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. We do drive two newish cars we had to get for space when the kids came along (three car seats).

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]

If this is for real, you don't need to pay anyone to tell you that you have to reverse as many bad choices as you can and revamp your entire thinking of what you have to have.
From this one short post alone, we can tell that you don't understand how to leave within your means and have somewhat of a sense of entitlement and "everybody else does so we should" kind of thinking.

1. It is NOT necessary to take a yearly vacation because you work full time and have small kids. You have $50k in consumer spending. That needs to he laid down before you add to it. You cannot afford a yearly vacation, you are in major debt. Take that money and put it towards the debt.
2. Two children in daycare with two working parents do not need any activities. Period. Little gym, soccer team, movement classes are completely frivolous and a luxury when you are $50k in debt. You cannot afford this. Take them out and put that money towards the debt.
3. Two new cars when you are $50k in debt is unthinkable. Get out from under those car payments, buy used or go down to one car. Take that money from the car payments and put it towards the debt.

I bet you go out to eat weekly, take out, coffee, etc.

Eating out? Put that money towards the debt.

Just from the above, that is probably $1k/month at least to the credit card debt.
And I haven't mentioned the student loan, keep paying the minimum payments until you are rid of the credit card debt.

I'm curious about what you think a financial planner or debt consultant would take you for?
You are dead broke.
Your net worth is negative.

What do you think they would tell you besides spend way way less and pay down the credit card?
I'm curious what your ideas are.[/quote]

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