Hi. I completely agree with you, and I don't think I said anything much different than you. My advise to him was to take care of his debt, and to get into good standings before he spends money otherwise... I suggested to get on a payment plan of small payments as long as he can still pay for "shelter, food," and other necessities. You said "shelter", I said mortgage. Unless you're suggesting the poor house or the soup kitchen I think "mortgage/rent/food" covers the whole roof over your head thing and stability. Little love will help too.
Defaulted loans will not haunt you forever,.. of course not,.. they can just take almost everything you own,.. depending on how much the loan was for,.. and then you'll be at peace. Or you'll just have to pay cash for everything. And i'll stop the sarcasm there,.. but I was afraid it would haunt him when its time for him to get a loan for school. Most applications i've seen ask if you have ever defaulted on a loan. Oh wait,... its already haunting him because the topic was that he can't get a loan and its stressing him out.
As for depending on credit cards/loans,.. just like you suggested a **** hits the fan plan,... that was mine. Again, it seems like we are agreeing. I'm just a little too timid (i know i know) to even think about my house foreclosing and calculating how much time that would buy me... and then how fast I can get a job.Yes, the bank is a business, but there is some worker out there that is effected when I refuse to pay my bills..take "I" and multiply that buy soo many Americans. (The CEO doesn't get laid off, the bankteller or the cleaning lady does.) To me,.. that seems weak,... a 10,000 credit limit on a credit card in good standings,.. not so weak. But again, that was a contingency plan... a little more respectable than purposefully having your house go to foreclosure. You're into risk,.. i'm into responsibility. No I don't have any kids but I wouldn't be risking my house (ie shelter) if i did.
Joining the navy,.. great... if you like the navy. Joining so that creditors can't come after you d/t some legal loophole.
BTW: He didn't tell us his entire financial profile, but I don't think he would be this nervous if he had three houses that he could liquidate for funds. If so,.. then thats a great idea. I agree with you.
- Donald Trump filed for corporate bankruptcy in the most recent times. Big difference than personal bankruptcy. The one time that he did file for personal bankruptcy he sold his yahts, hotels,stocks, and an airplane. After that he vowed not to endanger his personal well being (and his family's) for a chance at financial gain. Take risks, but calculated ones.
To OP: If you've really hit a rock,.. have you thought about downsizing your house and taking the equity from it?
Also to the OP,.. no negativity is being directed towards you,..all i'm trying to say is that tidying up the past first before you move on may be helpful and with an understanding family it will all work out. A planned downsizing might actually go over alot better with your wife since there will be less financial tension and the fact that you'll be graduating soon with higher pay may make it seem worth it.