Steve my husband and I are up to our eyeballs in debt, in 12 years we’ve had 3 state to state moves from his job and are currently on our 4th one.
We have racked up 70k in debt and now with money being the way it is I’m petrified we wont qualify for a car or house.
Please point me in the right direction. How do I get rid of this …. I pay the bills monthy and let me tell you it makes me sick every month… I can barely afford minimum payments so to me paying more than what they request is not possible. It feels hopeless
I know what that sick and hopeless feeling feels like. It sucks.
First, let’s start with the premise that your situation may be hopeless, as far as getting by. It might just be that you can no longer afford your situation. No matter what the reality is we need to start with some basics.
If you are not currently saving any money each month, like $50 or more, then you need to factor that back into your spending. If you don’t have health insurance, you need to get it and put that in your spending estimates as well. Those are two expenses that you can’t do without.
I would suggest that you first start with developing a spending plan. Download a free copy of my ebook, Eliminate Your Debt Like a Pro and starting on page 81 it will show you how to track your expenses and get a grip on where the money is going.
If that does not help you to lower your outflow each month then we need to look at inflow. If more money is not able to be brought into the family then something else is going to change. And that change is going to have to be the amount you pay out on bills.
For whatever reason and chain of circumstances, you have found yourself where you are today financially. It is what it is and for us, it is your starting point.
As maxed out as you sound, if you do nothing it sounds unlikely that you will be able to qualify for a home or car at reasonable interest rates. As far as you know right now, your credit score is already in the toilet because of high debt to income ratios.
And if that is the case, unless you break this financial logjam some way, not much is going to change moving forward.
I can give you some additional suggestions about what could be the next step but I think you need to first develop your spending plan and see what your financial situation is at this moment.