How do I catch up? Is it even possible?

[Anonymous]

Sign up for Mint.com and track your spending very closely. You'll be stunned how much things like eating out and buying clothes add up. You can also customize categories and set & track goals on there.

It was great for me, I got out of 6-figure debt and paid off a house in 5 years by closely watching the expenses.

[Anonymous]

Anonymous wrote:If you spent $12k for repairs on the rental this year, it DOES NOT pay for itself. But if that is the way you guys are framing things, I think you have some magical thinking about money going on.

Sell the rental, keep living overseas until your kids are old enough for school because the housing allowance plus other perks overseas SHOULD be allowing you to climb out of debt. Returning stateside so that you can work (and pay for two kids in daycare) likely won't solve your problem.

When he bought the house, he was told it would need a new roof and some other repair (forget which). This year, those things came to pass. Otherwise it's fully updated and, because of where it is, guaranteed to stay rented.

We plan on staying overseas to make a dent.

[Anonymous]

Anonymous wrote:Sign up for Mint.com and track your spending very closely. You'll be stunned how much things like eating out and buying clothes add up. You can also customize categories and set & track goals on there.

It was great for me, I got out of 6-figure debt and paid off a house in 5 years by closely watching the expenses.

Thank you for this suggestion!

[Anonymous]

We get a housing allowance in Europe which is why my husband took the job here. We were living in a very high COL area prior to living here, and I was in school full-time and SAH. This is when we accumulated much of the debt, in addition to racking up 12k this year for repairs to the house my husband owns.

Sale the house, it is the rent is not taking care of the house is you had to rack up 12K worth of repair debt. Rentals income shoudl cover any mortgages and al of the repair cost...if it doesn't you are not breaking even.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If you spent $12k for repairs on the rental this year, it DOES NOT pay for itself. But if that is the way you guys are framing things, I think you have some magical thinking about money going on.

Sell the rental, keep living overseas until your kids are old enough for school because the housing allowance plus other perks overseas SHOULD be allowing you to climb out of debt. Returning stateside so that you can work (and pay for two kids in daycare) likely won't solve your problem.

When he bought the house, he was told it would need a new roof and some other repair (forget which). This year, those things came to pass. Otherwise it's fully updated and, because of where it is, guaranteed to stay rented.

We plan on staying overseas to make a dent.

so what suggestions are you looking for? it sounds like if you are frugal you will eventually pay down the debt

[Anonymous]

How much will you earn if you sell the rental?

[Anonymous]

Anonymous wrote:How much will you earn if you sell the rental?

The last Zillow estimate I saw was 40k higher than what he bought the house for. I'm not sure how that would all work out in the end.

[Anonymous]

Haha. Zillow. It says my house is worth a couple of hundred thousand more than I paid for it. It's not.

Sounds like you couldn't afford school, the property and another kid. Learn to live on what you make. We spaced our kids further apart but at least they will have college funds.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You people are harsh.

OP, I work for an agency where lots of people work abroad. With all of the allowances they receive, they seriously bank the dollars when they're overseas.

This is a problem solved by hacking away over time.

They have a housing allowance and they got themselves 50k in credit card debt. That takes a lot of effort.

I agree, people are being harsh!

My husband and I started out on tough financial footing, and clearly it's gotten worse. We charged our wedding (first mistake, shouldn't have had a wedding) - this cost 7000 all told. For our first year of marriage my husband paid his mortgage on top of our rent, because his ex didn't want to rent out the house. I was in school full-time and worked part-time, then we had our first child. Then I was in school full-time and SAH. Childcare where we lived averaged ~2000 a month and without a degree I was unable to find work that would justify that cost, especially while studying full time. I thought getting my degree was the smart decision.

We saw Europe as an opportunity to pay down debt, given where we were living before and with the benefits we get here. It's been slow going.

I'm sure it's easy to judge, but I posted looking for encouragement. We live extremely frugally - we don't eat out, we don't spend on anything other than necessities - and I just want some reassurance that there's a light at the end of the tunnel. I'm not making excuses, just saying we have a lot of debt that we're working to pay off.

Why did it matter what your husband's ex wanted to do with the property? The property should have been addressed in the divorce settlement, which would have had to be finalized before you got married.

[Anonymous]

OP, wish I had answers for you, because I too have my own financial house to clean. I just wanted to offer you encouragement - there IS light at the end of the tunnel. You are not alone.

DCUM will have you believing that you are dumb, fiscally irresponsible, etc. because everyone who posts here has millions of dollars in their 401k by the time their 30, and fully funded 529s for their 4 kids, but there are millions of others who aren't there yet, and that doesn't mean that you can't improve your lot and catch up.

Keep doing what you're doing re: living frugally and thinking of ways to improve your income, etc.

[Anonymous]

Anonymous wrote:Haha. Zillow. It says my house is worth a couple of hundred thousand more than I paid for it. It's not.

Sounds like you couldn't afford school, the property and another kid. Learn to live on what you make. We spaced our kids further apart but at least they will have college funds.

How is this helpful?

DH bought the house before we were married. I got a degree because there's a huge differential in what a HS grad earns versus what a college grad earns in a lifetime (more money for my kids, family, retirement). Life is harder for some than others; you don't know half of what I've been though. I came here seeking encouragement, not holier-than-thou snideness...but this is DCUM, so I know I shouldn't be surprised.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You people are harsh.

OP, I work for an agency where lots of people work abroad. With all of the allowances they receive, they seriously bank the dollars when they're overseas.

This is a problem solved by hacking away over time.

They have a housing allowance and they got themselves 50k in credit card debt. That takes a lot of effort.

I agree, people are being harsh!

My husband and I started out on tough financial footing, and clearly it's gotten worse. We charged our wedding (first mistake, shouldn't have had a wedding) - this cost 7000 all told. For our first year of marriage my husband paid his mortgage on top of our rent, because his ex didn't want to rent out the house. I was in school full-time and worked part-time, then we had our first child. Then I was in school full-time and SAH. Childcare where we lived averaged ~2000 a month and without a degree I was unable to find work that would justify that cost, especially while studying full time. I thought getting my degree was the smart decision.

We saw Europe as an opportunity to pay down debt, given where we were living before and with the benefits we get here. It's been slow going.

I'm sure it's easy to judge, but I posted looking for encouragement. We live extremely frugally - we don't eat out, we don't spend on anything other than necessities - and I just want some reassurance that there's a light at the end of the tunnel. I'm not making excuses, just saying we have a lot of debt that we're working to pay off.

Why did it matter what your husband's ex wanted to do with the property? The property should have been addressed in the divorce settlement, which would have had to be finalized before you got married.

She didn't abide by the agreement, which stated that she would pay half of the mortgage. They had to have the decree amended after the fact.

[Anonymous]

Anonymous wrote:OP, wish I had answers for you, because I too have my own financial house to clean. I just wanted to offer you encouragement - there IS light at the end of the tunnel. You are not alone.

DCUM will have you believing that you are dumb, fiscally irresponsible, etc. because everyone who posts here has millions of dollars in their 401k by the time their 30, and fully funded 529s for their 4 kids, but there are millions of others who aren't there yet, and that doesn't mean that you can't improve your lot and catch up.

Keep doing what you're doing re: living frugally and thinking of ways to improve your income, etc.

OP here, and thank you. People love to pile on on this site.

I suffered extreme trauma as a child and young adult and had no family support or guidance. Life was very hard for me until I got married. My DH grew up poor. Certainly all of our choices haven't been perfect but there's been some chance bullshit we've had to deal with. We are doing our best.

[Anonymous]

If you're a fed and abroad in a high COL area, consider bidding on a next assignment someplace less lovely and more cost effective. Places with high differential make it easy to pay off debt at home. I paid off $50K in debt in my first three years of foreign service (all at differential posts), as I was not paying housing costs and was careful to manage my other expenditures. While it's a bummer not to be in Europe or someplace fancy, my family is so much better off without ugly debt hanging over our heads.

[Anonymous]

Anonymous wrote:If you're a fed and abroad in a high COL area, consider bidding on a next assignment someplace less lovely and more cost effective. Places with high differential make it easy to pay off debt at home. I paid off $50K in debt in my first three years of foreign service (all at differential posts), as I was not paying housing costs and was careful to manage my other expenditures. While it's a bummer not to be in Europe or someplace fancy, my family is so much better off without ugly debt hanging over our heads.

I've heard this too. Friend lived in the Philippines and paid off substantial debt. Something to consider.