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

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[quote=Anonymous][quote=Anonymous]I think this family did not recalibrate when their financial situation changed.  However they had already gotten into bad practices.

Early on the OP stated that they accrued credit card debt during graduate school.  I think there is a mind set of entitlement of - we are going to be professionals -we can afford to ... go out for dinner, we need to go on that networking trip, if we don't do the mini-mester in London we are not taking advantage of being at a top tier school - after grad school I will pay of my credit card debt with my signing bonus - of course after I travel Europe for the summer because I worked really hard for the last few years to get here and I deserve this.

And this mindset just spirals until you figure out a way to stop it.

To the OP - I would recommend that you cut up your credit cards and use cash for everything.  Studies have shown that people who pay cash(and are in similar situations) purchase less.  For things where it is easier to have a credit card - take your budget for the month for things like gas and either purchase a pre-paid card OR get a debit card set up specifically for these purchases.

[/quote]

Yes, another good point. It seems like most people I know have the "oh sh&*t" moment when they have their first child and realize how much daycare costs,
maternity leave, using sick days for child's sickness, and all the other things you never thought of pre-kids and that carries forwards to decisions going forward.
It seems like OP just didn't have that moment until now, and I posted previously about how the lifestyle change is going to be difficult and really uncomfortable, and possibly embarrassing if they are really into keeping up appearances.[/quote]

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