[USER]

Hello! I was just laid off (I’m 56 years old) and have about $18K in credit card debt (mostly medical). I don’t want to declare bankruptcy, because I want to eventually sell my home of 27 years and take the profits to just travel until I can retire.

Would it be better to take out a personal loan to pay off the credit card debt for one lower interest payment that would be affordable? I’m going to apply for unemployment which will cover my mortgage and other household expenses.

Another option is to sell my home now (I was trying to wait for 2 more years) and pay off all my debt and travel through Europe, hoping the profits will last until I’m able to retire and collect social security.

Any insights would be appreciated! I’m  done working the corporate jobs that are toxic and slowly killing me.

[Kathy]

Just get a job you think you would like until the debt is paid off! It does not have to be a corporate job!!

[Geri]

Not sure of your entire situation, but you could take out a reverse mortgage if your home is paid off (no these are not scams, you still on your home, look into it with a reputable company) transfer your credit card balance to a zero interest card offer or pay off what you can with some savings. Get another job doing something that you like, if you have things you can sell do that.

It would be a bad idea to take out more debt, and your unemployment is only going to pay you for a limited amount of time.

[Jenny]

Try to figure out how much money you’d get from selling after you paid off your bills then divide that by how many years you have tillb you’d get social security then see if that number is doable to live on each year.

[Shelley]

I’d inquire with a lawyer re bankruptcy.

You might also want to rent the house out while you travel. Rent is out of control right now and renting on a fixed income can be rough. I’d keep the house and get a roommate to reduce your costs.

Proposed: How to manage $100k windfall with mortgage, student loans, car debt, and credit card debt?

[Rachel]

Laws may have changed since I claimed bankruptcy, but I was able to choose what I included in the bankruptcy. So, I could have kept the house but let go of the cars and credit card bills.

[Dawn]

Umm none of this is a good idea financially. You need to save and save more for retirement. If you’re thinking of selling your home to go travel and claim bankruptcy before seems like a horrible plan to me. You should keep your home, find a job you like and continue to pay off your credit cards. You do know that when you claim bankruptcy you pass your debt on to others.

FYI social security will not sustain you and was never set up for seniors only to live on only that.

Good luck

[Arleen]

I would write a budget, cut out everything you can and pay off the debt. If you need a second job, do it. I traveled Europe on a budget and did not spend a lot I stayed in hostels and had a great time.

[Carol]

Don’t worry about the medical bills at the moment. It will not affect your credit if not paid on time. Find something you enjoy doing and see what’s out there for that kind of employment.

Apply for 0% interest card to transfer your current card debt. There are some that are up to 18 mo term.

Personally, I wouldn’t sell my house until I was sure I could afford what I needed until social security kicked in- that’s a little to risky for me.

Preferred: Is taking $60,000 from HELOC a bad idea to pay off credit card debts with 24-29% interest?

[Cindy]

Next time tell the Medical Staff that you can’t pay the bill and ask if you can make payments I had one over 9k and they said as long it was paid in 3 years I was ok. Doesn’t go against your credit either.

[Anna]

I don’t want to sound critical here on your plans, but I would not sell my home have you looked at Social Security to see how much you will make? And looked at the price of renting versus owning your home and that will continue to go higher the longer you get to retirement on renting.

Rent even now is crazy high and you are at the mercy of a landlord over the years, and I am seeing now people who have lived in their rental being kicked out one lady had been in her townhome for 9 years, a big corp came in bought all the townhomes and is giving everyone 30 days to move out, no negotiations.

I am glad that you are here looking for advice but I think you need to look at the bigger picture for the future. I retired last year after my husband passed away and am so thankful that my home is paid off, my car is paid off and I have no debts in todays economy I could not afford to rent a apartment or house and have much left.

As far as debt I would do a Chapter 13 and let the courts help you work out a reasonable debt plan a lawyer will for sure tell you what will work best for you and the initial consultation is usually free.

Best wishes.

[Heather]

Don’t make any rash decisions. Look for another job. Make payment plans on what bills you can and pay your CC first. The CC will affect your credit more than any other bill.

Apply for any assistance that you can.

[Wendy]

Why should someone else pay debt you made. Tighten your belt and pay off debt. You need to see a financial planner because if you don’t have a pension or a large 401k your social security will not cover your retirement.

[Dana]

If you sell the house, where will you live when you are too old for travel, or if you have an illness? You would pay a fortune

To rent or buy again in this market. Just something to think about. Maybe you could rent the house while you go travel?? For credit cards I’d find a new job and pay off the smallest debt first, making the minimum payments on the rest. When that one is paid off, you throw the money at the next smallest one and keep repeating until all have been paid off. I’m down to $3500 on one

Card using this method. I cut out all unnecessary spending and put every dime I could towards cc debt. Don’t use cc for anything else or you will never get it paid off.

[Cyndi]

Consider debt consolidation- there are reputable companies out there that’ll help manage and break that debt down … you take a temporary hit on credit but if it’s mostly medical I’m not sure that hits your credit score the same as cc debt.

[Author]

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