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Massive debt ($250k!)

Started by mayhewp, January 03, 2017, 10:51:01 am

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mayhewp

January 03, 2017, 10:51:01 am Last Edit: January 03, 2017, 11:10:25 am by mayhewp
When I took these loans out, it was to better my earning potential. 

One year after I graduated, my youngest daughter was diagnosed with cancer.  Three years of treatment and deferment.  While she was in treatment, I realized I wasn't going to make enough to cover our payment where I was at, so I took a job out of state, so when my daughter beat cancer we'd be able to make our payments.  I thought it was the right thing to do. 

A year after my daughter beat cancer, my wife had a series of strokes leaving her a hemi-plegic. She simply can't work or care for herself.  We declared bankruptcy in 2011 to get rid of medical debt, but every year my wife has had at least a 2 week stay back in the hospital for various things. 

Meanwhile interest has done nothing but increase.  They currently want me to pay nearly twice what my mortgage is.

We both have pretty good life insurance policies, but should we really have to die in order to satisfy the debt? 

We have a special, rare case, does anyone have any suggestions on where to go?

We both have pretty good life insurance policies, but should we really have to die in order to satisfy the debt?!?!?

TheCollegeInvestor

I strongly suggest you look at getting on an income-based repayment plan. IBR caps at 15% of your discretionary income, while PAYE and RePAYE are 10% of your discretionary income. These repayment plans are designed specifically for people who are struggling to pay it.

And they have end limits - with IBR you'll only pay for up to 25 years. PAYE and RePAYE is 20 years. At that point, any remaining balance is forgiven.