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Thousand dollars in credit card debt -- -- 12100 dollars on -- car 35000 or on the student loan.
Making about 48000 dollar take home pay she's in school.
She asked about the possibility of up her husband or her one of the two of them filing in the other one not filing.
And then you know she could go.
You know temporarily step out of school go get an extra job that kind of stuff.
And begin to work their way through this I'm thinking that they got a real tough situation this is really bad but I think they can avoid the bankruptcy and let's kind of talk that through.
-- you where they -- and I think is that a fair summary of what you told me exactly -- -- now.
I appreciate you being willing to sacrificed pay your debts and quit school and do that temporarily.
That would activate the student loans would it not on a student -- -- -- -- -- -- OK so they're already activated.
And you -- school is not got them at bay right.
Well he -- still like part I'm going to bowling -- -- like one class.
That's when that third quarter -- ever -- so we don't have to pay those yet.
OK so their own hole so what we've got a twelve dollars on a car suddenly 5000 -- -- credit card debt and 48000 dollar income of 600 on our house payment right.
Okay well the first thing -- rather if you got there or the -- written game plan because I think you've got more money than you realize.
And the written game plan the dreaded B word the budget is where we're going to spend your money home paper on purpose before the month begins.
Every single month.
The two of you sit down together and you'll do any thing -- money ever that's not on this list that you pre planned for the month.
If something comes up -- to go back to the list and correct the list correct the budget.
You can never again spend money that -- first spent home paper.
Impulse thing ever again it has almost bankrupted you and you gotta stop it fair enough -- -- -- now.
Once you're doing that on paper on purpose the first thing we're gonna pay -- food the second thing we're gonna pay his lights.
And and water and foam the third they were -- the house payment you still got money left over after that don't you.
I do but now we're eating we got utilities we have a place to live next thing -- -- the car payment it's almost paid off anyway.
And so -- pay that car payment and keep gas in the car that's food shelter clothing transportation.
And utilities these of the necessities of life.
I can already do your budget in my head and let you have sixteen kid you got money left over after that.
Hello I have six that we can still manage to.
Another part of the strain okay had a lot of baby birds -- to -- OK but but still in that situation you take care food you're very you know coupon oriented your.
-- cooking from scratch you know everybody's pitching in we're eating leftovers were not going to restaurants at all.
This kind of stuff.
Making every dollar -- you were already doing some of that.
Most definite -- and you're not some -- that went to Hawaii on your credit cards and couldn't pay it back you're trying to feed six kids and didn't want to watch what you were doing.
Thank and it came back like a boomerang and -- in the back of the head.
Not out I want remove the shame -- -- guilt from you being disorganized and being incompetent when money doesn't make you evil.
It just means you did some stupid stuff will welcome being human we all do stupid stuff.
OK but this wasn't some kind of spoiled brat -- that overspent here your -- six kids that tells me exactly what happened.
So this 25 dollars at a time this -- that it's death by a thousand cuts and you look up your 75 grand in the hole.
That's how it happens when you guys -- bought any plasma TVs and you -- down some big vacation not doubt anyway.
In my -- yeah now you're here right I mean of course we have been -- -- -- look you know may be let's say eight.
3000 dollars of staff that we really didn't need that other than that it was.
It's a target.
-- -- -- You can tell I've done this awhile right.
OK so that's what that is so you can know -- I know that much that I know this is gonna work.
So once we take care basic necessities the student -- our -- hardship deferral all we've got left his credit cards.
Look at -- let's do worst case scenario for a second.
Let's pretend that we took all the credit card bills and just threw them away and you know held our pinky ring up -- just said no way we're not paying -- nothing.
What what happened well what what happened is this your credit will be destroyed.
-- and eventually one of them some day is gonna get around to suing you.
And guard your your life is gonna come crashing down when I garnish your wages does that sound right that's -- -- but that's not gonna happen today but that's -- worst case scenario.
Now if you file bankruptcy either one of you -- both of you gets what she did you destroyed your credit.
And you don't know any credit card anymore.
So there's not a lot of different.
What the heck if I take the bills and -- -- away.
And just chuckle in the trash can right now you trash your credit which were talking about bankruptcy so you -- credit those two things in the same.
And the credit card companies didn't get paid either way right.
I someday they're going to come back and get you though.
That's the only difference.
Wow that's why I mean you're not bankrupt.
So I say you -- -- the trash.
And you pay who you can pay after you paid your necessities.
And you work on this he picks up an extra job here and there you finish your school and get out of school.
And get you much much better job because of you guys are making 75003.
Years from now you can go back and pay these people back at pennies on the dollar they'll get some of their money.
Your credit will still be pretty much -- but not nearly as bad as bankruptcy.
And you are bankrupt.
In the meantime let me tell you the bad downside the downside is -- -- going to drive you crazy with their collections calls.
They -- nasty.
And you're gonna have to learn to be really tough and really thick skin and not have conversations with a -- just hang up on.
And have one I'm solution just call that attorney if you if they actually see you there are probably issue and they're gonna convince you that they're gonna -- you.
But they're not immediately eventually they will.
But I'm saying bankruptcy -- your credit cards in the traction trashing your credit why not save the bankruptcy bill.
-- the trash trash your credit and work your way through -- as you can get to the what's the difference.
You paid your bills that's the difference.
-- -- And you did save a big chunk of your credit.
Having a bunch of bad credit card debt that you went back and paid on your bureau is a whole lot better than having file bankruptcy.
-- -- but it will be a strain emotionally we're going to bankruptcies -- emotionally you've already experienced a lot of that this meeting with the attorneys haven't you.
It's because you just the shame -- -- guilt was overwhelming I went through a twenty years ago on now.
So I'm gonna help you this if you promise me you won't file until you've tried everything else I'm gonna put -- her thirteen week series financial peace university.
I'm gonna pay for it.
And you're gonna go through that learn how to handle money and how to work your way through this.
We give me that promise.
I'd say that would be so great thank you so much that would.
Greatly appreciate that.
All right and you guys give this a shot if you get scared and you got trouble in the process you're from Elvis things piling up on you call -- back we'll talk about it again.
But I think you can make it I think you're going to be surprised how well you made it you just didn't know what to do and how to get there.
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