Monday, July 8, 2019

Fumbling Toward Insolvency

The journey into financial insolvency continues. I say this not out of desperation but out of facing the reality before us.

First, the good news.

I am currently employed and at the moment we are sustaining with our current debt load, making progress albeit slowly. We still have a home and two working vehicles and overall our health and mental state is good. We have food on our table and a solid support system of family and friends. 

As for the essentials, we are blessed and in this we remain grateful.

So why put my business out here? Several reasons. Therapy is one. Why to the public at large (even if never read)? There is something 'honest' about just putting it out there. As a hardcore INTJ whose business has always been private there is something intoxicating about this. Is this when INTJs flip out because their plans went completely off the rails and that foundational level of planning and comfort is shot? 

Maybe someone will relate and even find help in the shared journey or, assuming we make our way out of it, hope in the same.

Maybe, just maybe, others out there have been in similar situations and can provide help, advice or even some guidance. 

Part of it is to simply trace the journey to wherever it may lead.

An $8,000 credit card charge that arose shockingly with about 15 minutes to decide whether or not to pay it threw off the entire plan to have all credit card debts paid off by the end of 2019.

Add to that another financial issue which added another $5,000 and a reduction in income of roughly $400 per month toward the current credit card debt has pushed our plan out toward the end of 2021.

On the horizon is a new car purchase and the fact that our income taxes have been adjusted so that hopefully we will break even rather than force the budgeting for a $2-3K return every year.

The immigration debacle still looms large and unknown. Over the past four years this has cost us our tax returns and accumulated savings which is upwards of $10K and it is not done. Even if all goes well this round, there is another round to go.

Throw in twin grandbabies, unplanned and unexpected but the most amazing thing to have happened to us in the past five years, and another on the way and the unknown hovers before us.

Now for the reality:

Our basement foundation is slowly giving way and with the wettest 12 months on record the situation is rapidly becoming dire.

Our front porch is crumbling rapidly and a sinkhole is growing in front of it which will speed up the demise. Our side porch is also starting to move and we are seeing cracks in door frames, doors are sticking or closing when they have not done so before and we are even seeing cracks in ceilings around our home.

Our fear is that it will suddenly happen and collapse.

We do have a sump pump and a french drain in whatever state it's in so at this point we are not seeing water in our basement other than trickling through the cement block and the glass black windows.

But the walls are showing cracks and it is only a matter of time before something really goes wrong.

Without going too much into details we have debt that is more than our house is worth and though we owe less than the house is appraised for (not counting the repairs needed) taking on a large scale loan is a frightening thing.

We're looking at roughly the following:

$20,000 to get draining and wall repair in the basement
$10,000 to repair the front porch and surrounding ground
$20,000 to repair the side of the house (excavation, ground leveling and drainage)
$10,000 to repair the side porch and surrounding ground
$3,000 front door
$1,5000 fire place
$10,000 to replace the bathroom

Almost $80,000 to fix up the house.

The house is worth less than that and is currently unsaleable in its condition.

Do we wait for it to collapse? What then? Pay for the existing mortgage, removal of the collapsed house and build new? Think it's expensive now?

We'll pay on this stuff until we're dead or end up belly up and living who knows where on Social Security, broke and houseless.

Though we aren't there yet those are the fears that linger until a decision is made.

If you are praying folks, please pray.

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