I am a former career woman that has gone through a lot of changes in the past year. I married a man in the US Navy and we have a 10 month old son. We have just moved to Hawaii. Up until I had my son, I made a really good living in Florida. We currently own a home in Florida and have it rented but it has no equity. My problems are: since moving to Hawaii, I cannot find a job that pays more than $40,000 a year. We have $51,000 in unsecured debt and lose $300 a month from our home in Florida due to the horrible housing market there. My renters have decided not to extend their lease agreement past July of this year. Hawaii is very expensive, daycare is almost impossible to find, and taking a $70,000 pay cut and trying to make ends meet on my husband's $30,000 salary makes things really impossible. I am now behind on credit card bills by over 60 days now and feel we will never get out of our dilemma. Should we file for bankruptcy?
Miserable in paradise
Congratulations on your baby son! Hawaii is a wonderful place, but I know many people who have been very excited to move there and then been shocked to discover how expensive it is. Your combined income of $70k would be very comfortable in, say, Indiana. It's going to be tough to make it on that in Hawaii, especially with a money drain in your old house in Florida. I'm hoping you at least have military housing.
I don't think bankruptcy will do much for you, however. Bankruptcy is of a certain date and it takes a while to process, so if your expenses exceed your income, by the time all the dust settles you can be right back where you started. The bills you incur after the filing date (and sometimes those from close to the filing date) are still there. Also, filing for bankruptcy is most unpleasant. I have watched people go through it. You lose a lot of privacy and control over your money, and there's a lot of paperwork. It is definitely not the easy way out!
I recommend three steps to everyone: 1. Find out where you stand financially. 2. Look for more income and resources. 3. And finally, cut back on expenses. It sounds like you know how much you owe and what you make - a good start on Step 1. Make a budget and find out how far you are from making your monthly income and expenses meet.
Then, you're going to have to find more income. Do you have a car you can sell? Is your income tax withholding figured correctly? Can you make more money or take a temporary second job? Start a moonlighting business?
Last, cut expenses. Many people in Hawaii get by with one car. Go to the farmer's market on Fort Street Mall or Chinatown. Always get the kamaiana discount on everything!
Hopefully, before long you will find work that pays more, or you will be transferred someplace less expensive. Hang in there! In the meantime, enjoy the sun. At least the beach is free!