In a recent online discussion, about a fourth of the questions I received had to do with debt issues. This gave me a window into how some unemployed folks are getting by and how others are fighting to hold onto their good credit name. Here are some of those questions:

Q: I’m in a tough situation. My dad and I co-own a home. My dad has the first mortgage, and I took a second mortgage based on the home’s equity to improve the house since my credit was much better. My dad pays for the second mortgage. Because of the economy, my dad may declare bankruptcy and the house will be foreclosed. I can’t afford to pay the second mortgage. Does this mean my credit is shot?

A: One of the downsides to co-signing is that if the loan goes into default, all that bad payment history gets reported on the co-signer’s credit report. So yes, in all likelihood your credit is and will be shot.

This is why time and time again I warn people about co-signing. When you co-sign, you are agreeing to be equally and wholly responsible to pay back the loan.

If you want to try to avoid completely trashing your credit, negotiate with the second lien holder either to settle the debt for less or to lower the payments to an amount you can afford.

I’m using my tax refunds to pay my credit card bills. I want to wipe clean my credit card debts before maternity leave. My income will be cut in half while I’m out. But with the tax refunds, I’m still a couple of thousand dollars short. Should I take it out of my savings?

It’s great that you have an emergency fund. Typically, I would recommend you take all the refund money and pay down the debt. However, I’m a little concerned about your income being cut. Be careful about paying down debt until you get a handle on what it’s like to live on half your income.

If you have at least three to six months saved, that will help cover household expenses while your income is down. With the savings in place, you could use the tax refunds for the debt. But keep your savings until you return to work full time.

I’d like to change employers. Although I have a bachelor’s degree, I’ve found I need to get an MBA. My family currently has about $32,000 in debt (credit cards and student loans). Should I just get a loan for graduate school? I don’t want to wait four to five years when our debt will be eliminated to start school.

I have two words: delayed gratification. You need to wait. You don’t need to change jobs, you want to change jobs.

You need to pay off that $32,000 instead of sinking your family into more debt, especially in this economy.

I recently lost my job. I have run out of money in my savings account and must now start using my home equity line of credit, credit cards or IRA to pay monthly bills. I have enough credit to last almost three years so I’m not hurting. What’s the best short-term source of money until I find a new job?

The best short-term source of money is a job. Any job. Or apply for unemployment insurance if you’re eligible.

Unless in dire conditions, you shouldn’t touch a tax advantaged IRA. Between the income taxes and the 10 percent penalty for early withdrawal, you could take a 30 percent to 40 percent hit.

As for using the home equity line and credit cards, you should avoid tapping that debt for your living expenses. Let’s just say conservatively your monthly expenses come to $3,000 a month. After three years of living on credit, you would have racked up more than $100,000 in debt. In just six months, you would have $18,000 in debt.

You are hurting if your backup plan is to live off debt.