it’s better to declare bankruptcy than spend a couple or four years paying things off.

  4. Doug says:

    It would seem they would sell 1 car and the second house. That way it would at lease free up two expenses.

  5. Diane says:

    This is a sad story… not only the loss of jobs, but the inability to deal with reality.

    I’d be willing to bet that their credit cards were not at $0 in December, and this downward spiral started BEFORE the job loss.

    I hope they can turn it around to save their home, but it sounds like they are unwilling to make the obviously necessary moves to do that.

  6. Natalie says:

    You would think one of the parents would at least get a temporary job delivering pizzas or something, just to get some income coming in. Way too much pride I guess.

  7. Pingback: Monroe on a Budget » Reality check: layoff means cut back on expenses!

  8. Texas Girl says:

    Oh my GOSH! I’m horrified. I know I’m cheap, but we haven’t lost ANY income, but started feeling uneasy back in the fall during election time and cut out EVERYTHING at that time. We have no cable tv, don’t eat out, and don’t go on vacation or buy ANYTHING. Our friends think we’re weird but I don’t think I could survive your friend’s situation. What sickens me the most is that obviously they had a substantial income before…imagine how much they could have saved and been PREPARED for this disaster (had they not bought a vacation home for instance)….and now the taxpayers will have to bail them out because of their materialism and stupidity.

  9. Stacy Adcock says:

    Agree completely Texas Girl. I’m amazed that people still think and act this way but honestly I see it every day. My husband and I cut out everything when we decided to pay off our debt 3 years ago and now that it’s paid, we continue our cut back lifestyle; we didn’t add anything back except a dinner out here and there. As any fan of this blog site knows, life can be very fun without spending a lot of money. I hope they don’t file bandruptcy.

  10. Gail says:

    What are they planning on telling the children when they end up on the street without even a car because they have lost everything? I can’t believe someone would just keep on spending when they have lost their jobs. Unbelievable!!!

  11. Cindy M says:

    Hard for me to express anything but disgust and sarcasm here. I’m most definitely not sympathetic for anybody but the kids. What irresponsible, dishonest, lazy parents these two are. You don’t keep spending money you don’t have. They aren’t teaching the kids anything smart and useful but gee, how can they when they aren’t too bright themselves? Are these two college grads? If so, what a hoot.

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