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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]this, folks, is a lesson in keeping your fixed costs down.  [/quote]

And also not reproducing while you have 200k in student loans outstanding!  Who does that?  I feel bad reproducing because we'll have to take money out of savings for the baby room. [/quote]

Please, not everyone had decent public university options (and honestly, it could be $100k for each parent: my public university was 2 hrs from my house so I would have to live on campus, which means about $8k tuition but $12k room and board, so you have $80k right there doing the 'right' thing, and $20k for grad school would be pretty easy). A lot of you folks scoff at student debt but it can be very expensive if you don't live near a public university not have any parental help. Most people on this board are from east and west coast metros and have no idea of the hurdles for lower income from small towns just to get out of that town.

Don't have kids until $200k is paid off; so basically you are saying folks who didn't have parents fund their 529 shouldn't ever have children?

I am pretty sure OP is like us; they want to keep the govt jobs because they value stability highly b/c their is NO safety net outside of their jobs. No parents or relatives or even old friends with connections to get them through a downsizing. And those govt jobs mean living as close to DC as possible to have decent commutes, and good schools they see as the key for their children's future success and hence living in Bethesda/Arlington or what not in as small a place as possible. Townhouse is right choice, b/c condos becomes $$$ as they age and you will end up with huge fees and headaches. And a small two bedroom townhouse in Arlington is $650, and the cheapest 3 bedroom is $750k.  Renting is not an option now b/c rents have been increasing 5% a year and it is now cheaper on a month to month basis to buy a property then rent the same property. Unless you rent something much smaller, but with current rent increases that would be a poor gamble to make.

They could downsize their cars: we have 3 car seats in a Yaris and it is fine, just need to look at radian80 car seats and the like. Not sure of the value of selling a 2012 and 2013 vehicles; those are not new and I suspect if they run into the ground it will turn out to be a good option; definitely better than a Kia which won't last as long. OP go borrow  some narrow car seats and give a smaller car a test drive and run the numbers. If you can get $20k for odyssey and buy a used fit for $10k you will make a dent. But these are one time changes and won't bring you home.

I would recommend paying down credit card debt by using emergency fund. You have 401k for true emergencies, and you can use your credit cards for semi-emergencies like a new furnace. He rate on the cc debt must be awful and is working against you. Pull that bandaid then stick the credit cards in a bowl of water and freeze them. You need to work on a cash basis

Pp recs for summer camps are true, go with ymca and county; kids may complain but will be ok. Try to coordinate hard with friends b/c kids like best when they know someone in camp more than how organized it is.

Drop kid activities that cost more than $50/month. Music instruction is expensive but maybe look at a grad student or someone to do instruction or have lessons every other week and push for more practice time. Community bands are an option to get more time playing in public or church piano for the choir.

Freelancing is hard b/c you work for govt and this core career is off limits.

I would eliminate cc debt, and depending on rate I might roll student loan debt into mortgage but that does put your home at risk by converting unsecured debt into secured debt. But if interest rate is fixed st 1/2 of student loan debt it might be worth it. [/quote]

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