Single Mom Earning $142,000 Faces $100,000 In Credit Card Debt And A $4,800 Mortgage On A $1 Million California Home

Financial Situation - A single mother in Los Angeles earns $142,000 annually and is considering bankruptcy due to approximately $100,000 in credit card debt, a $4,800 mortgage, and a $125,000 home-equity line for a guesthouse [1] - Her monthly take-home pay is about $9,000, with over half allocated to her mortgage, which does not cover the $1,100 payment on her home-equity loan [2] - The property is valued at nearly $1 million, but she owes about $650,000, having initially put down only 3% and later refinancing, which increased her interest rate [3] Expert Advice - Co-host George Kamel suggests that the caller is focused on the wrong fear, emphasizing the urgency of her financial situation with a quarter-million dollars in debt [4] - Kamel recommends selling the property before considering bankruptcy, as this could eliminate her mortgage, credit card debt, home-equity line, and student loans, leaving her debt-free with cash [5] Rental Income Concerns - The caller hopes to generate $2,500 monthly from a newly built guesthouse once permits are approved, but expresses concerns about safety and potential squatters [6] - Kamel and co-host Jade Warshaw question the feasibility of this plan, noting that even with a net profit of $1,000 per month, it would take about 10 years to recoup the $125,000 spent on construction while still managing existing mortgage and loan payments [7]