Reply to Well that's it, walking away from debt

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[quote=Anonymous][quote=Anonymous]Come on people, if OP is underwater on the mortgage, works full time, and can barely cover child are and aftercare on her salary, how the hell is twirling signs or waiting tables going to make a useful dent in the debt?  Sounds like bankruptcy was designed for her situation.  Oh, I'll babysit your kid for $40/ night and make an extra $200 per week BUT have to pay taxes on it...what's that going to help?  When you are drowning in debt from the recession, working for 20 years to pay it off doesn't make since...you wouldn't make enough to cover the interest anyway.  Get real.[/quote]

You get real.  Paying off debt can sometimes be about the $100 or $200 different.  The difference between making a $20 minimum payment and a $70 payment is huge.  Digging yourself out of debt can be a matter of finding a way to stop the negative cash flow, e.g. spending more than you earn.  If you are close, then you should get another job and move than monthly balance from the red to the black.  Bankruptcy is designed for people that are way over their head and have no relief in sight, usually people who had a source of income that they had built their debt on that has gone away, like a failed business, a huge loss of investment income, or a loss of job.

In this case, OP should be talking to her creditors about debt consolidation, debt forgiveness, modified payment plan, interest rate reduction,etc and then looking for sources of additional income to help get their income to debt ratio over 1 again.  If you make more than you spend, even if only slightly, then you can handle debt without bankruptcy.  Since we don't know if they are $100/month or $700/month away from breaking even, it's hard to tell if they can get it under control or not.  Bankruptcy is not the answer for the majority of cases, and should be an extreme measure.[/quote]

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