Reply to Make $200k, credit card debt, no savings

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]The credit cards have the 30-30% interest rate. The 401K loans and car loans are 5%. 
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Sell a car and replace it with a reliable beater. Maybe both. There is no place in your new financial life for paying on two car loans on cars that are in danger of going upside-down. [/quote]

[b]This is bad advice. [/b]Keep the cars. No more restaurants and budget your groceries. Can you do without the dog walker or cut back? The exercise will be good for you even with a bad back. If you don't exercise and stay mobile over 50, you will end up with even worse medical issues!

We dug ourselves out of 100k of debt after daycare with twins. It is you and your spouse. Also don't totally take divorce off the table. Take care of your credit cards and increae your 401k as much as ypu can. Also if you have a joint account create and allotment to go to a seperate account where you can pay everything you need to. I am happy your DH is talking to you about money but if he wants to ruin his finances, he can manage that fine without you. Sorry to be harsh about that but it sounds like you have been trying to manage a bad marriage for awhile (401k loan) and it is okay to get a divorce. You need to be happy! [/quote]

It's bad advice on the numbers, but it is good behavioral advice. [/quote]

Pp. Used cars are still extremely expensive post-pandemic. Like there are 10 year old cars going for 12k. They probably could sell 1 car but they would run into transportation issues fairly quicklu with both working. That isn't stress they want to deal with on top of financial stress. That would actually make the situation worse because they would just go out and buy a new car. [/quote]

+1.  We tried to buy a used car last year and it just did not make financial sense at all.  Ended up with a new Subaru instead (but we had a decent downpayment to keep monthly payments reasonable).

But anyway, OP has a lot of potential fat to cut before needing to sell a a car.  Eating out, cigars, random amazon purchases, whatever is included in the "pampering" category.  That should free up several hundred dollars a month.[/quote]

But we know from their past behavior that they will not be able to do all of that consistently. So cutting one of the bigger items—a consumable—is a good idea for them.[/quote]

A car is not a consumable! It is an essential to live. It also makes zero sense in this market. They have too many easy things like cigars and restaurants to cut. Shoot, if they even cut that in half it would go a long way. [/quote]

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