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We Are Making a Large Income but Can’t Get Out of Debt. – Tio

I apologize in advance for the short response. I am currently away on vacation with limited internet but wanted to give you an answer as soon as possible. Steve

Tio

“Dear Steve,

My husband and I are working professionals with a large income…however, we have some short term loans that will be paid off soon, so money will be freed up. However, credit card debt has climbed to over 30,000 just because of late payments and struggling to make the minimums. We are also delinquent on some. We are such busy people are debt has just gotten away from us and we recently had a 3rd, unexpected child to add to our expense along with huge medical debt….

What is our wisest decision as far as starting to eliminate and liive without worrying about making it month to month as well as preparing for our futures?

Tio”

Dear Tio,

As far as prioritizing where your money goes I think you need to make this as easy and simple as possible. Do the following:

  1. Pay yourself first, put some money, even just $50 in a savings account. Get in the habit. now
  2. Pay all of the minimums on the bills when the bills arrive, not when they are due. Pay them immediately and then you won’t have to juggle them by memory latter.
  3. Use the debt snowball approach to get out of debt. It is simple, easy and works.
  4. Any money leftover is for you to use for food, fun and life.
  5. The balance you need to find is that razor edge between using too much money to get out of debt and not having a life and having a life but no money to get out of debt.
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About the author

Steve Rhode

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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