My SO and I make a combined a $105,000 a year. We live in a moderate col area and have a ten year old son.
Income: $105k total household After tax and health insurance income: $6200 monthly
Debt: - $38k student loans - $5000 car loan @ 9% interest (car worth $2k) - $6500 balance on Chase Slate card - $3800 balance on Chase Freedom card - $2000 balance on Capital One Card - $1500 balance on Capital One Card - $500 balancebon Credit One Card - $2400 balance on Discover It card - $800 balance on PayPal credit account - $5000 balance on Amex Blue card - is closed and in collections - $2000 balance on Amex PRG card - is closed and in collections - $2000 balance on Citi Card - is closed and in collections + Multiple items on collection (medical bills, etc)
Expenses (monthly): - Rent $1500 - Electric $80 average - Insurance $290 (two cars) - Car payment $200 - Phone $230 (3 lines) - Gas $100-125 - Groceries $400 - Eating out $200 - min payment on all cards $450 - Student loan payment $300 - Cable and internet $80 (looking to cancel soon) Total fixed expenses: $4000 (rounded up) - Miscellaneous expenses such as clothing, gifts, entertainment, costs associated with raising a child, take up the rest of our expenses. We don't save anything.
Our credit is crap (low 500s).
We'll never be able to pay off this debt. The more I think about it, the more hopeless I feel. We used the credit cards to get us through some tough times while I was in between jobs and we have been struggling to catch up. We have no money saved up and are barely paying the minimum on each card. Short of filling bankruptcy, what can I do now to start tackling this debt?
My job is steady and I will get an average of 7-9% raise each year plus a 2-4% bonus annually. My SO's income is steady but with smaller raises each year (2-3%). How will we ever make enough to clear all this debt?
Edit: added monthly expenses and after tax income
Submitted September 20, 2017 at 02:06AM by grethyu http://ift.tt/2jJVau5
