<prompt> Human: I am going to break down my monthly bills in a bit, but I want to put out a little background. My wife and I have 1 child together and I have another from a previous marriage. I used to work from home, and we planned on me working from home when the new baby came along. However, now that I have to leave the house for work, we have to put both kids in daycare. Luckily my son is only with us on the weekends for the summer, but will need daycare for before and after school when school starts in August.We have drained our savings and thanks to my previous employer had a large severance amount that is also drained. We dont want to walk away from something like a car or credit card and have our credit trashed in the meantime, but my wife did ask if we should consider bankruptcy.What should we do here? Should we walk away from credit cards allowing them to hit our credit and come back to them when we have dealt with some other items? Should we file bankruptcy?My wife is making 18.76hr, but due to insurances and retirements she brings in 486week. My income went from 66kyr to 24,960yr. Unfortunatelyfortunately when I lost my job, two things didnt happenhappened:1. We didnt lose any bills due to the layoff. We still have the payments that we acquired when I was making as much as I was and those arent going away.2. We had a baby daughter 2 days after I was laid off. She is now 2 months old and since my wife is just going back to work, we have added daycare to our expenses.I found a new job 2 weeks ago at 12hr told him I couldnt leave my house for less, when he offered 11hr. Here is the breakdown:Income Wife - 2106mo 4865212 Mine - 1733mo 4005212 Total Income - 3839.00Expenses Credit Cards USAA - 25mo; 1452.881500 remaining; 9.90 Helzberg - 55mo; 1684.542500 remaining; 25.90 Wells Fargo - 75mo; 2700 remaining; 15.15 Capitol One - 100mo; 35003500 remaining; 27.99 Lowes - 50mo; 2271.632500 remaining Remodeled our house for the baby; 24.99 Best Buy - 75mo; 1911.042,000 remaining; 27.99Misc Debt Furniture Bed - 500mo; 2500 remaining; 0 if paid off in 12 months Dec 2015 IRS Taxes - 100mo; 2084 remainingCar PaymentsI work 2 cities away from my work, so I need a vehicle to get there I use her car to do that since it is better on gas and she takes the baby to daycare at a different time than when I leave for work, so we need to have 2 vehicles. My Truck - 435mo; 22k remaining; Valued at 19,500 Her Car - 303mo; 13,400 remaining; Valued at 10,995School Debt Loan 1 - 104mo Loan 2 - Deferrment will be 350mo starting next yearMedical Bills St Lukes 1 - 100mo; 150 left; 0 St Lukes 2 - 60mo; 2k left; 0Monthly Bills Mortgage - 612mo; 29 years left; 77k remaining; 3.75 WaterSewerTrash - 40mo Internet - 38mo DayCare - 860mo both kids Car Insurance - 90mo Cell Phone - 167mo Trying to get out of plan since we have 300 termination fees and can get on in-laws plan Power - Varies but this month is 260 Very hot summer Gas House - 4 Gas Car - 380 Food - 400 Medication - 100 Baby supplies Diapers, wipes, rash cream - 100 Total Expenses - 4606 Total Difference - -767TL;DR Give me your worst. I really need it.Assistant: ...did you spend 6k on a bed? 500month for 12 months? Or is this a collection of furniture at least? I would seriously try returning or even selling some of that, especially if thats a 25 interest hit like the rest of your loans if you miss the deadline. You may take a steep loss but you really cant afford 500month for the rest of the year.Human: It was a bedroom set. We completely regret this one most of all. We needed a new bed, went in and found what we wanted for less than 1000 cash in hand and was approved for a 6k loan amount. Fucked us up in the head and we went crazy. We have more drawers than we have clothes to put them in.I think we will consider selling the dresser or media center the rest of it is captains bed and the mattress. Again, purchasing these things when our income was much much higher and no sign that there was going to be a layoff.Assistant: Its great that you are trying to salvage things, but it doesnt sound like you really see the mistake you made here. Even at your previous income, 6k financed! on a bedroom set is pretty ridiculous. Let me introduce you to my good friend IKEA.Human: Yeah, we understand it. We were stupid in a lot of areas. We thought of it as being the last bed we ever purchase, so figured it was worth it if we could afford it. We also saw that it was 0 interest as long as we could pay it completely off in time.Assistant: I think the key point here is if you need to borrow money for it, you cant really afford it. Because thats exactly whats happened here.Human: You are absolutely right. In hindsight it was a very dumb decision.  <response>: I just want to compliment you on your ability to admit youve made some big mistakes. I see too many people on this subreddit who refuse to do that. I really hope you are able to learn from them and avoid situations like this in the future. 