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Brought to you by the EveryDollar app, start budgeting for free today. Long story short, essentially, we're in a really like drowning in debt. We've got about 50 grand in credit card debt, which we were like getting ourselves out of and then eventually it just turned into couldn't get ourselves out anymore and then living off credit card. Trying to put food on the table for our babies and then about 60 chain student loans, we're in a hole with our two of our jeeps, we're just one is a $900 payment, one's a $400 payment. What's the full amount of the first jeep? $40K on that and we would be, it's worth about 31. Yikes, okay. So we were in a bad car position and that was what they were willing to stop us out for and essentially just really bad situation on the stay at home, mom, my husband's a teacher, I'm going back to work in August to be a teacher, but we wanted to move out of state and we were almost the point of wanting to just sell our house and take our equity and put it in to hang off all the debt. Well, let's look at it like, yeah, so jeep, jeep number one is $40K but it's worth $31K. What about jeep number two? Cheep number two, I think we have about, it was $45K and I've had that for a long time. We have about $17K on it. $17K, what's it worth? And then what was that? Sorry. What's it worth? Uh, I think that one's only worth about maybe $15K, so that's not as bad upside down. Yeah. Then you said, so it's credit card student loans, two jeeps, then what do you tell us about your mortgage? So our mortgage, that was the other problem, we moved about two years ago into this house and we were thought we were going to be at one interest rate and then right before we close interest rates went up in Rata, $3,200 mortgage. And so... What's your take on that? Then my husband makes $90K, he makes about $5,500, 400 a month. Oh, oh boy. That's where the problem is, a big problem. Yeah. And so then last summer, we literally were to a point like we were going to buy Costco groceries and then next day we'd have to go return our food because... Yeah, we had a pay fill and so we turned to like a debt relief program and I feel like ever since then it's gotten even double worth because now our credit is so bad and we can't do anything. Wow. Looks like we don't see a light at the end of the tunnel. It's... Yeah, you're in a hard spot right now. There's always light though and there's always hope. So I don't want you to think that all hope is gone because it's not. It's just going to take some time and some a little bit of pain possibly and some discomfort to get out of this. But I promise it'll be worth it. So looking at all of this, tell us about your income. So with 5,400 a month he makes right now, when I go back in August, I was staying at home because whatever we would pay in child care would have, I mean it wouldn't have made sense. But now with the pay raise, we'll be getting as teachers, I'll be making about 70 and then we'll be spending about half my checks towards child care. So I'll be taking home a little extra. How much do you think? Probably about 2,000. Okay, so that brings us up to 70, okay, so that brings us up to 7,400 which helps this mortgage look a little better. It helps give us some margin to pay off the debt because right now, what are your total credit card payments? Oh, well we put a lot of them in a program and then now since we weren't, yeah, so we... I mean we're one of them we're being, I don't even know if I'm going to say the word, but two or four, yeah, so we're just, we just don't know what to do, do we pull them all out of the program? Well, they're not all in the program, just half of them are. What is this program doing? Do they tell you, hey, don't make any payments, let it trash your credit, we'll negotiate? Exactly. Oh gosh. Exactly. And that's why we got sued because we weren't like responding and we thought it was being handled and then it was... Yeah, these companies are scummy. They're just as bad as the credit card companies if not worse. Oh yeah. And we're just scared, we have a four-year-old and we know we're taking blame but we just don't know how to, who to turn to essentially, we're kind of silently struggling right now. Okay, so for me, the big clearing problem, this mortgage is really eating your lunch. 60% of your take-home pay is going to the mortgage, 25% of your take-home pay is going toward these, just the car loan payments, which is 85% of your take-home pay, which leaves 15% and you still got a pair of student loans and credit cards, put food on the table, cover insurance, utilities, so are you guys continually going into debt to cover the gap? Yeah. Yeah. Well, yes and no, we don't use any credit cards right now. My mom helps us and she helps us a couple hundred bucks a month where she can and then other than that, we've really just tried to cut out almost everything and we've been trying to sell like some stuff around the house and that kind of thing. What do you owe on the house and what's it worth? So we purchased price with like $6.16 actually, I think, and we owe about $4.60 and I think we just looked into selling and they said we could probably list it for around $6.30. Okay, that's good. So after fees, you might net like $1.40 out of that, which would clear all of your debt almost or at least give you enough to get rid of the cars, get different beater cars, get rid of the credit cards and student loans. Have you priced out what it would, what it might be for you guys to rent a two bedroom apartment? Well, we have not because we have five dogs in most places in the world. Five dogs. Goodness gracious. Okay. Cost to rent a house. Probably about, I think they said we could get about $3,000 a month to rent it. That's not changing much for you guys. No. I mean, that's a $200 difference. Could we buy another house with that credit or is that not positive? You can't, you can't afford to buy a house. You have to have a down payment to buy a house and you need to have three to six months of expenses to buy a house. Your debt to income ratio is out of whack and so you're not going to be able to just go over, you need to put pause on home ownership and we need to clean up all this debt. And, and I'm going to say something highly controversial and highly, you might just be like, Jay, forget you. Don't let these dogs keep you from doing what you need to do for your family. If you need to rehome these dogs to a wonderful family who'd be psyched to have them and can take care of them. You can visit them, but do not let these dogs keep you from getting in the living situation. If these dogs are eating and you can't eat because you got to return your groceries to Costco, we've got our priorities out of whack. Five dogs is a lot of dogs for somebody who can't who's struggling to afford groceries. Yeah. And I hate to say that because we love our pets, but in this case, a dog to every one of your family members for the next year until you clean it up and see what's next. Yeah. So we have about 10 key and saving. Should we start? Should we put those towards all credit cards? Yeah. That's, that's, it helps. Well, it's almost the amount you're under water on in the car. Yeah. Could you get, could get you out of the car? You might just save up until I can buy a beater car, use that money, savings plus that new savings amount and get out of this car situation. That's good. It's free of payments. Yeah. That'll give you a little breathing room there, but not much that that right there is excellent, but it doesn't take the place of the living situation, which is a one. I think you still got to get in this house. Yeah. Unfortunately. So sorry. This is tough. No matter what, it's next. It's not going to be fun, but I want to get you to peace as fast as possible. Get your free every dollar budget today, the simplest way to budget for your life.
