Left by my husband when he recently became disabled. We have credit card debt which is more than we have left in our IRA investments. Need help making decisions on how to transition to a much lower lifestyle Wife 78 years old Husband 77 years old with serious heart and memory issues.
I have a family member who is paying off a large debt and he went through Debt Reduction Services (DRS). He's been with them a long time and hasn't had any problems with them as far as I know.
Contact each and every creditor---explain the situation and ask if they can work with you to set up a payment plan that is more forgiving than what your current monthly payments are. The caveat is that you cannot miss one single payment, or else the deal is off.
Another option is to get no-interest credit card and transfer the balance(s) of your credit cards onto that card. It should give you at least one year of no interest if you do that.
That is pretty much what an "advisor" would do, anyway. And you'd have to pay them to do it. There's not a lot you can do when you're strapped with credit card debt. You can file for bankruptcy, but there are specific provisions about how much money you can keep in your bank accounts, what assets you can keep, if your car is worth more than a certain amount you have to put it towards paying the debt back, whether or not you can keep your house.
Your question is very vague---you want help to "transition to a much lower lifestyle". What does that mean? transitioning to a much lower lifestyle means that you have to stop doing things that cost so much money---stop buying things, get out of the high cost way of living. Simplify your life. Clearly, with credit card debt over and above what you have in IRA investments, you've been living way above your means. You have to start living within, and even below, your means to make your money last. If you have a big house, sell it & move to a house that suits your needs now---you are 2 people, so therefore you only need one bedroom (or maybe 2, if you sleep separately). If your husband has serious heart & memory issues, he shouldn't be driving---if you have more than one automobile, sell them. Sell any luxury items you don't need---i.e., boat, vacation home, etc. Give up your country club membership. If you have a luxury car, sell it & buy a reasonable car that gets good gas mileage.
It would be much easier to give you advice about how to transition to a much lower lifestyle if you gave us examples of how you live now. If there is very little you can skim from the top because you are living as frugally as you can, that's much different than if you live high on the hog & rack up a bunch of debt all the time. If you have that much credit card debt, you're living way beyond your means. Stop buying stuff you don't need. If you are able to mortgage or second mortgage your home, do it to pay the credit cards. There is also something called a reverse mortgage, if you own your house out right. The credit card companies will get their money---they will sue you and get a judgment and then your bank accounts will be frozen and your assets will end up with liens against them. You're much better off getting them paid off, even if you have to sell stuff to do it.
https://www.consumer.ftc.gov/articles/0153-choosing-credit-counselor
Use, Senior Discounts for things, ( grocery shop on senior discount day). Stop getting nails and hair done in a salon. Switch to a wash and wear hairstyle. Limit clubs and association memberships. Sell off things you are no longer using. Hire cheaper lawn care, eliminate house cleaning services. Check with your local Senior Center for help with Chores.
Good luck.
Best to you shirlandralph
Love to all.
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