Dear Dave,
My husband and I both lost our jobs over a month ago. I’ve been interviewing, and he started a two-week training program for a new job the other day, but right now we’re in survival mode. We just cashed in an annuity, and were wondering if we should pay down debt and reduce the money going out each month, or just live on it?
Veronica
Dear Veronica,
Right now, it’s raining and you need an umbrella. If it were me, I’d just sit on the money for the time being.
Don’t misunderstand me. You need to be honorable and pay your debts, but you may have to put that on hold for a while. Right now, it’s more important to have food in the house and keep the heat on. This kind of situation is scary and can be really stressful, so make sure you hug and hold on to each other a lot, too.
It’s been rough for you guys, especially right here during the holidays. But it sounds like things may be taking a turn for the better. Your husband is about to start making money again, and you may have some possibilities on the horizon.
Through this stretch, honest communication can make a huge difference. Make sure your creditors know what’s happening. Let them know that you want to make things right, and that you will make things right as soon as you can.
God bless you guys!
—Dave
*Dave Ramsey is America’s trusted voice on money and business. He has authored five New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover, EntreLeadership and Smart Money Smart Kids. The Dave Ramsey Show is heard by more than 8 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.