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Hello, I'm a 35 year old software developer. I have substantial debts that I need to address but I'm not sure where to start. I'm exploring options and open to any advice. My reason for accumulating so much debt is because I've been supporting a family member financially for a couple years, and my savings and personal investments have been now used up. I have also made some poor purchasing decisions buying things I cannot afford.

I will list out my monthly expenses and income, as well as debt breakdown:


Income:

  • $4556 take home per month
  • Sometimes additional income for travel expenses
  • Paid bi-weekly so 2 months per year I get 3 paychecks. I typically put the extra paycheck in these months toward my debt.

Other Assets:

  • 401k: Current Value of $159,000

Expenses:

  • Rent: $925
  • Internet: $55
  • Gas: $65
  • Electric: $180
  • Water: $45
  • Trash: $14
  • Food and Gas: $450
  • Family Member Support: $1200

Total Expenses: $2934


Debt:

  • Car 1: $409/mo, $24721 balance at 4.25% (car is upside down on loan)
  • Car 2: $352/mo, $19000 balance at 4% (car is upside down on loan)
  • Credit Card 1: $374/mo, $15857 balance at 13.99%
  • Credit Card 2: $61/mo, $2828 balance at 18.74%
  • Credit Card 3: $441/mo, $17353 balance at 15.74%
  • Credit Card 4: $101/mo, $3059 balance at 26.49%
  • Credit Card 5: $253/mo, $9346 balance at 19.74%

Total Monthly Debt Payments (Minimum only): $1991


Total Expenses + Debt Payments: $4925 - This is quite a bit more than I bring in each month obviously


Solutions I have considered

  • Take a 401k Loan - I can borrow up to $39,000 at 5% interest. A 5 year loan at $39k would come out to about $735/mo, and I would pay off Credit Cards 1, 2, 3, and 4 with this, which would save me a couple hundred dollars per month.
  • Debt negotiation program - I don't really know much about this but I know it ruins your credit score. A friend of mine did this and he was able to get a significant portion of his debt removed, and his credit score started coming back up after a few years.

Other than those options I'm not sure what else I can do short of getting a second job, getting rid of a car which I will still owe money on since I owe more than they're worth, or reducing the extent of which I support my family (this is a last resort). Looking for any and all advice.

Thanks!



Submitted April 27, 2017 at 10:19AM by odinsride http://ift.tt/2oPvJ8t

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