My Husband and I Are Just Getting By and Now Have a Child on the Way. – Marisa

“Dear Steve,

My husband and I have been married for almost four years. We are both teachers and make about 60,000 a year combined. During this time we have accumulated over 25,000.00 in needless debt. We own our own home, have one car payment and two student loans. We have tried to a make a mend of our ways in the past by consolidating credit debt into personal loans. Unfortunatlly in our eggerness to have our debt resolved the personal loan companies that we have choosen have hiked up the interest. We never miss payments are always pay our bills. However we have no money left after each check. Not a penny.

We are expecting our first child in May and must make some drastic changes in order to afford daycare by August. There is no other opption for childcare. I must work in order to pay our bills. We’ve looked at Debt counseling companies but upon further inspection found that to be the worst possible opption. We want to do everything in our power to avoid Bankruptcy.

I already work in an afterschool program to make a little extra cash to get by but in the summer time I will not be a part of this program and will have a new infant. To top it off we get paid less in the summertime because the county that we work pays us a stipend throught out the school year. During the summer there is no stipend.

We are making progress by not charging on credit, eating at home and not making extra trips or purchases. But, We have to get out from under the high intrest loans.

How can I relieve my high interest loans and get rid of debt before August when my newborn child must go to daycare? We can’t afford daycare.


Dear Marisa,

Congratulations on the new child. I understand you want to avoid bankruptcy but I don’t see how you can realistically.

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In order to create a safe environment for your new child you need to be able to start building an emergency fund in a savings account right now.

Children are expensive. They just are. I still remember all the late night visits to the doctor and ear infections that needed medications. On top of that there is always a hundred other things that need your financial attention as well.

You could avoid the cost of daycare if you stayed home but either daycare or staying home have the same result on your income, a big impact.

Since you are already living month-to-month, you have no savings, a child on the way and daycare expenses coming up there really isn’t any other logical choice other than bankruptcy unless you can think of a way to reduce your current expenses and increase your income, even after the child is born.

Even with bankruptcy, which would eliminate your $25,000 of unsecured debt, I’m still worried you’ll be able to get by. Eliminating that debt would save you about $500 a month but I’m sure that daycare is probably going to be more than that per month. Do you have a plan for dealing with that issue?

If you want to discuss bankruptcy, click here to find a local bankruptcy attorney you like and talk it over with them.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

Damon Day - Pro Debt Coach

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