NEED IDEAS! How would you handle this financial crisis?

Question

My wife and I are without income (I lost my job in January 2008).  We receive $1200/month in Unemployment.  Any income I make, lessens my Unemployment by the same amount...so unless I can find a worthwhile, full-time job (I have been unsuccessful), it makes more sense to just receive Unemployment.  I have about $20,000 in a rolled over 401(k)--I have not touched this because it is all I have for retirement, the future, whatever, and I will not use it since it may be the only way to start anew.  

I am trying to find a way to use my money to obtain--quickly--a large amount of money.  Enough to pay off my credit card bills (around $30,000) and such.  We live modestly, but due to small, careless fast-food expenditures (and the such), we got into this predicament.  

I don't want to file Bankruptcy or go into Foreclosure.  I am willing to sell my house, but want to end this all honorably, even though I can no longer afford to make payments on my credit cards.

I need your BEST IDEAS.  Buy a house and flip it?  What?  Ideas!!!!  I need 'em.  Thank you!

House825 · Accepted Answer

You absolutely don't, and probably can't, buy a house and flip it.   That requires money, which you don't have.

Right now, I'd just suggest you both work 2 or 3 jobs to get by..  Surely, with both of you working you can make more than $1200 a month.  You may have to do things you don't want to do - deliver pizza , work in the middle of the night for UPS or Fed Ex unloading boxes, selling stuff on Ebay (I have a friend who find stuff at yard sales and resells them on Ebay, and does well at it); babysit some children for working parents.  Check on being substitute teachers.  Mow yards or shovel snow, depending on where you are.  Have a yard sale.

If you take out the $20K, you are going probably lose 40% of it due to penalties and taxes.

Pay for food, shelter, clothing and utilities first.  You can get back on track with the credit cards later.  Never pay them first if you can't buy food.  Once this crisis is over, you need to get rid of the cards.  They have not been a blessing to you, as you can see.  

The advice of the guy in my source has really helped me in the past.  I'm unemployed too, but I have zero debt and don't use credit cards. I spent a year or two paying mine off (no gimmicks were involved; just hard work).   I wish you luck and I'm sure that with perseverance and your willingness to do this honorably, that you will come out ok.

Bill · Answer

That's a hell of a lot of fast food. 30k. 
You need to find full time jobs even if it means reducing your unemployment.
I don't know what country you're in but in the US unemployment usually runs out around 26 wks.
It might get extended once or twice (usually 12 more wks at a time) but it does stop.
Once it stops you will have nothing so it's better to have a job where at least you're pulling in income.

Forget about flipping houses, that's so yesterday and there's so many unknowns.
You do that when you have extra money you can afford to lose or have tied up for long periods.

Secret desires · Answer

Both of you need to try to find jobs. In the mean time there is government assistance like EPT, food stamps. Also try to figure out if you can sell anything in your house like name brand cloths, video games, ETC. Also eliminate everything you cant afford.

Jennifer · Answer

Hi,

Hope this info will help you.

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http://CreditSolution.ez-mart.biz

Anonymous · Answer

i saw in a previous answer you were 13

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NEED IDEAS! How would you handle this financial crisis?

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