Another "need advice" subject - your input, please.

[Anonymous]

Anonymous wrote:I should also mention, we have about 450K+ in investments, though I dare not touch those unless we absolutely and only absolutely need to. For me, it's at least a peace of mind that we did some good, earlier in our years. Before life as we know it caught up to us. But we live and learn. And I will absolutely not repeat this, and will make sure to instill good training with our kids so they are smarter (hopefully) than we ever were...

You have $450k in the bank and are paying a family member $200/month? Op, you have to pay them back!!

[Anonymous]

Ok, I'll list the APRs here shortly. We have three children, 9, 6, 3. We both work, so daycare and summer camps are needed. This summer, we're hiring a summer nanny (college student), $12 per hour, comparable to camps.

[Anonymous]

Anonymous wrote:You really should list the terms and APR/interest rates for all of your debt. $2200 in store card debt - why on earth wouldn't you pay that off immediately? I shudder to think of the interest rate on that.

I'd take that out of the efund and use the extra cash from not having it toward the second mortgage, it's probably about 50-75/month right?

[Anonymous]

Anonymous wrote:OP here. We live in the burbs in a 1900 sq ft house, so a McMansion this is not. 2006, man, if I could turn back time.... I think the cost of going through selling and buying a TH probably isn't the best approach, though I'm open to opinions. Remember, we have 10K right now in emergency savings only, though we'll be at 15K soon and 5K with a regular savings fund. So selling and eventually buying....not sure it makes sense?

For our cars, one Honda minivan and one Jeep Wrangler, your basic mid-line models. Owe ~21 on the Honda and maybe 28 on the Jeep, perhaps slightly more. Don't have my spreadsheet in front of me. No Lexuses or Mercedes here, lol.

Family loan from family, 200 a month until it's paid off. Five years from now at this rate.

Loans % varies, the student loan is around 3, consolidated loan is just over 9 (with USAA). Cree card (also USAA) is just over 10 and I've shopped around - it's pretty much the best for what I've found (barring opening up another to roll it onto, which I hesitate doing and would rather just pay it off ASAP).

PP suggested renting, not buying. Dont even think about buying until you are out of the 150k consumer debt and pay off second mortgage.
And your comment about your cars not being fancy shows you do need some more work in rethinking and framing your debt. In your situation, those cars ARE the equivalent of a Lexus, and 1900 square feet is huge for the amount of debt you are in plus being underwater in it.

I am not trying to be unkind, but it is this sort of justifying away bad choices that most likely got you into debt in the first place.

[Anonymous]

OP, is the 450k on top of your retirement savings? If so, I would use some of it to pay off the high (9-10 percent) interest rate debt.

[Anonymous]

OP again, the 450 is essentially 350 of retirement, and 100 of IRAs and college funds for the kids. I'm afraid if I borrowed from there, we'd be slapped hard with taxes. Not sure if it's worth it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here. We live in the burbs in a 1900 sq ft house, so a McMansion this is not. 2006, man, if I could turn back time.... I think the cost of going through selling and buying a TH probably isn't the best approach, though I'm open to opinions. Remember, we have 10K right now in emergency savings only, though we'll be at 15K soon and 5K with a regular savings fund. So selling and eventually buying....not sure it makes sense?

For our cars, one Honda minivan and one Jeep Wrangler, your basic mid-line models. Owe ~21 on the Honda and maybe 28 on the Jeep, perhaps slightly more. Don't have my spreadsheet in front of me. No Lexuses or Mercedes here, lol.

Family loan from family, 200 a month until it's paid off. Five years from now at this rate.

Loans % varies, the student loan is around 3, consolidated loan is just over 9 (with USAA). Cree card (also USAA) is just over 10 and I've shopped around - it's pretty much the best for what I've found (barring opening up another to roll it onto, which I hesitate doing and would rather just pay it off ASAP).

PP suggested renting, not buying. Dont even think about buying until you are out of the 150k consumer debt and pay off second mortgage.
And your comment about your cars not being fancy shows you do need some more work in rethinking and framing your debt. In your situation, those cars ARE the equivalent of a Lexus, and 1900 square feet is huge for the amount of debt you are in plus being underwater in it.

I am not trying to be unkind, but it is this sort of justifying away bad choices that most likely got you into debt in the first place.

The cars are also pretty low on gas mileage. Could you sell one and get a sedan (we were able to get a 4 year old vw sedan for 10k)

[Anonymous]

Another vote for cheaper cars. They are much too expensive.
Of the $5000 for camps and Christmas. Camps only if it is so you can work. Bake cookies for Christmas gifts this year.
Make sure you are making all your meals.

[Anonymous]

Keep them minivan but the jeeps got to go

[Anonymous]

Anonymous wrote:Keep them minivan but the jeeps got to go

X10000 I get it, it's fun. I had one for 10 years and hope to get another, but that is an INSANE amount of money for someone so in debt. If you want to keep a jeep, which you shouldn't because the gas mileage is so bad, you need to get a used one for about $15k.

[Anonymous]

Who said you cannot refinance if you're under water? Look up HARP program and see if you qualify. You can qualify even if you are 125% Underwater. We did andoutr interest was 3.6%

[Anonymous]

I think it is great that you are tackling this debt. But you owe a lot of money. Those cars are very expensive. Sell the jeep and buy a $7000 car with cash and use the remaining money ($10000?) to pay off debt.

[Anonymous]

Also check out Mr. Money Mustache.

[Anonymous]

Like most people in debt, you make excuses. You need to sell one of the cars and take public transit. Get rid of iPhones. asap. Get the cheapest cable package.

[Anonymous]

I cannot imagine this debt load and your ability to sleep at night. I understand you comprehend the seriousness of your situation, but it seems like a unexpected repair bill/illness, etc could ruin your plan. If you will not budge on the house, all other expenses MUST be reduced or eliminated. Could you or your spouse pick up an extra job on the weekend? I am sure you are aware that in 9 short years, your eldest will be entering college and you still have your own student debt. Where will that $$ come from? With 2 of you working, you will probably make too much HHI to receive any FAFSA money.