re: Debt Debt Debt.

Do you have an emergency fund (money in checking/savings, non retirement investments)?

Normally I would say a 1k emergency fund is way too low, but it might just scare you into doing a budget.

It takes balls to admit you have a problem. Enjoy Holloween with the kid tonight.

My simple suggestion: Make a budget.

I like Mint as an easy spending tracker with a budget function. It will breakdown spending categories. It allowed me to very quickly notice poor habits. Watching the needle move will make cost cutting to pay down debt bearable.

My specific suggestion: Heloc

If you 80-100k value in you home and can get a 5-6% loan to pay off 8.9-22.8% CC debt, then you will see massive savings.

My warning: If you don’t budget, then you will never escape debt.

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I like Mint as an easy spending tracker with a budget function. It will breakdown spending categories. It allowed me to very quickly notice poor habits. Watching the needle move will make cost cutting to pay down debt bearable.

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I was just coming here to post this.

Using Mint you can track EXACTLY where your money goes per month.

I personally don't think you have put much effort in attempting to pay down the debt. If you were really looking to cut into the debt, you wouldn't spend $1400 a month on ENTERTAINMENT! The easiest way to cut into your debt is right here. I'm guessing y'all have a bad case of FOMO but with that kind of debt, you have to gain a backbone and stop going to dinner/movies/golf or whatever it is that you are spending that much a month.

Easy answer, but not one you want to hear: work five 12 hour shifts/week. I’m guessing you work 3 12’s a week with an occasional 4 12 hr week.

If 5 12’s in the ER is too strenuous, get a second job at an occupational health clinic where you mainly piss test people or treat on-the-job injuries.

None of this will work, however, unless you get your spending under control.

To put it bluntly, suck it up, make more, spend less. There is no magic formula/shell game for your debt that will fix this.

Sell the house pay off all debt, save the rest. Use the savings per month (1700 bucks) to help with increase from 1600 to whatever rent is and save the rest every month to buy a new house later (or not).

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Their sales points are that they only collect off of the deduction they obtain. Meaning they get all lenders to agree to take 45000 instead of 63000. They have me pay 49000. They keep the 4grand.

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They likely require you to default on your loan and then settle with each creditor for less than the balance owed. You will be taxed as income on any debt forgiven and your credit will be shite for a while. In addition, they will take a big chunk of the charge off amount.

It is a terrible idea. Even if you were to go this route in dealing with your debt, you can accomplish the same thing without their help.

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My simple suggestion: Make a budget

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Isn’t it amazing how clear the picture becomes when you know where every dollar is going?

I was up to $70,000 in debt at one point - some Katrina related, some medical, but plenty just credit cards. Got it all paid off. Then I ran credit cards up to $37,000 again. My attitude was “We have $5K/month after bills are paid - it will come down eventually.” But it’s amazing how many miscellaneous expenses creep up each month even after all the fixed expenses are paid (my average miscellaneous expenses after all bills are paid is around $2K/mo., which shocked me).

For a few months I started writing down every dollar we spent. I realized I was overspending an average of $1,500/month. I put a budget on paper - nothing fancy, no computer program needed, just a notebook with all of my bills/expenses/entertainment allowance/investments, and everything else itemized. Credit cards are pretty much wiped out now and I keep things in check. I have money put away for the first time in my life.

Life is much better and less stressful due to a pen, a notebook, and some common sense. I still write down every dollar I spend, so if I am over budget even for a week, I know exactly how much. It’s not about beating yourself up, it’s about holding yourself accountable for every dollar you spend.

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In the same thread you are saying his wife should be working, he should have side jobs, with an 8 year old at home, you tell him to go down to one vehicle. Where is the logic in that

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Oh, and automatically sell his house in spite of there being markets where it can be far more expensive to rent than to buy.

That’s not an apples to apples comparison.

This thread has been such a waste of time. The OP clearly isn’t focused on solving the issue and I wish him the best.