Need Financial Advice....Expenses > Income

[Bill Drutz]

Need some help.Please help me decide on next steps.

Current Bills= $10,300 month

Mortgage - $2,600 month, already discounted.

Credit Cards –$1,030 month………..$150mo @ $7k, $55mo @ $2k, $27mo @ $1k, $35mo @ $3k, $40mo @ $4k,$25mo @ $1k, $47mo @ $1k, $67mo @ $2k, $25mo @ $1k, $25mo @ $1k, $45mo @ $1k, $80mo @ $4k, $25mo @ $1k, $80mo @ $2k, $102 @ $4k, $110mo @ $4k, $90mo @ $2k.

Loans - $470mo @ $10k, $591mo @ $15k, $270mo @$3k, $650mo @$30K (not in my name),

Kid’s School -$900 month

School Loans - $785 month

Cell phones - $200 month

Personal loan to Dad - $1,000 month, $28k left.

Cars - $730 @ $31k, $330 @ $17k

Car insurance - $150 month

Cable/Internet/Gas/Electric/Water - $500 month

INCOME = $7,300 month

Both at 600 credit scores.We spend $10,300 per month above,we have FT jobs and drive Lyft make bring in $7,300 month. I am $3k upside down a month.Don’t know what to do, please help.

Do I stop paying on the loans? I can’t get any more credit/loans approved to get 0%, etc.

Want to sell the car and downgrade with the payment of $730 per month but I owe $7k more than what the car is worth. Can’t stop paying personal loan to Dad since he depends on the $1k per month.

Please help!

[Anthony Wick]

Small fixes will not do a dang thing, I'm afraid. You have to go big on this. Big, as in, selling your home, selling car(s), negotiating your credit cards to not just a lower payment, but a deal on how much is owed. Kids need to be in free public school. Cancel anything that is not needed (cell phones, cable, literally anything). This is most likely a 3-5 year dig out process, if you're super diligent. It's time to be upfront and honest with the family about the mess you're in. Pick up Dave Ramsey's book "The Total Money Makeover". Read it, and then live it. There is no easy fix here. None. It will suck and will be a lot of work. But, knowing all that, many people have been in your shoes and have dug themselves out. At least you will be doing it with good incomes. You can do this!!