I’m married with two kids and in my late 40s. I just took over the finances from my wife, and we’ve got $125k in credit card debt. I’m lost. What’s my first step?
You both need to get on the same page and share the responsibility of sorting this out. Things will either get better or worse from here. Realizing there’s a problem is the first step.
Sidney said:
You both need to get on the same page and share the responsibility of sorting this out. Things will either get better or worse from here. Realizing there’s a problem is the first step.
The good part is we have a solid marriage. I just feel stuck about how to get out of this mess.
@Mai
It’s one step at a time or you may need to consider bankruptcy.
What’s your household income, and what do your monthly expenses look like?
Justice said:
What’s your household income, and what do your monthly expenses look like?
Together, we make about $320k, but we live in a high-cost area, and we have a special needs child, so the expenses add up. I haven’t sorted through the monthly details yet. Is there help out there for people in my situation?
@Mai
Start by listing all your monthly expenses so you can see where every dollar goes. That’ll open your eyes. Is your $320k your net income?
Flynn said:
@Mai
Start by listing all your monthly expenses so you can see where every dollar goes. That’ll open your eyes. Is your $320k your net income?
That’s before taxes.
Flynn said:
@Mai
Start by listing all your monthly expenses so you can see where every dollar goes. That’ll open your eyes. Is your $320k your net income?
That’s before taxes.
So probably around $250k net, right? Try searching for ‘debt help’ in your city. There’s a lot of support available. But first, get a clear picture of your expenses. Can you cut back on housing or other major costs?
@Flynn
I’ll need to make some big changes. I’d prefer not to file for bankruptcy.
Mai said:
@Flynn
I’ll need to make some big changes. I’d prefer not to file for bankruptcy.
I hear you. It won’t be easy, but it’s doable with some sacrifices.
Mai said:
@Flynn
I’ll need to make some big changes. I’d prefer not to file for bankruptcy.
You don’t need to file for bankruptcy. You’re making enough money to get out of this, you just need to adjust your spending habits.
@Mai
Wow, how do you manage to earn that much money?
Stevie said:
@Mai
Wow, how do you manage to earn that much money?
Huh?
Stevie said:
@Mai
Wow, how do you manage to earn that much money?
Huh?
Sorry, I meant what’s your job? With that income, you must be well off. I was just curious.
@Stevie
Two people earning that much are not considered rich, just upper middle class. It’s all about location and expenses.
Fifer said:
@Stevie
Two people earning that much are not considered rich, just upper middle class. It’s all about location and expenses.
I guess upper middle class is still quite close to high class. For me, that’s a lot of money. I earn around $30k, so I can’t imagine having that much, though.
@Stevie
It’s all about lifestyle. Many upper middle-class people carry debt because they think they deserve more. A lot of them have student loans, car payments, and housing costs. Food and daycare in high-cost areas add up too.
@Stevie
Yeah, living in a high-cost city really makes it hard to stretch that money.