Q: I am a single mother of two girls. Since separating from my husband two years ago, things have gone downhill.

My credit cards are maxed and I owe a little over a $1 million. The banks have since cancelled them. Fortunately, I have a card from another bank. I am only repaying the minimum charges as business is slow. My savings accounts are almost empty.

Furthermore, the girls are at a prominent preparatory school and their father is behind with payments. His employment is now seasonal since things are slow.

He is a lovely person and I hope we will be man and wife again.

He had asked me to use my car as collateral for a loan to refurbish his house. So, I am a guarantor and he is falling behind the repayments. I am becoming increasingly worried. What should I do?

A: You are in a financial pickle. You are in a financial pickle.You claim to be fortunate in repaying minimum charges on a credit card but this is not good. It is putting you into further debts as interest rates are high.

You need to drastically cut your expenses. And it is getting worse as your heart ruled your head in providing collateral for your ex-husband.

You are separated and there is no longer any 'our finances'. Ascertain from him if he could refinance his loan and free up your car.

Use your credit card wisely and spend what you are able to pay off at month's end. A card works best when it is used as a loan or advance for the month. It also prevents you from carrying around large sums of money and is convenient as most businesses accept it.

It is now apparent you and your ex-husband are unable to afford sending the children to preparatory school. It is necessary to explain to them you have to place them in a public school. They will also have to adjust to a new economic lifestyle.

Perhaps there will be other cost-cutting measures you need to consider, including moving into a less expensive place. You may also have to consider public transportation, which is still inexpensive in Jamaica. All these things have to be considered until your business picks up.

Expensive divorce

You and your ex-husband need to realise separation and divorce are expensive and will cost the

family more money. You need to sort out your feelings for him and try to ascertain his. That he asked you to act as a guarantor could be an indication he is interested in renewing the relationship or it could be that you are a financial convenience.

You are fortunate the banks are not pursuing, consi-dering you owe them and they cancelled your cards. Be more careful with your expenditure as you go forward!

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