Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

2 Bumps

Any economists out there? money talk....if we hit another depression...

If we go into another depression, how are our personal finances affected? my husband and I are in debt....student loans as well as some credit cards and medical bills that had to be put on the back burner when DH got laid off. If we plunged into definite economic turmoil what happens to that debt? Will debtors put you in jail? Will debtors try to take what you own? We don't own a home ...we rent, have two paid off cars (second hand oldies but goodies)....and misc house items.

Thanks in advance!

Answer Question
 
Anonymous

Asked by Anonymous at 10:27 AM on Jan. 17, 2013 in Money & Work

Answers (5)
  • We're still in a depression.
    funlovinlady

    Answer by funlovinlady at 11:05 AM on Jan. 17, 2013

  • Well, there isn't a debtor's prison so you don't have to worry about that. Sounds like you don't have any assets that can be taken from you. You can work out payment plans and compromises for all three - student loans (I believe) and most definitely credit cards and medical bills.

    The main thing is learning how to live within your means. It is possible. Sit down the two of you and figure out a budget, include funds you will need to save for a rainy day. Your financial health is the most important thing, next to your physical health.
    tasches

    Answer by tasches at 7:42 PM on Jan. 17, 2013

  • No debtors prison but some states are arresting people. I would say work 2 jobs and plan on doing it for a while. My ex and I paid off law school loans (for him) and 5 years of grad school (for me) in just under 5 years. 127,000! We both worked two jobs. It felt endless but we did it. We lived in a tiny apartment and a movie and pizza was a major outing for us.
    booklover545

    Answer by booklover545 at 9:54 AM on Jan. 19, 2013

  • http://www.nakedcapitalism.com/2010/06/jail-for-unpaid-debt-a-reality-in-six-states-strategic-default-pushback-watch.html


     


    Here is a write up about jail for unpaid bills

    booklover545

    Answer by booklover545 at 9:56 AM on Jan. 19, 2013

  • http://www.startribune.com/investigators/95692619.html?source=error&refer=y

    booklover545

    Answer by booklover545 at 10:01 AM on Jan. 19, 2013

Join CafeMom now to contribute your answer and become part of our community. It's free and takes just a minute.