Were we were: both of us on good incomes and supporting our debts without any issues.
Were we are: Had a beautiful baby girl, another one on the way, wife’s income has gone down by a factor of more than 2.
The result: Aside from the mortgage, we have $155K worth of debt we can no longer service. Specifically our joint loan to the tune of $42K.
We have a house with $70K in equity. I have freed up money buy 2 means so far. a) paying only interest on the mortgage and b) refinancing the car. This gives us about $350 per month extra but wont kick in until mid to late july. The payment on the $42k was $950 per month. Once my tax return comes in, I will claim the tax free threshold and free up another $400 per month. The missus has freed up $300 per month by finding a better deal on childcare.
What we need: A way to keep the house and pay our debts and be able to live.
Any ideas or offers would be most appreciated.