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

Forum Index » Money and Finances

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

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]^pp I feel like your advice is good but would be better for someone who is unable to save vs someone who is in massive debt.

It seems like the op is spending too much because of certain choices she's made around her number of children, house, commute and childrens' activities.  Until she makes some big changes she's going to have a hard time not ordering convenient food.

Her biggest outflows are related to her home, childcare and two cars.  Something has to give because she needs to almost free up an entire salary to go towards the debt.  She needs at least 50k a year going to the debt.  That's not going to happen by quitting some activities and cooking at home.  It's going to happen by moving to an inexpensive apartment, selling a car, changing the childcare situation, etc.

Regardless op needs to do the math.  It all comes down to inflow vs outflow.  The numbers don't lie.  Do the math op.  Figure out how you can dedicate 5-6k a month towards the debt and to savings.  [/quote]

But I do not think the OP knows where the money is going right now.
In the short term she needs to break it down by line item so she can create a plan for how to get from the current state to being consumer debt free. (I assume this is the 1st goal)
Without having a full understanding of all of the family expenses - and planned expenses for the next few years you do not know what your target is for new car payments or new rent. (note - I think child care costs only go down by 50% once kids are in school given before / after care, care for teacher work days and camps)

[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics