Hello all:
My wife and I have gotten to the point where we have a tremendous amount of credit card debt, and we are finally facing the music. I need advice.
Quickly, I will say that for the past 10 years or so, starting as young adults, the more money we made, the more credit card debt we built. For years, I would pay hundreds of dollars a paycheck on my credit cards, but then turn around and put money right back onto those cards.
My wife and I are finally taking what I see as the first step in this, which is to not put money on our credit cards anymore. I know that sounds simple, but it's a big step for us. We are budgeting an amount each paycheck to pay on credit cards, but then waiting until the end of the paycheck, to make sure we actually have that much money to pay against them. We have only done this successfully for a couple of paychecks in a row (we just started), but I'm hoping as we move forward this will paint a much more clear picture of what our budget truly is. I've always kept a budget...we just never stuck to it.
Regarding our debt, I'm wondering if I need to get some type of consolidation loan, and general advice.
Our annual income is about $120k
My credit score is 720
We have $27k in credit card debt, ranging from 11% ($18k) all the way up to 25%
I have 2 kids, a home, and $80k in student loan debt too (all wife), if at all relevant.
I'm seeking advice on how to best attack the credit card debt. Also, I could probably use some advice about building up a savings account while paying off this debt. We have never had more than a few hundred in savings. Emergencies have always gone on the credit cards.
Thank you for your time!
edit: I should add to this that we were really hoping to sell/buy a new home in the next two years. I bought the home for $185k, I owe $169k, and the zillow estimate (which i'm sure isn't true since it needs repairs) is $212k.
Submitted January 13, 2017 at 11:43AM by lotsofdebtguy http://ift.tt/2isGzk1
