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Im in bad financial situation. I lost my job as admin manager about 7 years ago and since then getting another job has been impossible. I have spent every dime I have and have sold my two cars trying to survive with 4 children and a petty trading wife. Right now Im in debt.

How do I keep coping with life, please a candid advice.

Regards,

closed as primarily opinion-based by Dheer, mhoran_psprep, JoeTaxpayer May 23 '14 at 15:01

Many good questions generate some degree of opinion based on expert experience, but answers to this question will tend to be almost entirely based on opinions, rather than facts, references, or specific expertise. If this question can be reworded to fit the rules in the help center, please edit the question.

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  • Make a budget listing all income, expenses, assets and debt.
  • Make a plan, based on the budget
    • How to increase income - can you find a job, even one that is not as prestigious or in a completely different field? Can you start a small business yourself by providing a needed service or product? What about your wife?
    • Do you have relatives that could take care of your kids for some time, thereby freeing up your time for the above (and possible also reducing your expenses).
    • How to reduce expenses - smaller home, cut off luxuries (think hard about what necessities are really luxuries), substitute cheaper alternatives.
    • Maybe you have to move somewhere where living is cheaper or finding jobs is easier.
    • If you have any assets left that you could liquidate, use them only to reduce debt.
    • See if you can restructure/refinance the debt to reduce interest payments (credit cards or account overdrafts are expensive and should be avoided where possible).
    • If the debt seems insurmountable (i.e. you are constantly amassing more debt and paying it off is impossible after all of the above is taken care of), inform yourself about personal bankruptcy procedures.
    • An intermediate way is to negotiate with lenders about forgiving parts of the debt or reducing interest - if you're going bankrupt they will get nothing, so many are willing to do this.
  • Do all of this as a family, sharing all information and responsibility.

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