Light at the end of the tunnel

Dear Dave,

Both my husband and I lost our jobs over a month ago. Since that time, I’ve been interviewing and filling out applications every day, and he just started a four-week training program for a new job. But honestly, we’re in survival mode right now. We’ve almost spent our entire beginner emergency fund, and we just cashed an annuity that was given to us on our wedding day as a stop-gap measure. Do you think we should pay down debt, and reduce the money going out each month, or just live on the annuity money?

Frannie

Dear Frannie,

If I were you, I’d just sit on the money for now. It’s raining, and you need an umbrella. Don’t get me wrong. You need to be honorable and pay your debts. But that may have to be put on hold for a while. Right now, it’s more important to keep the electricity on and food in the house.

The last few weeks have been pretty stressful for you two, haven’t they? But hey, there’s no reason to lose hope! With the training program your husband just started, it sounds like there may be a light at the end of the tunnel. He’s going to start making money again soon, if he’s not already, and you’re working hard to find a job, as well. Chances are something will come along before too long.

Through this stretch, and until you’re really back on your feet again, I want you to remember that honest communication can make a huge difference when it comes to bills and debts. Make sure your creditors know what’s happening in your lives. Explain the situation to them completely, and let them know you plan on getting current and making things right as soon as possible.

One more thing. I want you and your husband to hug each other a lot. This is important. Spend time talking, saying “I love you” and telling each other it’s going to be okay. I know it’s scary, but I’ve got a feeling you’re going to come through this with a stronger marriage and even more determination to build yourselves a bright financial future.

God bless you both!

Dave