Our Budget is Sound But We Have Nothing Left to Pay Off Debt! – Sarah

Dear Steve,

So debt is my problem…I have read up to the chapter in your book where I can begin to creating action plans…I created my budget…here’s my situation…my husband and I have incured about 24,000 in credit card debt (he was laid off for about two years before regaining full time permanent employment — in our very misguided world…we turned to credit cards) and 7200 in student loans…6500 currently in judgement (however could be 4800 if we can pay it off in one lump sum) and about 2500 in medical bills…we have three children under the age of 5…so here’s my deal…my income and my husband’s income on the budget spreadsheet are perfect with a little wiggle room 91.25 left over each month…unfortunately, we have no way to bargain with all of the debt collectors we have! How do we form a plan when our income is solely for just bare minimum survival expenses…please advise…


Dear Sarah,

Wiggle room of $91 is simply too close for comfort. All it will take is one minor emergency and your whole plan is thrown out of whack.

How much have you budgeted to save each month? Can you save and build up your emergency fund at all under the proposed plan?

I’m concerned the goal to get out of debt is superseding the reality of your numbers and current situation.

Can you share with me some more details in the comments below? Am I wrong is assuming you have no budget for savings and are still just barely limping by?

Please post your responses and follow-up messages to me on this in the comments section below.


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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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