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

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[quote=Anonymous]I realize that 24 pages in, this might be a repeat of info.  But here's what I'd do:

1) Sell the SUV and get a used sedan, assuming that makes sense based on the FMV and loan balance.  Keep the minivan.  I have 3 DCs and my DH drives a very small sedan with 3 carseats in the back and I drive the minivan.  He's capable of driving the kids where they need to go, but obviously for longer trips we always take the van.

2) What's your interest rate on the mortgage?  Did you refinance back when rates were low?

3)  No child in daycare needs activities.  I have plenty of money and no debt and I don't waste my time/income on activities for kids until they are at least 5.  I will give your older DC a pass if he really is that good at a musical instrument.

4)  Why can't you take out a loan (not cash out) from your 401K to pay off the cc debt, assuming the interest rates on the cc are high?

5) Take whatever money you would have spent on activities, camps, etc. and put that towards your debt.  Use the exact amount.

6)  When you're dealing with as many kids as you are, I have to assume a summer nanny would be cheaper than camps.  Otherwise, your standard for a camp should only be a place that keeps your kids alive.  It doesn't have to be the best.

7)  Stop with the vacations.  Use some of your vacation time to stay home with the kids (and save on summer daycare costs).  Use the other time to do something cheap but fun -- go to campground and get a stripped down cabin for a long weekend.  Or just don't vacation.  Growing up, my usual vacations were spent visiting grandparents and that was fine with me.  We did fun things in the towns around where the grandparents lived.  When my parents were more financially secure, we started taking vacations.  I think that happened around middle school.

OP needs to get in the mindset that short term pain is necessary for her family's long term health.  You know the stress and problems that comes from having financial problems.  Your kids are going to be more affected by that then skipping out on soccer for a few years.

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