Looking for advice on how to tackle our debt. We’re about $30k deep in credit card debt that I know of. My husband makes around $67k a year, and I’m a stay-at-home mom with our 3-month-old.
Our rent is $2000 a month, and my husband is convinced we can knock out the debt in a year. I just don’t see how that’s possible. We’ve already cut back on spending, but even then, it feels like we’re barely making a dent. Everything costs so much right now.
My mom has offered to let us move in with her for as long as we need, charging little to no rent. She has plenty of space. It’s not my first choice, and my husband really doesn’t want to do it, but it would help us pay things off faster. I want us both to be comfortable with whatever we decide.
I’ve been looking for a remote part-time job, but with a newborn, I don’t know how realistic that is.
Any advice? Strategies? Anyone been in a similar spot?
With that income, there’s no way to clear $30k in debt in just one year. Two years might be possible, but it’ll be tight.
Moving in with your mom for 24 months could wipe out your debt in 15 months and give you a $25k savings cushion for emergencies.
Stop using credit cards immediately.
Call the card companies and ask for a lower interest rate. Your rates are probably 25-29%. Even dropping to 18-20% helps.
Pay your credit cards every time your husband gets paid. Most people don’t realize interest is calculated daily, not monthly. More frequent payments save you a lot.
Check out NFCC.org (National Foundation for Credit Counseling). They’re a nonprofit and can help with budgeting and debt solutions.
Do everything possible to avoid bankruptcy. You’ll be in a much better position down the road.
If you can put up with it, moving in with your mom would set you up financially for the long run. My parents did it when they were saving for a house, and it worked out great. Plus, if she’s a good grandma, it could be helpful for all of you.
If your mom is supportive, it could be a big help. Babies are a lot of work, and having her around might take some of the pressure off. Two years isn’t forever, and you’d come out debt-free and possibly even with some savings.
@Blair
She’s great, but like any family, she can get on my nerves. She works part-time, so she’d be a huge help with the baby. My husband isn’t a big fan of the idea, but he and my mom get along okay. I think moving in is a last resort for him.
I’d take your mom’s offer. You could be debt-free in a year and then move into a better place. Otherwise, you’re looking at 3-4 years to pay it off while still struggling. A year with your mom is nothing compared to the stress of carrying this debt for years.
First step—get a full breakdown of your debt. How much is on each card, what are the interest rates? If they’re super high, most of your payments are just covering interest.
$67k a year isn’t a lot when you have rent that high and a baby. If you really want to get out of this, you either need to move somewhere cheaper or bring in more income.
I know it’s tough, but even part-time work would help. If your mom is offering a rent-free option, I’d strongly consider it.
I don’t think you should move in with your mom unless your husband is fully on board. If he’s not, it might do more harm than good. Debt sucks, but your relationship is more important. You’ll figure it out together.
There are only two ways to pay off debt—spend less or make more.
Your current setup isn’t really working, so one of those has to change. If you don’t want to move in with your mom, can you pick up part-time work? Even something like babysitting for another family could help.
I was a stay-at-home mom for a while, but eventually went back to work. The extra income made a huge difference, and my kids turned out just fine.
Move in with your mom. Plenty of people would love to have that option right now. A little discomfort is worth it if it means you get out of debt faster.
@Roux
My husband does have an eBay side hustle, but I don’t know how much it brings in. I agree—there’s no way we clear this debt in a year. Thanks for the suggestion on credit counseling, I’ll check that out.
Maybe you can compromise—move in with your mom for one year, then move back out once the debt is paid? If she’s willing to babysit, you could also work part-time to speed things up.
With $67k a year, paying off $30k in debt that fast seems unrealistic, especially with rent that high. You’ll need to either pick up extra income or seriously cut back spending. Moving in with your mom is probably your best shot.