I’m Going to Lose My Apartment
Hi Scott,
I’m at risk of losing my apartment! I am $16,000 in arrears on my loan repayments, and the mortgage is more than I could sell the house for. I have zero credit rating due to blown-out credit cards, and the mortgage is for 30 years, taking me to age 77 before it’s paid off. I can travel on public transport with my work so I’m thinking of selling my car (worth around $5,000) to build up my Mojo and then start knocking off some smaller debts, as you suggest in your book. Is this a good first move?
Lauren
Hi Lauren,
It’s like you’ve walked into my office bleeding all over my carpet, and you’re asking for an aspirin.
This is serious. It’s time for surgery, not solubles.
Here’s a list of priorities:
First, cover the essentials: food, electricity, gas, and fuel/fares to get to work.
A very close second is securing the roof over your head.
Third, deal with everything else, including your credit cards.
Finally, should you sell your car? Maybe, but only if you don’t really need it. Still, selling the car will save you on rego, repairs, insurance and petrol. Plus, having $2,000 in Mojo is an awesome psychological buffer, and you could use the $3,000 to buy some time with your bank.
Then again, I don’t really know the full picture. So please call the National Debt Helpline on 1800 007 007 and speak to a financial counsellor, who will help you work out a game plan.
Scott.