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

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[quote=Anonymous][quote=Anonymous]What are your CC minimum payments?

My gut now (without seeing your budget, so with only limited info you have provided on this thread) would be to go down to one month expenses in your efund.  This is your "baby efund" in Dave Ramsey speak.  It is NOT a fully funded efund.

Take the rest of it and pay off the CCs as much as possible. Then take the minimum payments you WERE paying (this is your snowball) and put those on the CCs (higher interest rate ones first) until they are paid off.  You can predict when that will be done but calculating it out.  Say you can have all your cc debt paid off by June. Great.  Then take the total minimum payments that you used to be paying (your snowball has now gotten larger) and apply that to your car loan with the higher interest rate.  Snowball that loan and when it is paid off, roll that to your other car loan. By now your snowball should be very large and you will have all consumer debt paid off and you can roll the snowball to building your savings to getting a FFEF. 3, 4, 5, 6  months of full expenses.  Whatever the number is that you feel you need. THEN you take your snowball and start paying down those student loans.

It is going to take a long time to pay the student loans off, and so you should build in to your budget a car replacement fund so you don't have to go in to debt when you need to replace your cars in the future.

[/quote]

I agree with this poster. Really good advice. OP, you can do this without selling your house, as others have recommended. Put a plan in place and accept that it will take you a full few years to get there. If the jobs are stable, your emergency fund can be lower for a bit until you can get the CC debt taken care of--that should be priority #1. Also, if you live in the district, see if there is a way to get yourself down to one car. We have only one car and it has saved us so much money. Occasionally, one of us needs to uber somewhere, but even a few times a week, uber is cheaper than a second a car. You can do this, PP. Don't get discouraged by the other posters. [/quote]

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