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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Op again. We are navigating the summer camp thing now. $450 (or even higher... Smithsonian camps are closer to $540/week with aftercare!) seems to be pretty standard unless you do a city camp or Ymca type camp, which are ok but not for the whole summer. They aren't always well organized. We are looking at sending kids to stay with relatives for part of the summer.

I honestly think a big problem is the cost of living here. $450/week per child for camp is so crazy. Housing is so expensive. Even food is more expensive. Daycare most expensive in nation. I would love to move somewhere cheaper. But I am a fed and DH also works on the Hill. [/quote]

DH and I live in Loudoun County (I'm thr poster who got out of 100k in consumer debt in 18mos) and EVERYTHING is more expensive in DC. Not a single summer camp is 450/wk where I live. I'm in a SFH with 4BRS 3.5BAs and a full suite in the basement for our AuPair for 2500/mo.  Granted we work in Reston/Tysons, but that is no accident. We didn't want to be in your position, high income and stretched to the max. I really think that people like you who live in DC are outrageous. I simply don't get it whrn there are so many jobs elsewhere. The government doesn't even pay well (relatively speaking). I see no upside.  If I need a "DC" experience we just trek it there with the kids.[/quote]

Op here and I agree with you. I would consider a move out further to outer Fairfax county (w Springfield, Burke, Clifton) or even Prince William, but DH won't because of our commute to DC. I want so badly to move out. All our friends in other parts of the country are doing so much better.

I realize I have made financial mistakes. Using  credit cards to help through grad schools and maternity leave. Taking a longer maternity leave and not getting paid. I decided to take lwop for an extra month with each child. But that was precious extra time that I couldn't get back. Now I am trying to make things right or better. [/quote]

Moving will not help, there are costs to selling and buying a house. [/quote]

She probably has equity in her home. Selling a house for 900k and buying one for 475k will make a huge dent.

She said she's in a close in burb, bought her house pre-kids, she is living in the solution to all her problems. Massive equity right there.[/quote]

Then refine the house to pay off all the debt and have one really really HUGE mortgage.  But only if they cut day to day costs and cut up their credit cards.[/quote]

That is the debt shuffle aND a common tool used by people who are outwardly rich and perpetually inwardly poor.

Only option here is a full reset. They are drowning. [/quote]

They are drowning - but not willing to make changes.  The OP mentioned after the original post sending her child to Smithsonian summer camp.  Seriously - you have 50K of consumer debt and think this is an option?  
If I was in their shoes I would take the SUV and sell it.  Purchase a used  sedan - most sedans fit 3 boosters.    Get rid of the Odessey and buy a Kia.  Yes - Honda's last for ever but this is about cash flow right now - not long term investments.

Go on the Michelle Singletary Financial Fast.  The reason I am recommending this tool is that this family needs to go cold turkey and stop making excuses (my husband is out of town, it is only pizza, my 6 YO is a gifted musician)
http://www.washingtonpost.com/wp-dyn/content/article/2009/12/31/AR2009123103495.html

They have acknowledged they made bad financial choices in the past - but they do not know how to make good choices.  Michelle Singletary is good for that.

Once you see how to save $ each month through the financial fast - you apply Dave Ramsey's approach.[/quote]

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