I used to post on MDC a lot, but then life got really busy and I haven't been able to participate as much.
So DH runs a business. He's trying to take it in a new direction, which he enjoys much more than the old one. However, the business has since lost profitability and is in significant debt (credit card debt) and operating at a loss. He's tried to get some friends with money to give him low interest loans to pay off the credit cards, but has had limited success with this.
He is certain that the business will turn around soon and he'll be able to pay off the debts, but he tends to overestimate his earning potential. And he's been predicting a turn around for over a year, yet it hasn't materialized. He tends to underestimate and ignore problems, so because he's happy, the debts don't bother him that much. When one credit card gets maxed, he gets a new one. Every once in a while the cash flow increases, which he takes as evidence of the 'turn around' but the overall picture is that the net worth of the business is declining significantly and the debts are increasing.
I've asked him to try to get a small business loan that's lower interest and more separate from the family's finances, reconsider the direction of the business, get business counseling, and he's refused all that as unnecessary (he has a business degree so he says he has the education to figure this out).
Right now the debt is between 30K and 35K, and increasing by about several hundred per month (based on my information, I don't have access to everything). Most is on credit cards, some is to a friend, some is to the IRS (I just found out about that one; I'm still in shock but moving quickly towards terror.)
As I think through what to do, I'd really appreciate other perspectives about what others would do in this situation. If there's a point at which you'd issue an ultimatum, or separate finances?