Dealing With Crisis

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Jimmy, you raise a good point. While some expenses -- such as a mortgage -- are difficult to change during a financial crisis, others -- such as clothing, food, entertainment -- certainly can be. I don't know enough about this couple's situation to say for sure what "maintaining their lifestyle" meant to them.

Kimberly Palmer of DC 5:20PM April 23, 2008

I have never been foolhardy so I find it very hard to be sympathetic to people who get into debt through their own folly. When I lost my job, my wife and I stopped almost all extra spending. We canceled all subscriptions, memberships, etc. Our money went to food, transportation, and mortgage. We never ate out. We agonized over every purchase.
Your post said "they ... ran up credit card debt ... trying to maintain their lifestyle." So it begs the question: Have they completely eliminated their extra spending? They probably feel they shouldn't have to give up anything at this time of their life. But the fact is they are poor if they can't pay their debts. They need to match their expectations to their income.
What does it mean to "keep alive a couple of credit cards?" Are they still putting things on credit or have they switched to all-cash? It is stupidity and arrogance to keep charging when you have an outstanding balance, even if you keep up with the payments.

JimmyDaGeek of MD 4:10PM April 23, 2008