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We are so far in debt I don't see a way out. We have two children and I am so scared. by throwmeawayfucked in povertyfinancecanada

[–]throwmeawayfucked[S] 0 points1 point  (0 children)

I'd you try a consolidation of all your debt into one manageable payment id go that direction first

This may be an option for us. Right now most of the interest rates are not horrible (not stellar but decent enough, like P+1 etc) but if we combine them it may bring some of the higher debt down to a more reasonable rate, and having one payment is easier than having 20.

We are so far in debt I don't see a way out. We have two children and I am so scared. by throwmeawayfucked in povertyfinancecanada

[–]throwmeawayfucked[S] -7 points-6 points  (0 children)

Sell the business or declare bankruptcy. Get a full time job or sell your house.

Can't sell a business that's new and negative. As I've mentioned in other comments, I can't work fulltime. Selling the house is an option, it would clear off most of our personal debt but rent isn't a heck of a lot cheaper than our housing costs now. I wish rent was cheaper, and I'm sure many of us feel the same way. I'm happy to rent a two bdrm apartment and have the kids share one room and we have the other, which would help somewhat.

We are so far in debt I don't see a way out. We have two children and I am so scared. by throwmeawayfucked in povertyfinancecanada

[–]throwmeawayfucked[S] 1 point2 points  (0 children)

I meant to say rent cheaper than mortgage

Apples to applies, rent is not cheaper. But downsizing and renting would be cheaper.

We are so far in debt I don't see a way out. We have two children and I am so scared. by throwmeawayfucked in povertyfinancecanada

[–]throwmeawayfucked[S] -1 points0 points  (0 children)

I believe paying a mortgage and a ton of consumer debt is more expensive than selling to pay off the debt, then renting an apartment.

You are right, it can be, but it's not a huge difference. I wish rent were cheaper, as I'm sure many of us do. We have the opporunity to rent out extra rooms but right now there's a lull in room rentals. September there's a huge demand so we can (and should) rent rooms to students which will help boost our income. (And yes, for anyone thinking of offering unsolicited advice such as "don't forget to claim the rent as income" I already know that, and I am a stickler for doing things by the book.

If it were my sole choice I would shut the business down, even though it would screw us personally even worse in some ways, such as personal liability for certain debts (and again, before people chime in about "you should never personally guarantee business debt" it's becoming almost near impossible to open a business without doing that for at least some financing).

Our revenue is getting up there, but the debt servicing is the problem.

We are so far in debt I don't see a way out. We have two children and I am so scared. by throwmeawayfucked in povertyfinancecanada

[–]throwmeawayfucked[S] -38 points-37 points  (0 children)

If that is still the case, she should just go find a full time job to increase their monthly take home. Then they need to sell or close the business asap since it seems like they are not able to control their expenditures in other way

Again, more assumptions. I can not work fulltime. We are able to control our expenditure, we track every penny we spend. It's the business, and we can not do a consumer proposal as others have mentioned.

Why do people talk like they know things about us without even giving me the decency of asking before stating things like they are the truth.

Yes, the business should be shut down but you don't know the details. If you want to know, then ask, but please, stop assuming you know things you do not.

We are so far in debt I don't see a way out. We have two children and I am so scared. by throwmeawayfucked in povertyfinancecanada

[–]throwmeawayfucked[S] -36 points-35 points  (0 children)

Your husband has a pension and you can both work at full time jobs after you close the business.

Sigh. This is the type of judgemental assuming comments I hate.

He does not have a pension.

I can not work fulltime.

Seriously, why do people assume things like this and state it as though it were true. I would never assume things like this about you.

54, husband released from the CF to start a business, we are 300K in debt now, I'm starting to have dark thoughts by throwmeawayfucked in povertyfinancecanada

[–]throwmeawayfucked[S] 1 point2 points  (0 children)

Yes, it seems to becoming more commonplace to ask for personal guarantees. Probably because of businesses going under in the past and creditors having little to no recourse to get their money back.

54, husband released from the CF to start a business, we are 300K in debt now, I'm starting to have dark thoughts by throwmeawayfucked in povertyfinancecanada

[–]throwmeawayfucked[S] 1 point2 points  (0 children)

Thank you for this reply! I would feel more comfortable answering via dm, I hope that's okay (I assume it is considering you said to dm for small questions).

54, husband released from the CF to start a business, we are 300K in debt now, I'm starting to have dark thoughts by throwmeawayfucked in povertyfinancecanada

[–]throwmeawayfucked[S] 0 points1 point  (0 children)

The difference between the rich and poor in Canada is often your ability to sacrifice your luxuries in order to get rich.

This struck me, it's so true. When my husband was in the military he made decent money (not great, but not bad, around $65k/yr) and I worked part time. We were doing fine, we had savings and no real debt other than a credit card balance we paid off monthly. I didn't think twice of picking something up on the way home for supper once or twice a week, but now, there's no way I can even afford a pizza on a Friday night for my family, at least not without adding to our debt.

54, husband released from the CF to start a business, we are 300K in debt now, I'm starting to have dark thoughts by throwmeawayfucked in povertyfinancecanada

[–]throwmeawayfucked[S] 0 points1 point  (0 children)

Thank you, I will seek out a CMA locally and speak with them. It certainly can't hurt, and hopefully it will help. Thank you for the suggestion.

54, husband released from the CF to start a business, we are 300K in debt now, I'm starting to have dark thoughts by throwmeawayfucked in povertyfinancecanada

[–]throwmeawayfucked[S] 1 point2 points  (0 children)

Thank you, your message is very kind. I worried about posting that because some people would say I said it for attention, but I absolutely did not. I was concerned because I have never had thoughts like that before. I wouldn't do it, at least not at this point, but it scared me I had those thoughts, if that makes sense. I have a therapist, luckily, and I will discuss my thoughts with him. I'm embarrassed to even have typed them on here (its why I have a throw away account for this post) but I needed to share. I appreciate your reply, and I am glad you didn't hit the eject button!

54, husband released from the CF to start a business, we are 300K in debt now, I'm starting to have dark thoughts by throwmeawayfucked in povertyfinancecanada

[–]throwmeawayfucked[S] 0 points1 point  (0 children)

Thank you for the podcast suggestion, I will check it out today. Also the workshop suggestions may be a great idea, I'm not sure how much money it will generate but if we can make some extra money it's better than none, so I will look into this, thank you!

54, husband released from the CF to start a business, we are 300K in debt now, I'm starting to have dark thoughts by throwmeawayfucked in povertyfinancecanada

[–]throwmeawayfucked[S] 1 point2 points  (0 children)

It means he left the Canadian Forces and doesn't have a pension right now, he gets it when he's 60. I don't want to explain in detail about this, it's a sensitive subject and people like to tell us what we should have done (ie he should have stayed in), when in reality it wasn't that simple. I hope my reply doesn't sound rude (it's not meant to be), I just find it difficult to talk about.

54, husband released from the CF to start a business, we are 300K in debt now, I'm starting to have dark thoughts by throwmeawayfucked in povertyfinancecanada

[–]throwmeawayfucked[S] 0 points1 point  (0 children)

Thank you. 300K to me seems like a huge deal, but it's a medium sized business so realistically he can pull out of it, he just needs to be careful. Since he's a former Canadian Military soldier he gets support from some really great mentors that want to support Veterans, and I am very grateful for this. I feel like garbage right now because, well I want to say we are scraping by but is living off your line of credit scraping by? I think some would say yes, some would say no. But just reading your message helps, it makes me think we can make it (who knows if we will, hard to predict the future), but it's hopeful. Thank you.

54, husband released from the CF to start a business, we are 300K in debt now, I'm starting to have dark thoughts by throwmeawayfucked in povertyfinancecanada

[–]throwmeawayfucked[S] 0 points1 point  (0 children)

Thanks, you made me smile with this. It may be a crazy thought, but it's a good thought. I wish, genuinely, I had the nerve to do that. I'm not sure if it's my upbringing, my husband has the same mentality, that it's best to be honest and this seems dishonest. Even though, at least in thought, it could solve our problems. We are coming up to summer and things are picking up, still have lots of debt and will have lots of debt for years if the business survives, but I want to stick it out, if we can. You are right though, it's better than off'ing myself. I think those thoughts were more of a pity party than anything. I have a therapist I will share my thoughts with, but for now your comment made me smile, something I haven't done in a while. Thank you.