OK all you friends. I am declokeing from lurker status for a moment.

Your comments to others have really helped me in the past. Thank you all.

I am finally closing on the sale of my business tomorrow. This was supposed to happened three months ago. But tomorrow is the big day. I am going get about 260k to my account. I owe 235k on the house 145k is the first and 75k is the second. About 35k on credit cards and 23k to another obligation (church) and 20k to the IRS (past due). I have been prepping for about a 18+ months. I could withstand Y2K at a level 7 currently. I have a contract from a the purchasing company to pay me 16k net a month for the next 6 months just for breathing. (they are a multi-billion dollar company) and if certain things happen I get another 200k in 6 months (I am not really counting on it). I tell you all this so you get the full picture.

OK my questions are: 1. Do I spend all the cash paying of bill now? or wait 30 days? Pay off the cards now and wait on the rest? Do a cash offer to the IRS in 30+ days? I am smart in what I do but not in finances, we all have our own areas. I am looking for constructive ideas from you all.

My wife says she does not think she would like to mud wrestle, but I think she would if it was chocolate.

-- me (Yesitsme@home.org), December 13, 1999

Answers

Yep, you need help. Anybody who would charge up 35k on credit cards is either stupid or drunk......or both.

-- Screamin' Demon (prepper@abouta4.com), December 13, 1999.

Get out of debt, regardless of Y2K.

You will breathe and live much easier. Pay cash for everything from now on, unless barter becomes the only form of economy available for awhile.

As far as the IRS....that's a decision that you alone have to make.

But my guess is that the impact from Y2K may be more economically painful than any of us are prepared for. Best to be free of all debts. You will be sustained longer than your fellows.

-- INVAR (gundark@sw.net), December 13, 1999.

Me, you've had at least three months to think about this and you still have no ideas? You say you are smart in what you do but you managed to run up 35k in credit card bills and you owe the IRS 20k? I imagine you have an accountant--ask him or her.

-- Don't (ask@us.peons), December 13, 1999.

The most dangerous debt is the credit cards. Pay them off in full as fast as you can.

I would be making phone calls right now to major coin dealers. Use ads in the Wall Street Journal section C as a guide. At this point, try for Krugerrands or Maple Leaf gold. If necessary, get a cashier's check and fly to the dealer to make the transaction.

(of course only buy gold to the extent you feel comfortable)

If there is a huge crisis (first oil goes up, then the stock markets crash and JIT fails, then gold goes through the roof), you can negotiate your way out of debt with much appreciated assets.

With luck, you can pay off all the remaining debt easily and preserve your wealth into the new year.

-- David Holladay (davidh@brailleplanet.org), December 13, 1999.

me: If I were you (but you are "me") I'd pay off EVERYTHING as a perfect chance to have a clean financial slate.You state that you're prepped for a "7", so you can do O.K.if things get to that degree?Well anyway, I wish I had your problems,but there is MHO,and no,I'm "just a businessman" also,not a finance wiz. All the Best!

on de rock

-- Walter (on de rock@northrock.bm), December 13, 1999.

me:

If it were me, I'd wait on paying anything. Can you get this amount and keep it in cash at your place? A quarter mill is a good chunk of change and is it really going to hurt if you wait a couple of weeks to pay ANYONE?

Unless you are being threatened with a lawsuit or broken legs, you may just want to wait and see what happens come the beginning of the year. Just MHO.

-- Familyman (prepare@home.com), December 13, 1999.

Mostly pay off debts. Retain enough cash for necessities in case. Retain it in cash and buy about $10k in gold. Best of luck.

-- Mara (MaraWayne@aol.com), December 13, 1999.

Thanks for the answers so far. A little more info. I do have about 50k in numismatics. I thought if I could run up the debt on the card and be prepared and know that i will be selling a business for 1.1 mil that I would be ok. I thought I did ok in that deptartment. Some of you did not think so. Yes the 260k will be in cash. (wire transfer) The rest is to other shareholders, tax and a reserve fund. I thought if i waited 30-60 days maybe cash would be "king" and I would be able to maximize better then. ie. If banks tank you will not be able to get a 2nd correct? So if I already have one and the cash maybe it would be could to stall that for 30 day. Maybe I could let it out as a nice rate? Just a thought. Businesses are going to need cash and cash flow can be a bite. Just some more thougths.

-- me (Yesitsme@home.org), December 13, 1999.

time for a paradigm shift......the "Alas, Babylon" survivor types will not be impressed with fancy pieces of paper that represent a former civilization's means of exchange; it seems likely that real world items-tools, dry goods, hardware, foodstuffs, etc., would represent the new means of exchange....
If, on the other hand, it doesn't go that radically, then we're still in the same game as now, and the credit card companies will definitely be highly motivated to find substantive reimbursement for our charging impulses.
To be out of debt and to owe no man anything seems like sound, practical advice in either scenario, giving you a freedom to pursue whatever future course of action you may want to take without worry of any negative consequences overtaking you.
I'd pay off the debts and go from there. Good luck to you, and may your decisions be wise and thoughtful!!

-- Jay Urban (Jayho99@aol.com), December 13, 1999.

Me,

1) Negotiate with your credit card account holders. For a lump sum payment they can go down to 65% or so. I owed $1,500 on one a few years back, it was overdue and passed on to their collections dept. They accepted $945 as payment in full. You might be able to save over 12THOUSAND just by cutting a payment-in-full deal. Even my credit check confirmed they reported the account as paid in full. Use this money to buy a safe 12k better than the one you are considering now.

2) Buy gold. I know there is alot of hype on this, but the reality is that historically when kingdoms have crashed, gold became the ultimate.

3) I know high rollars consider a 35k credit card balance pocket change, and that is only what .0318% of your net worth? That IS pocket change. On the other hand, if I sold my assets (a 6 year old car, sticker price new was 13k) then I would still be about 40k in the hole for student loans. Don't let these turkeys getcha down, heh.

4) I'd max out my flexibility. For instance, suppose you need 50k to have your family safely flown out of the country? Then you'd never see the IRS anyway, but if you already gave the IRS/bankers all your dough then you would not have the flexibility to consider some future options that may be available and beneficial.

-- Hokie (nn@va.com), December 13, 1999.

Now I'm you, OK?

Assuming that I have a secure home away from most potential problems.

I will carefully conceal the purchase and delivery to my home of several small sized safes. I'll buy them with cash on a cash ticket in another city. I will move them into place by myself or with only one tight lipped person to help. The safes I pick out will be small and easily concealed. I will find a clever way to conceal them in my home, no easy access even for me.

I will pay my tithe to my church the same day...open up the windows of heaven early, don't delay.

I will buy (at the lowest available price) a very large amount gold and put it in the safes. Buy it anonymously with cash.

I will add significant security to my home pronto (burglar bars on all windows, heavy security doors, extra locking bars on all external doors, etc). I will get dogs, etc. I will think about what else I can do to enhance our security. I will begin to adapt myself and my family to a new, industrial-strength survival strategy.

I will purchase more survival supplies, total equal to one year, plus supplies and seeds for gardening in spring, summer and fall. Also, canning and drying equipment. I will make my purchases anonymously with cash.

I will plan on paying off a lot of debt early next year, starting with the highest cost debt.

(PS - I will continue to think of ways to make my family and our valuables more secure. I will hurry but won't feel I have to quit working on it 1/1/2000, I'll keep going as long as possible)

-- snooze button (alarmclock_2000@yahoo.com), December 13, 1999.

Let me add my voice to those who say, "Pay off those debts." We were about 21K in the hole (credit cards and stuff) when my husband and I "got it." Remembering all the family stories from the Depression and our recent bout with almost becoming homeless during the last recession (we lived in Flint, MI at the time), we each took an extra job, quit eating out, sold our second car, and paid off our debts. It took about 18 months. Now, we are almost debt free -- we'll pay off our trailer on the next paycheck. We are safe from creditors.

It's a wonderful feeling of security! Should Y2K not be awful, we have a good start on a retirement savings program. Should it be awful, we don't owe anyone, except God, of course. (:

Good luck! Let us know how it turns out.

-- (ladybuckeye_59@yahoo.com), December 13, 1999.

I have extensive financial planning and debt negotiation experience. My family recently did the exact same thing you are currently doing and had some of the same debt problems. First, hire a lawyer and get the paperwork going to file a chapter 11 bankruptcy. Trust me....it works. You will not actually follow through with the filing, but it will give you some extreme leverage in negotiating your debt. Let these companies know after the initial paperwork has been filed that you are willing to either settle these debts for 20-30 cents on the dollar or they will get nothing when the bankruptcy proceedings are complete. I GUARANTEE that they will settle. IRS included. They will not bluff easy as they will want to contact your attorney...and that is fine. Let them. As far as the mortgages go, that is an individual decision. I prefer to be without a mortgage as I am comfortable knowing that I will always have a place to live. When you get the money, put it in a money market or a CD or in a fireproof safe. STAY the hell away from the CROCK MARKET!!! After the Year 2000, take your monthly checks that you will receive from the sale and do something secure with them. I would advise to go offshore, but wait for things to settle and see who survives the coming meltdown. There is so much more that I could say, but you get the picture....right?

-- Ben Vaughn (bvaughn@prodigy.net), December 13, 1999.