Hi all.

I’m trying to figure out how to be more comfortable more or less on a month to month basis.
I’m married, 2 kids under 3.
Our monthly net is close to $6000.

We have the following monthly bills.
Mortgage $2300
Home Eq $600
Car1 $376 (lease 2 payments left)
Car 2 $375 ( own, 10k left)
CC payments $485 ( 3 cards total $24,000)



I have about 10k from income taxes to use.
I’m not sure what I should use this for.
Attack CC’s?
Payoff the car?
The car that I owe 10k on I hate being it is a gas guzzler.
I’m thinking about trading it in when the lease is up on car1 and getting a 3k beater to keep from having payments.

kenshell, thank you for inadvertently validating THIS post I made on another thread whereby the main point was how retired persons in the USA could ever live on $2,250 per month.

Your financial situation is typical of most 18 to 50 year olds.

According to my calculations by the time you're finished servicing your debt you're left with about $1,864 per month for everything else and you probably don't have $250,000 in cash or equivalents on hand.

Your debt makes you a slave to an employer.

You don't need an Internet message board on adivice on how to get out of this situation........ you know what needs to be done.

The question is, Will you do it?

__________________
Gary Spicuzza, *SAFE
Copyright 1956
No Rights Reserved
*Self Appointed Financial Expert

1. $1,000 to start an Emergency Fund
2. Pay off all debt using the Debt Snowball (smallest to largest- except house)
3. Three to six months of expenses in savings
4. Invest 15 percent of household income into Roth IRAs and pre-tax retirement
5. Pay off home early
6. Build wealth and give!

Attack the credit cards.......Regards, Robert

__________________
www.debtamendment.com

kenshell,
i know it may sound played out but you need to get rid of the highest interest rate first. You will be saving the most money. The credit cards are the mostly likely to snowball if things get in a crunch and a payment is missed, so its best to get them out of the way. You definately have the right idea with getting a beater. No payments are a lovely thing.
Good luck.

Definitely get rid of the highest Interest Rate first. This will help alot, then continue downward. This will probably mean credit cards first. Good Luck!

__________________
New graduate with an emphasis in debt counseling.

[quote=kenshell;7040]Hi all.

I’m trying to figure out how to be more comfortable more or less on a month to month basis.
I’m married, 2 kids under 3.
Our monthly net is close to $6000.

We have the following monthly bills.
Mortgage $2300
Home Eq $600
Car1 $376 (lease 2 payments left)
Car 2 $375 ( own, 10k left)
CC payments $485 ( 3 cards total $24,000)

Two schools of thought. One might fit your type of personallity better than the other.

1) This makes the most financial sense. Payoff the highest interest rate loand first. this will save you money in the long run.

2) Pay off the cars and put the remaining money towards hacking into the credit cards. This allows instant gratification knowing that you have successfully eliminated debtors from your plate. This is a successful tactic is "getting the ball rolloing." Peolpe use this method of paying off the smaller amounts first and it feels great.
Another bennifit of using the second method is now you have freed up $750/month to use to payoff the cc's faster.

Which ever you choose, you have made the first step in recognizing your debt and have shown willingness to overcome it. Good for you.