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mal

I loss my 30 yr job, with a company that I had refinanced my mortgage and a large unsecure loan with, just prior to being given a severance package. Needless to say we were in a jam. We sold the house and paid off the mortgage but still have the large unsecure loan. I am not sure how long I will be able to keep up the interest only payments. My job was with a financial institute. To top it off, they just increased my limit on another unsecure line of credit…….

Posted from: Ontario

One Response to “mal”

A licensed trustee said...

If they just increased your limit that likely means your credit still looks pretty good. As a financial professional, I am sure you’ve heard the phrase “cash is king” – for the other folks reading this posting that means “regardless of how much money you make, the investments that you have, if you don’t have the cash to make your payments then you have a problem that needs to be dealt with”.

The alternatives to consider include: restructuring your finances – this will be difficult to do if you have not found a new position yet, a debt managemetn program, a consumer proposal or, if none of these will work for you, then possibly personal bankruptcy.

Even though you may possess the skilss to analyze this problem yourself, it wouldn’t hurt to get someone else to review your situation. You may want to consder using the linsk on this site to find a trustee in your area to consult with, or if you have an accountant or other financial advisor start with them.

The first step towards a solution will be a detailed review of your financial position.