Looking for some guidance for friends

Remember the friends of mine sold their house here in southern California, moved to the middle of nowhere Utah and bought a mcMansion (which they paid cash for), with the leftover house-to-house money, chose to buy all new furniture for the mcMansion instead of paying off all the rest of their debt.

So it’s not really a surprise (to me anyway) that a year later, they are in as bad a shape as they were when they were living in California.

Good news: He’s old enough that he is drawing about $2100 in Social Security benefits. Bad news: she’s (50) ill enough on a regular basis that she can’t work (not that there is work to be had in middle of nowhere, Utah.)

She just emailed me asking about DR, and what to do (etc). Her DH wants to take out a HELOC on the paid-for house, “combine” all the debt, which allegedly will reduce their monthly outgo, and everything will be peachy, what do I think?

I asked her to send me her income/expenses (below), total debt (which actually, is not that much.) The problem as I see it is actually not their debt (although the car is a big one) it’s their living expenses, which at best, are not going to get worse.

When she is/was able to work, she ran a screen printing business out of her home.

So far I have advised or asked the following:

1. Work on getting certified as disabled. The reality is that she IS disabled, and getting certified as such will (a) bring $700 income in to the house (b) more importantly, qualify her for medicaid which (c) will cover her medications. Doctor visits and medications are running about $300 a month.

2. I asked what she was willing to sell. (not could sell, WILLING to.) A year ago, (so I don’t know if it’s still true) they had 2 or 3 dirt bikes, a big hauling trailer, the truck (paid for) to haul it all, I think they might have had an ATV too. I can’t remember.

THEN of course, they didn’t want to part with them because their non-contributory kids DESERVED to have fun. Now that the well has run dry, those same kids have all moved on, so there’s no reason to keep the dirt bikes (and ATV) for SURE.

I went over all this with them when they moved and could have paid everything off (they have $17k in car debt, $5k in CC debt). Gave them TMMO (which they have not read.)

DR says money problems are 80% behavior and 20% financial. It’s true.

Anything else I should mention to them? I pretty know they’re going to just take out a HELOC because that’s going to solve all their problems (so they say.)