I'm a single mom, my small business isn't growing, and I'm worried about my house. What should I do?

Dear Dave

I'm a single mom and started my own small business last year. My mom and dad help me with the bills because my business isn't growing at all. Besides, I don't receive any child support from my ex-husband. But my biggest concern is our home. I bought it four years ago and used a home equity loan to start my business. Do you have any advice?

Tammy

Dear Tammy

You need to close down your business, at least temporarily, and look for a job that will make you money. Sorry to be blunt, but you are in a really tough situation.

The short answer is that the money you earn from another full-time job is likely to determine whether you can continue to live at home.

That's unlikely if you're burdened with mortgages, home equity loans, or business debt. For a while, you may want to consider the idea of ​​moving to a smaller, more affordable apartment. That way, if you can get your finances back on track, including paying off debt, living on a budget, and saving, you might be able to buy a home again in a few years.

We understand that the idea of ​​giving up your home or job hurts, but when you get seriously ill, you may need extensive surgery to fix the problem. And now you have a very serious financial illness.

I hope you understand how I look at this, Tammy. Home is not the only problem. You borrowed money to start a business, that was your first mistake. You also have no savings, which is also a mistake, and now your business is not making a profit. How do you see how all this combines to create one big mess?

I love your spirit and the fact that you want to be an entrepreneur. But first you need to manage your money. If you don't, this guy will eat you alive.

—Dave