What should I do?

[wincrasher]

Same old story.

Having kids they knew they couldn't afford. Do it anyways, expect "magic bullet" solution.

"Entrepreneur" mindset - takes big risks, hoping for reward, never really pans out.

I have a buddy who's self-employed. Always full of big talk, plans on how he's gonna make all this big money. Never has 2 nickels to rub together, and probably never will. He currently owes me $1500.

Here's the same old tired advice - either cut expenses or make more money or declare bankruptcy and start over.

[Kris Jarczyk]

It is rough now and we all have to tighten our budgets, including me!

[m.f.walters]

a 14 year old can work a bit to help pay his/her own expenses. Wisconsin has lots of snow that needs to be shoveled! Teenagers can be expensive, and frequently financially strapped parents don't want to say no to spending money on them. Bring the 14 year old into the financial crisis and have them pitch in!

[Mr Nice Guy]

Originally Posted by m.f.walters

a 14 year old can work a bit to help pay his/her own expenses. Wisconsin has lots of snow that needs to be shoveled! Teenagers can be expensive, and frequently financially strapped parents don't want to say no to spending money on them. Bring the 14 year old into the financial crisis and have them pitch in!

Amen. Never let a good crisis go to waste. They should use this opportunity to teach all of their children about how important personal finance is, and how important a good work ethic is. By the time they graduate high school, they will be better prepared than 99% of their peers.

[CarePlus]

The last thing to do is use savings to cover minimum payments. That is a one way street to disaster. It is not a solution but a band-aid over arterial bleeding. If it is not possible to immediately create more income to cover the deficit then I would recommend doing debt settlement. It may be possible to use the savings to become completely debt free using this approach.

[loansta]

Stop having kids. Snip those tubes.

[fe2o3ez]

Originally Posted by Debt Relief

If they own a house, there are a LOT of expenses that go along with doing so like fixing stuff that breaks, homeowners dues, maintaining the house and yard, etc. These expenses can often be avoided if renting. You just don't get the tax break at the end of the year on interest paid.

With 3 kids and a single, minimal income, tax deductions should be the least of their worries.