Reply to Earning Well but Drowning in Debt...how to dig out?

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[quote=Anonymous][quote=Anonymous]DH and I earn decent money (not a huge amount by DC standards, but comfortable) $285k HHI.  But we are so drowning in debt, we don't know how or where to begin to dig out. $200k in student loans. $50k in credit card debt (a lot from grad school and also while I was on maternity LWOP). We basically live check to check because of mortgage payments, student loan payments, credit card payments, and daycare expenses for two kids. We have very little savings, despite trying to participate in our respective 401(k) and federal tsp.

How do we start to tackle this? Do we see a credit or debt counselor? I have no idea how to find someone legitimate who isn't out to rip us off or destroy our credit even further. We need a game plan, as we are in our mid-to-late 30s, and cannot sustain this. We take one vacation per year, not luxurious, but nevessary for two fulltime working parents of three kids. We do have our kids in a lot of activities. [/b]We do drive two newish cars we had to get for space when the kids came along (three car seats). [b]

Can anyone recommend a legitimate accountant or debt advisor/credit counselor, who could meet with us and help us sort this out and come up with a plan? [/quote]

You didn't have to purchase two newish cars. Do you even need two cars?  With this kind of debt you should be driving older cars.  Do see how ridiculous it is to have credit card debt and purchase two new cars?

To put things in perspective my husband and I make almost 400k.  We own one car.  Sure we live in DC but could still use another car.  But do we have to have one?  No.   I can take the bus or walk to take the child for checkups.  I take the bus to work.

Here are other suggestions:
Have one spouses paycheck go into a different checking account.  This account goes entirely towards paying off debt and saving 
The other spouses paycheck is for living expenses.  If you can't live off of one paycheck you need to downsize your house, sell your cars etc.

Also:
Take lunch to work
Limit dining out.  Plan meals on Sunday. 
Take out cash weekly.  You have a problem with spending and should not be using cards.  Even debit cards 
Sell one car 
Don't shop until you've paid off the credit cards and most of the debt. 
Get a cheaper cell phone plan 
Don't go on vacation. You can't afford it until the credit card debt is paid off

Also why on earth did you have a third child if you hadn't saved up for leave?

Ready mr money moustache this entire weekend.  [/quote]

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