In this work we provide the theoretical formulation, discrete approximation and solution algorithm for instability problems combing geometric instability at large displacements and material instability due to softening under combined thermo-mechanical extreme loads. While the proposed approach and its implementation are sufficiently general to apply to vast majority of structural mechanics models, more detailed developments are provided for truss-bar model. Several numerical simulations are presented in order to illustrate a very satisfying performance of the proposed methodology.